JAKARTA | INDATANEWS.COM – The Government of Aceh Province has reaffirmed the strategic importance of the Special Autonomy Fund (Dana Otonomi Khusus/Otsus) in driving regional development. Implemented since 2008 under Law No. 11/2006 on the Government of Aceh (UUPA Aceh), the fund plays a central role in poverty reduction, unemployment alleviation, and improving human resource quality.
The impact of the fund on public welfare remains a subject of ongoing public debate.
Aceh Provincial Secretary M. Nasir Syamaun responded to continued criticism questioning the effectiveness of the Otsus Fund. His remarks were delivered during the awarding of the "Inspirational National Figure 2026" by the Indonesian Cyber Media Association (SMSI) at the Press Council in Jakarta on Thursday, June 18, 2026.
Otsus as a Key Driver of Aceh's Development AgendaNasir stressed that the Otsus Fund has significantly contributed to reducing poverty and unemployment in Aceh while also strengthening the education sector and human resource development.
"Therefore, Governor Mualem is making serious efforts to strengthen the implementation of the Otsus Fund," he said.
He added that Aceh Governor
Muzakir Manaf has instructed all provincial government institutions to prioritize the acceleration of the revision of the Aceh Governance Law (UUPA). The directive is binding across all government bodies.
"All elements of the Aceh Government are required to follow Governor Mualem's directives. All social components and the Aceh Parliament also support this step," Nasir noted.
SIGNIFICANT DECLINE IN POVERTY RATE: Aceh Provincial Secretary M. Nasir Syamaun says the Otsus Fund has reduced poverty from around 28 percent to 12 percent over 18 years. (PHOTO: Adli Safwan)
Significant Decline in Poverty Over 18 YearsResponding to claims that the Otsus Fund has had limited impact, Nasir referred to long-term development data.
He explained that Aceh began its development journey under difficult conditions marked by prolonged conflict and the devastating tsunami disaster.
"Over the past 18 years, the poverty rate in Aceh has decreased by around 16 percent," he said.
At the beginning of Otsus implementation, the poverty rate stood at around 28 percent. According to Nasir, the impact of the tsunami was not fully reflected in early calculations.
"Without the tsunami disaster, the poverty rate would have reached around 32 percent," he added.
Currently, the poverty rate stands at approximately 12 percent, marking a decline of 16 to 20 percentage points.
"This is a very significant achievement," he emphasized.
The Aceh government aims to reduce poverty to 6 percent by 2030 in line with national development targets, with continued Otsus funding seen as essential.
"We therefore need an Otsus allocation of 2.5 percent of the national General Allocation Fund (DAU)," Nasir said.
UUPA Revision and Industrial Downstreaming StrategyNasir also highlighted the importance of revising the UUPA to strengthen Aceh's economic structure, particularly in job creation.
He pointed to Indonesia's national industrial downstreaming strategy, promoted by President Prabowo Subianto, which is being implemented in Aceh through Governor
Muzakir Manaf and Deputy Governor Fadhlullah.
"This is closely aligned with President Prabowo's industrialization program, which is being carried out under the vision of Mualem and Dek Fadh," he said.
Nasir noted that the utilization of natural resources-particularly in the oil and gas sector-offers significant economic potential for Aceh if supported by regulatory reform.
Andaman Block and Economic Multiplier EffectsNasir cited the major potential of the Andaman offshore oil and gas area, particularly the Tangkulo gas field in the South Andaman Working Area. The project is currently managed by Indonesia's upstream oil and gas regulator SKK Migas in cooperation with Mubadala Energy.
Operators are currently proposing a floating production, storage, and offloading (FPSO) system offshore, before channeling gas to an onshore receiving facility (ORF) in the Arun Special Economic Zone (KEK Arun), Lhokseumawe.
Technically, production would be processed at sea before being transported onshore.
However, the Aceh Government under Governor Mualem prefers onshore processing within KEK Arun.
"Onshore processing can effectively activate the fertilizer and petrochemical industries and create significantly more jobs than offshore facilities," Nasir explained.
He emphasized the strong multiplier effects on the regional economy.
"The Andaman Block will be a major factor in reducing unemployment in Aceh," he added.
Government OutlookThe Aceh Government reaffirmed its commitment to optimizing the Otsus Fund while expanding strategic economic sectors, particularly energy and industry.
The goal is to achieve an inclusive and sustainable economic transformation that significantly reduces both poverty and unemployment in the long term.
Through this strategy, the provincial government hopes to strengthen Aceh's economic stability and independence in the coming years.
(IDNC)REPORTER: Adli Safwan | EDITOR: Fik Sagala