Dampak Penerimaan Asli Daerah dan Dana Perimbangan terhadap Indeks Pembangunan Manusia di Provinsi Papua

This study aims to analyze the effect of Local Original Revenue (PAD), General Allocation Fund (DAU), Special Allocation Fund (DAK), and Special Autonomy Fund (OTSUS) on the Human Development Index (HDI) in ten districts in Papua Province during the period 2013-2022. Using the panel regression analysis method, this study explores the relationship between income variables and balancing fund allocations to improve the community's quality of life. The analysis results show that PAD and OTSUS Funds significantly impact the HDI, contributing positively to the quality of life through the implementation of effective local programs and special support provided to the regions. On the other hand, the DAU and DAK variables do not show a significant effect on the HDI. These findings emphasize the importance of efficiency in managing DAU and DAK to ensure optimal utilization of resources to achieve better human development goals. Therefore, it is recommended that further evaluation of the allocation of DAU and DAK is needed so that more effective strategies can be designed to improve the quality of life of the people of Papua Province. This study is expected to be a reference for policymakers in formulating more targeted programs.