ANALYSIS OF ORIGINAL LOCAL GOVERNMENT REVENUE (PAD) ON THE FINANCIAL PERFORMANCE OF KEBUMEN REGENCY BEFORE AND DURING THE COVID-19 PANDEMIC

This research seeks to find out how the financial performance of Kebumen Regency is seen from the Original Local Government Revenue before and during the covid-19 pandemic. The COVID-19 pandemic that is happening in Indonesia caused a change in Kebumen Regency's PAD due to a decline in tourism sector income, as well as a number of hotel and restaurant taxes in Kebumen Regency. This research is a qualitative study with a descriptive analysis method through secondary data in the form of a Kebumen Regency Budget Realization Report from 2018-2021. The year was taken because 2018-2019 was the year before the emergence of Covid-19, while 2020-2021 was the year where Covid-19 attacked all Indonesian people. The result of this study indicates that although the Regional Revenue of Kebumen Regency has decreased, Covid-19 has no effect on the financial performance of Kebumen Regency.


INTRODUCTION
Based on Law no. 32 of 2004 that Original Local Government Revenue (hereinafter refers to PAD) is an income originating from regional income in the form of regional taxes, regional levies, BUMD profits, official revenues and other revenues. Optimal use of PAD is an opportunity for local governments to encourage the regional economy. Each region has its own efforts in optimizing PAD. One of these efforts is to identify a potential from the wealth or resources that exist in the area, especially from sources of regional development income (Romadhon, 2022). If the authority given by the central government to regional governments is getting bigger, then local governments are required to increase their original regional income (Ayu, 2018). Several indicators to measure PAD are indicators of independence, effectiveness, efficiency, and PAD growth.
PAD becomes an indicator of regional independence in exploring the potential of revenue sources. If the PAD is in a large region, the greater the level of regional independence in decision-making and development policies. The effectiveness of PAD is a benchmark that states how far the local revenue target is, the bigger the target, the higher the effectiveness of the PAD. One of the problems in effectiveness seen from local taxes is collusion between taxpayers and tax collectors, fraud and tax evasion (Sari, 2013).
PAD efficiency is a benchmark in the use of resources by a region. If an area uses minimal resources, then the process is said to be efficient. The sign of an area towards efficiency is an improvement in the efficiency process. The degree of elasticity of PAD is a measure of the degree of sensitivity of PAD to changes in the regional economy. The more sensitive a sector in PAD is to changes in the regional sector, the higher the elasticity of PAD in a region (Kristianti & Jati, 2015). If a region manages its finances well, the financial performance of the region will be better (Sularso & Restianto, 2012). By comparing the ratio of funds to PAD that has been defined and executed for the region, the performance of local governments in their financial management may be evaluated (Halim, 2002).
There are problems in the implementation of revenue management affairs in Kebumen Regency, including the increase in PAD which has a relatively stagnant level of participation in overall regional income. This was due to others from the significantly increased regional income. Efforts in solving these problems include improving the supervision and operational procedures as a series of internal controls, improving the existing system and intensifying & extensifying regional taxes and levies (BPKAD, 2022).
In addition to these problems, the emergence of the Covid-19 pandemic caused changes in PAD in Kebumen Regency. The virus that entered Indonesia in March 2020 had a fairly serious impact on Indonesia's economic conditions. The spread of the virus that attacks the immune system that lasts for a long time and the many government regulations such as social distancing, physical distancing, maintaining immunity, limiting mobility and other regulations are the causes of considerable economic losses. In addition, the COVID-19 pandemic has also caused all business sectors in Indonesia to experience a decline.
Based on data taken from the Regional Finance and Revenue Management Agency (hereinafter refers to BPKPD) of Kebumen Regency, the realization of PAD in 2020 only reached 403 billion, which was smaller than the PAD in the previous year which reached 409.2 billion. The PAD consists of Regional Tax Revenue with a realization of 100.8 billion, Regional Retribution Revenue with a realization of 22 billion, Revenue from Regional Wealth Management which is separated from the realization of 15.8 billion and Other Legitimate PAD with a realization of 264.3 billion. Only Others legitimate PAD experienced an increase from the previous year. This shows that the COVID-19 pandemic has quite an effect on the PAD of Kebumen Regency (BPKAD, 2022).
The way to find out how the Kebumen Regency's financial performance was before and during Covid-19 is not enough to measure the performance of the local government in terms of PAD revenue alone. A ratio analysis is needed to measure or identify regional finances seen from the regional financial statements. One of the financial ratios used to calculate regional financial performance is the PAD Independence Ratio, PAD Efficiency Ratio, PAD Effectiveness Ratio and PAD Growth Ratio.

LITERATURE REVIEW 2.1. Regional Original Income
Regional Original Revenue (hereinafter referred to as PAD) is an input or income that can be received by the region with a levy based on regional regulations that are adjusted to the laws and regulations. PAD is also the entire potential of regional original economic resources that are used as income by the region. In an effort to optimize PAD, it should receive support from the local government by improving its public services (Mardiasmo, 2002). According to Law no. 32 of 2004 Article 157 concerning Regional Government explains that PAD can be divided into 4 parts, namely: 2.1.1. Regional Retribution According to Regional Regulation No. 1 of 2013 explains that regional retribution is a regional collection of payment for services or obtaining certain permits in the form of services provided by local governments either for personal interests or the interests of an agency. Regional levies consist of user fees for the use of regional assets, health service fees, levies on sales of regional business products, water fees, weighbridge fees, shop fees, overloaded levies, levies for passenger vehicle route permits, and other levies (Lugastoro, 2013).

Local tax
According to Law No. 34 of 2000 concerning Regional Taxes and Levies, Regional Tax is a mandatory contribution either individually/personally or as a regional head body without direct compensation, which in nature can be forced based on the applicable laws and regulations, and is used to local government development financing is also the implementation in local government (Lugastoro, 2013).

Regional Business Profit Share (BUMD)
The Regional Business Profit (hereinafter referred to as BUMD) share is a regional revenue sourced from regionally-owned companies from the results of regions that have been separated. One of the sources of revenue is from regional companies, BPD, regional capital participation in third parties and others.

Other Legitimate PAD
Other legitimate PAD is a regional revenue originating from other assets belonging to the regional government, such as the proceeds from the sale of regionally owned goods, the receipt of demand deposits, and others (Abdul & Kusufi, 2012)

Regional Financial Performance
According to Government Regulation No. 58 of 2005 Article 1, Regional Finance is all regional rights and obligations in the process of administering regional government which can be valued in good currency in all forms of wealth related to regional rights and obligations. While financial performance is a regional achievement in the financial sector in the form of regional revenues or expenditures with financial indicators that have been determined based on policies or laws and regulations during the budget period (Mulyani & Wibowo, 2017).

Regional Financial Performance Measurement
Measurement of regional financial performance is a measurement that aims to encourage quality improvement in decision-making as well as accountability, so as to be able to find out how much success the local government work program is and can compare the accuracy of its objectives and implementation (Nugrahani, 2007).
To measure financial performance, an indicator is needed in the measurement process. These indicators must include objectives that can be measured by ratios and an increase in each performance target. One of the indicators that can be used to analyze the performance of regional financial management is ratio analysis. Ratio analysis in local government is different from ratio analysis carried out in private companies (Ayu, 2018).

Ratio Analysis 2.4.1. Regional Financial Independence Ratio
Regional financial independence can be seen from how much PAD is compared to regional income from other sources such as transfer income in the form of assistance from the central government or loans (Abdul & Kusufi, 2012). The size of the regional independence can be seen by the ratio analysis of the regional independence. The higher the independence ratio of a region, it indicates that the region has a fairly low level of dependence on external assistance such as the central or provincial government. The ratio of regional independence is measured by comparing local original income with central government assistance such as DAU & DAK (Ayu, 2018).
Independence Ratio = Regional Original Income Central/Provincial Government Assistance  (Halim, 2002) 1) The pattern of instructive relationships shows that the regions are still dependent on the central government (the regions have not been able to carry out regional autonomy) 2) The pattern of consultative relations shows that the regions have begun to be able to carry out regional autonomy so that assistance from the central government is reduced.
3) The pattern of participatory relationships shows that the region is almost fully autonomous but the role of the central government is still there. 4) The pattern of delegative relations shows that the regions have fully implemented regional autonomy and there is no interference from the central government.

Regional Financial Efficiency Ratio
The regional financial efficiency ratio shows a comparison between the size of the costs incurred to obtain income and the realization of the income received. Area. The smaller the regional efficiency ratio, it shows that the performance of local government is getting better (Pramono, 2014) Efficiency Ratio = Costs incurred to collect PAD Realization of Regional Revenue   (Halim, 2002)

Regional Financial Effectiveness Ratio
The Regional Financial Effectiveness Ratio shows the ability of the region to realize the PAD that was designed before the PAD fiscal year compared to the target that has been set or implemented based on the real potential of the region. The higher the regional financial effectiveness ratio, the better the performance of the local government (Rahmayati, 2016).

Effectiveness Ratio =
Realized PAD PAD Revenue Target

Growth Ratio
The PAD growth ratio describes a local government's ability to maintain or increase the PAD capability achieved in certain periods ( (Halim, 2012) in Pramono (2014)). By knowing the PAD growth of each component from sources of income and expenditure, this ratio can be used to evaluate which components need to be increased each year and which potentials need more attention.

RESEARCH METHODS
This research is a qualitative research that is a research that is used to find out an object where the researcher is a key instrument. While the method used is descriptive analysis method, which is a method to determine the value of a variable, either one or more variables without making comparisons or connecting with other variables (Sugiyono, 2010). The data used in this study is secondary data. The secondary data in this study is the Kebumen Regency Budget Realization Report from 2018-2021 which was taken from the official website of the Kebumen Regency Government, namely https://www.kebumenkab.go.id. The year was taken because 2018-2019 was the year before the emergence of Covid-19, while 2020-2021 was the year where Covid-19 attacked all Indonesian people.

Regional Financial Independence Ratio Analysis
To calculate regional financial independence, that is by comparing Regional Original Revenue with transfer income from either the central or provincial government (Kaeng & Saerang, 2015 Based on these data, it can be seen that the value of the regional financial capacity independence ratio and the relationship between Kebumen Regency and the Central Government is in the following table: In 2018, the year the Covid-19 pandemic still hasn't hit, the ratio of Kebumen Regency's regional financial independence reached 16%. This shows that the contribution of Kebumen Regency's PAD to government assistance is still very low by showing an instructive relationship pattern. In 2019, where at the end of the year, Covid-19 had begun to spread, the ratio of the regional financial independence of Kebumen Regency actually increased, previously from 16% to 18%. This shows that the emergence of Covid-19 has not had a bad impact on Kebumen Regency, but the contribution of PAD is still in an instructive pattern or is quite low. In 2020, where covid-19 has really spread throughout Indonesia and there are many government regulations on limiting community activities, the ratio of financial independence in the Kebumen Regency area is still stagnant at 18%. Meanwhile, in 2021, the year in which the spread of the virus has decreased, and the government has minimized the Covid-19 pandemic policy, the ratio of Kebumen Regency's regional financial independence has increased to 21%. However, this increase is still not enough to increase the financial capacity of Kebumen Regency because it is still classified as very low by showing an instructive relationship pattern. This shows that the role of the Central Government is more dominant than the independence of the Regional Government of Kebumen Regency. These results are supported by research Rahmawati & Kiswara (2022) which says that the ratio of independence he did with the Paired Sample Test there was no significant difference to the provincial financial performance either before covid or during covid.

PAD Efficiency Ratio Analysis
If an area can achieve the planned goals with minimal costs, then the financial performance of the area is already efficient (Kaeng & Saerang, 2015). The following are the results of the Kebumen Regency efficiency ratio analysis for 2018-2021: In 2018, the year the Covid-19 pandemic still didn't strike, the efficiency ratio of Kebumen Regency was 81% with quite efficient financial capabilities. This shows that Kebumen Regency in obtaining PAD is sufficient to reduce the costs that have been incurred. In 2019, where at the end of the year, COVID-19 had begun to spread, the efficiency ratio of Kebumen Regency actually decreased to 80% with financial capacity being efficient. This shows that the emergence of Covid-19 has not had a bad impact on the financial efficiency of Kebumen Regency, on the contrary, its financial capacity has increased.
In 2020, where COVID-19 has really spread throughout Indonesia and there are many government regulations regarding restrictions on community activities, the efficiency ratio of Kebumen Regency has decreased to 77% with financial capacity still being efficient. However, in 2021, the year in which the spread of the virus has decreased, and the government has minimized the Covid-19 pandemic policy, the efficiency ratio of Kebumen Regency rose to 98% with less efficient capabilities. This efficiency shows that in 2021, Kebumen Regency in obtaining PAD has not succeeded in reducing the costs incurred. This shows that Covid-19 does not affect the efficiency ratio of Kebumen Regency. This is in line with research put forward by Hapsari et al. (2022) that even though the COVID-19 pandemic is ongoing, the local government of Surakarta is still able to maintain its financial effectiveness and efficiency ratio.

PAD Effectiveness Ratio
The higher the regional financial effectiveness ratio shows that the regional government is able to realize its PAD in accordance with the set targets (Ayu, 2018). The following are the results of the Kebumen Regency efficiency ratio analysis for 2017-2021: In 2018, the year the Covid-19 pandemic still didn't strike, the Kebumen Regency effectiveness ratio was 97% with quite effective financial capacity. This illustrates the achievement of PAD in 2018 according to the targets that have been set. In 2019, where at the end of the year, Covid-19 had begun to spread, the effectiveness ratio of Kebumen Regency actually rose to 101% with very effective financial capabilities. Likewise in 2020, where Covid-19 has really spread throughout Indonesia and there are many government regulations regarding restrictions on community activities. This does not affect the effectiveness ratio of Kebumen Regency, which increases to 123% with very effective financial capabilities. Meanwhile, in 2021, the year in which the spread of the virus has decreased, and the government has minimized the Covid-19 pandemic policy, the effectiveness ratio of Kebumen Regency has actually decreased to 108% with financial capacity still very effective. This shows that the achievement of PAD in 2019-2021 exceeds the set target and Covid-19 does not affect the effectiveness ratio of Kebumen Regency. This is in line with the research by Hapsari et al. (2022) that even though the covid-19 pandemic is ongoing, the Surakarta city government is still able to maintain its financial effectiveness and efficiency ratio. This shows that the achievement of PAD in 2019-2021 exceeds the set target and Covid-19 does not affect the effectiveness ratio of Kebumen Regency.  In a year in which the spread of the virus has decreased, and the government has minimized the Covid-19 pandemic policy, the PAD growth ratio has increased again to 15% with PAD of 472.017.087.115,00. As a matter of fact, that amount of PAD is the highest PAD in Kebumen Regency from 2018-2021.

Conclusion
Based on the results of the ratio analysis in the study, the conclusions that can be drawn from this study are as follows.
1) In 2018-2019, the year in which COVID-19 did not exist or had not spread throughout Indonesia, the condition of Kebumen Regency's PAD based on ratio analysis did not decrease, but seen from the independence ratio, Kebumen Regency was very low at 16% for 2018 and 18% for 2019 with an instructive relationship pattern. The efficiency ratio has decreased from 2018 by 81% (efficient enough), while in 2019 it became 80% (efficient). The effectiveness ratio has increased, namely for 2018 by 97% (quite effective) while for 2019 it becomes 101% (very effective). For the PAD growth ratio, in 2019 there was an increase of 14% from 2018 of -26%. 2) In 2020, the year that COVID-19 has spread throughout Indonesia, the condition of the PAD of Kebumen Regency, based on ratio analysis, has decreased in the PAD growth ratio from the previous 14% to -2%. For other ratios, there was an increase, namely the independence ratio remained at 18% (very low), the efficiency ratio decreased to 77% (efficient), the effectiveness ratio increased to 123% (very effective). 3) In 2021, the year in which the spread of the virus has decreased, and the government has minimized the Covid-19 pandemic policy, the condition of Kebumen Regency's PAD based on an analysis of the independence ratio has increased by 21% (very low). For the efficiency ratio rose to 98% (less efficient). For the analysis of effectiveness decreased to 118% (very effective). Meanwhile, the ratio of PAD growth has increased to 15%. 4) It can be concluded that, although the Regional Original Revenue of Kebumen Regency has decreased, Covid-19 has no effect on the financial performance of Kebumen Regency.

Suggestion
For further researchers, it is expected to expand the scope of research, in order to be able to compare regional financial performance with other regions and conduct research with different measurement methods to produce better research.