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Optimising Specific Grant General Allocations to Improve Basic Education Services

Law No. 1 of 2022 concerning Fiscal Relations between the Central and Sub-national Governments (HKPD– Hubungan Keuangan antara Pemerintah Pusat dan Daerah) introduced a Specific Grant within the General Allocation Fund (DAU SG – Dana Alokasi Umum dengan Specific Grant) to accelerate the fulfilment of basic services through earmarked transfers. This policy brief analyses the impact of the DAU-SG for the 2023– 2025 period on achieving the 2025 Minimum Service Standards (MSS– Standar Pelayanan Minimal). The findings reveal a positive correlation between the increased DAU-SG allocation in 2024 and progress in the 2025 MSS, underscoring the effectiveness of performance-based fiscal...

Expenditure Efficiency in the Implementation of the 2025 Regional Budget: Optimising the Fulfilment of Mandatory Spending in the Province of North Kalimantan

North Kalimantan (Kaltara) is facing significant fiscal challenges in implementing its 2025 Regional Budget, particularly in meeting mandatory spending for education and infrastructure. With over 70% of funding reliant on central government transfers and the suspension of the Special Allocation Fund, the province struggles to expand essential services amid rising costs and limited local revenue. This policy brief highlights strategies to optimise budget efficiency, including digitalising taxation to strengthen Own-Source Revenue (PAD), streamlining personnel expenditure, leveraging Public-Private Partnerships (PPPs), and enhancing collaboration with development partners. By improving governance, reallocating funds from non-essential activities, and adopting impact-oriented spending, Kaltara can better...

Strengthening the Social Welfare Information System to Improve Services and Wellbeing for Vulnerable Groups in North Kalimantan

Inaccurate data on Social Welfare Services (PPKS) is the issue that most slows down the achievement of social welfare program targets managed by the North Kalimantan Provincial Social Service. Data sourced from districts/cities is often considered inaccurate or outdated. As a result, this data does not support the formulation of planning and evidence-based policy documents. However, these documents determine the efficiency, effectiveness, and impact of the utilization of the social welfare program budget in North Kalimantan. This policy brief identifies several problems, namely: the absence of guidelines regulating data collection standards as well as data verification and validation, a lack...

Illegal Alcohol and The Fulfilment of Minimum Service Standards in Public Order and Community Protection in North Kalimantan

North Kalimantan is facing serious challenges related to an increase in occupational safety and health violations triggered by the distribution and abuse of illegal alcoholic beverages. Data from the Public Order Agency processed by Satu Data Daerah Kalimantan Utara in 2025 shows a 7.2% increase in occupational safety and health violations in 2024 compared to 2023. In addition to disrupting public order, this situation also increases the risk of criminal acts/violence against women, children, and other vulnerable groups. This policy brief discusses several issues, including: the lack of supervision of the distribution of illegal alcoholic beverages and the low level...

Promoting More Effective Slum Area Management Strategies in North Kalimantan Province

Until 2024, North Kalimantan still has slum areas with a total area of approximately 750 hectares. The area of slums managed by the provincial government accounts for 9.38% of the total area, which is still far from the national target of 0%. This condition requires attention from policymakers in North Kalimantan to manage slum areas more effectively so that they can achieve the targets mandated by the central government, in accordance with the scope of authority of the North Kalimantan Provincial Government. This policy brief discusses several issues, including: the low level of slum area management and the lack of...

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