Improve investment management

Oct 13, 2025 by leolavanderia.com.br 12 views

Introduction

Regional revenue (PAD) is a crucial factor in determining the financial stability and development of regencies/cities in Indonesia. The North Sumatra region is one of the provinces that have been experiencing significant economic growth in recent years. However, the regional revenue (PAD) in this region has been fluctuating, and it is essential to identify the factors that influence it. This study aims to analyze the effect of regional investment, regional levies, and regional expenditure on local revenue (PAD) in regencies/cities in North Sumatra for the 2007-2015 period.

Methodology

This study employed a quantitative approach using secondary data from the regency/city governments in North Sumatra. The population of this study consisted of 33 regency/city governments, and a purposive sampling technique was used to select 9 regencies/cities as samples. The data used included information about regional investment, regional levies, regional expenditure, and PAD. The methods used in this study included descriptive statistical analysis, classical assumption test, and hypothesis test.

Results

The results of this study showed that regional investment, regional levies, and regional expenditure had a significant influence on PAD in regencies/cities in North Sumatra. Specifically, this study found that regional investment partially had no significant effect on PAD. This may be caused by the lack of efficient management of the investment made. Although investment is an important factor for regional economic growth, if it is not managed properly, the impact on regional original income will be minimal.

On the other hand, both regional levies and regional expenditure were proven to have a positive and significant influence on PAD. The regional levy referred to here refers to the collection of income through various services and facilities provided by the local government to the community. If public services increase, the levies obtained will increase, thus contributing to PAD.

Regional spending also plays an important role in increasing PAD. The budget allocated for various development programs and public services can increase economic activity, which in turn increases regional income. In other words, effective and well-planned regional spending can be a driving force for regional income.

Discussion

The results of this study emphasize the importance of regional levies and regional expenditure in increasing PAD. The regional levy is a crucial source of income for local governments, and it can be increased by providing more public services to the community. Regional spending also plays a significant role in increasing PAD, and it can be achieved by allocating the budget for various development programs and public services.

The lack of efficient management of regional investment may be one of the reasons why it has no significant effect on PAD. This highlights the need for local governments to improve investment management and maximize the potential for levies. Formulating appropriate spending policies is also essential to achieve optimal PAD targets.

Conclusion

In conclusion, this study highlights the importance of regional levies and regional expenditure in increasing PAD in regencies/cities in North Sumatra. The results of this study emphasize the need for synergy between the three variables to optimize PAD, which in turn will support sustainable regional development. By paying attention to the results of this study, policy makers in the Regency/City Government in North Sumatra are expected to take appropriate strategic steps in designing investment policies and regional budget management, in order to improve the welfare of the community and regional competitiveness.

Recommendations

Based on the results of this study, the following recommendations are made:

Improve investment management: Local governments should improve investment management to maximize the potential for regional investment.
Maximize the potential for levies: Local governments should maximize the potential for levies by providing more public services to the community.
Formulate appropriate spending policies: Local governments should formulate appropriate spending policies to achieve optimal PAD targets.
Increase regional spending: Local governments should increase regional spending by allocating the budget for various development programs and public services.

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of regional investment, regional levies, and regional expenditure on local revenue (PAD) in regencies/cities in North Sumatra for the 2007-2015 period.

Q: What are the independent variables analyzed in this study?

A: The independent variables analyzed in this study are regional investment, regional levies, and regional expenditure.

Q: What is the dependent variable in this study?

A: The dependent variable in this study is local revenue (PAD).

Q: What is the population of this study?

A: The population of this study consists of 33 regency/city governments in North Sumatra.

Q: What is the sampling technique used in this study?

A: The sampling technique used in this study is purposive sampling.

Q: How many regencies/cities were selected as samples in this study?

A: 9 regencies/cities were selected as samples in this study.

Q: What are the results of this study?

A: The results of this study show that regional investment, regional levies, and regional expenditure have a significant influence on PAD in regencies/cities in North Sumatra. Specifically, this study found that regional investment partially has no significant effect on PAD.

Q: Why does regional investment have no significant effect on PAD?

A: Regional investment has no significant effect on PAD because of the lack of efficient management of the investment made.

Q: What is the role of regional levies in increasing PAD?

A: Regional levies play a crucial role in increasing PAD by collecting income through various services and facilities provided by the local government to the community.

Q: What is the role of regional expenditure in increasing PAD?

A: Regional expenditure plays a significant role in increasing PAD by allocating the budget for various development programs and public services.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

Improve investment management: Local governments should improve investment management to maximize the potential for regional investment.
Maximize the potential for levies: Local governments should maximize the potential for levies by providing more public services to the community.
Formulate appropriate spending policies: Local governments should formulate appropriate spending policies to achieve optimal PAD targets.
Increase regional spending: Local governments should increase regional spending by allocating the budget for various development programs and public services.

Q: What are the implications of this study?

A: The implications of this study are that local governments in North Sumatra should pay attention to the results of this study and take appropriate strategic steps in designing investment policies and regional budget management to improve the welfare of the community and regional competitiveness.