Additional General Allocation Fund (DAU) Policy: The Failure of the Local Government to Provide an Urban Village Budget Allocation in Indonesia

Abstract

Initially, an additional DAU policy was issued in 2018, namely through Law Number 12 of 2018, concerning the State Revenue and Expenditure Budget for the 2019 Fiscal Year. This policy was designed to provide additional funds to urban villages. District budget allocations are the responsibility of local governments (PEMDA) according to the mandate of Law Number 23 of 2014 concerning Local Government. This study analyzes the failure of the local government to allocate Urban village funds through the General Allocation Fund (DAU) policy. DAU is a fund earmarked for equal distribution of abilities in inter-regional finance to fund regional needs in implementing decentralized government. The additional DAU policy is essential to anticipate due to the local government's failures in allocating these funds. This study aims to analyze the central government's Urban Village Fund policy through the State Revenue and Expenditure Budget (APBN). It reflects the failure of the local government to allocate a budget to urban villages from the State Revenue and Expenditure Budget (APBN). Besides that, it reflects local governments' inability to allocate budgets to urban villages.