'Autonomy benefits officials but not people'

The Jakarta Post, Jakarta

In theory, Jakarta hoped regional autonomy would decentralize power and wealth to the people across the sprawling archipelago, but in practice much of what was promised has ended up in the hands of local officials, experts said on Tuesday.

Seen as one of the most ambitious decentralization moves, the Autonomy Law shifted much of Jakarta's powers to provinces, regencies and mayoralties. The law came into effect in January 2001.

One and a half years later, the benefits have yet to kick in. The downside, however, is apparent.

"People got nothing out of autonomy, while local officials got rich," political observer Indria Samego said on the sidelines of a seminar on regional autonomy held in conjunction with the 35th anniversary of the National Institute of Sciences (LIPI).

Law 22/1999 on regional administration and Law 25/1999 on fiscal balance empower local governments to manage their own affairs. They may also receive more funds.

Under Law 25/1999, natural-resource rich regions receive a 15 percent share of the oil revenue gained from the area, 30 percent of gas receipts and 80 percent of mining royalties.

Regions also receive regional decentralization funds (DAU), amounting to Rp 69 trillion (about US$7 billion) this year.

But according to Tabrani Rab, a member of the Regional Autonomy Council, a consultancy body under the Ministry of Home Affairs, the public sees little of that money.

Tabrani said most regions spent between 70 percent and 80 percent of their allotted DAU funds on routine expenditures, which include civil servants' salaries.

Of what remained, he said, only 14 percent to 16 percent was spent on social welfare and developing the economy. "The rest gets lost in corruption," said Tabrani, citing a study he made on several regions outside the island of Java.

Last year, Benny Pasaribu, a legislator from the Indonesian Democratic Party of Struggle (PDI Perjuangan), raised similar concerns.

He said he and other legislators had received reports claiming that 40 percent of the 2001 DAU funds totaling Rp 60 trillion was misused by local officials -- charges the government denied.

Tabrani added that where money was not misused it was wasted on "obsessions" such as Bengkalis' bid to build Southeast Asia's most magnificent hospital.

He said reining in corruption was difficult as local councillors often received kickbacks from corrupt administrations.

"There should be viable local opposition supervising the government," he remarked. But he added that as long as money politics silenced the opposition, effective control remained a long way off.

Among the first to voice complaints over the negative impacts of decentralization were investors who faced a surge of levies and taxes under the Autonomy Law. Some of the new charges overlap among the regions as coordination is lacking.

Foreign investors are particularly concerned about the credibility of the contracts they signed with Jakarta, now that much of the powers lie with the regions.

Local governments, for their part, have dismissed charges they neglect their people and abuse their newfound powers. They also blame the central government for not being serious about its autonomy promises.

The chairman of the Association of Indonesian Regencies (APKASI), Syaukani, said that Jakarta was treating regions as subordinates instead of equal partners. He said regions should be allowed to also decide the amount of DAU they receive.

Indria noted that the central government was not so serious in delegating power and money, but at the same time local officials also abused their power.

The prevailing regulations on regional autonomy, he said, were inadequate to stop corruption from spreading to the regions.

"The mentality among officials is that if everyone turns into thieves, why should we stay holy?"

LIPI analyst Alfitra Salamm said public accountability was key to making regional autonomy work for the people.

"Over the short term, I suggest the public gets a say in drafting regional budgets," Alfitra said at the seminar.

Next, he said, the Autonomy Law should be amended to insert articles on transparency, giving the public a basis to step up control on both the legislature and the government.