SPECIAL ALLOCATION FUNDS FOR FAMILY PLANNING AND MODERN CONTRACEPTIVE PREVALENCE RATE IN INDONESIA

The increase in the Special Allocation Fund (DAK) for Family Planning (FP) each year reflects the government's efforts to strengthen population control and family planning programs at the regional level. However, disparities in the achievement of modern contraceptive prevalence rates (mCPR) remain across regions. This study aims to analyze the relationship between FP-related DAK, both physical DAK and Operational Assistance for Family Planning (BOKB), and the prevalence of modern contraceptive use in Indonesia. The authors analyzed data from 508 districts/cities receiving FP-related DAK from 2012 to 2021, using secondary data sourced from the Ministry of Finance, BKKBN, and BPS. This study adopted the Kunatitati approach with the Panel-Instrumental Variable (Panel-IV) method, where the Construction Cost Index served as the instrumental variable. The estimation results reveal that physical FP-related DAK is not significantly associated with an increase in modern contraceptive prevalence rates. Conversely, BOKB has a positive and significant association with the improvement of mCPR. These findings highlight the importance of allocating strategic budgets to BOKB programs to achieve effective population control objectives. The government is expected to ensure the sustainable allocation of FP-related DAK, particularly BOKB, to districts/cities. Regular monitoring and evaluation of FP-related DAK management are essential to ensure that funds are well-utilized, timely, and oriented toward achieving performance outcomes.