Regional Tax and Economic Growth in Indonesia

Authors

  • Herry Samudro Directorate General of Taxes

DOI:

https://doi.org/10.31092/jpi.v8i1.2908

Keywords:

economic growth, regional tax, Tax Revenue

Abstract

Indonesia targets economic growth to increase continuously every year, but on the other hand, state revenues depend on taxes. Almost 80% of state revenue comes from taxes and this will certainly have an impact on economic growth in Indonesia. The amount of tax applied to society can have a positive or negative effect on economic growth, depending on how the country uses the tax revenue. In theory, a country's economic growth can be seen from the amount of regional tax revenue in that country, the regional work participation rate, the human development index in the region, the poverty level in the region, and the regional Gini ratio. So, in this research, the author wants to test the influence of the factors above on economic growth in Indonesia. The author uses secondary data from 34 provinces in Indonesia from 2018 to 2022 which comes from the Directorate General of Fiscal Balance (Ministry of Finance) and Statistics Indonesia. The results of this research show that regional tax revenues have a negative effect on economic growth in Indonesia. The same thing is also shown by the factors of work participation rate, human development index in the region, poverty level in the region, and regional Gini ratio which have a negative influence on economic growth.

References

Arifin, S. R. (2021). Pengaruh Indeks Pembangunan Manusia (IPM) dan Tingkat Pengangguran Terhadap Pertumbuhan Ekonomi di Provinsi Jawa Timur Tahun 2016-2018. IQTISHADIA Jurnal Ekonomi & Perbankan Syariah, 8(1), 38-59.

Arsyad, Lincolin. (1996).Ekonomi Mikro . Edisi 2. BPFE. Yogyakarta.

BPS. (2020a). Indeks Pembangunan Manusia. Jakarta. Retrieved from https://www.bps.go.id/subject/26/indeks-pembangunan-manusia.html

BPS. (2020b). Kemiskinan dan Ketimpangan. Jakarta. Retrieved from https://www.bps.go.id/subject/23/kemiskinan-dan-ketimpangan.html

Data.go.id. (2018). Tingkat Partisipasi Angkatan Kerja (TPAK) Menurut Provinsi. Retrieved from https://data.go.id/dataset/tingkat-partisipasi-angkatan-kerja-tpak-menurut-provinsi

Gujarati, Damodar N. (2004). Basic Econometrics (4th ed.) McGraw-Hill: New York.

Lianda, P. Y., Priantana, R. D., & Aswadi, K. (2021). Analisis Pengaruh Pajak Daerah Dan Retribusi Daerah Terhadap Pertumbuhan Ekonomi Di Aceh. Jurnal Mahasiswa Akuntansi Samudra, 2(3), 153-159.

Lind, Douglas A., William G. Marchal, dan Samuel A. Wathen. (2007). Statistical Techniques in Business and Economics (13th ed). New York: McGraw-Hill.

Maulana, B. F., Farhan, M., & Desmawan, D. (2022). Pengaruh Indeks Pembangunan Manusia (IPM) Terhadap Pertumbuhan Ekonomi di Provinsi Banten Tahun 2019-2021. Jurnal Ekonomi, Bisnis dan Manajemen, 1(1), 123-134.

Mdanat, M. F., Shotar, M., Samawi, G., Mulot, J., Arabiyat, T. S., & Alzyadat, M. A. (2018). Tax structure and economic growth in Jordan, 1980-2015. EuroMed journal of Business, 13(1), 102-127.

Nanga, Muana. 2005.Makro Ekonomi: Teori, Masalah, dan Kebijakan, Jakarta: PT Grafindo Persada

Putri, N. A. A., Anggeraini, F., & Desmawan, D. (2023). Pengaruh Indeks Pembangunan Manusia Terhadap Pertumbuhan Ekonomi di Provinsi Banten. JETISH: Journal of Education Technology Information Social Sciences and Health, 1(1), 64-70.

Rosi, A. I. (2022). Pengaruh Pajak Daerah, Retribusi Daerah dan Laba BUMD Terhadap pertumbuhan Ekonomi Kabupaten Kerinci. Agregate, 5(2), 63-71.

Syahputra, R. (2017). Analisis faktor-faktor yang mempengaruhi pertumbuhan ekonomi di Indonesia. Jurnal Samudra Ekonomika, 1(2), 183-191.

Saragih, A. H. (2018). Pengaruh penerimaan pajak terhadap pertumbuhan ekonomi di Indonesia. Jurnal Sikap, 3(1), 277683.

Todaro, Michael P. 2003.Pembangunan Ekonomi Di Dunia Ketiga. Alih Bahasa: Aminuddin dan Drs.Mursid. Jakarta: Ghalia Indonesia.

Utami, F. P. (2020). Pengaruh indeks pembangunan manusia (IPM), kemiskinan, pengangguran terhadap pertumbuhan ekonomi di Provinsi Aceh. Jurnal Samudra Ekonomika, 4(2), 101-113.

Watulingas, C. A. S., Kindangen, P., & Engka, D. S. (2021). Pengaruh pendapatan asli daerah terhadap pertumbuhan ekonomi di Provinsi Sulawesi Utara. Jurnal pembangunan ekonomi dan keuangan daerah, 19(3), 104-117.

Yuniarti, P., Wianti, W., & Nurgaheni, N. E. (2020). Analisis Faktor-faktor yang Mempengaruhi Tingkat Pertumbuhan Ekonomi di Indonesia. SERAMBI: Jurnal Ekonomi Manajemen Dan Bisnis Islam, 2(3), 169-176.

Downloads

Published

2024-06-30

How to Cite

Samudro, H. (2024). Regional Tax and Economic Growth in Indonesia. JURNAL PAJAK INDONESIA (Indonesian Tax Review), 8(1), 113–126. https://doi.org/10.31092/jpi.v8i1.2908

Issue

Vol. 8 No. 1 (2024): Challenges and Opportunities in Enhancing Tax in Indonesia

Section

Artikel

License

Copyright (c) 2024 Herry Samudro

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.