Regional Financial Management Reform In Relation To Increasing Regional Original Revenue (Pad) In The Government Of Banten Province

The enactment of Law Number 32 of 2004 concerning Regional Government marked a significant milestone in Indonesia’s decentralization policy, designed as a strategic response to address local governance challenges and strengthen regional autonomy. Decentralization aims to enhance regional economic capacity by empowering local governments to manage their financial resources independently, thereby reducing dependency on the central government. One of the key indicators used to evaluate the level of regional autonomy is Local Original Income (Pendapatan Asli Daerah, PAD), which reflects a region’s fiscal self-reliance and governance effectiveness. In Banten Province, various governance reforms have been implemented to improve PAD management and optimize revenue generation. These reforms have progressively increased the province’s PAD, indicating positive outcomes from decentralization efforts. This article examines the relationship between regional financial management reforms and the enhancement of PAD within the Banten Provincial Government through an extensive review of relevant literature and prior studies. The findings reveal that the implemented reforms have generally progressed well, particularly in institutional restructuring. Nevertheless, significant challenges remain, as reform initiatives have yet to comprehensively address technological innovation and digital transformation—sectors that hold substantial potential.