Optimization of special autonomy funds allocation to alleviate poverty in Aceh (a case study in districts/cities)

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Husni Jalil, Teuku Ahmad Yani, Andri Kurniawan

2019 International Journal of Innovation, Creativity and Change Vol. 9 Issue 4 Article Cited by 2 SDG 1 Quartile

Abstract

Aceh Province is a region with special autonomy. In addition to having income sourced from the fiscal balance fund from the central government, it is also granted a Special Autonomy Fund. The fund is not only intended to carry out provincial government affairs but also district/city affairs. One aspect of the use of Special Autonomy Funds, as mandated by law, is to reduce poverty. However, the Special Autonomy Fund has been granted for 12 years and the poverty rate in Aceh is still high above the national average, even if identified as misdirected. Thus, this study aims to find the reasons why Special Autonomy Funds are not significantly reducing poverty in Aceh. It will also investigate a model to overcome the problem. This is a legal study because the legal aspect, namely the Aceh Qanun as a legal umbrella term, is the basis of the use of Special Autonomy Funds. The results showed that Special Autonomy Funds are misused, misdirected, and mostly dominated by province. Moreover, the use of the fund is heavily influenced by political interests. This is proven by the inconsistency of the Aceh Qanun (which regulates Special Autonomy Funds), and disagreement over the master plans for the use of Special Autonomy Funds as a reference in planning the use of the funds. It is recommended to authorities to include districts/cities as autonomous regions so that they can carry out their government affairs. In particular, these affairs concern poverty alleviation funded by sources from Special Autonomy Funds. © 2019, Primrose Hall Publishing Group.

Affiliations

Faculty of Law, Syiah Kuala University, Banda Aceh, Indonesia

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