Aceh's Dependence on Central Transfer Funds Remains High
Aceh House of Representatives (DPR) member Ilmiza Sa'aduddin Djamal
highlighted Aceh's continued high financial dependence on central transfer funds during the discussion of the Aceh Governor's Accountability Report (LKPJ) for the 2025 Fiscal Year.
This was conveyed during a plenary session of the Aceh DPR while reading the recommendations of the 2025 LKPJ Special Committee (Pansus) at the DPRA Building on Wednesday, May 20, 2026.
According to Ilmiza, although several of Aceh's economic indicators show improvement, the economic structure and regional revenue capacity are still considered weak. He stated that Aceh's revenue realization in 2025 reached IDR 10.699 trillion, a decrease of around IDR 754 billion compared to the previous year. He stated that the Aceh Government must optimize Aceh's own revenue to eliminate its reliance on transfer funds.
He explained that approximately 75 percent of Aceh's revenue in 2025 will still come from central transfer funds, which amount to IDR 7.963 trillion. Meanwhile, Aceh's Original Income (PAA) contribution is only around 25 percent.
Nevertheless, the Special Committee noted that several macroeconomic achievements in Aceh have shown growth. Aceh's economy in 2025 grew by 2.97 percent with oil and gas and 3.33 percent without oil and gas compared to the previous year. The agriculture, forestry, and fisheries sector remains the backbone of Aceh's economy, contributing more than 34 percent to the regional economy.
Furthermore, Aceh's Human Development Index (HDI) in 2025 increased to 76.23 points, an increase of 0.87 points compared to the previous year. This achievement places Aceh in 13th place nationally and among the top five in Sumatra.
Conversely, the poverty rate in Aceh has also decreased. The number of poor people in March 2025 was recorded at 704.69 thousand, a decrease of approximately 100 thousand compared to March 2024.
However, the Special Committee also highlighted Aceh's high annual inflation rate, which reached 6.71 percent in December 2025. The highest inflation rate was recorded in Central Aceh Regency, at 8.90 percent.
In its recommendations, the Aceh House of Representatives Special Committee requested that the Aceh Government immediately take various strategic steps to strengthen the regional economy and increase regional revenue.
"Some of the recommendations submitted include revising Aceh's tax regulations, optimizing motor vehicle taxes, strengthening the local MSME sector, and special audits of several Regionally-Owned Enterprises (BUMDs) such as PT BIMA and PT Bank Mustaqim," he explained.
The Special Committee also requested that the Aceh Government be more serious about improving the education and health sectors. This includes auditing dozens of school-owned enterprise (BLUD)s under the Aceh Education Office and resolving the issues surrounding several regional hospitals that have not yet been fully completed.
Ilmiza also highlighted the need to optimize regional asset management, improve services at the Aceh Baitul Mal (Baitul Mal Aceh), and strengthen forest protection through the installation of permanent markers throughout Aceh.
"These recommendations will be attached to the Aceh House of Representatives' decision regarding the Aceh Governor's Financial Report (LKPJ) for the 2025 Fiscal Year," he said.[]
Photo: MSME Market in Lhokseumawe, Aceh, Indonesia.