<![CDATA[This research analyzes the financial performance and the effectiveness of Local Original Revenue (PAD) management in the South Nias Regency Government. Using a qualitative approach, data were collected through in-depth interviews, observation, and documentation from four purposively selected informants: the Head of the Revenue Planning and Evaluation Division, the Head of the Assessment Collection and Objection Sub-Division, BPKPD staff, and business taxpayers. Findings indicate significant PAD recovery in 2025, reaching IDR 38.15 billion or 149.25% of the target. However, this achievement was driven by unsustainable incidental factors, including refunds for overpayments on goods and services totaling IDR 15.6 billion. The regional independence ratio was only 2.59% ("Very Low" category), indicating extreme dependence on central government transfers, with transfers exceeding 97%. PAD management faces structural constraints: low public awareness and compliance, untapped potential, ineffective manual collection systems, and insufficient collection frequency. A critical disparity exists between management perception and reality—Hotel Service Tax, perceived as the main PAD base, accounts for only 0.20%. In comparison, the actual most significant contributors are Electricity Consumption Tax (8.13%), Restaurant Tax (5.72%), and Mineral and Coal Tax (3.58%). Overall, PAD management appears "Very Effective" at 149.25%, but this is misleading due to incidental factors. Regional Retribution achieved only 50.47% ("Ineffective"), indicating the need for fundamental improvements to the collection system.]]>
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