Adaptive Integrated Revenue Governance for Strengthening Regional Fiscal Independence: A Comparative Study
DOI:
https://doi.org/10.61194/ijjm.v7i4.2716Keywords:
local own-source revenue, fiscal independence, fiscal decentralization, regional governance, digital tax administration, airg modelAbstract
Regional fiscal independence remains a challenge under Indonesia’s fiscal decentralization, particularly because Local Own-Source Revenue (PAD) management is often examined through separate dimensions such as taxation, digitalization, or administrative performance. This study aims to compare PAD management in Bandung Regency and West Bandung Regency and develop an integrated governance model based on comparative empirical evidence. A qualitative comparative case study was conducted using interviews with key informants, field observations, and document analysis. Data were analyzed through the interactive model of Miles, Huberman, and Saldaña, followed by cross-case analysis to identify common patterns, institutional differences, and mechanisms influencing PAD management. The findings reveal substantial differences between the two regencies. Bandung Regency demonstrates relatively stronger institutional governance, integrated digital tax administration, inter-agency coordination, and organizational capacity. West Bandung Regency has improved its revenue administration but continues to face constraints in operational human resources, taxpayer database completeness, geographical service coverage, digital literacy, and taxpayer adoption. Cross-case analysis indicates that organizational governance functions as a central mechanism connecting digital administration, human resource capacity, inter-agency coordination, and taxpayer participation. Based on these empirical relationships, the study proposes the Adaptive Integrated Revenue Governance (AIRG) Model, consisting of five interconnected dimensions: Input, Process, Supporting System, Output, and Outcome, reinforced by a continuous feedback mechanism. Its distinctive contribution is the conceptualization of PAD optimization as an adaptive governance process in which institutional capacity, digital systems, coordination, stakeholder participation, and organizational learning interact rather than operate as isolated components. The model provides an analytically transferable framework for strengthening integrated PAD governance and regional fiscal independence, while requiring further empirical testing in other local government contexts.
Downloads
References
Abdillahi, M. M. (2025). Fiscal Decentralization: A Review of Theories, Evidence, And Policy Implications. 14(1), 229–250. https://doi.org/10.59568/AMJD-2025-14-1-19 A
Amrisal, A., Mallongi, S., & Selong, A. (2024). The Effect of Regional Original Revenue, GDP, and Capital Expenditure on Regency/City Fiscal Distress in South Sulawesi. Jurnal Economic Resource, 7(2), 14–23. https://doi.org/10.57178/jer.v7i2.941
Anto, L. O., Aswati, W. O., & Hasnita, H. (2022). Competence of human resources, quality of information technology, organizational commitment and successful implementation of accrual-based accounting. Accounting, 8(2), 139–150. https://doi.org/10.5267/j.ac.2021.7.008
Avianti, W. (2024). Regional Decentralization of Purwakarta 2018-2022: Effectiveness And Growth Of Local Original Income. Journal of Accounting Inaba, 3(1), 1–13. https://doi.org/10.56956/jai.v3i01.285
Bird, R. M. (2015). Improving tax administration in developing countries. Journal of Tax Administration, 1(1), 23–45.
Cheng, Q., Chen, B., & Luo, J. (2024). The impact of digital tax administration on local government debt: Based on the revision of the tax collection and administration law. Finance Research Letters, 67, 105938. https://doi.org/10.1016/j.frl.2024.105938
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4 (ed.)). Sage publications.
Firzada, A. F., Akbar, B., Ilham, M., & Kawuryan, M. W. (2024). Impact Analysis of the Influence of Institutional Capacity and the Use of Performance-Based Budgeting on Original Regional Revenue Receipts in the Tanggerang Regency Area. PERSPEKTIF, 13(2), 552–559. https://doi.org/10.31289/perspektif.v13i2.11452
Hasanah, N., Masdar, R., & Furqan, A. C. (2025). Empirical Evidence on the Role of Local Own-Source Revenue in Strengthening Fiscal Independence of Indonesian Local Governments. OWNER: Riset Dan Jurnal Akuntansi, 9(4), 2950–2963. https://doi.org/10.33395/owner.v9i4.2788
Ibrahim, D., Aneta, A., Wolok, E., & Aneta, Y. (2024). Optimising fiscal decentralisation: Addressing financial management challenges in Gorontalo Province. Policy & Governance Review, 8(3), 323–342. https://doi.org/10.30589/pgr.v8i3.1092
Irmawati, Andi Bahrun Syam, B., & Sudirman. (2024). Optimalisasi Pendapatan Asli Daerah Melalui Pajak Dan Retribusi. Jurnal Ilmiah Administrasita’, 15(2), 74–82. https://doi.org/10.47030/administrasita.v15i1.752
Khairunisa, D., Setiyono, B., & Erowati, D. (2024). Optimalisasi penerimaan pajak daerah tahun 2019–2023 dalam rangka meningkatkan pendapatan asli daerah (PAD) Kota Batam. Journal of Politic and Government Studies, 14(1).
Kurniawan, A., Akbar, B., Sinurat, M., & Meltarini, M. (2024). Strategi Optimalisasi Pendapatan Pajak Daerah Untuk Meningkatkan Kemandirian Keuangan (Analisis di Kota Pekanbaru). Ekonomis: Journal of Economics and Business, 8(1), 962–969. https://doi.org/10.33087/ekonomis.v8i1.1825
Li, W., & Li, D. (2024). How does technological innovation affect the fiscal decentralization of local governments? Evidence from China. Heliyon, 10(9). https://doi.org/10.1016/j.heliyon.2024.e30132
Lincoln & Guba, E. (1985). Lincoln, & Guba, EG (1985). Naturalistic inquiry. Beverley Hills. CA: Sage. Maarschalk, HJ.
Makhya, S., Usman, M., & Warsono, W., & Mukhlis, M. (2023). Analysis of local government financial capability and its implications for the sustainability of regional autonomy: The perspective of public interest. The Journal of Society and Media, 7(2), 486–513. https://doi.org/10.26740/jsm.v7n2.p486-513
Mesfin, S., & Teka, T. (2023). The practice of fiscal decentralization at local level in Ethiopia: Evidence from Oromia and Afar Regional States. Cogent Social Sciences, 9(2), 2241260. https://doi.org/10.1080/23311886.2023.2241260
Miles, M. B., Huberman, A. M., & Saldaña, J. (2018). Qualitative data analysis : a methods sourcebook (4th ed.). SAGE Publications.
Mukaiyaroh, Z., & Anik, S. (2025). The Effect of Local Government Size, Local Original Revenue (PAD), Balance Funds, Capital Expenditures, on Local Government Financial Performance. Economic Reviews Journal, 4(3), 983–994. https://doi.org/10.56709/mrj.v4i3.778
Multiningsih, P. S., Arenawati, A., & Yulianti, R. (2021). Strategi pengelolaan pajak daerah dalam upaya peningkatan PAD di Kota Serang. Jurnal Ilmu Administrasi Negara ASIAN (Asosiasi Ilmuwan Administrasi Negara), 9(2), 291–302. https://doi.org/10.47828/jianaasian.v9i2.73
Oladimeji, K. A. (2023). Impact of Revenue Administration on Revenue Performance in Nigerian Local Governments. Journal of Techno-Social, 15(2), 18–27. https://doi.org/10.30880/jts.2023.15.02.002
Pali, E., Aholou, C. C., & Yatta, F. P. (2025). Determinants of the Financing Mechanisms of Decentralization in Togo. Journal of Risk and Financial Management, 18(4), 178. https://doi.org/10.3390/jrfm18040178
Pinargote, J. H. L., López, T. E. H., Velasco, C. A. S., & Carrillo, C. B. Z. (2025). Decentralization and Governance in Local Governments: Challenges for Efficient Resource Management Oriented to Regional Business Development. Journal of Posthumanism, 5(5), 5021–5028. https://doi.org/10.63332/joph.v5i5.2084
Pinilla-Rodríguez, D. E., & Hernández-Medina, P. (2024). Governance and fiscal decentralisation in Latin America: An empirical approach. Economies, 12(8), 207. https://doi.org/10.3390/economies12080207
Putra, A. F., Syahid, I., & Riantika, R. L. (2024). Optimizing regional tax revenue with taxpayer compliance as a moderating variable in Yogyakarta. Journal of Contemporary Accounting, 6(3), 151–171. https://doi.org/10.20885/jca.vol6.iss3.art2
Rahmawati, R., & Sutrisno, E. (2020). Pengelolaan Pajak dan Retribusi Daerah Kota Tangerang Selatan. Jurnal Pembangunan Dan Administrasi Publik, 2(2), 26–37.
Sa’bani, S. R., Saputro, G. E., & Suwito, S. (2025). The Role of Local Governments in Optimizing Regional Original Revenue: A Role Theory Perspective on Fiscal Autonomy. PPSDP International Journal of Education, 4(1), 347–361. https://doi.org/10.59175/pijed.v4i1.412
Setyari, N. P. W., La Tenriganka, M. A. Y., Suasih, N. N. R., Yasa, I. M. P., & Mahaendrayasa, M. S. A. (2025). Tax revenue optimization strategy in “shadow economics”: Prospective approach. International Journal of Public Policy and Administration Research, 12(2), 114–132. https://doi.org/10.18488/74.v12i2.4244
Smoke, P. (2015). Rethinking decentralization: Assessing challenges to a popular public sector reform. Public Administration and Development, 35(2), 97–112. https://doi.org/10.1002/pad.1703
Wahyudi, A., & Budiman, A. A. (2024). Tax Optimization of Starred Hotels as an Effort Increasing Regional Original Income in the District West Manggarai. International Journal of Innovative Science and Research Technology (IJISRT), 9(10), 614–618. https://doi.org/10.38124/ijisrt/ijisrt24oct366
Yani, H., Martini, R., & Sarikadarwati, S. (2024). Optimalisasi Pajak Daerah Untuk Meningkatkan Pendapatan Asli Daerah. Akuisisi: Jurnal Akuntansi, 20(2), 446–456. https://doi.org/10.24127/akuisisi.v20i2.2396
Yaumil, Tobarasi, & Indrawan. (2024). Analisis Pengelolaan Pajak Daerah dalam Meningkatkan Pendapatan Daerah pada Badan Pendapatan Daerah Kabupaten Kotawaringin Barat. Jurnal Pendidikan Indonesia, 5(11), 1516–1536.
Zainuri, A., Irawati, R. I., Rusli, B., & Myrna, R. (2025). Fiscal dependence and challenges to regional autonomy: Assessing the effectiveness of financial decentralization in Indonesia. INTERNATIONAL SEMINAR, 7, 1016–1032. https://doi.org/10.36563/0y02q518
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Deden Nuramdani, Hadi Prabowo, Mansyur Achmad, Petrus Polyando
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
