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Journal : eJEBA

Evaluation Of Local Revenue As An Instrument Of Regional Fiscal Strengthening In The Maluku Islands: Elasticity And Effectiveness Approach Sangadji, Maryam; Siregar, Indra Saputra; Oktantiasari, Aisyah; Assel, Muhammad Ridhwan
e-Journal Ekonomi Bisnis dan Akuntansi Vol. 12 No. 2 (2025): e-JEBA Volume 12 Number 2 Year 2025
Publisher : UPT Penerbitan Universitas Jember

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19184/ejeba.v12i2.53715

Abstract

This study aims to 1) Analyze the level of elasticity of local own-source revenue (PAD) to gross regional domestic product (GRDP), 2) Evaluate the level of effectiveness of PAD target achievement and 3) Assess the role of PAD in strengthening regional fiscal capacity. Through the elasticity and effectiveness approaches, the results show 1) the elasticity of PAD to GRDP in Maluku Province shows a moderate average value (1.13), but there are significant disparities between regions. Ambon City and MBD were highly volatile, while SBT recorded negative elasticity; 2)  The effectiveness of PAD in Maluku Province and Ambon City was high and stable, while Central Maluku and Southwest Maluku showed low and fluctuating effectiveness. East Seram Regency recorded very high but inconsistent effectiveness, driven by incidental revenues, which reflects the lack of a strong regional fiscal capacity structure. The degree of fiscal decentralization in Maluku Province and the four districts/municipalities is still classified as low to very low, with the dominant pattern of fiscal relations being “instructive” and “consultative”. This reflects limited regional fiscal capacity and high dependence on central transfers, especially in district areas such as East Seram and Central Maluku.
Co-Authors Abdul Basir Ahmadi Seram Amirudin Amirudin Anton Priyo Nugroho Arsan, Muhammad Romy Assel, Muhammad Ridhwan Basmuru, Djohan Basuki, Ferry H Basuki, Ferry H. Bugis, Muhammad Dian Indah Sari Djufri R. Pattilouw Djufri Rays Pattilouw Dwi Hariyanti Ekron Rupisiay Engko, Pierre Fernic Erly Leiwakabessy Fahrudin Ramly Fahrudin Ramly Fahrudin Ramly Fredy H. Louhenapessy Gaspersz, Jefry Hahury, Hendri Dony Hehanussa, Solami J. Ismail Izaac T. Matitaputty Izaac T. Matitaputty Jeanee Nikijuluw Jefry Gaspersz Jolyne Myrell Parera Kevin Hermanto Tupamahu Latuheru, Anita Latupono, Hapsia Leasiwal, Teddy Ch. Lussi R Loppies Lussi R. Loppies M. K. Tupamahu Maimuna Talaohu Maria K. Tupamahu MATITAPUTTY, I. T. Matitaputty, Izaac T. Matitaputty, Izaac Tonny MATITAPUTTY, Izaac Tony Muhammad Badrun Sangadji Muhammad Bugis Muhammad Ridwal Assel Muspida Muspida Muspida Muspida, Muspida Nada, Novianti Mariana Nikijuluw, Jeanee B. Ninik Endang Purwati NURLETTE, Nur Ali Oktantiasari, Aisyah Ollong, Ulfa E. R. Oppier, Hermi . Pattilouw, Djufri Pattilouw, Djufri R. Pattilouw, Djufri Rays Pattimahu, Terezia V Pierre Fernic Engko Ramly, Fahrudin Ratih Fitriyanti Djalangkara Retno Sari, Nur Aidah Binti Risal Wally Risnawaty Risnawaty Rumerung, Dientje Rupisiay, Ekron Sahrul Sahrul SALAMPESSY, Zainab Salomi J. Hehanussa Samuel PD Anantadjaya Sherly Ferdinandus Sherly Ferdinandus Siregar, Indra Saputra Stelamis Metekhoy Stellamaris Metekohy Suara, Novita Suluh Priyosahubawa Suriani, Seri Syawal Zakaria Tamtelahitu, Jopie Tuhumury, Harry A. Tupamahu, M. K. Ummi Duwila Usmany, Paul Usmany, Paulus Wailissa, Ruslan Yusuf Warella, Olivia Nelyan Yulianti Yulianti Yurinawati, Dwi Evita Yuyun Yuniarti Layn Zulaiha Kapitanhitu, Siti