Monday, 22 June 2026
JAKARTA | INDATANEWS.COM - The debate over the effectiveness of the Special Autonomy Fund (Dana Otonomi Khusus/Otsus) for Aceh has resurfaced after differing assessments linked the existence of the fund to the province's still relatively high poverty and unemployment rates in Indonesia's westernmost region. However, the Aceh provincial government maintains that the Otsus Fund has demonstrated tangible positive impacts on regional development, particularly in reducing poverty, creating employment opportunities, and improving human resources.
This position was reiterated by the Secretary of the Aceh Provincial Government, M. Nasir Syamaun, on the sidelines of the Indonesian Cyber Media Association (SMSI) award ceremony naming him a "National Inspirational Figure 2026" at the Press Council (Dewan Pers) in Central Jakarta on Thursday, June 18, 2026.
Nasir emphasized that the Otsus Fund, which has been flowing to Aceh since 2008, is mandated under Law No. 11/2006 on the Governing of Aceh (UUPA). The fund serves as a key instrument for accelerating post-conflict recovery and reconstruction following the tsunami disaster.
"The Governor Mualem (Muzakir Manaf) is therefore strongly committed to securing the continuation of the Otsus Fund," he said.
"We in the Aceh government are obliged to implement this directive. All elements of society support the Governor, including the Aceh Parliament," he stated.
This broad support, he said, reflects the continued view that the Otsus Fund remains a key driver of economic growth and public welfare.
"In 18 years, Aceh's poverty rate has decreased by around 16 percent. We started from very difficult conditions after conflict and the tsunami," he said.
At the beginning of the fund's implementation, the poverty rate stood at around 28 percent, and when including tsunami impacts, it was estimated at approximately 32 percent. Today, the figure has declined to around 12 percent.
"That represents a reduction of about 16 to 20 percent—a very significant achievement," Nasir added.
The provincial government is also pushing for further acceleration of poverty reduction, aligned with Indonesia's national development agenda.
"We are proposing an Otsus allocation of 2.5 percent of the national General Allocation Fund (DAU)," he said.
The Aceh government aims to reduce the poverty rate to around six percent by 2030.
Nasir highlighted the downstream industrialization strategy, which aligns with President Prabowo Subianto's national agenda and is being implemented under the vision of Governor Muzakir Manaf and Deputy Governor Fadhlullah.
SKK Migas and Mubadala Energy have proposed processing gas and condensate through floating production facilities (FPSO) offshore before being transported to onshore facilities in the Arun Special Economic Zone in Lhokseumawe.
"Onshore processing can activate the local fertilizer and petrochemical industries and provides significantly higher employment impact compared to offshore facilities," Nasir said.
He added that the establishment of industrial activities would create a wide-ranging economic multiplier effect, including in trade, logistics, transportation, and small businesses.
"The Andaman Block is one of the factors that can help reduce unemployment," he added.
In conclusion, the Aceh government remains optimistic that the continuation of the Otsus Fund, combined with UUPA reform and resource-based industrialization, will accelerate the region's economic transformation. (IDNC)
REPORTER: Adli Safwan | EDITOR: Fik Sagala
/home/u7391150/public_html/indatanews.com/theme/function.php on line 28