The Effect Of Regional Fixed Assets On Increasing Regional Revenue

Abstract

Regional fiscal independence in the era of decentralization greatly depends on the ability of local governments to optimize fixed assets as one of the sources of Regional Original Revenue (PAD). However, the management of fixed assets in many regions, including Baubau City, has not yet made a significant contribution to increasing PAD. This study aims to analyze the effect of regional fixed assets on the increase of Regional Original Revenue (PAD) in Baubau City. The research method used is a quantitative method with a simple linear regression approach. The data used are secondary data in the form of reports on the realization of fixed assets and PAD of Baubau City for the period 2017–2024, obtained from the Regional Financial and Asset Management Agency (BPKAD) of Baubau City. The results of the analysis show that the value of regional fixed assets has a negative and insignificant relationship with PAD, with a significance value of 0.834 (>0.05). This indicates that the increase in fixed assets does not necessarily lead to an increase in PAD, as most assets have not been utilized productively to generate income. In conclusion, the management of regional fixed assets in Baubau City needs to be directed toward improving efficiency and optimizing asset utilization to make a real contribution to increasing PAD in the future.