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Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia

Author

Listed:
  • Andri Hernandi

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Irwan Meilano

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Asep Yusup Saptari

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Deni Suwardhi

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Rizqi Abdulharis

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Alfita P. Handayani

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Sella L. Nurmaulia

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Nabila S. E. Putri

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Ratri Widyastuti

    (Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia)

  • Putri Merdekawati

    (Department of Geodesy and Geomatics, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
    Riau Province National Land Agency (Kanwil BPN Provinsi Riau), Pekanbaru 28126, Riau, Indonesia)

  • Fitri N. Cahyani

    (Department of Geodesy and Geomatics, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
    Sintang Regency National Land Agency (Kantah BPN Kabupaten Sintang), Sintang 78614, West Kalimantan, Indonesia)

Abstract

Land taxation, mainly the Land and Building Tax (LBT), is a critical revenue source for local governments in Indonesia, yet its contribution remains suboptimal due to inefficiencies in assessment and administration. This study focuses on the Lebak Regency to optimize the Sales Value of Taxable Objects (SVTO) assessment, a key determinant of LBT revenue. Using spatial analysis, Land Value Zones (LVZ), and socio-economic data, the research evaluates assessment ratios to identify discrepancies between SVTO and market values. Adjustments to SVTO are proposed based on spatial patterns, such as land use and infrastructure, and the Index of Developing Villages (IDV). Findings reveal significant disparities between assessed and market values, with assessment ratios ranging from 1% to 267%. Simulations indicate potential LBT revenue of IDR 224.7 billion under full compliance, compared to IDR 44.22 billion, the 2024 target. Adjustments based on spatial patterns from land use planning and village development indices enhance equity and accuracy in tax assessments, optimizing local revenues. Despite these improvements, the study’s limitations lie in the lack of community validation for the proposed methodology, which is essential to confirm its practicality and acceptance. Future research should address this gap and explore household-level dynamics, including tax affordability and spending patterns, to enhance policy inclusivity and align taxation systems with local socio-economic realities.

Suggested Citation

  • Andri Hernandi & Irwan Meilano & Asep Yusup Saptari & Deni Suwardhi & Rizqi Abdulharis & Alfita P. Handayani & Sella L. Nurmaulia & Nabila S. E. Putri & Ratri Widyastuti & Putri Merdekawati & Fitri N., 2025. "Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia," Land, MDPI, vol. 14(1), pages 1-31, January.
    • Handle: RePEc:gam:jlands:v:14:y:2025:i:1:p:125-:d:1563192
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    References listed on IDEAS

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