State revenue from natural resource has not good effect yet, for people prosperity in Kutai Kertanegara. The rich resource from mining, and oil and gas, cause the poverty in around mining area, instead of give added value for people welfare.

Kutai Kartanegara has the biggest regional budget in Indonesia. The regional budget revenue come from natural resource revenue sharing, amount 74 percent from regional revenue. Its mean, the revenue of Kukar is depend on to natural resource revenue.

PWYP Indonedia examines this phenomena with counduct a national research about the effectivity the natural resource revenue sharing for poverty alleviation in Indonesia. Kukar become one of case study in those research. Thus, PWYP Indonesia organized a focus group discussion with local government and people around mining last September 29-30.

According to Wiko Saputra, Researcher of Economic Policy in PWYP Indonesia, this research aimed to analyze the effectivity of Natural Resource Revenue Sharing Fund for Poverty Alleviation in Indonesia, study the policy on natural resource revenue sharing management in 5 regencies, and give recommendation of fiscal policy especially the revenue sharing.

The facilitator in this FGD is Buyung Marajo from Pokja 30, supported by Wiko Saputra, Meliana Lumbantoruan (Researcher of PWYP Indonesia), ad Carolus Tuah (Researcher of Pokja 30).

The discussion showed several poverty problems in Kukar. There were four problems: the low of eduation, lack of capital, bad infrastructure, and incapability of communities causes by disability, elderly citizens, etc.

One of aspects, according to Mujiono from Social Agency of Kukar, Kukar has big regional budget, but has wide area and hard tophography that lead high cost for infrastructure development, and there are many isolated areas, that’s why the poverty in Kukar still high.

Besides that, the management of poverty budget must be managed through Regional Representative Council. Sometimes, the poverty alleviation programs proposed not realized, because not become priority program in government.

According to Mesiah from Trade Agency, Cooperation, and Micro, Small, and Medium Enterprise, focused on the problem of people in access the source of finance. “The economic incapability of communities is caused by incapability to access capital. The local government has endeavor to give capital support through LPD (Rural Credit Institutions),” said Mesiah.

Although the FGD was not attended by related local work unit (SKPD), but so much information showed. The problem in governance of budget became problem, when talk about poverty alleviation in Kukar. That’s why the budget governance especially in natural resource revenue sharing should be improve in order to alleviate poverty effectively.