KPPOD Provides Notes on Central-Regional Government Relations, What Are They?
JAKARTA, KOMPAS.com - Executive Director of the Committee for Monitoring the Implementation of Regional Autonomy (KPPOD) Arman Suparman assesses that central government control is too dominant.
This evaluation was conveyed by Arman on the occasion of the 30th Anniversary of Regional Autonomy, on Monday (27/4/2026).
“Not yet (ideal). Because the current central-regional relationship involves very significant central government control,” said Arman, when contacted by Kompas.com on Monday (27/4/2026).
He stated that the central-regional relationship encompasses three main aspects: authority, finances, and guidance and supervision.
He highlighted the ongoing overlaps between the Regional Government Law and several sectoral laws.
“So, those sectoral laws, some of them do not comply with the division of affairs in the Regional Government Law,” Arman emphasised.
According to him, several regulations such as the Job Creation Law and the Mineral and Coal Law are not fully aligned with the division of affairs in the Regional Government Law.
“As a result, what often happens is a tug-of-war of authority between the centre and the regions. And increasingly, according to our notes, re-centralisation is getting stronger. That’s about shifting responsibilities,” he explained.
On the financial aspect, Arman assessed that there has been a strengthening of fiscal re-centralisation, especially after the enactment of Law Number 1 of 2022 on Central and Regional Financial Relations.
He spotlighted the expansion of mandatory spending provisions, which he views as limiting regional manoeuvre room.
For example, regional governments are required to limit employee spending to a maximum of 30 percent and allocate at least 40 percent for infrastructure.
“Whereas the conditions of each region vary. So, this mandatory spending, in our view, diminishes regional autonomy,” he stated.
Arman also encouraged future regional transfer policies to be adjusted to each region’s capacity, so that fiscal autonomy can operate more effectively.