Indonesian Political, Business & Finance News

Government Strengthens Special Autonomy Fund Governance Through 5T Principle

| Source: CNBC Translated from Indonesian | Politics
Government Strengthens Special Autonomy Fund Governance Through 5T Principle
Image: CNBC

Jakarta, CNBC Indonesia - Vice Minister of Home Affairs Ribka Haluk has stated that the management of Papua’s Special Autonomy (Otsus) funds must be oriented towards tangible community impact, rather than merely high budget absorption rates. To this end, the government is strengthening the governance of Otsus funds through inter-ministerial synergy, the development of an interoperability system, and more accountable oversight to accelerate the disbursement of Phase II for the 2026 fiscal year. She noted that this strengthened governance now receives full support from the Corruption Eradication Commission (KPK) through joint monitoring and supervision with the government. “The management of these Special Autonomy funds is a crucial instrument. Therefore, together with the KPK, we are going directly to Papua, inviting all stakeholders to build a shared commitment for better and more accountable governance,” she said in a written statement on Thursday (23/7/2026). Ribka explained that collaboration between the Ministry of Home Affairs, the Ministry of Finance, the Ministry of National Development Planning/Bappenas, regional governments, and the KPK has produced an interoperability system that strengthens the supervision of Otsus fund management. This system is now showing results, with improved fund absorption compared to previous years. Nevertheless, she stressed that the success of Otsus fund management must be measured by the benefits genuinely received by the people of Papua. Ribka also highlighted the significant remaining budget surpluses (SiLPA) in several regions, which risk being utilised outside their intended purposes. She further urged regional governments to be more disciplined in maintaining consistency between planning and budget execution, and to apply the 5T principle: timely, targeted, sufficient amount, right recipient, and appropriate use. This step is taken to ensure every rupiah of the Otsus funds provides optimal benefits to the community. “It is not just the system that needs to be integrated, but our thinking as well. We are undergoing a transformation so that the governance of Special Autonomy funds becomes more transparent, accountable, and directly impactful for the people of Papua,” she asserted. The Ministry of Home Affairs will continue to assist regional governments in strengthening the capacity of Otsus fund managers, optimising the use of population data to ensure accurate targeting of beneficiaries, and refining the interoperability system as an instrument for control and evaluation. She expressed hope that these measures would realise transparent, accountable, and sustainable governance of Otsus funds, ensuring the benefits of Special Autonomy are genuinely felt by the people of Papua.

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