Regional Disparity Model Before and After OTSUS in Aceh Province

Abstract

The allocation of OtonomiKhusus (OTSUS) funds for the Province of Aceh becomes a source of revenue that is able to increase the regional fiscal level. This study aims to identify regional disparities in Aceh and the implication of OTSUS fund allocation against inequality. The analysis model uses the Williamson index and Theil Index, which is then performed multiple linear regression analysis of time series analysis. The results show that the regional disparities in Aceh Province during the OTSUS period have decreased. The allocation of Otsus funds has a significant impact on regional disparities. The gap in the OTSUS period has tended to decline, with a decrease of 65 percent. Human Development Index and economic growth are determinants that can reduce regional disparities in Aceh.