Digital Parking Readiness Boosts Local Revenue in Cianjur, Study Finds

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The success of digital parking systems depends not only on technology but also on public readiness and accountability, according to a 2026 study conducted by Fitriyah, V. Rudy Handoko, and Bambang Kusbandrijo from Universitas 17 Agustus 1945 Surabaya. Published in the International Journal of Applied and Advanced Multidisciplinary Research (IJAAMR), the research examined how parking digitalization readiness influences the optimization of Local Own-Source Revenue (PAD) in the Bojongmeron Area of Cianjur Regency. The findings show that digital transformation can significantly increase regional revenue when supported by accountable governance and community participation.

The full study is available through the official DOI at https://doi.org/10.59890/ijaamr.v4i7.247 and the journal website at https://nvlmultitechpublisher.my.id/index.php/ijaamr/index.

Why Parking Revenue Matters for Regional Development

Local Own-Source Revenue plays a critical role in supporting regional autonomy in Indonesia. Under the decentralization framework, local governments are expected to generate sufficient income to fund development programs and reduce dependence on central government transfers. One potential source of revenue is parking retribution, particularly in busy commercial areas with high vehicle traffic.

To improve efficiency and reduce revenue leakage, many local governments have begun implementing electronic parking systems, including QRIS payments, Electronic Data Capture (EDC) devices, and subscription-based parking services. In Cianjur Regency, the government introduced a subscription parking policy through Regent Regulation No. 65 of 2023, making the Bojongmeron Area a pilot zone for digital parking implementation.

However, introducing digital technology alone did not immediately solve existing problems.

Official data revealed that parking revenue performance in Cianjur experienced a dramatic decline in 2024. Although the local government set a target of Rp13 billion in parking revenue, actual collections reached only Rp3.6 billion, representing just 27.69 percent of the target. This gap raised concerns about the effectiveness of digital parking implementation and the readiness of stakeholders to adopt the new system.

How the Research Was Conducted

The researchers used a quantitative explanatory approach involving 160 respondents consisting of parking service users and parking attendants operating in the Bojongmeron Area. Participants were selected through purposive sampling to ensure they had sufficient experience with the digital parking system.

Data were collected using structured questionnaires measuring three main variables:

  • Parking digitalization readiness
  • Public accountability
  • Optimization of Local Own-Source Revenue (PAD)

The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0 software to evaluate the relationships among these variables.

Digital Readiness Strongly Improves Accountability

One of the study’s most important findings is the strong relationship between digitalization readiness and public accountability.

The analysis found that parking digitalization readiness had a significant positive effect on public accountability, with a path coefficient of 0.698 and a significance value of 0.000. Respondents generally expressed confidence that digital parking systems made parking management easier and more efficient. The average readiness score reached 3.51, categorized as high.

According to the researchers, people who understand and trust digital systems are more likely to comply with regulations, support transparency, and participate in accountable public service practices. This readiness helps reduce opportunities for irregularities and strengthens oversight mechanisms.

Accountability Helps Increase Regional Revenue

The study also confirmed that public accountability directly contributes to better revenue performance.

Public accountability significantly influenced PAD optimization, with a path coefficient of 0.238 and a significance value of 0.014. Transparency, legal compliance, supervision, and responsiveness were identified as key factors supporting more effective revenue collection.

Researchers noted that illegal levies remain one of the biggest challenges in the parking sector. Survey results showed relatively low scores related to the absence of unauthorized fees, indicating that accountability issues continue to undermine revenue collection efforts.

When accountability improves, revenue leakages can be reduced, enabling more funds to enter regional government coffers.

Digital Parking Directly Supports Revenue Growth

Beyond accountability, digitalization readiness also demonstrated a direct positive effect on revenue optimization.

The research found that parking digitalization readiness significantly increased PAD optimization, with a path coefficient of 0.395 and a significance value of 0.000. Combined with indirect effects through accountability, the total impact reached 56.1 percent.

Digital systems simplify transaction recording, improve data reconciliation, reduce administrative costs, and minimize opportunities for manual manipulation. Respondents gave particularly high ratings to faster data recording and easier verification of parking transactions, demonstrating the practical benefits of digital transformation.

Accountability Acts as the Missing Link

Perhaps the most significant finding of the study is that public accountability partially mediates the relationship between digital readiness and revenue optimization.

The mediation effect was statistically significant, with a coefficient of 0.166 and a significance level of 0.016. This means that technology alone cannot maximize regional revenue unless accompanied by transparent governance, regulatory compliance, and public trust.

Fitriyah, V. Rudy Handoko, and Bambang Kusbandrijo of Universitas 17 Agustus 1945 Surabaya argue that digital transformation should not be viewed merely as the procurement of applications, devices, or subscription systems. Their findings indicate that technological readiness must be supported by accountability mechanisms that ensure honesty, transparency, and fair enforcement. Without those elements, revenue leakages may continue despite sophisticated digital infrastructure.

Implications for Local Governments

The findings offer important lessons for local governments across Indonesia that are investing in smart city initiatives and digital public services.

The study suggests that successful digital parking programs require a balanced approach involving:

  • Investment in digital infrastructure
  • Public digital literacy programs
  • Strong supervision and enforcement
  • Transparent reporting systems
  • Rapid responses to complaints and system failures

The researchers specifically recommend that Cianjur Regency strengthen community education efforts, crack down on illegal parking practices, and develop real-time public dashboards that allow citizens to monitor parking revenue circulation.

As local governments continue adopting digital governance strategies, the study demonstrates that accountability remains a crucial factor in turning technological innovation into measurable financial outcomes.

Author Profile

Fitriyah is a researcher from Universitas 17 Agustus 1945 Surabaya specializing in public administration, digital governance, and public sector accountability. She co-authored this study with Dr. V. Rudy Handoko and Dr. Bambang Kusbandrijo, academics whose expertise includes public policy, governance reform, regional finance, and public service innovation. Together, they focus on improving government performance through technology-driven administrative transformation.

Source

Article Title: The Impact of Parking Digitalization Readiness on the Optimization of Local Own-Source Revenue Through Public Accountability in the Bojongmeron Area, Cianjur Regency
Authors: Fitriyah, V. Rudy Handoko, Bambang Kusbandrijo
Journal: International Journal of Applied and Advanced Multidisciplinary Research (IJAAMR)

Year: 2026
DOI: https://doi.org/10.59890/ijaamr.v4i7.247
Official Journal URL: https://nvlmultitechpublisher.my.id/index.php/ijaamr/index


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