Government avoids confrontation with newly empowered regions
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.