<![CDATA[Incentives serve as an important managerial instrument in enhancing employee motivation, productivity, and performance, particularly in the public sector, which faces increasingly complex performance demands. This study aims to examine the effect of incentive provision on financial performance in the implementation of the Ijārah contract (leasing) at the Regional Financial and Asset Management Agency (BKAD) of Bandung City. The research employed a quantitative approach using a survey method, with data collected through questionnaires distributed to 106 respondents selected using purposive sampling. Data were analysed using descriptive statistics, Pearson correlation, and simple linear regression with the assistance of SPSS version 26. The results indicate that both incentive provision and financial performance fall within a very high category. The correlation coefficient of 0.640 demonstrates a strong relationship between the two variables. The coefficient of determination (R²) of 0.410 indicates that incentives explain 41% of financial performance, while the remaining 59% is influenced by other factors not examined in this study, including employee competence, leadership effectiveness, organizational commitment, service quality, institutional governance, as well as regulatory and work environment factors. Hypothesis testing confirms that incentives have a positive and significant effect on financial performance in the Ijārah contract at BKAD Bandung City. ]]>
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