The local own-source revenue (PAD) component, which is a source of income for the Makassar city government, consists of regional taxes, regional levies, the results of separated regional wealth management, and other legitimate regional original income. According to Mulgan and Albury (2003), the measurement indicators used included several inhibiting factors. The data collection method used a qualitative descriptive method through observations, interviews, and documentation studies. Informant determination was performed using purposive sampling. Data analysis was performed through the stages of data reduction, data presentation, and drawing conclusions. The results illustrate that innovation programs are used, which are original ideas from the regional revenue department of Makassar city, namely the integrated and digitalized tax application commonly referred to as PAKINTA. The obstacles faced in implementing or creating innovations at the regional revenue department of Makassar city, based on data and facts, are the lack of implementation of training or technical guidance in adding skills for the department’s employees who contribute to increased tax innovation. There are still several employees who have not received education and training related to PAD management. Another obstacle that organizations experience as barriers to innovation is the lack of awareness of taxpayers to report and pay taxes on time.
Keywords: barriers in public sector innovation, public sector, local own-source revenue