Analysis of Regional Original Income (PAD) Realization to Measure the Level of Regional Financial Independence in Bandung City in 2022-2024

Abstract

This study aims to analyze the realization of Locally Generated Revenue (PAD) to measure the level of regional financial independence in Bandung City for 2022–2024. This study uses a quantitative descriptive approach with secondary data obtained from the Directorate General of Fiscal Balance (DJPK) of the Ministry of Finance. Data analysis techniques used include the PAD growth ratio, effectiveness ratio, contribution ratio, and regional financial independence ratio. The results show that Bandung City's PAD growth fluctuated in 2023 and increased in 2024. The PAD effectiveness level during the study period remains in the less effective category because revenue realization has not reached the established target. Regional taxes are the largest contributor to PAD, while regional levies experienced a significant increase in 2024 following the implementation of the HKPD Law. Furthermore, the regional financial independence ratio is high, indicating that Bandung City has a sufficient capacity to finance regional needs through local revenue. Therefore, optimization of PAD management is necessary to strengthen regional financial independence in a sustainable manner.