Fair Taxes, Better Revenue: A Case Study on Spatial Approaches to Land Taxation in Lebak Regency, Indonesia

Andri Hernandi (), Irwan Meilano, Asep Yusup Saptari, Deni Suwardhi, Rizqi Abdulharis, Alfita P. Handayani, Sella L. Nurmaulia, Nabila S. E. Putri, Ratri Widyastuti, Putri Merdekawati and Fitri N. Cahyani
Additional contact information
Andri Hernandi: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Irwan Meilano: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Asep Yusup Saptari: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Deni Suwardhi: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Rizqi Abdulharis: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Alfita P. Handayani: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Sella L. Nurmaulia: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Nabila S. E. Putri: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Ratri Widyastuti: Spatial System and Cadastre Research Group, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Putri Merdekawati: Department of Geodesy and Geomatics, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia
Fitri N. Cahyani: Department of Geodesy and Geomatics, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung, Jalan Ganesa 10, Bandung 40132, West Java, Indonesia

Land, 2025, vol. 14, issue 1, 1-31

Abstract: Land taxation, mainly the Land and Building Tax (LBT), is a critical revenue source for local governments in Indonesia, yet its contribution remains suboptimal due to inefficiencies in assessment and administration. This study focuses on the Lebak Regency to optimize the Sales Value of Taxable Objects (SVTO) assessment, a key determinant of LBT revenue. Using spatial analysis, Land Value Zones (LVZ), and socio-economic data, the research evaluates assessment ratios to identify discrepancies between SVTO and market values. Adjustments to SVTO are proposed based on spatial patterns, such as land use and infrastructure, and the Index of Developing Villages (IDV). Findings reveal significant disparities between assessed and market values, with assessment ratios ranging from 1% to 267%. Simulations indicate potential LBT revenue of IDR 224.7 billion under full compliance, compared to IDR 44.22 billion, the 2024 target. Adjustments based on spatial patterns from land use planning and village development indices enhance equity and accuracy in tax assessments, optimizing local revenues. Despite these improvements, the study’s limitations lie in the lack of community validation for the proposed methodology, which is essential to confirm its practicality and acceptance. Future research should address this gap and explore household-level dynamics, including tax affordability and spending patterns, to enhance policy inclusivity and align taxation systems with local socio-economic realities.

Keywords: land taxation; spatial analysis; sales value of taxable object; tax equity; land value zones; Indonesia (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2073-445X/14/1/125/pdf (application/pdf)
https://www.mdpi.com/2073-445X/14/1/125/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:14:y:2025:i:1:p:125-:d:1563192

Access Statistics for this article

Land is currently edited by Ms. Carol Ma

More articles in Land from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().