Analysis of the potential and effectiveness of central market retribution revenue on the Regional Original Income (PAD) of Mimika Regency
Abstract:
Purpose: This study aims to evaluate the potential and effectiveness of central market retribution revenue and its contribution to the Regional Original Income (PAD) of Mimika Regency. It seeks to determine whether market retribution is managed optimally and provides meaningful income to the local government.
Research/methodology: The research uses a quantitative approach with descriptive and case study methods. Data were collected through documentation, questionnaires, and interviews from 2019 to 2023. The analysis applied effectiveness ratio, contribution analysis, and market retribution potential calculation using standard regional financial formulas. The data were validated using triangulation techniques.
Results: The results show that the effectiveness of central market retribution collection in Mimika remained high, with an average effectiveness rate above 90% classified as effective. However, its contribution to total PAD remained low, averaging only 2.03% from 2019 to 2023. The study also found that the retribution potential was not fully realized due to limited trader registration, low payment compliance, and manual collection systems.
Conclusions: The study concludes that while the effectiveness of central market retribution collection in Mimika Regency was consistently categorized as effective, its contribution to the overall Regional Original Income (PAD) remains low. This gap is primarily due to unregistered traders, low compliance in payment, and inefficient manual collection systems. To maximize retribution revenue and strengthen local income, the government needs to improve data management, optimize monitoring systems, and enhance digital retribution mechanisms.
Limitations: The study is limited to a single market (Pasar Sentral Timika)and relies mainly on secondary financial data, which may not capture real-time administrative inefficiencies or informal economic factors.
Contribution: This study contributes to regional fiscal policy literature by highlighting the gap between potential and actual market retribution performance. It offers insights for local governments to improve revenue collection through digitization, trader data management, and regulatory enforcement.
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