<![CDATA[Bojonegoro Regency is currently at a critical point of the "Paradox of Plenty" as it reaches peak oil and gas production through the Banyu Urip Infill Clastic (BUIC) project in 2025, supporting more than 25% of national oil production. This study aims to analyze the transmission mechanism of dependence on central transfers that creates fiscal rigidity and the challenges of economic independence in Bojonegoro Regency during the peak production period. The research method used is descriptive qualitative, with data collection techniques through literature study and secondary document analysis such as the Regional Budget (APBD) and Regional Government Financial Reports (LKPD) of Bojonegoro Regency. The results indicate the phenomena of the Flypaper Effect and Decentralization Theater, where extreme dependence on central transfer funds reaches 70-80%, while the non-oil and gas local revenue (PAD) ratio stagnates below 15%. In conclusion, oil and gas wealth creates fiscal rigidity that causes the budget to be absorbed more for routine expenditures than productive investments; thus, the optimization of the Regional Endowment Fund and diversification of the non-oil and gas economy are urgently needed to avoid fiscal shocks when natural reserves begin to deplete.]]>
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