The Impact of Special Autonomy Funds and Transfers on Aceh Province's Regional Financial Independence

Purpose - The purpose of this study is to look into and assess the structural impact, relevance, and weighting of the Special Autonomy Fund, DAK, and DBH determinants on regional economic growth, as well as their impact on regional financial independence in Aceh Province.

Design/methodology/approach - There was a cross section of data panels from 2008 to 2017 and interviews with district/city stakeholders in Aceh Province. Structural equation model based on confirmatory value standardization as a method of assessing novelties.

Finding - As a means of achieving originality, a structural equation model based on confirmatory value standardization is used.

Research limitations/implications - where the structural equation is : Ŷ = 0.132 X1 + 1.624 X2 + 1.274 X3; V = 0.995 with R-square = 0.990. The Special Autonomy Fund, DAK, DBH are influential elements with positive and significant values in realizing regional economic growth and the framework of regional financial independence in Aceh Province.

Practical implications - With the last five years the management of the Special Autonomy Fund, DAK, DBH has become a breakthrough for the implementation of models and workflows. 

Originality/value - This research for effectiveness and the best form of management for the stimulation of regional economic growth and the realization of regional financial independence in Aceh Province.