Policy Evaluation of Revenue Targeting and Local Tax Realization in Urban Indonesia

Abstract

This study evaluates the effectiveness of revenue targeting and realization of Land and Building Tax (PBB-P2) within the framework of urban governance in Indonesia. Focusing on the case of Tangerang City, the research explores how local governments formulate tax revenue targets and the extent to which these are achieved through administrative strategies and digital service innovations. Using a qualitative-descriptive approach supported by secondary data, official reports, and relevant policy documents, the study highlights the role of digital platforms—particularly the Tangerang Live application—in improving taxpayer engagement, transparency, and payment efficiency. The findings indicate a steady increase in PBB-P2 realization, driven in part by the integration of technology and improvements in service delivery. However, challenges remain in areas such as target-setting accuracy, taxpayer data management, and bureaucratic responsiveness. This research emphasizes the importance of adaptive policy mechanisms and citizen-oriented tax administration to enhance local fiscal performance. The study contributes to the broader discourse on local public finance and digital governance in emerging urban contexts.