Analysis of Local Owned Revenue (PAD) Toward Local Autonomy Implementation in Padang city

The research is aimed to identify and analyze the development of Padang Local Owned Revenue (PAD) toward Local Autonomy implementation. This research also analyzes the strategies conducted by Padang as municipal in strengthening its Local Owned Revenue, the barriers faced and also Fiscal Autonomy Leverage. Data is taken from Padang Local Owned Revenue Report from year 1998 to 2008. The development of local owned revenue is analyzed by comparing the development from years before the implementation of Act no 22/1999 in 2001 and the years after. The result of the research shows that before the implementation of Act no 22/1999 which is currently revised to Act no 32/2004, Padang local owned revenue showed an increasing rate and the fluctuated rate occurred in structure of local owned revenue. Years after the implementation, almost yearly, the local owned revenue of Padang is increased and shows the fluctuated rate occurred in the structures of local owned revenue. The fiscal autonomy leverage, based on the criteria set by the Ministry of Internal Affairs Republic of Indonesia cooperated with Gadjah Mada University, Padang Fiscal Autonomy Leverage is on average under 20 %. This percentage describes Padang has bad condition in financial stability to finance its infrastructures