Abstract This study explores the potential for local tax extensification during the Takalar, Gowa, and Maros regencies in South Sulawesi, Indonesia. Despite the significant economic potential in sectors such as agriculture, fisheries, tourism, and edible bird nest production, these regions face challenges in optimizing local tax revenues. The research employed a qualitative approach, including a literature review, in-depth interviews with local government officials and taxpayers, and field observations. The findings reveal substantial underutilized tax potential owing to limited local regulations, weak taxpayer databases, and the absence of integrated digital tax systems. Overlapping authorities between central, provincial, and regency governments hinders fiscal autonomy and leads to dependence on central government transfers. Low taxpayer compliance, weak enforcement, limited human resources, and a lack of innovation in tax systems highlight the need for comprehensive institutional reform. The study recommends structural improvements in intergovernmental coordination, digitalization of tax systems, strengthening of tax databases, and capacity building for officials. Addressing these issues is crucial to enhancing regional fiscal independence and improving public service quality. This study contributes to the literature on local financial management and provides practical guidance for policymakers in designing fair, efficient, and sustainable tax extensification strategies.
S.E. et al. (Mon,) studied this question.