Government avoids confrontation with newly empowered regions

Excitement and confusion has followed the laws on regional autonomy and fiscal balance, and signs have emerged of the new government aiming to correct this dilemma. The following are excerpts from an interview with lecturer in politics Pratikno of Yogyakarta's Gadjah Mada University with The Jakarta Post's Asip A. Hasani.

Question: Following the implementation of regional autonomy, several regions are seeking to increase their revenue by introducing various taxes and levies. Many strive for a maximum share of investment returns produced in their areas, which raises investors' fears of a future breach of business contracts. Your view?

Answer: Investors obviously want predictable and consistent conditions. Favorable decentralization is that which continues to guarantee predictability and consistency. So regional autonomy should ensure the policy consistency of the central government and regional administrations. In the centralistic format of the past regime, policy consistency could certainly be guaranteed.

Now, however, it's hard to achieve such consistency and predictability without the central government's ability to apply regulations to introduce nationwide standards ... unless the regions have the goodwill. The central government should, therefore, also have the authority to make regions observe the national rules and standards.

Is it the euphoria accompanying the implementation of regional autonomy that has led to what some say is the overzealous exercising of authority among regions?

The problem arising from regional attempts to tap all existing economic resources is rooted in at least two factors. First, most regions are indeed craving for funds out of greed. Second, the central government is not capable of establishing standards.

A concrete example is what happened in Lampung. Its administration issued a regional regulation imposing levies on all commodities leaving the province. Transportation levies were also applicable to all goods passing through the region. This became a serious issue as the mobility of goods was disrupted.

In the Lampung case, the central government should have used its authority to annul the regulation, but instead it only resorted to ineffective attempts at persuasion. After a fairly long process, the Lampung governor finally coaxed the provincial legislative assembly into suspending the local regulations. There is, therefore, some reluctance on the part of the central government to take firm action.

How do you see the various other cases in other regions?

For one, the issue of the "indigenous" (putra daerah) peoples has figured prominently in a number of provinces. That is worsening because the demands by native citizens involve not only the public administration and bureaucracy, but also businesses, state owned corporations and even private companies.

Some regions insist that the executive posts for branches of private companies, and even multinational corporations, should be held by "natives". This is a crazy idea. So the central government has to be able to establish a national standard. In this case, the government should rule that regions must obey the principle of equal opportunity for everybody.

But how could we prevent the central government's firm measures resulting in a return to centralization?

The 1999 law on regional autonomy has in fact laid down the central government's authority, which is clearly defined in Government Regulation No. 15/2000. There should be no doubt about when and in what cases the central government is required to deal firmly with regions. In environmental affairs, for instance, the government should standardize conservation efforts. Based on the standards, it can evaluate regional regulations on environmental management and, if necessary, it is in a position to revoke them. Indeed, there should be a kind of public debate before such action is taken.

On the other hand, if certain regions are not satisfied with, for example, the annulment of their regulations, they can initiate a judicial review. Consequently, the concept of a judicial review needs to be advanced in regions and its process facilitated.

What is your view on plans to amend the regional autonomy law?

This is premature. The government should first monitor the law's implementation for a considerable amount of time as a basis for convincing evaluation. The emergence of various issues in the regions should not prompt the government to alter the laws right away, let alone attempt to reduce the extent of regional autonomy. Numerous problems originally believed to have been caused by regional autonomy later proved otherwise.

The clash between fishermen in Cirebon was assumed to be a consequence of their fight over fishing areas following the designation of exclusive zones through the enforcement of regional autonomy. But a closer examination of the case revealed a "tradition" of conflict that existed a long time before the realization of autonomy.

Another case attributed to regional autonomy involved the large-scale sand quarrying that caused environmental damage in Riau. Upon further investigation the operation turned out to have been licensed before regional autonomy legislation came into force.

Actually, many central government policies raise the financial burden of regions, leading to excuses for some regions to claim that they cannot afford to become autonomous. The civil servants' salary increase is one example. This is a central government policy imposing a salary payment burden to be borne by regions, devoid of any government compensation.

The strain was made even greater because the central government's decision came in the middle of the fiscal budget period, while the regions have hesitated to reject the salary hike because such a move is unpopular.

Take a look at the problem faced by Wonosobo regency (Central Java) which has drafted its regional budget at Rp 210 million. The contribution from the general allocation fund (DAU, from the state budget) amounts to Rp 190 million, of which the regency has to spend Rp 170 million on civil servants' salaries alone. Note that the central government pays the DAU by monthly installments. The question is how regions, particularly disadvantaged ones, can make policies and implement them if they always have financial trouble due to the monthly disbursements.

While the central government is authorized to introduce nationwide standards and regulations, it seems still reluctant to adopt a firm approach toward the above mentioned issues in the regions.

The central government does not have the capacity to implement regional autonomy. It's just playing safe in this transitional period and avoiding confrontation with regions. The government will be entangled by unpopular actions when it has to confront regional authorities.

So do you think the laws on regional autonomy and fiscal balance don't need amendment?

No -- not for now. It's difficult to say the laws need revision unless there is valid data (supporting that need), derived from comprehensive monitoring and evaluation. Monitoring is indeed a very tough job. Over 400 autonomous regions have to be supervised, comprising 370 regencies and municipalities as well as 32 provinces. If each issues 50 regulations, there would be more than 20,000 regional rules to be studied and monitored by the central government. Therefore, it's very hard for the government to periodically observe their developments unless it has strong determination.

The only thing in the laws that requires revision is the fact that autonomous regions with scant economic resources have to bear a very great burden. Though it's true that ... wealthier regions could make a fortune through the law, the majority lose out owing to their limited resources.

Despite lack of monitoring and evaluation the government looks set to amend regional autonomy anyway ...

I'm afraid the amendment plan is only based on the issues arising in different regions, which are not all generated by the impact of the regional autonomy law. But the government has set up a team (for this amendment), along with its revision draft.

The draft indicates, among other things, that provincial control over regencies will be strengthened. At the regency and municipal level, the political status of regional heads will be enhanced in relation to the local legislatures.

While regencies and municipalities have only been allowed a month to modify their annual accountability reports, based on the draft they will get one year to improve their performance.

So, central government control over autonomous regions is to be reinforced through governors. Provinces are also expected to absorb the authority of autonomous regencies and municipalities.

Some observers fear that the rise of Megawati Soekarnoputri to the presidency will threaten the continuity of regional autonomy. Her Indonesian Democratic Party of Struggle (PDI Perjuangan) is also considered conservative in its concept of the unitary state. Your comment?

The issue of decentralization and regional autonomy is one that no president can avoid today. The only difference might be that during the term of president Abdurrahman Wahid the degree of autonomy would tend to increase, whereas under Megawati it could be hard to grow further. However, PDI Perjuangan should not be caught in the rhetoric of first president Sukarno with his emphasis on "nation building"; it should view national unity and integrity in terms of a different paradigm.

How do you see the omission of "regional autonomy" from the title of the home affairs ministry in Megawati's Cabinet?

It is indeed worrying. I'm sure it will have a negative impact on regional autonomy. Despite the presence of a director general of regional autonomy, the government's perception of regional autonomy through the interior ministry will remain a centralistic perspective. We are aware that this particular ministry has the strongest centralistic tradition compared to the others.

Since the government can no longer establish another ministry, I would suggest that an autonomous agency at the ministry level be set up to take special care of regional autonomy affairs. It's this body that should handle the monitoring and evaluation of regional autonomy.