Affirmation Fund: Opportunities for Fiscal Justice for East Timor and NTT

Affirmation Fund: Opportunities for Fiscal Justice for East Timor and NTT

Good news comes from Larantuka. At the National Fiscal Justice Seminar held in East Flores, regents throughout NTT spoke in one voice: NTT needs affirmative funding from the central government.

The Regent of East Flores, Anton Doni Dihen, firmly stated that the current national financial formula does not yet reflect the real conditions of the regions in East Nusa Tenggara.

(Also read: Holding a Seminar on Fiscal Justice, the Regent of East Flores Calls the Fiscal Balance Affirmation Fund a National Disadvantage Fund)

So far, many districts in NTT are classified as low fiscal capacity, small PAD, minimal revenue sharing funds, and high dependence on the General Allocation Fund (DAU). Ironically, the DAU formula does not provide adequate space for regions like Flotim to catch up.
In fact, NTT’s geographical terrain is difficult, logistics costs are high, and basic services in many areas are still uneven.

For this reason, the NTT regional heads proposed the creation of a “Fiscal Balance Affirmation Fund” worth IDR 100 billion per district per year starting in 2026.

This fund is expected to be compensation for fiscal justice in the form of central support for regions that have been lagging behind in infrastructure development, education and public services.

However, this proposal must of course be followed by a strong commitment at the regional level. Affirmation funds are not just additional budget, but a big trust from the state. So, transparency and governance are the main keys.

These funds must be directed to productive things that touch the community directly, improving the quality of education and health, basic village infrastructure, strengthening the local economy such as MSMEs, and tourism.

It is important to improve fiscal data so that regions are able to be independent in the long term.

Fiscal justice does not only come from the center but also from the regional ability to wisely manage what they have.
With cooperation between government, private sector and society. Affirmation funds are not just numbers in the APBD, but rather a stepping stone towards real prosperity.

Hopefully this proposal will be the first step so that East Flores and NTT are not only recipients of fiscal mercy, but recipients of developmental justice.

By: Rkard Umbu

Media Activist

#Affirmation Fund: Opportunities for Fiscal Justice for East Timor and NTT