The Analysis Of Optimalizing Land And Building Tax In Fulfilling Targets As The Important Part Of Local Revenue

Local autonomy with its fiscal decentralization has given messages to the local governments in Indonesia that they should be able to manage their needs based on their own financial capacity. Actually, this is not an easy job for regions which are not so rich with limited funding sources. Sumedang is as one of many districts in Indonesia also strugling to find ways in increasing its local revenue. Land and building tax is a dependable source for fulfilling local expenditure because its amount has a significant affect to the local revenue, meaning that it has a big contribution in running development process. This empirical study tries to solve problems which have been faced by the local government in doing efforts to optimalize land and building tax in Sumedang district. As a predictable and stable tax, the land and building tax could really be optimalized by Sumedang local government. Although optimalization does not mean maximalization but based on the real local potency, there are still many possibilities to increase local revenue from the land and building tax without creating any distortion to economic conditions. The elaboration of this case will be driven by following the analytical framework with its indicators and subindicators. By this way, hopefully it could be found what really the problems are. After knowing obstacles in managing land and building tax in Sumedang district then in the end of this paper, it will be presented the conclusion and policy implication based on problems. Hopefully, it could give some contribution to Sumedang local government to accelerate achievements to reach the objective and goal in reaching land and building tax targets and increasing local revenue as a whole.