Analysis of regional tax contribution to DKI Jakarta's revenue before and during the COVID-19 pandemic

Abstract

Purpose: The study aims to determine the level of contribution of each type of local tax to DKI Jakarta's Original Regional Revenue (PAD) during the COVID-19 pandemic and before.

Methods: This research employs a descriptive qualitative analysis method using secondary data related to local tax revenue. The data collection techniques involved observation and documentation.

Findings: The analysis indicates that in 2019, prior to the COVID-19 pandemic, half of DKI Jakarta's local tax types met or exceeded their targets, achieving an average effectiveness of 90.48%. During the 2020 pandemic, this average rose to 98.36% due to reduced regional tax revenue targets. Notably, the Land and Building Tax (PBB-P2) was the largest contributor to PAD at 22.54%, while the groundwater tax contributed minimally at 0.24%. These results highlight the varying performance of local tax types over the years.

Practical implications: Local tax strategies should adapt to economic changes by optimizing the Land and Building Tax (PBB-P2) to boost regional revenue and increasing the contribution of the groundwater tax for a more diversified revenue base.