ANALYSIS OF THE EFFECTIVENESS OF GENERAL MINING REVENUE-SHARING FUNDS IN EAST LUWU REGENCY

• Main Author: Mailadiniya, Sovi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85347
• Institution: Institut Teknologi Bandung

East Luwu Regency is one of the recipients of the mining Revenue Sharing Fund (DBH), with a contribution of 15.12% to the 2023 APBD. However, given that minerals and coal are nonrenewable natural resources, and the life of mines in East Luwu is expected to run out in less than 10 years, local governments must prepare for the challenges of economic transformation. Currently, the use of mining DBH is mostly allocated for bureaucratic spending, which shows a lack of optimization in its use for programs that have a direct impact on community welfare and long-term goals. In addition, the remaining budget surplus (SILPA) in 2023 reached Rp 102.3 billion, indicating funds that have not been utilized effectively. This study aims to analyze the effectiveness of the use of mining DBH, examine the optimal mechanism in its allocation, and identify potential sectors that can replace the mining sector in the future through an econometric approach and input-output analysis using the updated South Sulawesi Province Input-Output table and then derived to East Luwu Regency using the RAS method. Based on econometric analysis, it is known that what has the greatest significance from the GRDP structure data is government consumption expenditure which is interpreted as a block grant, which means that mining DBH should be distributed to government consumption expenditure to increase GRDP. However, after being approached using input output analysis by conducting scenarios of additional mining DBH based on block grant scheme, earmarking DBH CHT, sovereign wealth fund and earmarking based on leading sectors, the one that significantly affects total output is the earmarking scenario based on leading sectors. The results of the analysis of linkages and multiplier effects, the manufacturing and construction sectors are the sectors that can replace the mining sector in the future. These sectors show strong intersectoral linkages and significant output multiplier performance in both earmarking, SWF and sector linkage schemes. This suggests that these two sectors can play a role in driving sustainable economic growth in East Luwu Regency, especially in the post-mining context, when the source of DBH from the mining sector is reduced or exhausted.