BRR Book Series - Book 12 - INSTITUTION Laying the Foundation of Good Government (Eng Ver)
Buku Kejadian Bencana
The condition of the Acehnese before the disaster was in contrast to the total revenue generated by the province, which was well above the average provincial revenue. In 2004, Aceh had local revenue resources that were relatively much richer than other areas in Indonesia. The regional revenue of Aceh ranked third after East Kalimatan and Papua.
A disparity was clearly seen in the living standards of the Acehnese. On one hand, Aceh had the biggest revenue in Indonesia, while on the other hand it was the fourth poorest province in the country. The conflict became the most relevant and reasonable excuse for the disparity. However, other facts showed that there was something wrong with the governance of Aceh. A huge portion of the regional budget was spent on the operations of government agencies and institutions rather than on the development of public services and facilities.
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