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Sebastian Eckardt and Anwar Shah
T A B L E 7 . 7 DAK Allocations by Sector, FY 2005
Sector
Education Health Infrastructure Government infrastructure Fishery Agriculture Total
Amount (Rp billion)
National development expenditure (Rp billion)
Number of receiving regions
1,221 620 1,533
21,585 7,796 13,081
333 local governments 331 local governments 348 local governments
148
n.a.
322 170
2,028 4,024
32 local governments and 2 provinces 300 local governments 155 local governments
4,014
48,514
n.a.
Source: Indonesia, Ministry of Finance 2005. n.a. = not applicable.
from total revenues (sum of own-source revenue, DAU revenue, DAK revenue, and shared revenues and taxes, excluding surpluses in FY 2002), denoted Revi, divided by the national average of the same measure: (7.7) Districts that score lower than 1 on this measure are eligible for DAK funds. This measure is sensitive to the resources a region has at its disposal to finance capital expenditures. The special criteria directly refer to a number of provinces—including Papua, Aceh, and all provinces in East Indonesia—that are eligible for DAK funds. In addition, coastal areas, conflict regions, less-developed regions, and regions that experience floods and other natural disasters are supposed to receive DAK funds. The regulation remains unclear about how and to what extent these criteria should be used in the allocation process. The technical criteria are set by the sectoral departments in consultation with the Ministry of Finance and the Ministry of Home Affairs, and they vary across sectors. In the education sector, for example, the number of classrooms in poor condition and the construction price index are used. In the health sector, the technical criteria include the Human Poverty Development Index,20 the number of health service facilities, and the construction price index. Two brief comments on DAK funds are in order. First, despite significant increases in recent years, DAK expenditures remain relatively limited compared with the regular sectoral development expenditures of the central
