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EFFECT OF SPECIAL AUTONOMY FUND AND LOCAL ORIGINAL

REVENUE TO THE PERCENTAGE OF POVERTY IN PAPUA

PROVINCE IN DEFENSE PERSPECTIVE

Tri Yulianto1*, Rhevi HS Putri2, Nur Khotimah3

Universitas Pertahanan Republik Indonesia1,2,3

yulianto290918@gmail.com1, fheviany_h@yahoo.com2, nu[email protected]3

PAPER INFO ABSTRACT

Received:

14th February 2023

Revised:

17th February 2023

Approved:

20th February 2023

Poverty in Papua Province is an important problem faced by the Indonesian

government because it involves issues of national security and defense. This

quantitative study aims to obtain information about the Special Autonomy

Fund, Regional Original Income and its effect on the percentage level of

poverty in Papua Province. This study involves data from the Special

Autonomy Fund, PAD and the percentage of poverty in Papua Province from

2004 to 2021. The collected data were analyzed using SPSS multiple linear

regression statistics. The results of this study inform that local revenue does

not affect the percentage of poverty but the Special Autonomy Fund has an

effect on the percentage of poverty in Papua Province. In a defense

perspective, the poverty level in Papua Province needs special attention

because it involves non-military threats that can lead to the threat of conflict

and security. Following up on the findings of this study, the Papua Special

Autonomy Fund program is reviewed to continue and it is necessary to

prepare a Grand Design for the governance of the Papua Special Autonomy

implementation. so that it can be right on target and avoid deviations.

KEYWORDS

Special Autonomy Fund, Poverty, Economic

INTRODUCTION

Indonesia is one of the countries that has the most occupation in the world. With the

abundance of the population, poverty is one of the main problems faced by the government.

Poverty is a series of social problems complementing other social problems including

unemployment, low quality of human resources and helplessness, which is characterized by

low living standards, inadequate housing, poor health, minimal or even no education, infant

mortality and maternal mortality rates that are still high, low life expectancy, small per capita

income and others (Febrianti et al., 2019).

There have been many instruments and programs launched by the government to

overcome the problem of poverty. But in fact, the percentage of poverty in Indonesia is still

high. According to data from the Central Statistics Agency (BPS) in 2021, Bali province is the

area with the smallest poverty prevalence of 4.53, while the area with the highest poverty

prevalence in Indonesia is Papua Province which has a poverty prevalence of 26.86.

If you look at figure 1, it can be seen that there is inequality in poverty prevention in

western and eastern Indonesia, the high prevalence of poverty in Papua Province is a homework

for the central government. Programs and policy instruments have been applied to Papua

Province to realize justice and economic equality in Papua. One of the policies for Papua

Province is the enactment of Law Number 21 of 2001 (Otonomi Khusus Bagi Provinsi Papua,

2001) which regulates the authority to implement special autonomy of Papua Province so as to

ensure the continuity of funding for Papua Province for twenty years in order to accelerate the

development process and increase equitable development in the Papua Province region

(Vidriza & Talmera, 2022).

Effect Of Special Autonomy Fund and Local Original Revenue to The Percentage of Poverty In Papua

Province In Defense Perspective

187 Return: Study of Management, Economic and Bussines, Vol 2 No (2), Feb 2023

Figure 1 Poverty Eradication

Source : Central Bureau of Statistics, 2021

As a tangible manifestation of the implementation of Law number 21 of 2001, Papua's

special autonomy status has exclusive rights in the treasury, namely the right to a Special

Autonomy Fund of 2% of the General Allocation Fund at the National level for a period of 25

years. In addition, Papua still has an allocation of equalization funds transferred by the central

government and Regional Original Revenue derived from regional taxes, regional levies,

resource management and others. The Papua Special Autonomy Fund has increased from year

to year, which is the largest component in the Papua Regional Budget of 63.79%, this was

conveyed by the Ministry of Home Affairs in 2020.

Even though The Special Autonomy Fund program has been running for twenty years in

the Province PApua still occupies the most ranking above poverty reduction rate in Indonesia,

on the other hand with the support of the Special Autonomy Fund, and Daera Original Incomeh

(PAD) Provinsi Papua is one of the Province which has the largest APBD fund in Indonesia.

This is a question with budget that big Rated not yet give big impact towards on the lives of

the Papuan people. In fact, it is hoped that these budgets can have an impact on economic

welfare in the realization of justice in resource management, improving welfare and human

resources, especially in poverty alleviation in Papua Province. Viewed from a defense

perspective, poverty making a nation lack strong resilience from ideological, political,

economic, socio-cultural and security defense aspects.

Based on the above phenomenon, researchers are interested in assessing whether the

Special Autonomy Fund and Regional Original Revenue have a significant impact on the

percentage of poverty in Papua Province from a defense perspective.

METHOD

The type of data used in this study is secondary data obtained from the Central Statistics

Agency (BPS) from 2004 to 2021. Variable definitions used:

1. Special Autonomy Fund (X1)

It is a special autonomy fund provided by the central government for the

implementation of Law No. 21 of 2001

2. Local Original Revenue (X2)

The revenue that a region is able to obtain as a result of taxes, levies, etc.

3. Poverty eradication (Y).

The percentage of the population below the poverty line.

Effect Of Special Autonomy Fund and Local Original Revenue to The Percentage of Poverty In Papua

Province In Defense Perspective

188 Return: Study of Management, Economic and Bussines, Vol 2 No (2), Feb 2023

Figure 2 Conceptual Framework

The conceptual framework in figure 2 to illustrate the influence ofvariab el independent

(free) on variabel dependent (bound) either partially or simultaneously. Hypothesis:

1. H1 : Special Autonomy Fund affects the percentage of poverty in Papua Province

2. H2 : The Balancing Fund affects the percentage of poverty in Papua Province

To analyze el-variable variance data in research using IBM SPSS Data Reviewer

Application, a research method used with multiple linear regression analysis models. The

method is to see the influence of the dependent variable (X) on the independent variable (Y).

Y = a+b1PADit+b2DOit+e

Information:

Y = Poverty Percentage

X1 = Special Autonomy Fund

X2 = Local Original Revenue

b = Regression Coefficient

a = Constant

e = Error term

Normality Test

Each variable of the regression model must show data that is normally or near normal

distributed in order to assess the distribution of data in a group of data or variables. One method

used to test the normality of a data is the Normal Probality Plot Test, this test is to compare

the cumulative distribution from the normal distribution (Ghozali, 2016). The basis for

decision making through this analysis, if the data spreads around diagonal lines as a

representation of normal distribution patterns, means that the regression model satisfies the

assumption of normality.

Hypothesis testing

T test (partial test)

To determine the effect of the dependent variable (X) on the independent variable (Y),

this test was carried out to see the significance of the influence of each independent variable

on the independent variable. Basis of decision making:

1. If the probability(significant) <0.05 and t is calculated > t table, then the Hypothesis is

partially accepted

2. If the (significant) probability >0.05 and t count < t table, then the Hypothesis is not

partially accepted.

F Test (Simultaneous)

To determine the effect of independent variables together on the dependent variable.

With the decision, as follows:

Effect Of Special Autonomy Fund and Local Original Revenue to The Percentage of Poverty In Papua

Province In Defense Perspective

189 Return: Study of Management, Economic and Bussines, Vol 2 No (2), Feb 2023

1. If the probability(significant) <0.05 and f count f >f table, then the model used is

accepted simultaneously

2. If the (significant) probability >0.05 and f count < the table, then the model used is

not accepted simultaneously

Termination Test.

This analysis is used to determine the presantase of the influence of the dependent

variable (X) simultaneously on the dependent variable (Y) with the following decisions:

1. If the correlation coefficient (r) is 0.70 to 1.00, it indicates a high degree of relationship

2. If the correlation coefficient (r) is 0.40 to 0.70, then it indicates the degree of moderate

relationship

If the correlation coefficient (r) is 0.20 to 0.40, it indicates a low degree of relationship

RESULTS AND DISCUSSION

Results

1. Normality Test

Figure 3 Probability Plot Test

From figure 3. It can be explained that the data points are near or follow diagonal lines,

then it can be concluded that the data is normally distributed

2. Test T (partial)

Table 1. SPSS T test results

Model

Unstandardized

Coefficients

Standar

dized

Coeffici

ents

Itsel

Std.

Error

Beta

(Consta

nt)

42.314

2.221

19.05

.000

OTSUS

FUND

(X1)

-.002

.001

-.698

3.005

.009

PAD

(X2)

-.001

.002

-.159

-.685

.504

a. Dependent Variable: POVERTY (Y)

a. Partially, the Special Autonomy Fund (X1) can affect the percentage of poverty in

Papua Province. This is indicated by a significant value of 0.009 < 0.05

Effect Of Special Autonomy Fund and Local Original Revenue to The Percentage of Poverty In Papua

Province In Defense Perspective

190 Return: Study of Management, Economic and Bussines, Vol 2 No (2), Feb 2023

b. Partially, the Regional Original Income (PAD) of Papua Province does not affect the

percentage of poverty in Papua Province. This is indicated by a significant value of

0.504 > 0.05

3. F test (simultaneous) Table 2. F SPSS Test Result

In this F test shows that the value of F (0.000) < 0.05 so it is concluded that the model

formed can be used to predict

4. Test Dtermination

Table 3. SPSS Termination Test Results

In this TerminationTest,it shows that the value of the r coefficient is 0.829 This shows

that the relationship of free l variabeto bound l variabe has a high degree relationship of 82.9%.

The multiple linear regression process in table 1 obtained the results of the equation, as

follows :

Y = 42.314 – 0.002X1 – 0.001X2

From the equation above, it can be interpreted that every addition of 1 trillion special

autonomy funds can reduce the percentage of poverty by 2% and every addition of 1 trillion

local original income can reduce the percentage of poverty by 1%

Discussion

The results of the research in table 1 show that the Special Autonomy Fund affects the

percentage of poverty in Papua Province. However, compared to other regions, the percentage

of poverty in Papua Province is still the highest in Indonesia as of March 2022, recorded at

26.56% with a total of 922 thousand poor people (Maulandy, 2022). This shows the large

Special Autonomy Fund disbursed for Papua Province but has not significantly reduced the

percentage of poverty in Papua (Kharisma et al., 2020).

ANOVAa

Model

Sum of

Squares

Mean

Square

Itself.

Regression

324.950

162.475

16.44

.000b

Residual

148.218

9.881

Total

473.169

a. Dependent Variable: POVERTY (Y)

b. Predictors: (Constant), PAD (X2), OTSUS FUNDA (X1)

Model Summaryb

Model

R Square

Adjusted R

Square

Std. Error of

the Estimate

.829a

.687

.645

3.14344

a. Predictors: (Constant), PAD (X2), OTSUS FUNDS (X1)

b. Dependent Variable: POVERTY (Y)

Effect Of Special Autonomy Fund and Local Original Revenue to The Percentage of Poverty In Papua

Province In Defense Perspective

191 Return: Study of Management, Economic and Bussines, Vol 2 No (2), Feb 2023

Povertyis the root of the problem that must be solved because it is closely related to

defense in the province, consideringthe security issues that occur. In addition to military threats

that use weapons, there are non-military threats that occur that concern Ideology, Politics,

Economy, Socio-Culture and Security Defense. Non-military threats are essentially threats that

use non-military factors that are considered to have capabilities that endanger state sovereignty,

territorial integrity and the safety of all nations. Non-military threats can have ideological,

political, economic, socio-cultural, technological and information dimensions as well as public

safety (Keputusan Mentri Pertahanan Nomor : Kep/1008/M/V/2017 Kebijakan Pertahanan

Negara Tahun 2018, 2018)

The problem of Papua is the desire of the people of Papua Province who do not

experience equal welfare compared to other provinces in Indonesia. The fact speaks that the

central government has allocated special autonomy funds disbursed from 2001 to 2021 which

reached hundreds of trillions of rupiah, in accordance with the mandate of Law No. 21 of 2001

concerning special autonomy. Minister of National Development Planning and Head of the

National Development Agency (PPN/Bapennas) Suharso Monoarfa assessed that the benefits

of Papua Special Autonomy funds have not been fully felt for Papuans (Putra Ananda, 2021).

The lack of special autonomy funds is due to poor governance and corruption among the elite.

Indonesian Corruption Watch (ICW) has also received reports from the public about the

misappropriation of Papuan special autonomy funds by regional political elites (ICW, 2018).

Special autonomyin Papua is considered useless and fosters corruption (Kaisupy &

Maing, 2021). Economic and social inequality is increasingly felt by the Papuan people, they

feel that their territory has a lot of natural wealth, but those who enjoy it are outsiders, while

indigenous people cannot feel it ).

Figure 4 OPM Resistance Timeline

Political and security issues have developed in several timelines as shown in figure 2. At

the beginning of the resistance period of 1965 was mostly carried out with armed contact

because it demanded independence, in the integration period of 1969 there was a growing

resistance with weapons but with the back of disillusionment and economic and social injustice.

The passing of Law n0 21/2001 concerning Special Autonomy Papua has not guaranteed the

success of development to improve the standard of living of the Papuan people (Suropati,

2019).

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CONCLUSION 
In this study, the effect of the Papua Special Autonomy Fund and local  native income 
(PAD)  on  the  percentage  level  of  poverty  in  Papua  Province  in  a  defense  perspective  was 
examined.  The  results  showed  that  the  Special  Autonomy  Fund  has  an  influence  on  the 
percentage level  of poverty compared to Regional Original Income. The  Special Autonomy 
Fund is able to reduce the percentage of poverty in Papua. But the special autonomy fund that 
has been disbursed by the government has not significantly alleviated poverty due to corrupt 
practices among the political elite and unclear programs. In the defense perspective, economic 
issues  are  the  main  issue  to  resolve  security  defense  conflicts  in  Papua  that  demand  equal 
welfare. 
Through  the  findings  obtained  in  this  study,  the  sustainability  of  the  Papua  Special 
Autonomy  Fund  program  is  highly  recommended.  The  disbursement  of  the  Papua  Special 
Autonomy Fund still needs to be continued as a manifestation of socio-economic justice in 
resolving the Papuan conflict with a welfare approach. And it is necessary to form a Grand 
Design governance  plan for the implementation of the Papua Special Autonomy Fund so that 
it is more focused and avoids corrupt practices.  This study only measured the variables of 
special autonomy funds and PAD only. In the next study, other variables both quantitative and 
qualitative  can  be  included  in  order  to  provide  a  clear  picture  related  to  the  use  of  special 
autonomy funds and other matters related to economic, defense and security issues. 
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