Indonesian Political, Business & Finance News

West Papua proposes additional TKD funding of Rp1.15 trillion and greater flexibility for Otsus funds

| Source: ANTARA_ID Translated from Indonesian | Economy
West Papua proposes additional TKD funding of Rp1.15 trillion and greater flexibility for Otsus funds
Image: ANTARA_ID

Manokwari (ANTARA) - The West Papua provincial government has proposed an additional regional transfer fund (TKD) of approximately Rp1.15 trillion, as well as increased flexibility in managing special autonomy (Otsus) funds, to accelerate development and improve the welfare of indigenous Papuans.

West Papua Governor Dominggus Mandacan, in a written statement received in Manokwari on Tuesday, stated that fiscal limitations pose the primary challenge in realising development, particularly in fulfilling education, health, and infrastructure services.

“On Monday (13/4), during the meeting of governors across Papua with the Directorate General of Finance of the Ministry of Finance in Jakarta, I conveyed the aforementioned proposals,” Dominggus said.

He explained that the Rp1.15 trillion TKD addition, from the total 2026 allocation of Rp3.64 trillion for the provincial government, covers general allocation funds (DAU), specific allocation funds (DAK), profit-sharing funds (DBH), and infrastructure financing support.

The provincial government is also advocating for more flexible management of oil and gas (migas) DBH within the Otsus framework, with options to exclude it from TKD categories or retain it in the scheme but expand its utilisation scope.

“Synergy between the central and local governments is essential to address budget constraints and accelerate development in West Papua,” he stated.

Regarding the use of Otsus funds, the provincial government proposes several policies, including recognising religious grant expenditures as part of the education sector and supporting sports development for human resource building.

Additionally, financing activities of the West Papua People’s Council (MRPB), a cultural institution for indigenous Papuans, as well as enhancing civil servant capacity through education and training to strengthen local governance.

“We propose several strategic policies that can be funded from Otsus funds,” Dominggus said.

Furthermore, the provincial government has urged that Otsus fund management policies better consider West Papua’s geographical conditions, including high construction cost indices and development challenges in remote areas.

Adaptive fiscal policy support is a crucial factor in driving the success of welfare development programmes for indigenous Papuans (OAP) across West Papua.

“Adaptive fiscal policy support will be key to improving the welfare of West Papuan society,” Dominggus said.

The meeting between the West Papua Governor and the Directorate General of Fiscal Balance (DJPK) of the Ministry of Finance was also attended by Assistant for Economy and Development of the West Papua Regional Secretariat, Melkias Werinussa, and Acting Head of Bappeda West Papua, Charlie Danny Heatubun.

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