Policy options for resolving local revenue leakage through collaborative governance in Keerom Regency, Indonesia

This policy brief examines the leakage of Locally-Owned Revenue (PAD) in Keerom Regency, Papua Indonesia, driven by weak inter-agency coordination, fragmented fiscal oversight, and limited data integration in border areas. Vulnerabilities are identified in the data collection, determination, collection, and reporting stages of PAD, which open up opportunities for leakage. To address these issues, this policy brief discusses and compares two policy options: strengthening informal inter-agency coordination and institutionalizing collaborative governance. Comparisons are made based on feasibility, cost, time of impact, risks, and monitoring indicators. Based on this analysis, a phased approach is recommended that combines short-term responses with medium-term institutionalization policies to strengthen fiscal accountability and sustainable PAD governance.