Abstract

This study analyzes the effect of special autonomy funds on physical infrastructure, education, health, and poverty as well as its effect on economic growth in Aceh Province. The effect seen is the direct or indirect effect that occurs between the realization of special autonomy funds on economic growth in Aceh Province. The physical infrastructure variables represented by the length of the road, education represented by the average length of schooling, health represented by life expectancy, and poverty represented by the percentage of poor population were intervening variables. The intervening variable is a variable that is considered capable of mediating between the independent variables and the dependent variable. The analysis model used in this study is path analysis so as to be able to see the direct and indirect effects of an independent variable on the dependent variable. The results found in this study are the realization of special autonomy funds has a direct effect on economic growth. While the indirect effect is given by the variable realization of special autonomy funds on economic growth through the length of the road, life expectancy, and the percentage of poor people. The variable of average length of schooling does not have an indirect effect between the realization of special autonomy funds on the economic growth of Aceh Province.

Highlights

  • The special autonomy funds are funds provided by the Government for a special region or special region with the aim of reducing inequality, poverty, and other regional problems

  • If we look at the health sector, the variable life expectancy is not able to get an average growth rate that is faster than the average rate of increase in special autonomy funds

  • This study looks at the indirect effect generated by the management of special autonomy funds on the rate of economic growth through physical infrastructure, education and health as well as poverty

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Summary

Introduction

The special autonomy funds are funds provided by the Government for a special region or special region with the aim of reducing inequality, poverty, and other regional problems. Meiyenti and Jitmau (2019) said that the distribution of special autonomy funds was carried out so that regions could regulate themselves more optimally after being given other balancing funds such as transfer funds, and so on. According to the Directorate of Regional Autonomy (2011) states that special autonomy funds are part of the transfer funds made by the central government to regional governments based on the mandate of the law of each region. For the Aceh Province region itself, special autonomy funds are given so that the Aceh Province remains within the Unitary State of the Republic of Indonesia (NKRI) and improves Aceh's welfare (Isa, 2014). The granting of special authority is expected to improve the community's economy in order to realize justice in the concept of regional product management, increase community welfare, and empower human resources (Iskandar, 2017)

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