Extensification and Intensification Strategies for Enhancing Local Own-Source Revenue under the Self-Assessment Tax System: Evidence from Surabaya City, Indonesia
This study aims to analyze the effectiveness of extensification and intensification strategies in improving local own-source revenue (Pendapatan Asli Daerah – PAD) through the implementation of the self-assessment tax system in Surabaya City, Indonesia. It seeks to identify how these strategies influence taxpayer compliance and the optimization of local tax potential.Study design: A descriptive qualitative study using an interpretive approach to explore the implementation and challenges of local tax collection under the self-assessment system.Place and Duration of Study: The research was conducted at the Regional Revenue Agency (Badan Pendapatan Daerah – Bapenda) of Surabaya City, East Java, Indonesia, between January and June 2024.Methodology: Primary data were obtained through in-depth interviews with Bapenda officials, IT system staff, and registered taxpayers from the hotel, restaurant, and parking sectors. Secondary data were collected from official documents detailing the target and realization of PAD for the period 2020–2024. Data analysis followed the Miles and Huberman interactive model, involving data reduction, display, and conclusion drawing. The study focused on the implementation of extensification (registration of new taxpayers, data integration, and digital monitoring) and intensification (auditing, education, and enforcement) strategies.Results: Findings reveal that the self-assessment system enhances administrative efficiency but remains suboptimal in achieving PAD targets due to weak supervision, limited human resources, and low taxpayer awareness. Extensification strategies successfully expanded the taxpayer base through data digitization and inter-agency coordination. Meanwhile, intensification efforts, such as field inspections and electronic monitoring (tapping box systems), improved tax compliance among existing taxpayers, though technological and operational constraints persist.
Conclusion: A balanced combination of extensification and intensification strategies, supported by integrated digital systems and consistent supervision, is essential to improving the effectiveness of the self-assessment tax system and increasing local revenue.
Index Terms– Extensification, Intensification, Self-Assessment System, Local Tax, Own-Source Revenue, Surabaya City
