ATP and WTP analysis in determining retribution rate for building construction permit in Boyolali district

Abstract

Building Construction Permit (BCP) is a permit granted by the regional government except for buildings with particular government functions to build new, change, expand, reduce, and maintain buildings according to applicable administrative and technical requirements. This study aims to analyze and determine the unit price building levies for building permits in Boyolali Regency. The study aim also can fulfill the concept of cost recovery and equity. The amount of retribution paid by the community is equal to the operational costs in the licensing process or services provided by the local government and adjusted to the public ability to pay and willingness to pay or benefits provided by the local government. This research is a descriptive-analytical study. The sample in this study was 100 respondents. This research’s data sources consist of primary data in interviews and questionnaires and secondary data in operational costs and targets and realization of BCP income. The results showed that the BCP levy rate set’s value was lower than the value of the Activity Operational Costs (OAC). However, the value of the OAC tariff is greater than the value of ATP and WTP. The ability to pay BCP levies is equivalent to the willingness to pay BCP levies.