Measurements and Strategies to Improve The Performance of Physical Special Allocation Funds in Indonesia

Abstract

Physical Special Allocation Funds is a source of financing for the Regional Government used for physical development according to regional needs and national priorities in the region. Decentralization of the distribution of Physical Special Allocation Funds (DAK Fisik) through the State Treasury Services Office (KPPN) in the regions was implemented starting in 2017. Meanwhile, the task of coaching, assisting and analyzing the implementation of Physical Special Allocation Funds was carried out by the Regional Office of the Directorate General of Treasury which supervises State Treasury Services Office. The aim of this research is to provide input or suggestions for a local government performance measurement that can be used and a strategy that the of the directorate general of the treasury Regional Office can implement to improve local government performance in relation to the distribution of Physical Special Allocation Funds. These measurements and strategies were developed according to the problems resulting from the SWOT analysis. This research was conducted from 2017 to the third quarter of 2018 using data from 2017 to 8 November 2018. The results of this research are an increase in regional government performance, marked by an increase in distribution realization up to the beginning of November 2018 to 81.56 percent or above the national average. The value of the list of contracts that can be prepared by the Regional Government compared to its budget, the increase in absorption and output achievements, the decrease in the number of fields that are not distributed and the lower remaining funds in the Regional General Cash Account compared to the same period in 2017.