Aceh fiscal planning and Special Autonomy Fund transition

The Aceh government and the Regional People's Representative Council (DPRA) have established the 2027 budget policy framework and temporary budget ceiling (KUA-PPAS). This planning occurs as the province faces the expiration of its Special Autonomy Fund (Dana Otsus) in 2027. Historically, these funds have been a major revenue source, averaging approximately 54 percent of Aceh's revenue between 2008 and 2025.

In response to the upcoming cessation of these funds, officials from the Ministry of Home Affairs have emphasized the need for Aceh to transition toward regional fiscal independence. Safrizal Zakaria Ali, Director General of Regional Administration, stated that the funds must act as a “catalyst for development transformation” rather than just a budget transfer instrument. To ensure long-term sustainability, calls have been made for reforms in financial governance, specifically regarding regulatory authority, planning, coordination, and transparency to address regional poverty and unemployment.