Special Allocation Funds Are: Check Out Understanding, Types, And Mechanisms For Allocation

YOGYAKARTA In the field of state finances and local governments, there are terms that are often mentioned, namely the Special Allocation Fund (DAK). In simple terms, special allocation funds are funds transferred by the central government to the regions. To understand the meaning of the DAK further, see the following article.

Reporting from the official website of the Ministry of Finance's Legal Documentation and Information Network (JDIH), special allocation funds are funds allocated to the regions.

DAK is sourced from the State Revenue and Expenditure Budget (APBN) and is provided to fund special activities handled by local governments according to national priorities. The priority program itself is included in the Government's Work Plan in the fiscal year concerned.

Explanations related to DAK are explained in several rules, one of which is explained in Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (UU HKPD).

In the Special Allocation Fund in Indonesia published by the Directorate General of Budget, Ministry of Finance (2022), DAK is divided into two types, namely the following.

Physical DAK is a fund allocated from the APBN to the regions to fund the provision of public infrastructure and basic services. Physical DAK is further divided into several themes or focuses that are adjusted to national priorities. This means that these priorities can change.

For example, in 2023, physical DAK is divided to support improving the quality of Human Resources (HR), supporting regional connectivity, supporting economic recovery and infrastructure development, to supporting food security.

Unphysical DAK is used to support the operations of regional public areas. The allocation is focused on making it easier for the public to access quality public base services. An example of the non-physical DAK allocation in 2023 is as a partner.

Reporting from the Special Allocation Fund Allocation Mechanism uploaded on the Bali.bpk.go.id website, the nominal DAK given to the regions will be set annually in the APBN. The national priority program will be published in the Government Work Plan according to the fiscal year.

In its budgeting, the technical minister will propose what activities the DAK will finance by coordinating with other ministers, namely the Minister of Home Affairs, the Minister of Finance, and the Minister of State for National Development Planning.

Special allocation funds are important components in the realization of central government programs in the regions. To get other interesting information, visit VOI.id.