Accounting and Transparency of Regional Financial Resources: Challenges of Tax Collection and Taxpayer Compliance in Surakarta
DOI:
https://doi.org/10.59890/ijfbm.v4i4.17Keywords:
Regional Financial Transparency, Tax Compliance, Public Sector Accounting, Local Government Revenue, Fiscal DecentralizationAbstract
Regional autonomy in Indonesia necessitates robust mechanisms for generating local revenue, with taxation a critical component of regional financial sustainability. This study examines the intersection of accounting practices, transparency, and tax compliance within Surakarta’s regional financial management system. Despite regulatory frameworks mandating transparent fiscal operations, local governments continue to encounter substantial challenges in tax collection efficiency and taxpayer compliance. Employing a qualitative research methodology, this investigation analyzes primary data from semi-structured interviews with tax officials, taxpayers, and financial stakeholders, supplemented by document analysis of financial reports from 2023 to 2025. Findings reveal that inadequate public accounting systems, limited transparency in fund allocation, and insufficient taxpayer education constitute primary barriers to the optimal realization of tax revenue. Data from Surakarta’s Regional Revenue Agency indicates tax compliance rates averaging 67.3% in 2024, substantially below national targets of 85%. Furthermore, transparency deficits in budget execution create trust gaps between citizens and government institutions, directly undermining voluntary compliance. The study demonstrates that strengthening accounting information systems, implementing real-time financial reporting platforms, and enhancing stakeholder engagement through participatory budgeting mechanisms contribute to improve both perceptions of transparency and compliance behaviors. These findings contribute to public sector accounting literature by illustrating the mediating role of transparency in the taxation-compliance nexus within Indonesian decentralized governance contexts. Recommendations include the mandatory adoption of accrual-based accounting standards, the digital transformation of tax administration, and the institutionalization of transparency mechanisms aligned with international public financial management best practices.
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