Formula-Based Approach in Allocation of Specific Allocation Grants for Infrastructure (DAK Fisik): Case of Education Provision

Tengku Munawar Chalil; Mohammad Roudo

doi:10.36574/jpp.v4i3.130

Authors

Tengku Munawar Chalil Institut Teknologi Bandung
Mohammad Roudo BAPPENAS

DOI:

https://doi.org/10.36574/jpp.v4i3.130

Keywords:

Infrastructure costing, specific allocation grants, education

Abstract

The paper presents the top-down (formula-based) approach in allocation of specific purpose grants for infrastructure (DAK fisik) in education by considering the needs of infrastructure in education. First, we estimate the needs of education infrastructure by calculating the gap between current condition of infrastructures and the minimum required infrastructures in education. Then, we translate the needs into necessary costs for education per region. After that, we simulate the financial scenario for the necessary costs using specific allocation grants in hierarchical, temporal and regional dimension. We also consider the local fiscal capacity and indicators on achievement of local governments in education for the distribution on DAK Fisik for FY2021 and onwards. Finally, we provide potential implication of formula-based approach as a top-down planning and budgeting for DAK Fisik.

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Author Biographies

Tengku Munawar Chalil, Institut Teknologi Bandung

Tengku is a lecturer in development studies program, school of architecture, planning, and policy development (SAPPK), Institut Teknologi Bandung.

Mohammad Roudo, BAPPENAS

Mohammad Roudo is the acting director of regional autonomy, the Ministry of National Development Planning (BAPPENAS), Indonesia. Which has interested in the practice of decentralization policy especially in developing country. He got his PhD at International Development Department, the University of Birmingham. Before this, Roudo graduated with a BSc in Regional and City Planning from the Institute Technology of Bandung (ITB), Indonesia and a Master of Public Policy degree at the Australia National University (ANU) as an Australian Development Scholarships (ADS) awardee.