Abstract

Purpose of the study: Within 10 years, the central government of Indonesia has granted the special autonomy fund to Aceh as a strategy to improve the welfare of Acehnese. Contrary, the special autonomy funds that cannot be implemented properly-affected to the poverty in Aceh-is not significantly decreased. This study aims to determine the failure of special autonomy funds to decrease poverty in Aceh.
 Methodology: This research used descriptive qualitative methods by conducting the primary data through interviews, also secondary data through books, journals, newspapers, and other related sources. The analysis data is doing by using Transactional Political Theory.
 Main Findings: The results of this study indicate that asymmetric decentralization can be seen from the weak Regional Economic Growth Rate and the slow improvement of the Quality of Human Development Index (HDI). Thus the failure was caused by two things, namely: the thick Political Content of The Local Political Elite and the Domination of Local Political Elite in the Management of Aceh's Special Autonomy Fund in the Compilation of Planning and Work Programs. The absence of control in the management of special autonomy funds is based on project performance without good planning, and the existence of interest-based planning in the management of special autonomy funds that based on populist activity programs following the wishes of politicians which have an impact on weak regional economic growth, slow index improvement of human development quality, high poverty rates, and high unemployment in Aceh.
 Applications of this study: The finding of this study offered the evaluation systems for the government of Aceh to strengthen better local government governance, especially in increasing budget planning and implementation efficiency and strengthening regulations, and implementing an e-planning system to select program activities from the Aceh special autonomy fund.
 Novelty/Originality of this study: Based on the literature review conducted, there were limited publications which are focusing on the failure of autonomy funds in Aceh. Therefore this research will enrich the publication that concerns the failure of managing special autonomy funds in Aceh.

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