Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)

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The Contribution of the Manufacturing Industry Sector to Local Taxes Revenue: Evidence in the Bakorwil Purwakarta Area, Indonesia

Authors
Dede Jajang Suyaman1, *, Gusganda Suria Manda1, Mochamad Faizal Rizki1
1Universitas Singaperbangsa Karawang, Karawang, Indonesia
*Corresponding author. Email: jajang@fe.unsika.ac.id
Corresponding Author
Dede Jajang Suyaman
Available Online 16 September 2025.
DOI
10.2991/978-94-6463-839-4_23How to use a DOI?
Keywords
Manufacturing Sector; Multiplier Effect; Local Taxes; Panel Data Analysis
Abstract

The manufacturing sector has the potential for a vast regional tax base and broad impacts on the regional economy. It is because the sector operates various supply chain management activities. The study purposed to analyze the contribution of the manufacturing industry growth to local tax revenues in the Bakorwil Purwakarta area, Indonesia. The analysis method used the econometric method based on panel data analysis, involving data from 5 regencies and municipality from 2001 to 2021. The results showed that the manufacturing sector’s growth contribution did not significantly affect local tax revenue. It is assumed that most of the sector’s tax contributions are a type of tax collected by the central government. Local governments had yet to fully maximize local taxes’ potential, particularly the manufacturing sector’s potential tax base. For this reason, local governments should carry out tax reforms on an ongoing basis, among others, through improving tax administration, increasing human resource capacity, and preparing tax evaluation studies.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
16 September 2025
ISBN
978-94-6463-839-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-839-4_23How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Dede Jajang Suyaman
AU  - Gusganda Suria Manda
AU  - Mochamad Faizal Rizki
PY  - 2025
DA  - 2025/09/16
TI  - The Contribution of the Manufacturing Industry Sector to Local Taxes Revenue: Evidence in the Bakorwil Purwakarta Area, Indonesia
BT  - Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
PB  - Atlantis Press
SP  - 264
EP  - 276
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-839-4_23
DO  - 10.2991/978-94-6463-839-4_23
ID  - Suyaman2025
ER  -