Implementation of Law No. 28 Year 2009 regarding regional tax and retribution is seen as beneficial for big cities only. For citiesÂ in regencies or remote areas, it will become a burden. According to Drs. Ertambang Nahartyo, M.Sc., a researcher from Magister of Economic Development, UGM, the regional tax will only increase local revenues of big cities but reduce them in regencies.
Ertambang mentioned that this is because of unpreparedness in the region in their system, infrastructure, technology and human resources. "Regional tax would be beneficial only for big cities that are ready, from facilities, human resources to technology," he explained, Thursday (4/3).
Further Ertambang said that Jakarta will be the most advantaged city if the Law is implemented effectively while in regions such as East Nusa Tenggara, Sulawesi and Papua, the Law will not run effectively. "Just imagine, only to collect taxes that are not so much in value, it could cost you a large expense due to the region's unpreparedness. Local governments would prefer not to collect taxes. This is not going to be so influential for the region. But nationally, the loss is significant, "he added.
Ertambang said that the proportion of local income to regional revenue nationally from year to year declined. Between 2004-2005 the decline was 0.08. In 2006-2007, it decreased to 0.07, and decreased even more in 2008 to 0.06. According to Ertambang, the government should study first the region's preparedness before the enactment of this Law.
Seeing these conditions, UGM plans to hold a seminar entitled "Implementation of Law No. 28 Year 2009: Transition, Challenge, and Hope". The seminar which will be held on Saturday (6/3) in Hyatt Hotel is intended to find solutions in order that the implementation of this law works well, thus increasing regional revenues.