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President Joko Widodo Issues Regulations for the Management of the Papua Special Autonomy Fund | By Derry T.


Derry T. | Papuan Observer

President Joko Widodo (Jokowi) has issued Government Regulation (PP) Number 107 of 2021 concerning Reception, Management, Supervision, and Master Plan for the Acceleration of Development in the Framework of the Implementation of Special Autonomy (Otsus) for Papua Province. The regulation takes effect from the date of promulgation on October 15, 2021.

According to Article 5 of PP 107/2021, the use of provincial and district/city revenues in the context of special autonomy is carried out by taking into account the laws and regulations and guided by the Master Plan for the Acceleration of Development for Papua (RIPPP) by prioritizing the principles of good financial management.

Jokowi stated that the funding for Papua consists of profit sharing funds (DBH) for oil and gas mining natural resources of 70 percent and natural gas DBH of 70 percent. Then, the special autonomy fund (otsus) is 2.25 percent of the ceiling on the allocation of the national general allocation fund (DAU) and additional infrastructure funds (DTI).

Of the total DBH, about 35 percent will have to be used for provincial and district/city education spending. The remaining 25 percent is for spending on health and nutrition improvement, 30 percent for infrastructure spending, and 10 percent for spending on assistance for the empowerment of indigenous peoples.

“For the special autonomy fund, 1 percent of the national DAU will be given for public purposes. Meanwhile, the remaining 1.25 percent will be provided with a performance-based implementation system.”

1 percent of the special autonomy fund is used for the construction, maintenance, and implementation of public services. In addition, to improve the welfare of the community and traditional institutions as well as other matters based on regional needs and priorities.

Funds of 1.25 percent are used at least 30 percent for education spending, at least 20 percent for health spending, and some are allocated for community economic empowerment.

As for the DTI, the amount will be determined from the results of an agreement between the government and the DPR based on the provincial proposals in each fiscal year. The determination takes into account the previous year’s DTI performance and the state’s financial capacity.

In addition to being sourced from the center, Jokowi instructed the Papua Provincial Government to allocate a portion of the regional revenue and expenditure budget (APBD) sourced from the exploitation of Papua’s natural resources to be saved in the form of an endowment fund. Later, the results can be used to finance various development activities in the future.

Furthermore, the head of state emphasized the importance of Papua’s allocation of funds for education. In fact, he hopes that Papuan children can get quality education up to high school level with the lowest possible financial burden on the community.

Likewise for the health sector, he wants the Papua Provincial Government to ensure the welfare and security of health workers. This is done by providing additional performance and attendance-based incentives as well as assistance in improving qualifications and competencies.

“Every resident of Papua Province has the right to obtain quality health services with the lowest possible burden on the community,” Article 17 reads.

Related to management, later governors and ministers who carry out government affairs in the financial sector and domestic government affairs will need to provide assistance to the governor to evaluate the management of the budget.

Evaluation is carried out on the suitability between the proposed program and the RIPPP, the suitability of the program and authority, the synergy of the proposed program plans, the reasonableness of the value of programs and activities, the principles of efficiency and effectiveness, the results of monitoring and evaluation of revenues, to the synergy with budget plans and programs sourced from additional DBH funds. special autonomy oil and gas.


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