ANALYSIS OF THE EFFECT OF CONSUMPTION, MINIMUM WAGE, AND HUMAN DEVELOPMENT INDEX ON OWN SOURCE REVENUE (OSR) IN CENTRAL JAVA PROVINCE

Own Source Revenue (OSR) is an important indicator in assessing the fiscal independence of a region. The existence of Local Original Income can be a reflection that the economy in a region is running according to its portion. On the island of Java, there is Central Java Province which has a strategic location and regencies/cities that are no less numerous than other provinces, but in reality in terms of Own Source Revenue (OSR) it is still low after Banten and the Special Region of Yogyakarta. Therefore, the purpose of this study is to analyze the effect of consumption, minimum wages, and Human Development Index (HDI) on Own Source Revenue (OSR) from 35 Regencies/Cities in Central Java Province with the period 2019-2024. The theories that support the phenomenon that occurs in Central Java Province are the theory of fiscal decentralization and the theory of endogenous growth. The method used in this study uses a quantitative method with an analysis tool, namely panel data regression. The results of the regression test in this study are that the consumption, HDI and minimum wage variables simultaneously have a significant effect on OSR. In addition, the consumption and Human Development Index (HDI) variables partially do not have a significant effect on OSR while the minimum wage variable partially has a significant positive effect. Based on the results of the study, there are implications that the government can pay more attention to the minimum wage in Central Java Province. The policy related to minimum wages in a region must continue to be considered because the resulting impact greatly affects OSR. The government can focus more on creating programs for the community, especially in the context of increasing minimum wages, investment and optimizing direct taxes.