Local govts confused over new autonomy<\/p>\n
JAKARTA (JP): The decentralization of power under the new
\nsystem of regional autonomy has sparked confusion among local
\ngovernments, causing them to complain about conflicting
\nregulations and legal uncertainties scaring investors off.<\/p>\n
Chairman of the Association of Indonesian Regency
\nAdministrations (Apkasi), Syaukani H.R. said that many regency
\nchief executives were in the dark about their roles in a
\ndecentralized economy.<\/p>\n
\"Our difficulties center on the coordination of power and
\nauthority,\" Syaukani, who is also chief executive of Kutai
\nKertanegara regency in East Kalimantan, said. He was speaking to
\nreporters after a meeting between regency heads and mining
\ninvestors organized by the news website Petromindo.com<\/p>\n
According to him, some of this confusion stems from
\nconflicting regulations issued by different government
\nministries.<\/p>\n
Participants during the meeting, mostly regency chief
\nexecutives, complained about there being a lack of coherence in
\nseveral government regulations.<\/p>\n
They also cited the absence of a legal framework for the
\nmining industry under the regional autonomy scheme.<\/p>\n
The current Mining Law No. 11\/1967, contradicts the autonomy
\nlaws which put authority over mining in the hands of local
\ngovernments.<\/p>\n
The 1967 mining law stipulates that it is the central
\ngovernment which draws up mining policies for the regions.<\/p>\n
This contradiction has left local governments lacking guidance
\nover the legal foundations for their mining policies.<\/p>\n
The Indonesian Mining Association (IMA) said the legal
\nconfusion had also deterred investment in the mining industry.<\/p>\n
Syaukani said that the issuance of ministerial decrees posed
\nanother legal headache for local governments.<\/p>\n
He said that when the People's Consultative Assembly revised
\nIndonesia's legal hierarchy to bring it into line with the
\nregional autonomy scheme, it stipulated that ministerial decrees
\nranked below local government regulations.<\/p>\n
This, he said, had left regencies facing a Catch-22 situation
\nas between complying with the central government's policies or
\npushing ahead with their own policies at the risk of displeasing
\nthe central government.<\/p>\n
Syaukani also urged the government to more quickly disburse
\nthe regions' share of revenue from natural resources.<\/p>\n
Instead of every six months, the regions should receive their
\nshares every month, he suggested.<\/p>\n
According to him, late payments have made it difficult for
\nregions to plan their budgets. In fact, he added, regency chief
\nexecutives often had to come to Jakarta to speed up the process.<\/p>\n
\"Don't make us come like beggars to Jakarta to get the funds
\ndisbursed,\" he said.<\/p>\n
Under the intergovernmental fiscal balance law, provinces will
\nget 15 percent of the government's oil revenues, 30 percent of
\ngas receipts and 80 percent of mining royalties.<\/p>\n
When asked about the biggest advantage the regions had
\nobtained from autonomy, Syaukani said it was increased revenues.<\/p>\n
He said that in the first semester of this year, his regency,
\nfor instance, had raked in some Rp 270 billion (about US$23.8
\nmillion) in revenue from the exploitation of its natural
\nresources.<\/p>\n
\"We never saw that kind of money before. There used to be
\nnothing from natural resources except from the forestry sector,
\nand local taxes,\" he said.<\/p>\n
During the seminar, the secretary-general of the Directorate
\nof Geology and Mineral Resources, Sukhyar, said his office
\nplanned to revise the existing statutory environment governing
\nmining so as to accommodate the impact of the autonomy laws.<\/p>\n
\"It's a shortcut for providing legal certainty while waiting
\nfor the new mining law to come out,\" he said.<\/p>\n
He said he could have the revision ready in one month. (bkm)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/local-govts-confused-over-new-autonomy-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }