THE DETERMINANTS ANALYSIS ON EFFECTIVENESS OF LEVIES MANAGEMENT’S PERFORMANCE IN CENTRAL LOMBOK REGENCY

Abstract

Performance of levies management in Central Lombok Regency is one thing that needs serious attention from the Local Government given the level of revenue is steadily declining year after year. This irony occurs when the Local Government is keen to increase PAD (Pendapatan Asli Daerah/regional revenue) which on average amounted to only 8.70% of the APBD (Anggaran Pendapatan dan Belanja Daerah/The Estimate Income of Regional Expense) during 2011-2015. This study uses a quantitative approach that aims to analyze the effect of the application of accountability, transparency, organizational commitment, and competence of human resources toward the effectiveness of levies management's performance with SPIP (Sistem Pengendalian Intern Pemerintah/Government Internal Control System) as moderating variable. Agency Theory and Goal Setting Theory are used to explain the phenomena related to the effectiveness of levies management's performance. This research uses questionnaire data from 97 respondents from 8 SKPD’s (Satuan Kerja Perangkat Daerah/regional official work units) that handles levies taken by purposive sampling techniques and tested with smartPLS 3.0 analysis tools. The results of this study indicate that accountability and competence of human resources has a positive and significant effect; transparency has a negative and significant effect; and the organizational commitment has a positive effect but not significant to the effectiveness of levies management’s performance in Central Lombok Regency. Other findings that SPIP has moderating relationship between human resources competencies with the effectiveness of levies management's performance. The implications of this study can be taken into consideration for Government of Central Lombok Regency in evaluating the levies management in order to improve the effectiveness of performance that will have an impact on the increase a regional revenue in the future.