Internalization Of SAF Physical Assignment For Environment And Forestry In The Development Planning Of North Sumatera Province

Fiscal balance is intended to ensure balance and fairness in using financial resources between the central and regional governments so that regions have sufficient resources to meet local needs without neglecting national interests. Fiscal balance is also carried out in the environment and forestry sectors. To date, efforts to improve environmental quality and the carrying capacity of watersheds and lakes are still not in line with national expectations. The Special Allocation Fund (SAF) budget for the Environment and Forestry (E&F) Sector is encouraged to support the national priorities contained in the National Medium-Term Development Plan (MNDP) document and detailed in the Government Annual Work Plan (GAWP), with its implementation carried out by the Regional Government. This study aims to evaluate the internalization of the SAF Physical E&F Sector Menu in regional planning and assess the implementation of its utilization in the regions as input for future development planning in the environment and forestry sectors. This study uses a descriptive qualitative approach to ongoing evaluation through a literature review, questionnaires, and limited discussions (FGD) with regional stakeholders. The literature review used regional planning documents in 34 provinces, with a deep dive into North Sumatera Province. Based on the results of questionnaires, local governments argue that 71 percent of SAF has effectively achieved goals and objectives, while the remaining 29 percent is still not optimal. For the regions, the limited budget also causes low SAF effectiveness. The central and local governments must sit together to formulate the importance of increasing budget allocations in the Environment and Forestry field in the regions, increasing human resources capacity, improving coordination between relevant agencies, engaging relevant parties in conflict resolution, and improving monitoring and evaluation mechanisms.


INTRODUCTION
Reform, decentralization, and regional fiscal balance are 3 (three) essential concepts in the Indonesian governance context.Each has a specific role in strengthening democracy, powering regions, and dividing financial resources between the central and local governments (Pambudi, 2023;Oates, 1999).A reform era is a form of rejection of the centralization system that has failed in various aspects to realize social welfare for all Indonesians (Huda & Heryansyah, 2019).In some ways, decentralization is interpreted as improving public service delivery and fostering a better understanding of fiscal preferences and local needs (Purwadi et al., 2020;Nurmiyati et al., 2020).
Regional fiscal dependence on fiscal decentralization implementation in Indonesia is one of the problems that must be overcome.It results from the practice of neo-classical economic theory, which gave birth to income inequality.Experience in many developing countries shows high inequality hampers economic growth (Bonet, 2006).Therefore, regional fiscal balance is needed as a mechanism for financial balance between the central government and local governments.It is crucial because regions need sufficient financial resources to finance various development programs and public services in their regions (Pambudi, 2021;Chandra et al., 2017).Fiscal balance includes revenue sharing, financial transfers between central and local governments, and the allocation of natural resource revenue-sharing funds (Pratama & Septiana, 2022).Fiscal balance ensures balance and fairness in using financial resources between the central and regional governments so that regions have sufficient resources to meet local needs without neglecting national interests.Fiscal balance is also carried out in the environmental and forestry sectors.
Environmental and forestry fiscal decentralization is part of the government's efforts to provide authority and financial resources to local governments to manage environmental and forestry issues in their areas (Fauziyah & Trisnawati, 2022).It is in line with the broader principle of decentralization in Indonesia.In the context of environmental fiscal decentralization, local governments are responsible for managing and protecting the environment in their areas.They have the authority to develop environmental policies and programs that suit local conditions, including water management, waste management, afforestation, and nature conservation.In this case, local governments also have the authority to impose environment-related taxes or levies to support environmental management and conservation.
Meanwhile, fiscal decentralization of forestry involves giving local governments the authority and financial resources to manage and utilize forest resources in their regions.Local governments have a crucial role in forest management, including protecting, monitoring, planning, and sustainable use of forest resources.They can also manage revenues from forestry activities, such as taxes, levies, or forest revenue-sharing funds.
With environmental and forestry fiscal decentralization, local governments are expected to respond more to environmental and forestry issues in their regions (Pambudi, 2019;Orchidea et al., 2016).They can develop policies that better suit local needs, improve environmental monitoring and protection, and increase community participation in environmental conservation efforts and sustainable forest management.
The Indonesian government continues to evaluate and improve existing policies and regulations to achieve effective reform, decentralization, and fiscal balance.It is done so that power and resources can be distributed fairly, as well as to strengthen governance that is responsive, accountable, and able to meet the needs of communities at the local level.The Special Transfer Fund is one scheme that considers the central government's regional interests.Special Transfer Funds are funds allocated in the State Budget to regions to help fund special physical and non-physical activities that are regional affairs.
One form of transfer of funds is the Special Allocation Fund, both physical and non-physical (Rafi & Arza, 2023).Physical Special Allocation Funds are funds sourced from State Budget revenues allocated to specific regions to help fund special activities that are Government affairs, which are the region's authority, and following national priorities.
The Environment and Forestry sector is one of the development areas financed by the Physical Special Allocation Fund (Pambudi, 2020).To date, efforts to improve the environmental quality and carrying capacity of watersheds and lakes have not been as successful as expected nationally.Watershed and lake management is a shared responsibility of various stakeholders, namely the government, the community, and the private sector.However, in practice, there is often overlapping authority and a lack of coordination between stakeholders.This causes watershed and lake management efforts to be ineffective.On the other hand, the community, as a key actor in watershed and lake management, still does not realize the importance of preserving them.This is characterized by people who often carry out activities that can damage watersheds and lakes, such as littering, cutting down trees illegally, and using pesticides excessively.Another fundamental problem is that watershed and lake management require a sizable budget.Ironically, the budget available for watershed and lake management is still not ideal.This causes watershed and lake management efforts to be hampered.
In this context, the use of the SAF budget for the Environment and Forestry Sector is included in the development planning system that supports national priority programs contained in the National Medium-Term Development Plan (NMDP) document and detailed in the Government Annual Work Plan (GAWP).In this regard, local governments must prioritize providing infrastructure, facilities, and physical development related to the environment and forestry in a more targeted manner following national targets (Pambudi, 2022).The menu of activities in the SAF physical assignment is relevant to support several national targets, including 1) reduction of critical land area; 2) recovery target of 15 watersheds; 3) technical civil soil and water conservation; 4) industries that meet emission quality Planning Agency monitor and evaluate the achievement of outputs as well as the impacts and benefits of implementing the activities of each physical SAF sector, which is a national priority.
Considering that the internalization of physical SAF in the Environment and Forestry Sector in regional planning has not been a topic of study in Indonesia, it becomes an exciting thing to review concerning its harmony as the primary support for achieving other development priorities in the regions.
Deepening the substance of implementation in the field with a case study in North Sumatera Province (Sumatera Utara) is also interesting to discuss because this area receives the largest physical SAF allocation in the Environment and Forestry Sector.This study aims to evaluate the internalization of the physical SAF menu for the Environment and Forestry Sector in regional planning and assess the implementation of its utilization in the regions as input for future development planning in the Environment and Forestry Sector.

METHODS
This study uses both secondary and primary numerical data.Policy analysis uses a content analysis approach through literature studies of relevant theories and policies in the Physical SAF Assignment sector, especially the Environment and Forestry Sector.Based on Government Regulation 39 of 2006 as a derivative of Law 25 of 2004, it is stated that on-going evaluation is an activity of careful observation of a condition in the current year, including its behavior, intending to provide recommendations and necessary actions that can be taken (GoI, 2006;GoI, 2004).This research uses a descriptive qualitative approach within the scope of ongoing evaluation through literature reviews and focus group discussions (FGDs) with local stakeholders.The literature review used regional planning documents in 34 provinces, with a deep dive into North Sumatera Province.In conducting FGDs, important informants were involved, namely the head of the Regional Apparatus Organization Unit in North Sumatera or a representative in the FGD, especially from the North Sumatera Provincial Bappeda, the North Sumatera Provincial Environment and Forestry Office, and the Environmental Agency receiving SAF for the Environment and Forestry Sector in the Regency or City.The Focus Group Discussion was held on September 5, 2019 at the North Sumatra Provincial Bappeda Office (Regional Development Planning Board) with 52 participants from representatives of local technical offices and Bappeda of provincial, regency and city governments in North Sumatra that received Special Allocation Funds, especially in the environment and forestry sector.The rationale for selecting these informants is related to the region's location that received the largest allocation of SAF for the Environment and Forestry Sector.In addition, employees who become informants in the Regional Apparatus Organization Unit are directly involved in the planning and implementation of SAF in the field, so providing factual field information is considered relevant.
When conducting Focus Group Discussions, questionnaires were also given to be filled in by FGD participants.The deepening in North Sumatera Province was carried out considering that this province has a large SAF budget compared to other provinces with a policy focus on the environment and forestry in Indonesia in 2019.Data analysis and processing in the study used a proportional preference approach that describes the frequency conditions of the data population (Buisseret & Prato, 2020).The analysis used a literature review approach and limited discussions with local governments.The effectiveness description was carried out using the planning gap analysis and the suitability of regional priorities, using content analysis to conclude.
The effectiveness analysis also uses budget data to see how the regional development agenda synergizes with the national development agenda.In general, this research provides policy recommendations through the assessment of 1) The suitability of the DAK menu in the field of Environment and Forestry with North Sumatera Regional Planning seen from a national perspective (at a macro level with other provinces receiving Physical SAF in the field of Environment and Forestry), and 2) Deepening the analysis through a portrait of common problems at the site level from various aspects.In addition, 15 Priority Lakes have been designated by the government to be restored, including Lake Toba (North Sumatera), Lake Rawapening (Central Java), Lake Rawadanau (Banten), Lake Batur (Bali), Lake Kerinci (Jambi), Lake Singkarak (West Sumatera), Lake Poso (Central Sulawesi), Mahakam Cascade Lake (East Kalimantan), Lake Melintang and Tondano (North Sulawesi), Lake

RESULTS AND DISCUSSION
Tempe-Lake Matano (South Sulawesi), Lake Limboto (Gorontalo), Lake Sentarum (West Kalimantan), Lake Jempang (East Kalimantan), and Lake Sentani (Papua).In the GAWP 2019, the Environment and  The analysis results also show that the other 31 provinces only set Environment and Forestry Programs (funded by SAF) in their RGAWP, ranging from 1-5 menus of activities or conformity with the GAWP of 8.3 percent to 41.6 percent.

Indicator of GAWP
Note: 66 percent are following the GAWP

Sumatera Province
The 2019 Physical SAF Assignment of Environment and Forestry field analysis was conducted in North Sumatera Province.The North Sumatera Provincial Government has a work plan for 2019 that is outlined in Governor Regulation No. 30 of 2018 concerning the 2019 North Sumatera Provincial Government Work Plan.The Regional Government Annual Work Plan (RGAWP) of North Sumatera Province has the theme "Improving Development to Encourage the Creation of a Resilient Economic Structure to Realize an Independent, Prosperous, and Equitable North Sumatera" with a focus on regional development priorities, including 1) Increased human resource development and poverty reduction through the fulfillment of essential community services; 2) Reducing gaps between regions through increased infrastructure development, strengthening connectivity and maritime; 3) Sustainable, inclusive economic growth through the development of agriculture, processing industry, tourism, services, and trade; 4) Improving food security, energy and water resources and disaster mitigation; and 5) Improving bureaucratic reform, governance, law enforcement, and corruption prevention.The 2019 Regional Government Annual Work Plan (RGAWP) of the North Sumatera Provincial Government has supported the national development agenda contained in the 2019 GAWP.
Based on the synchronization results, the 2019 North Sumatera Provincial RGAWP has been following supporting the National Priorities.

Synchronization of National and Provincial Priorities in 2019
GAWP 2019 (National Priority) RGAWP North Sumatera 2019 (Provincial Development Priority) Human development through poverty reduction and improvement of essential services Improved human resource development and poverty reduction through the fulfillment of essential community services Reduction of inter-regional disparities through strengthening connectivity and maritime affairs Reduction of inter-regional disparities through increased infrastructure development strengthened connectivity and maritime affairs.Increased economic value added and job creation through agriculture, industry, tourism, and other productive services.
Sustainable, inclusive economic growth through the development of agriculture, processing industry, tourism, services, and trade Strengthening energy, food, and water resources security Improved food security, energy and water resources, and disaster mitigation National security stability and election success National security stability and election success Source: GoI, 2018b;GoI, 2018c In support of the national priority of strengthening energy security and food and water resources, the 2019 North Sumatera RGAWP has set the theme of the development program, namely improving the quality of the environment and controlling pollution and environmental damage.Based on the results of filling out the questionnaire, local governments argue that 71 percent of SAF has been effective in achieving goals and objectives, while the remaining 29 percent is still not optimal.For the regions, the limited budget also causes low SAF effectiveness.The limited budget causes local governments to set priorities, so not all goals can be achieved.In 2019, the Physical SAF Assignment menu for the Forestry Sub-Sector does not provide activities for the construction of control dams but only provides activities for the construction of retaining dams.Currently, to reduce river sedimentation, control dams are better than retaining dams.On that basis, 2019 activities in the technical civil aspect are less than optimal to meet the target of improving the function and health of priority watersheds.

Problem Findings
Causes There are complaints that the price of laboratory equipment for the environmental sub-sector, such as water quality measuring instruments, air quality, and mercury tests, is inadequate according to regional wishes.
The region purchased laboratory equipment with the standard costs not following the standard prices set in the SAF menu, which impacted the lack of payment.
The local governments implementing the Physical SAF Assignment in the Forestry Sub-Sector did not enthusiastically welcome the implementation of forest and land rehabilitation with SAF funds.
Cost standards that are lower than the pure State Budget for the same activities lead to reluctance by local governments to realize existing SAF funds.Some regions do not allocate the Regional Budget for waste management, a regional problem.
High dependence on SAF funds for waste management, especially recycling in the region The target of improving the regional environmental quality index in the regions is not significantly influenced by SAF funds, especially the Physical SAF Assignment of Environmental Sub-Sector.
The menu of monitoring equipment activities in the Physical SAF Assignment of the Environmental Sub-Sector does not address the root causes according to the GAWP targets.

CONCLUSION
Regional development in the environment and forestry field with special allocation funds (SAF) is a government effort to encourage and support sustainable development and environmental and biodiversity conservation.The SAF budget can be an additional source of funding explicitly earmarked for regions to implement programs and projects in the environment and forestry sectors.Local governments must identify these issues and take appropriate measures to overcome them.It could involve increasing budget allocations, improving human resource capacity, improving coordination between relevant agencies, engaging parties in conflict resolution, and improving monitoring and evaluation mechanisms.
The central and local governments must sit together to analyze the environment, challenges, and opportunities.Identifying these needs will be the basis for formulating programs and projects to be funded through SAF.These programs and projects must align with national and regional policies related to environmental conservation, natural resource management, climate change mitigation, and biodiversity conservation efforts.
Based on the analysis results, several things still need to be improved in implementing the Physical SAF Assignment for the Environment and Forestry Sector.Some recommendations that can be given include: a) The need for the Ministry of National Development Planning/Bappenas to have the same role as the Ministry of Finance in determining the SAF budget allocation to ensure that GAWP targets are achieved optimally; b) There is a need to improve coordination and the active role of the Regional Government, to fulfill the mechanisms and requirements for SAF disbursement in accordance JEKP (Jurnal Ekonomi dan Keuangan Publik) Vol.10, No. 2, Desember 2023: 173-190 Fakultas Manajemen Pemerintahan, Institut Pemerintahan Dalam Negeri Website: https://ejournal.ipdn.ac.id/JEKP/ e-ISSN 2685-6069 188 with regulations set by the Central Government (Ministry of Finance); c) There needs to be a one-stop reporting system through the Krisna application that can be accessed by all central and regional SAF actors; d) It is necessary to develop a control framework in the implementation of SAF, including stopping disbursements if there is inconsistency with planning; e) It is necessary to develop a joint monitoring and evaluation (M&E) system involving every stakeholder (central and regional) with the obligation to allocate a M&E budget in the Juknis at each stage of DAK planning, budgeting and implementation; f) The need to consider changing the menu of activities for the procurement of water, air and other quality monitoring equipment because the menu of activities cannot improve the quality of water, air and others directly (the logical framework is too far away); g) The need for the Ministry of Environment and Forestry through its regional technical implementation units to initiate periodic monitoring and evaluation with the Provincial Bappeda as well as efforts to improve coordination between stakeholders; h) The need for bottom-up involvement of local governments in determining cost standards carried out by SAF technical Ministries/Agencies to obtain ideal and universal standards nationally; and i) The need for increased socialization of the broader SAF concept by Ministries/Agencies that SAF is only a funding stimulant, not the significant regional budget in development.
standards; 5) waste management; and 6) peat restoration.The SAF Physical Assignment target of the Environment and Forestry Sub-Sector includes restoring the health of 15 Priority Watersheds and 15 Priority Lakes.Article 13 paragraph 1 of Presidential Regulation (Perpres) No. 141/2018 on Technical Guidelines for Physical SAF for Fiscal Year 2019 states that monitoring and evaluation of physical SAF management in the regions are carried out individually or jointly by the minister or head of institutions, the Minister of Finance, the Minister of National Development Planning/Head of the National Development Planning Agency, and the Minister of Home Affairs.Article 13, paragraph 2, part c, states explicitly that the Minister of National Development Planning and Head of the National Development Internalization related to Physical SAF Assignment for Environment and Forestry in 2019 Based on the results of the planning gap analysis (GAWP-RGAWP), West Sulawesi and Central Sulawesi Provinces did not establish a menu of environmental and Forestry activities in the RGAWP.West Java Province has set eight activity menus aligned with the GAWP, or 66 percent are following the GAWP.Number of Activity Menus in the GAWP Figure 1.Conformity of RGAWP with GAWP in 2019 related to Physical SAF Assignment for the Environment and Forestry Sector Source: Processed from GAWP 2019 and RGAWP 34 Provinces in 2019 Number of Activity Menus in the RGAWP

Million IDR) Phisical SAF for Environment and Forestry Sector
The questionnaire was conducted on September 5, 2019 at the North Sumatra Provincial Bappeda Office with 52 questionnaire fillers coming from representatives of technical agencies and Bappeda of provincial, district and city governments in North Sumatra that received Special Allocation Funds, especially in the environment and forestry sector.Secondary sources used are policy documents at both the Central level (the Government Annual Work Plan, or GAWP) and the Regional level (the Regional Government Annual Work Plan, or RAGWP), especially provinces that get the 2019 Physical SAF Assignment budget allocation for the Environment and Forestry Sector.Provinces that received special allocation funds include: Province of Aceh, Province of Bali, Province of Kepulauan Bangka Belitung, Province of Banten, Province of Bengkulu, Province of DI Yogyakarta, Province of Gorontalo, Province of Jambi, Province of Jawa Barat, Provinsi Jawa Tengah, Province of Jawa Timur, Province of Kalimantan Barat, Province of Kalimantan Selatan ,Province of Kalimantan Tengah, Province of Kalimantan Timur, Province of Maluku Utara, Province of Nusa Tenggara Barat, Province of Nusa Tenggara Timur, Province of Papua, Province of Papua Barat, Province of Riau, Province of Sulawesi Barat, Province of Sulawesi Selatan, Province of Sulawesi Tengah, Province of Sulawesi Tenggara, Province of Sulawesi Utara, Province of Sumatera Barat, Province of Sumatera Selatan, and Province of Sumatera Utara (North Sumatera).

Environment and Forestry Development Profile Analysis
Procurement of Laboratory Equipment for Mercury Quality Tests; 9) Air Pollution Control in Metropolitan, Large, and Provincial Capitals Prone to Forest and Land Fires; 10) Development of Facilities and Infrastructure for Productive Economic Enterprises; 11) Forest and Land Rehabilitation; 12) Development of Infrastructure for the Operationalization of FMUs, Tahura, and Urban Forests.The targets of the Physical SAF Assignment of the Environment and Forestry Sub-Sector include restoring the health of 15 Priority Watersheds and 15 Priority Lakes.The government has set 15 watersheds and 15 priority lakes in the NMDP 2015-2019.The 15 Priority Watersheds include the Asahan watershed (North Sumatera), Siak watershed (Riau), Musi watershed (South Sumatera), Citarum watershed (West Java), Sekampung watershed (Lampung), Cisadane watershed (West Java, Banten), Ciliwung watershed (West Java, DKI Jakarta), Serayu watershed (Central Java), Bengawan Solo watershed (Central Java), Brantas watershed (East Java), Kapuas watershed (West Kalimantan, Central Kalimantan), Saddang watershed (West Sulawesi, Central Sulawesi), Moyo watershed (West Nusa Tenggara), and Limboto watershed (North Sulawesi).

Table 2 . Special Allocation Fund for Physical Assignment of Environment and Forestry Sector Supporting Natural Resources and Environment Sector Policy in GAWP 2019
Accessibility of Water Resources; and 2) a priority program for Improving Natural resource Support and Environmental Capacity.Physical SAF assignments in the Sub-Sector of Forestry does not reflect the territorial priorities of watersheds and lakes as stated in Presidential Regulation 141of 2018.The results of the analysis show that there are still many provinces that are priority watershed and lake areas, but the budget allocation for Physical SAF assignments in the forestry sub-Sector is slight, such as in the provinces of East Kalimantan, Banten, South Sumatera, Bali, Jambi, Riau, and Central Kalimantan.Southeast Sulawesi Province, not a Priority Watershed and Lake Area, has the second largest Physical SAF Assignment of Forestry Sub-Sector budget allocation out of 33 Provinces, amounting to IDR 20,742,903,000.00.Based on this data, the policy direction contained in Presidential Regulation 141/2018 and the SAF budget allocation policy have not been synchronized, so the allocation of Physical SAF assignments in the Environment and Forestry Sub-Sector has not optimally restored the health of 15 watersheds and 15 National Priority Lakes.
GoI, 2018a;GoI, 2018bng Basic Services.National Priority 4, closely related to Environment and Forestry affairs, has two Priority Programs: 1) a priority program for Increasing the Quantity, quality, and Source:GoI, 2018a;GoI, 2018bIn 2019, the budget allocation for the Physical SAF Assignment of the Environment and Forestry Sub-Sector reached IDR 530,200,000,000.00, of which the allocation for the Environment watershed and lake area, has the eighth-largest budget allocation for Physical SAF environmental assignments.Sub-Sector out of 33 provinces and the SAF Sub-Sector of Forestry, the allocation of

Table 4 . Synchronization of Central-Local Programs in the Context of SAF Assignment for the Environment and Forestry Sector
Bedagai Regency requires many facilities and infrastructure for laboratories and waste management.The menu in the Physical SAF Assignment of the Environmental Sub-Sector is not fully aligned with the needs of local governments.As experienced by Tobasa Regency, basic supporting facilities such as garbage cans, garbage bins, and garbage containers are no longer included in the 2019 SAF menu, even though Tobasa Regency still needs this infrastructure.The technical and administrative criteria for obtaining an allocation of SAF funds are not entirely ideal.Some several districts and cities did not receive SAF allocations despite having administrative requirements; for example, Tebing Tinggi City did not receive a SAF allocation in 2020 even though it had fulfilled one of the requirements, namely having received the Adipura Cup and having a Regional Strategy Policy (Jakstrada).