OPTIMIZATION OF LOCAL OWN SOURCE REVENUE: ANALYSIS OF THE ROLE OF AGRICULTURAL SECTOR ECONOMIC CAPACITY AND LOCAL OWN SOURCE REVENUE TARGETS

Abstract

This study aims to analyze the influence of the economic capacity of the agricultural sector and local own source revenue targets on the optimization of local own source revenue Realization. The stewardship theory approach is used as a basis to explain how local governments achieve regional development goals. The research method used is a quantitative approach with panel data regression analysis using eviews. This study sample  34 provinces in Indonesia. The results show that the economic capacity of the agricultural sector has a positive and significant effect on the local own source revenueand that the local own source revenue target has a significant influence on the optimization of local own source revenue. The theoretical implications of this study strengthen the relevance of stewardship theory in the discipline of public sector accounting. Practically, the results of this study provide strategic recommendations for local governments to optimize agricultural commodities to increase value and the importance of preparing additional budget targets based on the real economic potential of the region.

Keywords: Pendapatan asli daerah, Kapasitas Ekonomi Sektor Pertanian, Teori Stewardship