What is the Original Regional Revenue of Central Java Province?

The financial independence level of Central Java's Regional Governments showed a declining trend from 2014 to 2017. In 2014, the ratio of Local Original Revenue (PAD) to regional revenue reached 65.42% of Rp 15.52 trillion, then decreased to 64.8% (Rp 16.82 trillion) in 2015, and further to 58.79% (Rp 19.63 trillion) in 2016. In the 2017 Regional Revenue and Expenditure Budget, this ratio decreased again to 50.9% of a regional revenue of Rp 23.47 trillion.

Despite a 16.7% increase from the previous year's realization, the Central Java PAD target in 2017 actually decreased to Rp 11.9 trillion from the previous year's target of Rp 12.29 trillion. This decrease in the PAD target indicates government pessimism in projecting revenue, despite the fact that the economic trend in Central Java has shown yearly increases.

PAD can be used as an indicator to measure the level of regional independence. The higher the PAD value, the lower the region's dependence on the central government. According to data from the Central Statistics Agency (BPS), the Central Java PAD in 2015 reached 90.36% of its target. This achievement then increased to 93.54%, amounting to Rp 11.54 trillion in 2016.