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WELCOMING ACEH'S ECONOMIC INDEPENDENCE: LOCAL MSME STRATEGIES IN DEALING WITH REDUCEMENTS IN SPECIAL AUTHORITY FUNDS Siti Masyithah Azzahra; Junaidi M Affan
Journal Informatic, Education and Management (JIEM) Vol 8 No 2 (2026): AUGUST
Publisher : STMIK Indonesia Banda Aceh

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61992/jiem.v8i2.494

Abstract

The Aceh provincial economy has long been in a cycle of dependence on central fiscal instruments in the form of the Special Autonomy Fund (Otsus). The gradual reduction in the allocation of these funds requires the region to reorient macro policies to prevent economic stagnation. This study aims to analyze the urgency and formulate tactical strategies for strengthening local Micro, Small, and Medium Enterprises (MSMEs) as a new driving force for Aceh's economic independence. Using a qualitative descriptive approach based on systematic literature review , this study examines the causal relationship between fiscal contraction and the resilience of the domestic real sector. The analysis shows that the reduction in central fund transfers has a direct impact on decreasing market liquidity and weakening public purchasing power due to the sensitivity of the regional economy to the Aceh Revenue and Expenditure Budget (APBA). As a mitigation measure, local MSMEs need to be positioned as instruments of structural transition. The transformation of superior commodities can be achieved through digital ecosystem integration ( going digital ), standardization and modernization of product quality, and expansion of capital penetration based on sharia financing. This study concludes that collectively strengthening the domestic private sector is an absolute prerequisite for building a resilient, inclusive, and independent economic foundation for Aceh, free from dependence on the government budget.