STUDY OF BANDUNG REGENCY INCOME POTENTIAL

Abstract

The author analyzes the current condition of the Bandung Regency financial plan structure for the
last 5 years, especially regarding the condition of the regional income system and original regional
income in particular. Then provide an analysis and project the amount of regional income for the
next 5 years by considering regulatory, institutional and potential aspects. As well as providing
recommendations and strategies so that original regional income can become a force in financing
development in Bandung regency at least for the next 5 years. In the era of fiscal decentralization,
regional revenue sources are very important for local governments to develop and plan their
program of activities and expenditures. So far, taxes and levies have been the two main sources of
original regional income for each local government, especially for the Bandung Regency
government. However, this is inseparable from the efforts of the local government to maximize every
potential in the area and besides that it also depends on the conditions of the people in the area. In
Bandung Regency, local taxes, population, and average income of population per capita have a
positive and significant effect on original regional income. General allocation fund is still the main
source of financing for local governments even though the realization of original regional income
continues to increase. Optimizing original regional income sources other than taxes, especially user
fees, which currently have a minimal contribution to original regional income. With the enactment
of the regional tax and levy law, it opens up opportunities for regions to further maximize their
regional potential.