Budget Optimization of the Special Allocation Fund for Irrigation in Indonesia
Abstract
This research objective is to develop a budget optimization model for the Special Allocation Fund for Irrigation in 2021 based on the good condition of irrigation network areas as intermediate outcome performance. The performance equation function and nonlinear programing with Generalized Reduced Gradient (GRG) Non-Linear are employed to seek the optimum allocation for the selected 43 local governments in this research. With an IDR 314.38 billion available budget in 2021, 533.086 ha of irrigation networks in good condition are expected to be achieved from the distribution of the optimized budget in this research, which increased from 481,431 ha in 2020. Only 39 local governments were considered the best locations to receive the Special Allocation Fund for Irrigation in 2021. This model can be considered as an initial step toward improving the planning and budgeting processes of the Special Allocation Fund for Irrigation. Since this model was developed from a relatively small dataset, the results of this research should be treated with utmost caution. Future research could consider a larger data set to develop outcome performance’s budget optimization model, such as improvements to plantation areas. Improvement of how the Special Allocation Fund for Irrigation is planned and allocated has been a concern for years. Many studies and findings have revealed that the distribution of the Special Allocation Fund for Irrigation faces some effectiveness challenges, such as being considered less relevant to strengthening food security and making less contribution to irrigation network conditions.
Keywords: special allocation fund for irrigation, irrigation network, performance equation function, generalized reduced gradient method, non-linear optimization.
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