Papua's Special Autonomy Fund for Post-Pandemic Recovery and Empowerment of the Local Economy



The government has set a special autonomy fund (Otsus) for the Provinces of Papua and West Papua in the 2021 State Revenue and Expenditure Budget Draft (RAPBN 2021) amounting to IDR 7.8 trillion. This figure is an increase from the 2020 Revised State Budget, which is IDR 7.6 trillion.

In accordance with the mandate of the law, the allocation of special autonomy funds for the provinces of Papua and West Papua is equivalent to two percent of the total national general allocation fund ceiling (DAU) and is valid for 20 years.

The Special Autonomy Fund is budgeted to support the implementation of special autonomy, especially in the education and health sectors in special provinces such as Papua, West Papua and Aceh.

In addition, the Special Autonomy Fund is also directed to finance the development and maintenance of infrastructure, empowerment of the people's economy, poverty alleviation, as well as funding for education, social and health.

As stated in the 2021 RAPBN Financial Note, an additional infrastructure fund (DTI) of IDR 4.3 trillion is also allocated to accelerate the provision of infrastructure in the two provinces. The amount of DTI allocation is determined based on an agreement between the government and the DPR by taking into account the recommendations of the relevant regional governments.

Cumulatively, the Special Autonomy and DTI funds for Papua and West Papua will increase from IDR 12 trillion in the 2020 adjustment budget to IDR 12.2 trillion in 2021. The increase is in line with the increase in the annual National DAU ceiling.

"With this DTI, it is hoped that at least 25 years from 2008 all districts / cities, districts or other population centers can be connected by quality land, sea and / or air transportation," as quoted from the RAPBN Financial Note. 2021, Monday (17/8).

The increase in Otsus and DTI funds in 2021 is used to support recovery after the Covid-19 pandemic with four main programs. First, community economic empowerment, especially traditional markets.

Second, the development of information and communication technology facilities and infrastructure. Then, expanding access and increasing the effectiveness of education and health services as well as developing rural electricity infrastructure in Papua and West Papua Provinces.

Finally, improving the governance of the Special Autonomy and DTI funds through strengthening planning and budgeting, encouraging the quality of budget absorption, and strengthening reporting accountability.

It is known, President Joko Widodo (Jokowi) has also allocated a budget for transfers to regions and village funds (TKDD) of Rp.796.3 trillion in the 2021 Draft State Budget.

This allocation decreased by about 7.07 percent from Rp.856.9 trillion in the 2020 State Budget. However, the amount increased by 4.23 percent from Rp.763.92 trillion from the 2020 Revised State Budget due to budget reallocation in the context of handling the impact of the corona virus pandemic or covid-19.

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