Decentralization Policy in Indonesia

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  1. A.    Definition of Decentralization.

The term decentralization according to Wikipedia which is the transfer of authority from central to local governments to manage their own household affairs based initiatives and aspirations of its people within the framework of a united Indonesia. in other hand, decentralization is the transfer of responsibilities, authority, resources (human, financial, etc.) from the central government to local governance.

  1. B.     The Early History of Decentralization.

Murtir Jeddawi said as quoted by Hurriah in the article “Local Political Decentralization” that decentralization is a means of separation of powers from central government to local governments so that a media relations arrangements between levels of government (intergovernments) within a State.

In the beginning of decentralization arise due to the centralization of the period before the reform. Centralization itself means concentrating all authority to some leader or someone who is at the top. Before the advent of regional autonomy, centralization is widely used by Indonesian government. Centralization itself considered to be very ineffective because people can not reach directly. In the Old Order, centralization causes a lot of upheavals in some areas. This happens for several reasons, one of which is the convergence in all aspects in Jakarta and Java so that local communities are not given opportunities to develop their areas. Rather than develop its own country, will help the development process was very difficult to do. This is because of such centralization.

In the Old Order period, there was mutiny in the area that is triggered by the central government injustices in after the area in the economic, political, social, and others. Local community hoped that the establishment of a republic could be a fair country, which does not distinguish one region to another, which generalizes the whole area in all aspects, and others. Expectations are charged to the New Order government.

In the New Order era, regional conflicts can be said to be muted. This is because under the New Order government led by a very authoritarian with a leader who has a military base. Everything related to the affairs of the country or countries considered dangerous and the government quickly would soon be punished or sanctioned so that society can not be silenced and aspirations.

Media were not allowed to carelessly write or distribute news related to or involving “depravity” of government, so that in the New Order news broadcast through electronic media and print media is completely controlled broadcasting. If anything the government or writing allusions to the government then the government did not hesitate to “spoil” such media. Even the many books that prohibited published in the New Order. Even the political aspirations were forced by the government so that the Golkar party as if the majority of party choice.

Apparently the government also had “a decline in control” so that the resistance had occurred. Disappointments were revealed all the people. Decentralization of the coveted society since the Old Order still yet to be realized in the New Order. Events that are very surprising is the separation of East Timor from Indonesia because it regional autonomy is not being implemented. From this later period of the New Order regime that eventually decreased and emerge the reform.

In the reform period of 1998-1999, state of Indonesia can be said is very worrying. Old Order government leaves the “legacy” a very bitter, debt everywhere, very high price hikes, an unstable economic situation, and others. It can not be denied that the New Order era was born many positive side, the price of basic goods are relatively affordable, political, economic, security, well-controlled. But it was behind these things there is a negative side that is not lost much. Practice of Corruption, Collusion and Nepotism by the government under the New Order was a very bad impact for the continuation of the reform period.

In the reform period, start decentralization was introduced. Precisely in 1999 through Law No.22/1999 on Regional Governance and Law 25/1999 on Financial Balance between Central and Local Government.

  1. C.    The Goal of Decentralization.

The purpose of the policy held certainly wants something better than before. Decentralization aims to prevent the centralization of finance at the central government alone, as democratization effort to involve local government to the people to be responsible for organizing the government. And the main thing is for improvements in the field of social economy so that more are realistic.

Regional Autonomy Law has also been called up to seven times, namely Law 1 of 1945, Law 22 of 1948, Law 1 of 1957, Law18 of 1965, Law 5 of 1974, Law 22 of 1999 and the final Law 32 of 2004.

According to Law No. 5 of 1974, decentralization was the transfer of government from the center to the regions. Delegation of authority to Local Government, solely to achieve an efficient government.

According to Law no. 22 of 1999 on Local Government that local autonomy is the authority of the Autonomous Region to organize and manage the interests of local people own initiative based on community aspirations in accordance with legislation.

According to Adam Smith, decentralization has the main goals which are politic and economic goals. Benefit for the central government in this policy is to:

“Political education, training in political leadership and for political stability”

The the benefit for the Local government in this policy is to:

“Political equality, local accountability, and local responsiveness”

In the article “Sketch of the decentralization policy in Indonesia”, Koirudin says that’s why Bowman and Hampton (19 830) states that there is no government of a country with a vast territory to determine the policy effectively or to implement policies and programs efficiently through a centralized system. Thus the urgency of the delegation of authority needs or delivery as well in the context of the central government politically and administration to organisasiatau units outside the central government becomes very important to drive the dynamics of a government.

Policy sometimes is out of the goal. Similarly, the decentralization policy is reaping a lot of criticism, whether get positive benefits or get a negatife effect for Indonesian government.

Thus the author will explore one by one about whether the positive benefits of this decentralization policy and whether the negative effects of this policy.

  1. D.    Form of Decentralization.
  2. Deconcentration of administrative authority

Deconcentration in the form of a shift in the volume of work of central departments to the representatives of the region without any conveyance or transfer of authority to take decisions or discretion to make decisions.

  1. Delegates to the ruling authority

The delegation is the delegation of decision making and authority of managerial to perform specific tasks to an organization which is directly under the supervision center.

  1. Devolution to local governments.

Devolution is a condition in which the central form of government units outside the central government to give some specific functions to the units were to be implemented independently. Devolution is a more extensive form of decentralization to refer to situations where the central government to transfer authority to local governments in decision-making, finance and management.

d. Transfer of functions from government to private sector

The transfer of functions from government to private sector or privatization is surrendering some authority in the planning and administration of certain responsibilities to private organizations.

  1. E.     Positive Benefits of Decentralization Policies.

Decentralization has many benefits for all regions in Indonesia. According to Agung in the article “National Seminar on Reforming the Decentralization Review Indonesia”, with the publication of Law 22/1999 and Law 32/2004 as a new round of decentralization and regional autonomy in Indonesia. Policy of decentralization and regional autonomy in real terms has positively contributed to the development of political, economic, social, and cultural communities of Indonesia.

Facts in the various regions show how decentralization and regional autonomy has given space for regions to innovate in the implementation of better public services for the society. The city of Yogyakarta, Blitar City, Gowa, Gorontalo City, Solok District, and several districts of other people understand what is required. This is where the optimism of decentralization and regional autonomy can be placed.

In addition, the presence of this system, the majority of existing policies and decisions in the area can be decided in the region without the intervention of the Central Government. Or it can be said that Local Government is more aware of the conditions of an area, so that this decision will be applied because it will be understood by the characteristics of the people in the region. While the Central Government see in the general term only.

From an economic point too many advantages from the implementation of this decentralized system where local governments would be easy to manage natural resources it has, thus if natural resources have been managed optimally owned by the local income and people’s income will increase. As reported in Tempo magazine in January 2003 “Decentralization: Towards a Community-Based Marine Resource Management Local.

With the holding of decentralization in terms of culture will strengthen the socio-cultural in a region. Due to the implementation of this decentralized system of local governance will be easier to develop a culture which is owned by the region. Even culture can be developed and introduced to other areas. This later will be one of many potential areas.

In terms of decentralization of state security was an attempt to maintain the unity of the State of Indonesia, because with the implementation of this policy will be able to reduce the areas that wanted to separate themselves with the Unitary Republic of Indonesia, (the regions that feel less satisfied with the system or anything that related with NKRI) .

The other positive benefit from the decentralization is the educational aspect. In the centralization era, the education only happened in the centered area. So, given this decentralization policy, all areas can be accessed to do education, as told by the central government for 9-year compulsory education. Because of that Central government statement then the local government has the mandate and responsibility to improve the quality of public education in the area, so that the central government easy to improve the education in Indonesia because of the action of local government.

  1. F.     The Negative Impact of Decentralization.

Of course, the policies have been made ​​in order to realize the better things than before. This policy was made as detailed as possible so that prosperity will be realized. But the risks that occur with the existence of a policy sometimes will be happen. Decentralization in addition has a positive impact, also have negative impact for the region and the central government. Because of the absence of central government control of this policy will sometimes be misused, particularly in special areas, excessive euphoria in which the authority only benefit a particular party or group and used to take advantage of the individual or personal. Or it can be said that this system opens opportunities as possible for local officials (officials who are not true) to do KKN. Like the Tempo magazine, published Thursday, November 4 (www.tempointeraktif.com) “Decentralization Corruption through Regional Autonomy.”

“After the Governor of Nanggroe Aceh Darussalam, officially became a suspect corruption purchase generators worth USD 30 billion, and then turn to West Sumatra Governor Zainal Bakar as suspect cases of official corruption council budget in APBD 2002 amounting to Rp 6.4 billion by the High Court of West Sumatra. Two cases of corruption involving the governor of this, plus the corruption case involving dozens of members of the Regional Representatives Council in various areas in Indonesia, with a similar mode: to distort the local budget. “

there is no flow money which given by the Central Government to Local Government as Syukriy Abdullah said in the article “Decentralization Asymetris in Aceh, Papua, and DIY. ” Syukriy said that at least this version of the 40s students from Papua staged in West Irian Liberation Monument Mandala. Damian Urip as ation coordinator states that Autonomy does not provide benefits for indigenous Papuans in the interior. Redistricting did not improve people’s welfare. No improvement occurred after a divided district.

According to BPS Papua, as Syukrie Abdullah said that the Human Development Index (HDI), Papua, not much moved, if not be called stagnant. Year 2002 recorded 62.1, and in 2007 (63.41). In fact, according to Vice President Jusuf Kalla, the central government had disbursed Rp 20 trillion to special autonomy in Papua province, and Rp 8 trillion to the province of West Papua.

With this case it can be concluded that the money given by central government for local governments to prosper the public is not applied even a mere personal advantage to the parties who are not responsible.

In addition, Anggi Rahajeng, the Lecturer IPIEF of the subject ofEconomic Development, said that Special autonomy fund that provided the central government to local government has its own obstacles to be divided equally. Anggi been almost a year conducting research in Irian region but was not succesfully. Funds granted special autonomy to the central government throughout the region with equal portions to make local governments unable to share it, such as funding for indigenous people, the immigrant population, and so forth. So the policy of decentralization, especially in the drainage of special autonomy funds are still choked up even obstructed so that prosperity was not applied.

Here’s some corruption mode region, published by Habibi Center through Hitsuke.blogspot.com:

1) Corruption Procurement of Goods by mode:

a. Distension (mark up) the value of goods and services from the market price.

b. Collusion with contractors in the tendering process.

2) Removal of goods and inventory of state assets (land) with the mode:

a. Bringing his office for personal inventory.

b. Selling inventory of office for personal gain.

3) Illegal hiring, payment of salaries, promotion, pension arrangements and so on with the mode: Picking up additional costs beyond the official requirements.

4) Withholding of social assistance and subsidy money (schools, houses of worship, orphanages and homes) with the mode:

a. Cutting social assistance funds.

b. Usually done in stages.

5) help fictitious

Mode: Create a fictitious application letter as if there is assistance from the government to outside parties.

6) Diversion of funds the project with the mode:

a. Taking fund government projects outside official regulations.

b. Cutting funding the project without sepengtahuan others.

7) Physical fictitious Project

Mode: Funds are allocated in the official report, but the project physically nil.

8) Manipulation of the sale proceeds, tax revenues, user charges and fees with the mode:

a. Total real sales revenues, taxes are not reported.

b. Determination of revenue target.

Having discussed the negative impact from an economic standpoint, the effect also occurs in terms of culture. Because of each region compete to show their culture respectively. So, indirectly it will fade the unity Indonesian nation itself. Although it is true that a local culture should be highlighted so as to attract the attention of tourists both foreign and local tourists who ultimately can improve the income of an area, but the gap would occur if the area to one another too highlight the area, while the region is in one bond, namely the Indonesian state.

The most significant impact is when decentralization fails to be applied, then a region also flocked to separate themselves, as is now happening in the area of ​​Irian. Those who are native citizens of that area feel that the policy is cannot to prosper the people of Irian there, so they “insist” to secede from Indonesia.

The impact on the education aspect also occurs; one of them is no proper management of teachers. Minister of National Education (Education Minister) Mohammad Nuh said that after the era of decentralization vulnerable teachers moved because of political interests or personal problems. Thus appears that the discourse of educational problems will be centralized, decentralized or both of them.

  1. G.    The Conclusion.

Central Government incessantly to improve the policy of decentralization because it is the central government wants local governments are independent in all things, as I have said in this sub chapter the objectives of decentralization. No need any interference from the central government to regulate an area, simply monitor from a distance only. Actual intervention of the central government also needed some time. But to make a region can “stand” alone, slowly all returned to their respective local governments.

With the mandate or the transfer of authority, resources (human, financial etc.), and their resulting responsibilities of local governments (for officials who are not true) to arbitrarily set the area, they would easily manipulate the central government provided funds for the welfare of their respective regions. Because of this problem, the policy of decentralization reaps a lot of problems, whether these policies have a positive impact, or even the impact is not good. So that needs to be reviewed again on the policy. But in my opinion, is not this policy should be reviewed, but the moral form the people itself (the officials are not true). Human resources needed to prosper the area are clean of corruption. At the time of the Prophet and his Companions, they can carry out the mandate with the best, because they all still have good morals, who understand the meaning of trust and responsibility of the truth. I hope Indonesia will get the good leader so Indonesia can make a welfare society.

References:

  1. http://ugm.ac.id/new/id/news/seminar-nasional-menata-ulang-desentralisasi-di-indonesia.
  2. www.averroespress.net.
  3. http://id.wikipedia.org/wiki/Desentralisasi.
  4. http://syukriy.wordpress.com/2009/11/03/desentralisasi-asimetris-di-nad-papua-dan-diy/.
  5. http://hitsuke.blogspot.com/2009/05/sentralisasi-dan-desentralisasi.html.
  6. http://hurriah.blog.fisip.uns.ac.id/2010/11/09/desentralisasi-politik-lokal/.

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