Special Allocation Fund

Special Allocation Fund ( DAK ) is sourced funds from the state budget revenues were allocated to certain areas in order to help fund special activities that are regional affairs and in accordance with national priorities . The funds are used to finance infrastructure and basic public services ( physical activity ) that have not reached a certain standard or to accelerate regional development . DAK scale set in the state budget every year .

LEGAL BASIS
• Law No. 33 of 2004 on Fiscal Balance between the Central Government and Local Government , and
• Government Regulation Number 55 Year 2005 on Fund Balance ,

DAK ALLOCATION MECHANISM
• DAK allocation criteria , namely :
General criteria , formulated based on fiscal capacity , as reflected in the general budget revenue expenditure net of PNSD ;
Special criteria , formulated by legislation governing the implementation of special autonomy and regional characteristics , and
Technical criteria , which is based on indicators that can describe the condition of facilities and infrastructure , and technical achievements in the implementation of DAK .
• Calculation of DAK allocation is done in two stages , namely :
Determination of the specific areas that receive DAK , and
Determination of the amount of DAK allocation of each region.
• Determination of Specific Areas must meet the general criteria , specific criteria and technical criteria .
• The amount of DAK allocation of each region is determined by calculating an index based on the general criteria , specific criteria and technical criteria .
• DAK allocation per area defined by the Regulation of the Minister of Finance .

DIRECTIONS TO DAK

    DAK Education , which is geared to support the implementation of the Compulsory Education program ( Fair ) 9 -year basic education quality , which is intended for SD , both public and private , are prioritized in disadvantaged areas , remote areas , border areas , disaster-prone areas , and coastal areas and small pulaupulau .
    DAK Health , which aimed to improve health care , especially in order to accelerate the decline in Maternal Mortality Rate ( MMR ) and Infant Mortality Rate ( IMR ) ; improve health care for poor families and communities in remote areas , lagging , borders , and archipelago , through increased outreach and quality of health services , particularly for procurement , improvement , and repair of facilities and infrastructure health centers , and networks including village health post , hospital and provincial / district / city for health care referrals , as well as the provision of facilities / infrastructure supporting health services in the county / city .
    DAK Family Planning , which aimed to improve the coverage and quality of services force field line planning program , service infrastructure Communication , Information , Education and Communication ( IEC ) / advocacy planning program ; infrastructure services at family planning clinics , and means of care and coaching child development in order to reduce the birth rate and population growth rate , and improve family well-being and resilience .
    DAK Infrastructure Road and Bridge , which are directed to maintain and improve service levels provincial roads , district , and city in order to improve the distribution of passengers , goods and services , and the products are prioritized to support agriculture , industry , and tourism so as to facilitate growth regional economy .
    DAK irrigation infrastructure , which aimed to maintain and improve service levels , including network infrastructure, irrigation systems and irrigation reclaimed swamp villages into the affairs of the district / city and province, particularly in the area of national and regional barns left in order to support the improvement of food security .
    DAK Agriculture , which aimed to improve agricultural infrastructure at the farm level , in order to increase production in order to support national food security .
    DAK Marine and Fisheries , which aimed to improve the facilities and infrastructure of production , processing , quality improvement , marketing , and supervision , and the provision of facilities and infrastructure in coastal areas and the empowerment of small islands .
    DAK Infrastructure Regional Government , which aimed to improve the performance of the region in carrying out the development and expansion of local public services , and priority is given to areas affected by the expansion of 2007-2008 , as well as used for construction / expansion / rehabilitation of total building office / regents / mayors , and construction / expansion / rehabilitation of total DPRD office building , with regard to the calculation of DAK allocation criteria .
    DAK Rural Infrastructure , which is devoted exclusively to disadvantaged areas , and aimed to improve the accessibility and availability of basic infrastructure to facilitate the flow of passengers, staples , and other agricultural products from the production centers in rural areas to marketing .

COACH DANA
• The area receiving it shall make Matching Funds of at least 10 % of the value it receives to fund DAK physical activity.
• Matching Funds shall be budgeted in the current fiscal year budget .
 

CASE

JAKARTA , MONDAY - Realization of the Special Allocation Fund or DAK in 2008 reported to be very low . It is characterized by the Finance Ministry note which states that of all the areas that get DAK allocation , only 35 percent are managed using a 30 percent share of DAK as much as 90 percent to date .

Director General of the Ministry of Finance Fiscal Balance Mardiasmo disclose it in Jakarta , Monday ( 25/8 ) when speaking at Seminar of Regional Finance and Local Governance . According Mardiasmo , fund transfer in 2008 using the new mechanism , which is paid by the Treasury to the acceptance of any region in four parts . The first part is paid as much as 30 percent of quota at the beginning of the year , and 30 percent if the first allotment has been proven to be used correctly , and then again after a 30 percent share of the two runs , and 10 percent at the end of last year.

However , until the eighth month , most of the area receiving it has not filed a new application for the second phase of fund transfer , which should have been paid in the second quarter of 2008. As a result , DAK targeted at Rp 21.1 trillion potentially be used entirely in 2008.

If they do not also submit an application by the end of the second tranche of 2008 , then the rest of the DAK certain quota forfeited . They also can not ask the rest of the DAK at the end of the year , because the fund transfer to the new system this can only be done gradually . " If the first stage has not been requested , then the second stage we will not melt . And so on , " said Mardiasmo
Sources : http://nasional.kompas.com/read/2008/08/25/16492123

DISCUSSION

As of the first quarter DAK realization only reached 35 % of the entire area to successfully use its 30 percent share of DAK . This of course raises a question mark Why ? DAK which is the shopping capital of the local government to stimulate the economy of the region as capital expenditure in fact many are not fully realized so that it can inhibit the growth of interconnected economy and public services . Fund transfer in 2008 using a new mechanism that is paid in increments over four sections . And if 30 % DAK first part is not being used optimally then DAK second stage can not be cashed , until the end of the year if not availed DAK DAK then rest assured that a quota forfeited .

Implications DAK low absorption and disproportionate :

1. Activities that are not taken immediately at the beginning of the fiscal year led to government programs or services to the public can not be done quickly .
2. DAK delays are shopping for goods / services do not lead to optimal economic activity in the early years of the program .

The factors causing low realization of DAK is as follows :

•  Unpreparedness of the program.
•  Lack of understanding on the implementation of the provisions of the budget
•  Lack of understanding of the procedures of payment and fund transfer .
• DAK use the first stage can not be justified by either , so do not dare to make DAK 2nd stage as careful with the Commission and other legal institutions , or already well-established financial area at this time .

In order to further optimize the absorption of DAK funds needed strategic efforts and anticipatory facing these issues , among others :

• The planning of the program or activity that either , so expect the absorption DAK can be used optimally for the implementation of activities and local government spending.
• Understanding of the provision and payment mechanism
• Implementing mechanism uses a fast DAK funds , as needed , transparent and Modern.
• Appoint treasury officials in accordance with academic background and have the ability to carry it out as well as timely .