The Effect of Electronic-Based Government Systems (SPBE) on Regional Tax Growth

Abstract

Indonesian local governments are mandated to enhance public service quality and strengthen regional fiscal capacity through digital government transformation. This study examines the impact of the Electronic-Based Government System (SPBE) implementation on regional tax growth among Indonesian provincial governments. A quantitative, explanatory research design was utilized, drawing on secondary data from the Ministry of Administrative and Bureaucratic Reform, the Directorate General of Fiscal Balance, Statistics Indonesia, and provincial government financial reports for the 2021–2024 period. Data analysis involved descriptive statistics, correlation analysis, and multiple linear regression using a pooled Ordinary Least Squares (pooled OLS) approach. The findings reveal that SPBE implementation does not significantly influence regional tax growth, as indicated by a negative coefficient of -0.0430 and a p-value of 0.1441. Conversely, regional fiscal independence, measured by the PAD Ratio, demonstrates a positive and significant effect on regional tax growth. These results suggest that digital government transformation has not directly improved regional fiscal capacity. The study suggests that digital government transformation alone may not be sufficient to strengthen regional fiscal performance without stronger institutional readiness and effective fiscal administration.