President Joko Widodo issued Presidential Regulation No. 7/2022 on Technical Guidelines for Special Physical Allocation Funds for Fiscal Year 2022. This regulation is enacted on 11 January 2022. The regulation is issued to implement the provisions of Article 12 Paragraph (6) of Law No. 6/2021 on the State Revenue and Expenditure Budget for the 2022 Fiscal Year.
The definition of Physical Special Allocation Fund (DAK Fisik) is a fund allocated in the State Revenue and Expenditure Budget (APBN) to certain regions. The funds are allocated to support the financing of special physical activities, which are considered regional affairs and in accordance with national priorities.
The funds are allocated to 15 fields, namely education, transportation, small and medium industries, health and family planning, housing and settlements, roads, markets, tourism, small-scale energy, environment and forestry, marine and aquatic agriculture, sanitation, drinking water. and irrigation.
Types of DAK Fisik are divided based on their objectives, namely:
1. Regular DAK Fisik
The purpose of the allocation fund is to fulfill basic services in preparing competitive human resources and basic infrastructure. Regular DAK Fisik covers various fields, such as:
- Health and family planning
- Drinking water
- Housing and settlement
2. DAK Fisik Assignment
Allocation funds are cross-sectoral to support the achievement of major project targets and certain national priorities. In addition, this allocation fund also aims to support the recovery of the national economy.
Physical DAK Assignments cover various fields, such as:
- Marine and fisheries
- Small and medium industry
- Water transportation
- Rural transportation
- Micro, small and medium enterprises
The Covid-19 pandemic has hit hard economic sectors, especially particular sectors such as tourism and hospitality. Regions whose economies depend mainly on tourism have been experiencing severe difficulties. Therefore, based on Presidential Regulation No. 7/2022, to restore the national economy, DAK Fisik assignments are classified based on cross-sectoral themes.
The cross-cutting themes consist of:
- strengthening priority tourism destinations and small and medium-sized industrial centers.
- developing food estate and strengthening of agricultural, fishery and animal production centers.
- increasing regional connectivity for inclusive development in the Nisa Tenggara, Maluku, and Papua regions.