BATAM | INDATANEWS.COM - Aceh Deputy Governor Fadhlullah has called on the Indonesian government and the House of Representatives (DPR RI) to extend the provision of the Special Autonomy Fund for Aceh (Dana Otonomi Khusus, or Otsus) beyond 2027. He also proposed increasing the fund allocation from the current one percent to 2.5 percent of the national General Allocation Fund (Dana Alokasi Umum, or DAU).
Fadhlullah said extending and increasing the Otsus Fund would be one solution to strengthen Aceh's fiscal capacity in financing regional development. The measure is also considered important to support the province's recovery following hydrometeorological disasters that have affected several areas across Aceh.
Fadhlullah made the proposal during a meeting of the DPD RI's Western Subregion I, where various strategic issues concerning Sumatra were discussed. The meeting was held on Friday, September 11, 2026, at the Wyndham Panbil Hotel in Batam.
The meeting was attended by, among others, DPD RI Chairman Sultan Bachtiar Najamuddin, Deputy Minister of Home Affairs Bima Arya, Secretary-General of the National Disaster Management Agency (BNPB), representatives of several relevant ministries, as well as the heads of regional administrations from Aceh, North Sumatra, West Sumatra, Riau and the Riau Islands. Aceh-born DPD RI members Haji Uma and Azhari Cage were also present.
Aceh Reconstruction Needs Rp153 Trillion
In his presentation,
Fadhlullah explained that the funding requirement proposed by the Aceh provincial government under the Disaster Rehabilitation and Reconstruction Plan (R3P) had reached Rp153 trillion. However, the central government has approved a budget of only around Rp58 trillion.
According to Fadhlullah, the gap between the actual funding requirement and the approved allocation demonstrates that a substantial financing shortfall remains if rehabilitation and post-disaster reconstruction are to be implemented optimally.
"The solution is to extend the Otsus Fund for Aceh, whose current term ends in 2027,"
Fadhlullah said.
He explained that the allocation of the Otsus Fund for Aceh had declined since 2023. Aceh previously received two percent of the national DAU, but the share was subsequently reduced to one percent. The situation has placed additional pressure on Aceh's fiscal space, particularly as the government is simultaneously implementing budget consolidation and efficiency measures.
"Since we took office, it is not only one percent anymore; there is also budget efficiency," he said.
Fadhlullah expressed hope that amendments to the Law on the Government of Aceh (UUPA), which the DPR RI has already approved as a legislative initiative, could become an important moment for securing the continuation of the Otsus Fund for Aceh.
He called for the UUPA amendment to not only regulate an extension of the Otsus Fund's duration, but also restore and increase its allocation.
Fadhlullah proposed that the Otsus Fund be set at 2.5 percent of the national DAU, with the new provision taking effect in 2027.
"This is a solution for Aceh's development. We want the 2.5 percent Otsus allocation to begin directly in 2027," he stressed.
In his view, increasing the Otsus Fund would provide Aceh with greater fiscal space to implement development programs. The measure could also assist the regional government in meeting the financing needs arising from the disasters.
CALLS FOR MORE POST-DISASTER RECONSTRUCTION FUNDING: Aceh Deputy Governor Fadhlullah highlights the funding requirement for post-disaster reconstruction in Aceh, which has reached Rp153 trillion. The central government, meanwhile, has approved around Rp58 trillion. (PHOTO: Adli Safwan)
Rp60 Million Reconstruction Aid Needs Review
In addition to pushing for the continuation of the Otsus Fund, Fadhlullah also highlighted the funding needed to rebuild homes damaged by the disasters. He questioned whether the Rp60 million reconstruction assistance was adequate, particularly amid rising construction material prices.
According to
Fadhlullah, the increase in cement prices is one of the issues that must be taken into account in rebuilding residents' homes. He said Semen Andalas in Aceh has a production capacity of approximately 3,700 tons per day, while cement demand in Aceh reaches around 4,200 tons per day.
The imbalance between production capacity and demand, he said, has contributed to cement shortages and rising prices in several areas.
Fadhlullah said cement prices in several regencies across Aceh had now reached as much as Rp120,000 per sack. In his view, this development must be taken into consideration when determining the amount of reconstruction assistance for residents affected by the disasters.
"With cement prices currently this high, is it appropriate for reconstruction assistance for a house to be only Rp60 million? Therefore, this must be evaluated and reviewed again," he said.
He believes the government needs to adjust the amount of assistance to reflect actual price developments in construction materials. This would enable disaster-affected residents to rebuild their homes to appropriate standards and according to their actual needs.
CALLS FOR REASSESSMENT OF RECONSTRUCTION AID: Aceh Deputy Governor Fadhlullah calls for a review of the Rp60 million reconstruction assistance per house, citing rising construction material prices, particularly cement. (PHOTO: Adli Safwan)
River Restoration as a Key Part of Reconstruction
Fadhlullah also called on the government to make river restoration a key component of rehabilitation and reconstruction in Aceh. In his view, rebuilding homes and infrastructure alone would not be sufficient if river channels damaged by the disasters were not improved at the same time.
He said the government must ensure that rivers have sufficient capacity to accommodate large volumes of water during periods of heavy rainfall. This is necessary to prevent water from once again overflowing into residential areas and damaging buildings that have already been rebuilt.
"We must make sure the rivers can accommodate the water when it rains. The water must not enter the land again," he said.
In addition to post-disaster reconstruction and development financing,
Fadhlullah also called for clarity regarding the legal status of the Aceh flag as a regional symbol. He linked the issue to the Aceh peace agreement contained in the Helsinki Memorandum of Understanding (MoU).
For Fadhlullah, these various issues must be comprehensively addressed as part of discussions on amendments to the UUPA. He said revising the legal framework could provide an important opportunity to strengthen Aceh's position, both in financing regional development and in resolving various issues related to the province's special status.
During the DPD RI meeting,
Fadhlullah stressed that the continuation of the Otsus Fund is an important requirement for Aceh. Adequate fiscal support would help the regional government continue development while accelerating reconstruction following the disasters.
The proposal to increase the Otsus Fund to 2.5 percent of the national DAU is now expected to be included in discussions on amendments to the UUPA. Fadhlullah hopes the central government and the DPR RI will take Aceh's fiscal situation and development needs into consideration when determining Otsus policy for the period after 2027. (IDNC)
REPORTER:
Adli Safwan | EDITOR:
Fik Sagala