Bojonegoro Regency in East Java, one of Indonesia's major energy-producing regions, is currently facing significant economic risks in the form of the resource curse and declining revenues from non-renewable fossil fuels. The mining sector, which accounts for 48.77% of the region's Gross Regional Domestic Product (PDRB), creates fiscal vulnerability due to fluctuations in global commodity prices and the natural decline in production.
As an innovative response, Bojonegoro has pioneered the establishment of a Regional Endowment Fund (Dana Abadi Daerah/DAD) for Education through Regional Regulation (Perda) Bojonegoro 14/2025. This initiative aims to transform oil and gas wealth into a long-term investment in human capital, safeguard the right to education across generations, and serve as a fiscal shock absorber during the energy transition. Could similar initiatives be replicated in other fossil fuel-rich regions that are pursuing energy transition efforts, such as East Kalimantan and South Sumatra?
