Asymmetric Decentralization

Indonesia has passed through long hard times to stand as an independent country. The past struggles to break from colonialism out were in concordance with Indonesia's efforts to maintain and secure its territorial sovereignty. Upheavals, threats and even rebellions to leave the Republic have often arisen in various regions even since the beginning of Indonesia's independence. One of which has occurred in the Province of Aceh. The considered injustice in the distribution of benefits from natural resources has led to conflict in Aceh. To deal with this issue, through the enactment of the Law No. 11 of 2006, the central government aims to confirm the special autonomy for Aceh to induce peace as well as security and achieve social justice within the region. Besides to improve education, quality of life, health, infrastructure, accelerate economic development through the special autonomy fund allocation. How the special autonomy has been implemented hitherto and how it contributes to improve Acehnese welfare is considered critical as well as interesting to analyze. The term ‘welfare’ is analyzed based on four aspects of analysis namely: (1) poverty and (2) unemployment alleviation, (3) Human Development Index (HDI), and (4) Gini Ratio. The study adopted a qualitative exploratory research design by which data were derived from analysis of secondary sources through literature review. The results show that Aceh is considerably dependent on the special autonomy fund. There are also seven priority sectors set by the government, namely: infrastructure, economic empowerment, poverty alleviation, education, social, health, and Aceh privileges. Furthermore, Aceh's special autonomy fund in general has had a positive impact on the welfare of the Acehnese society besides the Gini Ratio that is still high.