Fiscal Autonomy in revenue collection of Local Administrative Organizations in Special Economic Zones (SEZs)

Abstract

            This article purposes to study 1) The sources of the local administrative organization’s revenue in the Special Economic Zone (SEZs) 2) The fiscal autonomy in the revenue collection and 3) To study as well as analyze the way of the strengthening of fiscal autonomy in revenue collection of local administrative organization for the SEZs. The research uses the mixed method both qualitative and quantitative in this study. By using questionnaires distributed to 487 samples of the local administrative organizations that are included in the SEZs. The data collection by the field research documents from 5 local administrative organizations of the SEZs. The in-depth interview is used to gather information from 50 stakeholders and a focus group discussion. From this study, it revealed that the SEZs had the fiscal autonomy in revenue collection at a minimal level. The revenue autonomy index (RAI) point average was at 11.94 percent. Because of the structure of revenue still depended on the budget from government both in form of the tax that government collected and subsidy. While the proportion of the SEZs revenue collections themselves still were at a minimal level. Therefore, it may conclude that although there was an investment promotion policy from the government for the SEZs, it could not reflect to the distribution of prosperity to the region, the reduction of inequality, the improving of income, and the development of local people life quality.