Local Wisdom as “Capacity-in-Waiting”: Strengthening the Institutional Capacity of BPPKAD to Increase Local Own-Source Revenue in Southwest Papua Province

Abstract

Background. Newly formed autonomous regions with strong customary character hold local wisdom that is often treated as an object of preservation rather than a resource for strengthening the capacity to manage regional revenue.

Purpose. This study analyzes the position of the local wisdom of Southwest Papua communities in strengthening the institutional capacity of the Regional Financial and Asset Management Agency (BPKAD) to increase local own-source revenue (PAD).

Methods. A qualitative approach with a case-study design based on interviews, observation, document review, and secondary data, analyzed thematically using the interactive model of Miles, Huberman, and Saldaña.

Results. Local wisdom functions as a capacity-in-waiting—social-institutional infrastructure functionally equivalent to the capacities most lacking in the fiscal bureaucracy. Mutual cooperation supplies voluntary compliance, customary institutions supply a data network and legitimacy, sasi supplies a complete levy model, and customary justice supplies obeyed enforcement. The environmental-service revenue of Raja Ampat proves that linking the bureaucracy with customary institutions yields the largest non-tax revenue.

Conclusion. Strengthening capacity requires linking the two systems through the pathways of legitimacy, partner institutions, and design model, conditioned on genuine customary representation, honesty in revenue-sharing, and procedural patience.