Assessing the footprint of special autonomy funds: The effectiveness of fiscal interventions in improving socio-economic welfare in Aceh
DOI:
10.62941/irefi.v2i2.135Downloads
Abstract
This study aims to evaluate the effectiveness of the Special Autonomy Fund (SAF)—locally known as Dana Otonomi Khusus Aceh (DOKA)—in improving socio-economic welfare in Aceh Province. The analysis employs a panel data regression approach using data from 23 regencies and municipalities over the 2019–2023 period. The development indicators examined include the Human Development Index (HDI), life expectancy, average years of schooling, and household consumption expenditure. The estimation results reveal that while life expectancy significantly contributes to HDI, SAF exhibits a negative and statistically significant effect on all socio-economic indicators. These findings suggest that substantial fiscal transfers have not been accompanied by effective implementation or well-targeted policy directions. SAF allocation appears to be administratively driven and lacks a long-term development strategy grounded in local needs. The policy implications highlight the necessity of reformulating SAF’s design toward an outcome-based framework, enhancing institutional capacity, and strengthening performance-based monitoring and evaluation systems. Therefore, affirmative fiscal policies such as SAF can only succeed when supported by sound governance, clear development priorities, and a genuine pro-poor orientation.
Keywords:
Special autonomy fund human development index social welfare panel regression AcehReferences
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