Kadin Appreciates the Proposal to Extend the Aceh Regional Development Fund until 2048

JAKARTA - Deputy Standing Committee (Wakomtap) for Regional Development Planning of the Indonesian Chamber of Commerce and Industry, Mahfudz Y Loethan, appreciates the proposal of the Minister of Home Affairs Tito Karnavian to extend the Aceh Special Autonomy Fund (Otsus) until 2048.

"This is not just a budget policy, but a tangible manifestation of the state's commitment to ensuring equitable development. We fully appreciate the steps of the Minister of Home Affairs and the support of Commission II of the DPR RI in overseeing this proposal," said Mahfudz as quoted by ANTARA, Tuesday, April 15.

Aceh is one of the special regions in Indonesia that receives Otsus funds in addition to Papua, as one of the conditions for peace in the Aceh conflict.

The legal basis for the receipt of Otus Aceh funds is Law Number 11 of 2006 concerning the Aceh Government (UUPA).

In the regulation, the amount of Otus Aceh funds is gradually reduced and will end in 2027.

Mahfudz assessed that the proposal was a strategic and equitable step to ensure the sustainability of development, especially in the midst of post-disaster challenges that still haunt Aceh.

According to him, Aceh is still facing serious challenges due to various disasters that have a direct impact on the infrastructure and economy of the community, which of course requires budgetary support.

"The heavy flooding that hit a number of Aceh regions has damaged many infrastructures, paralyzed economic activities, and affected the community widely. In this situation, the sustainability of the Otsus Fund is very important to accelerate recovery," he said.

According to Mahfudz, the return of the Otsus Fund portion to two percent of the national general allocation (DAU) will provide a wider fiscal space for the Aceh Government in financing priority sectors, ranging from infrastructure development, improving health services, to strengthening the economy of the community.

"Certainty until 2048 will provide a strong foundation for more targeted and sustainable long-term development planning," he said.

He also reminded that the amount of budget allocation must be accompanied by transparency, accountability, and effective supervision as the key to ensuring that the Otsus Fund really has a real impact on the welfare of the people.

Mahfudz added that the sustainability of the Regional Otsus Fund would also increase investor confidence following improvements in infrastructure and public services to create a more conducive business climate and encourage regional economic growth.

"This is an important momentum to ensure that Aceh will rise stronger. With proper management, Aceh will not only recover, but also be able to become a new engine of economic growth in the western region of Indonesia," said Mahfudz.