Effect the use of Aceh’s Additional Budget from Special Autonomy and Oil-Gas Revenue Sharing Fund to Welfare in Aceh

Luthfi, Asrizal (2012). "Effect the use of Aceh's Additional Budget from Special Autonomy and Oil-Gas Revenue Sharing Fund to Welfare in Aceh" Paper presented at the 9th annual conference of the HDCA, 5-7 September 2012, Jakarta, Indonesia.

Since 2008, Aceh received extra budget from special autonomy and oil-gas revenue sharing fund which aims to realize the welfare of society by taking into account the balance of development between counties and cities in the region of Aceh. But if we look reality in the field, although Aceh’s until 2011 had received at least about 20 trillion by special autonomy and oil-gas revenue sharing fund, but has yet to significantly improve the welfare of the community. Evidences show that the Aceh Human Development Index ranking that is on the order-29 in Indonesia (UNDP, Aceh Human Development Report 2010). The rating is worse when compared with a rating of Aceh in 2002, namely the rank-19. Life expectancy in Aceh in 2010 is also relatively low when compared with life expectancy of Indonesia. In health, infant mortality in Aceh was still high when compared with the average national infant mortality. The infant mortality rate in Aceh 31.94 in a thousand babies born, which means higher than average infant mortality rate reaching 26.89 Indonesia in a thousand babies born (BPS, 2010). In the field of poverty, the percentage of poor people of Aceh in 2010 was 20.98%, which means higher when compared with an average of 13.33% Indonesia in Aceh meaning in second poorest in Sumatra. Unemployment rate (TPT) of Aceh in 2010 reached 8.60%, a figure higher than average unemployment rate Indonesia, 7.41%. Even higher than that of Papua (4.08%) and West Papua (7.77%). In addition, some districts / city in Aceh threatened with bankruptcy. Some areas even experiencing a severe budget deficit such as North Aceh and Pidie. This condition is certainly dangerous, because it can lead to new conflicts.Given, economic injustice is the cause of the conflict in Aceh (Nazamuddin: 2008). Accordingly, additional special autonomy and oil-gas revenue sharing fund should be a great potential for economic reconstruction to help create peace in Aceh. When the economic potential is not managed properly, can actually interfere with the peace (Patrick Barron, 2008). The causes which arise include the economy is still dependent on government spending, but only 19% of Aceh which is the government consumption of fixed capital formation / investment (Aceh Economic Update, November 2011). World Bank studies in the “Study of the Management and Utilization in Aceh Special Autonomy Fund (2011) also found that the program activities funded by special autonomy funds have not been referring to a planning document that has a strong foundation; many small-scale activities (less than Rp. 100 million); proposing physical development programs are not always accompanied by a technical planning document is needed; districts/cities mentioned are the revisions and changes, the types and forms of activities, including budget ceiling without consultation with the local government district; lack of budget support operations in the district / city because of the special autonomy fund is not allowed for administrative activities, while revenue and expenditure budget for the district often can not because of general budget revenues and expenditures the district has been established prior to the determination of exact information about the activities funded by special autonomy in mind, and the limited time for implementation because of the delay approval of Aceh revenue and expenditure budget.

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