SPECIAL AUTONOMY FUNDS AND REGIONAL ECONOMIC GROWTH : AN EMPIRICAL STUDY IN ACEH
Keywords:
Special Autonomy Funds, , economic growth, fiscal decentralization, governanceAbstract
This study investigates the impact of Special Autonomy Funds (SAF) on regional economic growth in Aceh, Indonesia, a post-conflict province granted fiscal autonomy through Law No. 21/2001 and the 2005 Helsinki Agreement. Using a mixed-methods design, the research combines quantitative analysis of Gross Regional Product (GRP), employment, and poverty indicators from 2008–2022 with qualitative insights from 300 respondents, including government officials and community leaders. Regression results reveal that a 1% increase in SAF allocation corresponds to a 0.5% rise in GRP, underscoring SAF’s multiplier effect. The findings further demonstrate that SAF-supported investments in infrastructure, education, and healthcare contributed to poverty reduction from 20.5% in 2010 to 15.4% in 2021, and reduced unemployment from 5.5% to 4.2%. Qualitative evidence highlights the role of governance, community participation, and accountability mechanisms in enhancing fund effectiveness, though challenges such as corruption and bureaucratic inefficiency persist. The study contributes to fiscal decentralization literature by providing empirical evidence on autonomy funds in a post-conflict setting and offers policy recommendations to strengthen transparency, align SAF with long-term development priorities, and foster sustainable regional growth. These insights are relevant not only for Aceh but also for other regions with similar autonomy frameworks.
References
Badan Pusat Statistik Aceh. (2022). Aceh in figures 2022. https://aceh.bps.go.id
Bahl, R., & Linn, J. F. (2020). Fiscal decentralization and economic growth: A review of the evidence. Public Finance Review, 48(2), 159–184. https://doi.org/10.1177/1091142120909620
Bappeda Aceh. (2022). Data on special autonomy fund allocation in Aceh. Aceh Regional Development Planning Agency.
Bappenas. (2020). National development planning agency report. Jakarta: Bappenas.
BPS Aceh. (2023). Aceh economic growth report. Banda Aceh: BPS Aceh.
Bryman, A. (2016). Social research methods (5th ed.). Oxford University Press.
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). SAGE Publications.
Creswell, J. W., & Plano Clark, V. L. (2018). Designing and conducting mixed methods research (3rd ed.). SAGE Publications.
Field, A. (2018). Discovering statistics using IBM SPSS statistics (5th ed.). SAGE Publications.
Fowler, F. J. (2014). Survey research methods (5th ed.). SAGE Publications.
Tashakkori, A., & Teddlie, C. (2020). Mixed methodology: Combining qualitative and quantitative approaches (2nd ed.). SAGE Publications.
Fauzi, A. (2021). Community participation in the utilization of special autonomy funds in Aceh. Journal of Southeast Asian Economies, 38(1), 85–102. https://doi.org/10.1355/ae38-1f
Khalid, A. (2022). The role of vocational training in economic development: Evidence from Aceh. Indonesian Journal of Economics and Business, 4(1), 45–60.
Mansyur, H. (2022). Enhancing transparency in the management of special autonomy funds in Indonesia. Asian Journal of Public Administration, 44(3), 234–250. https://doi.org/10.1080/02598272.2022.2100562
Masykur, M. (2021). The dynamics of Aceh autonomy and its impacts on local governance. Indonesian Journal of Governance, 5(2), 45–60.
Mauliansyah, H. (2017). Pengaruh waktu penetapan anggaran, besaran sisa anggaran tahun sebelumnya (SiLPA), dan perubahan anggaran terhadap serapan anggaran pada pemerintah daerah (Studi pada pemerintah daerah kabupaten/kota Sumatera Utara) (Master’s thesis, Universitas Syiah Kuala).
Oates, W. E. (2021). Fiscal federalism: A theoretical perspective. Public Choice, 188(1–2), 1–20. https://doi.org/10.1007/s11127-021-00898-4
Sari, D. (2023). Public-private partnerships in Aceh: Opportunities for economic growth. International Journal of Business and Management, 11(2), 112–128. https://doi.org/10.5539/ijbm.v11n2p112
Statistics Indonesia. (2023). Aceh economic indicators 2022. Statistics Indonesia.
Sukma, R. (2021). Infrastructure development in Aceh: The impact of special autonomy funds. Indonesian Journal of Development Studies, 9(2), 75–90.
Transparency International. (2022). Corruption perceptions index: Indonesia. https://www.transparency.org/en/cpi/2022/index/nzl
World Bank. (2021). Governance and accountability in Aceh: Lessons from the special autonomy experience. World Bank Publications.
