STRATEGI OPTIMALISASI PENDAPATAN ASLI DAERAH PROVINSI SULAWESI SELATAN UNTUK MENDUKUNG PEMULIHAN EKONOMI, DRM Policy Recommendations South Sulawesi

The Government Regulation (GR) No. 10 of 2021 concerning Regional Taxes and Regional Levies aims to support ease of investment and industrial growth. However, this policy adjustment may lead to a decrease in PAD. The USAID Economic Growth Support Activity (EGSA) supports the South Sulawesi Provincial Government with policy analysis and policy formulation to strengthen the ease of investment while increasing regional revenue from regional taxes and levies. A workshop was held on 7-9 April 2021 in Makassar, South Sulawesi, attended by 30 participants from the Regional Revenue Agency (Bapenda) of South Sulawesi. The workshop discussed the potential of regional taxes and levies, and a Strength, Weakness, Opportunity, and Threat (SWOT) analysis was conducted to prepare policy recommendations. The recommendations focus on the need for mapping the potential of all types of regional taxes and levies, developing a blueprint or Master Plan to increase the optimization of regional taxes and levies, preparing plans for a post-COVID-19 work program, providing incentives and disincentives related to regional taxes and levies, strengthening supervision and examination, and strengthening human resources and infrastructure. Additionally, collaborations with third parties to expand the tax base, technological innovations such as payment gateways, and commitment of the Regional Head in supporting the optimization of regional taxes and levies are also recommended. The implementation of these recommendations aims to increase PAD in South Sulawesi and support economic recovery. The recommendations are based on the analysis of economic data and fiscal conditions on South Sulawesi, as well as the SWOT analysis. The USAID EGSA will continue to support the South Sulawesi Provincial Government in implementing these recommendations to achieve the goal of increasing PAD and supporting economic recovery. The recommendations are designed to be implemented in a measurable and targeted manner to strengthen the strategic plan of Bapenda South Sulawesi. The implementation of these recommendations will require the commitment of the Regional Head and the support of all stakeholders involved in the collection of regional taxes and levies. The USAID EGSA will continue to monitor the progress of the implementation of these recommendations and provide support as needed to ensure the success of the PAD optimization strategies in South Sulawesi.