Understanding the Fiduciary Risk of the Special Autonomy Fund in the Papua Province

Abstract

The phenomenon of fiduciary risk has been identified as the cause of the low achievement of program objectives. This paper explores the fiduciary risk environment of the Special Autonomy Fund (SAF) in the Papua Province. By explaining the fiduciary risk environment, the Special Autonomy researchers can assess the causes of the program’s failure. We reveal the different steps of the fund management by using multiple data sources. The results show interrelated fiduciary risks in the financial management from the planning until the reporting phase. These risks relate to existing problems of fraud, corruption, and staff competencies, leading to political issues in relation to the fund.

Keywords: fiduciary risk, Papua, special autonomy fund, asymmetric decentralisation

JEL Classification: D73, H75, I38, M42, O23