Optimizing Local Own-Source Revenue Through Special Autonomy Policy: A Case Study Of South Sorong Regency

Abstract

This study aims to examine the optimization of Local Own-Source Revenue (LOSR) through the implementation of the Special Autonomy policy in South Sorong Regency. The study focuses on four main components of LOSR: local taxes, local retributions, proceeds from the management of separated regional assets, and other legitimate local revenues. A descriptive qualitative approach was employed, with data collected through in-depth interviews involving five key informants from the Regional Revenue Agency and related divisions responsible for revenue management and development. The findings indicate that local taxes remain the largest contributor to LOSR; however, their potential has not been fully optimized due to limited tax object databases, low taxpayer compliance, inadequate field supervision, and the lack of integrated digital administrative systems. Local retributions contribute relatively little because of the limited number of retribution objects, manual collection procedures, geographical constraints, and low public awareness regarding payment obligations. Revenue generated from separated regional assets, including regional-owned enterprises, is also limited due to challenges in asset management, legal status, managerial capacity, and maintenance. Meanwhile, other legitimate local revenues serve mainly as complementary sources and require stronger governance mechanisms to ensure accountability and transparency. The study concludes that the Special Autonomy policy provides significant opportunities to optimize LOSR and strengthen regional fiscal independence in South Sorong Regency. Nevertheless, several structural and administrative constraints continue to hinder revenue performance. Therefore, improving institutional governance, accelerating digitalization, strengthening supervision, enhancing the capacity of local government personnel, and optimizing the utilization of regional assets are essential strategies for maximizing LOSR and supporting sustainable regional development.