Abstract

The majority of road infrastructure condition is far from excellent. The implementation of 10% minimum compulsory allocation of vehicle tax to be returned for road and transportation sector is potential to increase road maintenance fund.The research purpose is to raise regional revenue sources of Semarang City which is worth to be earmarked and to be alocated for road maintenance. This research is using secondary data of 2008-2015 period and linear regression analysis with Ordinary Least Square (OLS) method. The result of research concludes that : 1) the sources of earmarking consist of : vehicle tax (PKB), fee of vehicle title transfer (BBNKB), and fuel tax (PPBKB). 2) the allocation proportion of each earmarking source for Semarang City road maintenancefor next five years are : 25% (PKB), 15% (BBKNB), and 15% (PBBKB). 3) the allocation proportion of each earmarking source for Semarang City roadconstruction for next five years are: 50% (PKB), 45% (BBNKB), and 45% (PBBKB).

Highlights

  • Semarang City as metropolitan city with primary activity in trading and service sector needs an adequate physical infrastructure

  • Road sector is not a priority to be funded, it can be seen from budgetallocation for road and bridge sector which areless than 10% of total expenditure in 20092014 period (APBD Semarang City, 2015)

  • The amount of fund is far from enough to meet the need of road control program which consists of maintenance, improvement, and construction

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Summary

Introduction

Semarang City as metropolitan city with primary activity in trading and service sector needs an adequate physical infrastructure. Semarang is located in the middle of distribution route of West-East Java, which in one hand has strategic advantage. On the other hand, has high responsibility as it has to keep or to improve its role and function as the support of national economic distribution route as well as internal accesibility which has function as regional economy prime mover. Road sector is not a priority to be funded, it can be seen from budgetallocation for road and bridge sector which areless than 10% of total expenditure in 20092014 period (APBD Semarang City, 2015). The amount of fund is far from enough to meet the need of road control program which consists of maintenance, improvement, and construction. Apart from routine responsibility on direct expenditure component, the responsibility of road maintenance is emphazed as well on Act No 22 of 2009 about traffic and trasnportation regulation which

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