Analisis Pengaruh Good Governance Practices terhadap Local Taxing Power: Studi Kasus Provinsi Bengkulu

Abstract

The fiscal capacity and independence of several Indonesian regions remain very low amid suboptimal governance practices. Meanwhile, studies explaining how governance affects public revenue collection remain limited. This study examines the impact of good governance on local taxing power (LTP) in Bengkulu Province using panel data regression for 2019–2022 across ten regencies and municipalities, complemented by interviews with policymakers. Six governance proxies are assessed: return on assets (ROA), remaining budget balance (SILPA), audit opinions, audit findings, corruption cases, and service solvency. The results show that ROA, audit opinions, and solvency have positive effects on LTP, while SILPA has a negative effect. Corruption cases and audit findings show no significant influence. Interviews support these results and reveal practical implementation challenges. Strengthening synergy between central and local governments is a key strategy to enhance LTP through improved governance, supported by continuous assistance from relevant ministries and agencies.