FACTORS AFFECTING LOCAL OWN-SOURCE REVENUE IN THE SUMATRA REGION, INDONESIA

Abstract

The aim of this research is to evaluate variables that influence local revenue in the Sumatra region. This research uses a quantitative approach and uses explanatory research methods. The population that is the focus of this research is local original income in all provinces in Sumatra. The sample type used is a saturated sample, which means all sample units are combined into one. Secondary data used in this research was obtained from official sources, such as the official DJPK website of the Ministry of Finance. Data collection techniques involve collecting data from existing sources. Local own-source revenue is the dependent variable in this research. Meanwhile, GRDP (Gross Regional Domestic Product), inflation and population are independent variables. Multiple linear regression analysis was used to collect data. In addition, hypothesis testing was carried out using the t test and determination test. The research results show that GRDP, inflation and population have a positive and significant impact on local revenue in the Sumatra region. Based on the analysis carried out, it can be concluded that policies that support increasing GRDP, controlling inflation and managing population well can contribute to increasing local own-source revenue. Therefore, it is recommended that the government can develop a policy strategy that is able to support increasing local original income in the Sumatra region.