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Utilization of the “Performance Based” Scheme in Special Autonomy for Papua Volume II, by Rhaksi P.


Rhaksi P. | Papuan Observer

In the revision of Law Number 21 of 2001 concerning Special Autonomy (Otsus) for Papua, the Government of Indonesia included a plan to increase the budget. Finance Minister Sri Mulyani said the increase in the special autonomy fund was carried out from the initial 2 percent to 2.25 percent which was taken from the national General Allocation Fund (DAU).

In addition, the government has also added the funding scheme to transfer funds through block grant and performance based schemes. Previously, Papua’s special autonomy funds were only channeled through transfer funds through a block grant scheme.

Through this scheme, the use of funds is submitted to local governments in accordance with regional priorities and needs in the context of implementing regional autonomy.


Sri Mulyani said that in order to increase the effectiveness of the special autonomy fund, the Government will carry out a combination of the block grant scheme for direct transfer allocation as it has been, and based on performance base. This was aimed at convincing the Papuan people to really enjoy the special autonomy funds for both education and health facilities


“The combination of block grant and performance based schemes is an effort to improve Otsus to ensure the welfare of the Papuan people”


Meanwhile, the period for granting the Papua special autonomy fund is still 20 years. In order to increase the effectiveness of the use of funds, a number of ministries / agencies (K / L) will also provide guidance and supervision, including by the Financial and Development Supervisory Agency (BPKP).

Meanwhile, President Joko Widodo (Jokowi) has submitted a Presidential Letter (Surpres) regarding the revision of the Law on Special Autonomy for Papua to the DPR since 4 December 2020. Previously, the Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam) Mahfud MD said the government was looking for the best regulatory formula so that Papua’s Special Autonomy funds could be felt by the Papuan people as a whole.

So far, one of the problems in implementing Papua’s Special Autonomy is corruption of the budget itself. Mahfud MD even openly mentioned that the Papua Special Autonomy fund was so large, but it was actually corrupted by the regional elite there.

This problem is of concern to the Government of Indonesia, thus combining the two schemes above, as one solution in ensuring the realization of Papua’s Special Autonomy is right on target. Seeing the problems that have persisted in a period of nearly 20 years, it is fitting that the Papuan people are also critical of their respective regional governments.

The involvement of local communities in overseeing the realization of Papua’s Otsus is the key to the success of Otsus in the future.


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