Federal or unitary state?

Federal or unitary state?

In answering the demands that are currently being heard in
several provinces for a federal state to be established in
Indonesia, it would be good for us to first adequately explain
the concepts of federalism versus decentralization within a
unitary state to the public. The point is that, as Minister of
Regional Autonomy Ryaas Rasyid has said, a unitary state with a
system of wide-ranging autonomy is in substance practically
identical to a federal state.

It should be remembered in this context that under Law No.
25/1999 on the arrangement of revenue-sharing between the central
government and the regions, it is much better than as
conceptualized in the earlier Law No. 32/1956. Implementing the
1999 arrangement would in effect satisfy those who demand a
federal state. We are confident that the four oil-rich provinces
-- Aceh, Riau, East Kalimantan and Irian Jaya -- will have no
desire to exist on their own, and will therefore be willing, in a
good spirit of nationalism, to help our poorer provinces with
subsidies.

-- Suara Karya, Jakarta