Indonesian Political, Business & Finance News

Creation of regions to be limited

| Source: JP

Creation of regions to be limited

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Disappointed with the inability of many new regencies to make use
of their autonomy to develop more effectively, the government is
considering stricter requirements for the formation of new self-
governing regions.

Minister of Home Affairs Hari Sabarno said on Thursday that
the growing demand for new regencies needed to be restricted due
to limited human and economic resources facing many of the
regions.

"They have to make sure they possess adequate economic
resources that meet a certain benchmark before asking for a
recognition as an autonomous regency," Hari said after a Cabinet
meeting led by President Megawati Soekarnoputri on Thursday.

Since the implementation of regional autonomy in 2000, the
country has seen the number of new breakaway regencies increase
considerably. From around 300 when Soeharto was ousted in 1998,
the number has now risen to over 400, not to mention the five new
provinces which brings their number to 32.

President Megawati Soekarnoputri, since she took office in
2001, has repeatedly said the demand for new autonomous regions
was excessive and should be limited.

She has continually claimed that such wide-ranging autonomy
would threaten national unity and has lobbied for more power to
be returned to the central government.

The Cabinet meeting on Thursday was the fourth such meeting in
recent months to discuss revisions of the regional autonomy law
No. 22/1999 and financial balance between the central and
regional administrations law No.25/1999.

Hari said stricter requirements for the formation of a new
regency would be stipulated in the draft amendment of the
autonomy law revision.

"There are many new regencies which have turned out to lack
economic resources and are now facing problems," Hari said.

In previous discussions, the Cabinet proposed a reinstatement
of the governor's authority to represent the central government
in solving problems involving regencies.

The Cabinet also proposed that all regional administration
heads be elected directly by the people, instead of the regional
legislatures.

Hari added that the government also would consider a
regulation to allow a local government to obtain foreign loans.

"We want all the foreign loans to be given only after the
consent of the central government, as we do not want regencies to
go into debt," he said.

He stated that the Cabinet would meet one more time to
finalize the revision, before submitting it to the House of
Representatives, which is also preparing its own revision of the
autonomy law.

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