Impact of Special Allocation Fund (DAK) for Irrigation on Irrigation Conditions in Indonesia

Fandi Prasetyo Nurzaman, Lily Montarcih Limantara, Tri Budi Prayogo, Widandi Soetopo

Abstract

The Special Allocation Fund for Irrigation provides financial assistance from the National Government to selected local governments to fund irrigation management so that they can support the national agenda in achieving food security. Despite its purpose of supporting local government budget, the Special Allocation Fund has been widely used as the main funding for most development projects, including irrigation. Since 65.6% of the total irrigation areas in Indonesia have been delegated to the local governments, and more than half of these areas are broken, optimization of the Special Allocation Fund for Irrigation is urgently required to maximize its impact. This study aims to investigate the impact of the Special Allocation Fund for Irrigation on the irrigation conditions in Indonesia for 2018 fiscal year, focusing on 43 selected local governments. This study employed linear regression analysis and hypotheses tests to explain the relationship between the Special Allocation Fund for Irrigation and the Local Government Budget for Irrigation Operation and Maintenance as independent variables with outcome performance indicators such as irrigation conditions and harvested paddy field area as dependent variables. The results of this study indicate that in 2018 the Special Allocation Fund for Irrigation did not significantly improve irrigation conditions or increase paddy field areas. Therefore, improvement in how the Special Allocation Fund for Irrigation should be allocated is needed with regard to its original purpose. These findings should consequently be considered with the utmost caution because they are only based on a short period of study. Future research should use a longer period of data collection to provide more reliable results.

 

Keywords: Special Allocation Fund for Irrigation, irrigation conditions, harvested paddy field.

 

https://doi.org/10.55463/issn.1674-2974.50.7.2


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