DPD: Separation of Special Autonomy Funds Accounts Must Not Trigger Regional Budget Deficits

The Regional Representative Council (DPledged) of Indonesia supports the Corruption Eradication Commission’s (KPK) proposal to manage Papua’s special autonomy (otsus) funds through separate accounts, but has requested that the central government ensure this policy does not cause regional budget (APBD) deficits.

Filep Wamafma, Chairman of Committee III of the DPD RI, stated in Manokwari on Friday that separating the special autonomy fund accounts could increase transparency and accountability in budget management. “I agree, because as of now, there is no single database that openly informs the use of special autonomy funds across all of Papua,” he said.

According to Wamafma, the policy of separating accounts must be discussed alongside the Ministry of Finance and the Ministry of Home Affairs, as the mechanism for distributing special autonomy funds falls under the authority of the central government. He reminded that the policy must not reduce the fiscal capacity of local governments. Therefore, the central government needs to prepare new funding schemes, including considering an increase in the proportion of oil and gas revenue-sharing funds (DBH migas).

Furthermore, Wamafma assessed that the governance of special autonomy funds still faces challenges, such as weak oversight and a lack of information transparency regarding budget usage. He also encouraged the Papua Regional House of Representatives (DPRP), regency/city legislatures, and the Papua People’s Assembly (MRP) to optimise their oversight functions to ensure that the utilisation of special autonomy funds truly benefits the indigenous people of Papua.

Additionally, Wimafma proposed that the central government revise Government Regulations Number 106 and Number 107 of 2021 to ensure a clearer division of authority in the implementation of special autonomy.

Data indicates that Papua’s Special Autonomy Funds have been distributed since 2002, as mandated by Law Number 21 of 2001 concerning Special Autonomy for the Papua Province. According to the Directorate General of Fiscal Balance (DJPK) of the Ministry of Finance, the accumulated funds from 2002 to 2025 amount to Rp190.9 trillion, with an allocation of Rp12.69 trillion for 2026 to be distributed across the six provinces in the Tanah Papua region.