<![CDATA[The digitalization of licensing services plays a crucial role for local governments in expanding business formalization and strengthening local revenue capacity. This study aims to evaluate the Gerakan Melayani Perizinan Langsung (GAMPIL—Direct Licensing Service Movement) innovation in supporting business formalization and optimizing local revenue in Bantul Regency. The study employs a descriptive quantitative approach combined with policy analysis methods. The scope of the study covers the implementation of licensing services, business operator characteristics, business structure, and the contribution of licensing fees to local revenue. Secondary data were obtained from official documents provided by Statistics Indonesia (BPS) of Bantul Regency, the Bantul Regency Investment and One-Stop Integrated Service Agency (DPMPTSP), the Regional Budget (APBD) documents, the "Satu Data Bantul" (Bantul One Data) portal, the Online Single Submission-Risk Based Approach (OSS-RBA) dashboard, and national regulations concerning licensing services and fiscal relations between central and local governments. Data analysis was conducted through document review and the interpretation of secondary data. This analysis was further enriched by limited field observation—specifically, a one-day direct observation conducted during the Field Learning and Community Service (PLPKM) program within the Bantul Regency Government. Field observations served to provide a contextual overview of licensing service implementation rather than acting as the primary data source for the study. The findings indicate that GAMPIL has contributed to expanding access to licensing and driving an increase in formal business operators, rising from 2,774 units in 2021 to 24,594 units in 2023. However, the increase in the number of licensed businesses has not been matched by a proportional rise in local revenue. Micro-enterprises continue to dominate the business landscape in Bantul Regency, accounting for 79,898 units—or 97 percent of all registered businesses—thereby limiting fiscal contribution capacity. Licensing fee revenue remains within the range of IDR 1.9 billion to IDR 2.3 billion per year. These findings indicate that the digitalization of licensing must be accompanied by data integration, post-licensing support, and compliance monitoring to ensure that business legalization serves as an instrument for strengthening the local economy. Consequently, GAMPIL needs to be developed into a more integrated and data-driven system of local economic governance.]]>
