PATTIRO Banten Assessment, Poor PAD Management

The management of regency/municipal revenue (PAD) is considered poor. This can be seen from the BPK RI Banten Representative’s Audit Report (LHP) on the financial reports for the 2012 fiscal year in six districts/cities, Monday (27/5).

“Paying attention to the LHP BPK Banten Representative which found that PAD management was inadequate, it shows that regional financial management carried out by districts and cities in Banten is still bad, and far from the expectations and spirit of regional autonomy,” said the Coordinator of the Budget and Gender Division of the Regional Information Study Center ( PATTIRO) Banten Panji Bahari Noor Romadhon, yesterday.

As is well known, during the handover of BPK’s LHP to district/city government entities, namely Tangerang City Government, Cilegon City Government, Serang City Government, Serang Regency Government, Pandeglang Regency Government, and Lebak Regency Government, it was found that inadequate PAD management resulted in a lack of revenue of Rp. 404.96 million, revenues that were not paid to the regional treasury amounted to Rp. 25.03 billion, and levies that were not in accordance with the provisions of Rp. 799.95 million.

“The alleged regional losses are quite fantastic if you see that Banten Province is still not free from welfare problems, such as malnutrition, low NER for education, health, unemployment and poverty,” he said.

According to him, the Law on Regional Financial Balance states that regional revenues come from PAD, balancing funds and other legitimate incomes.

He said PAD was the post that contributed the most to leaks, there was a lack of revenue of IDR 409.96 million and unpaid PAD of IDR 25.03 billion.

He said this was an indication that district/city governments were not serious about managing their regional finances independently, so that it had an impact on regional development that was not sustainable and depended on the amount of transfer funds.

He said the possibility of leakage of PAD in regencies and cities in Banten Province was a necessity, as was the result of PATTIRO Banten’s research on the fees for the Pakupatan Terminal in Serang City.

“The results of this study illustrate that in one year for the City of Serang there was a leakage of more than 200 percent. This was due to the poor management of potential PAD in Serang City, starting from planning PAD targets, which used old regional regulations, and the process of depositing levy proceeds that did not in accordance with the results of the levy in the field,” he said.

He said, no different from Serang City, PATTIRO Banten’s analysis of the Pandeglang Regional Budget shows that many potential PADs, such as terminal fees, parking, and hotel taxes have been neglected. This causes Pandeglang’s PAD to only be able to contribute 6 percent of the regional budget.

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