Local govts confused over new autonomy
Local govts confused over new autonomy
JAKARTA (JP): The decentralization of power under the new
system of regional autonomy has sparked confusion among local
governments, causing them to complain about conflicting
regulations and legal uncertainties scaring investors off.
Chairman of the Association of Indonesian Regency
Administrations (Apkasi), Syaukani H.R. said that many regency
chief executives were in the dark about their roles in a
decentralized economy.
"Our difficulties center on the coordination of power and
authority," Syaukani, who is also chief executive of Kutai
Kertanegara regency in East Kalimantan, said. He was speaking to
reporters after a meeting between regency heads and mining
investors organized by the news website Petromindo.com
According to him, some of this confusion stems from
conflicting regulations issued by different government
ministries.
Participants during the meeting, mostly regency chief
executives, complained about there being a lack of coherence in
several government regulations.
They also cited the absence of a legal framework for the
mining industry under the regional autonomy scheme.
The current Mining Law No. 11/1967, contradicts the autonomy
laws which put authority over mining in the hands of local
governments.
The 1967 mining law stipulates that it is the central
government which draws up mining policies for the regions.
This contradiction has left local governments lacking guidance
over the legal foundations for their mining policies.
The Indonesian Mining Association (IMA) said the legal
confusion had also deterred investment in the mining industry.
Syaukani said that the issuance of ministerial decrees posed
another legal headache for local governments.
He said that when the People's Consultative Assembly revised
Indonesia's legal hierarchy to bring it into line with the
regional autonomy scheme, it stipulated that ministerial decrees
ranked below local government regulations.
This, he said, had left regencies facing a Catch-22 situation
as between complying with the central government's policies or
pushing ahead with their own policies at the risk of displeasing
the central government.
Syaukani also urged the government to more quickly disburse
the regions' share of revenue from natural resources.
Instead of every six months, the regions should receive their
shares every month, he suggested.
According to him, late payments have made it difficult for
regions to plan their budgets. In fact, he added, regency chief
executives often had to come to Jakarta to speed up the process.
"Don't make us come like beggars to Jakarta to get the funds
disbursed," he said.
Under the intergovernmental fiscal balance law, provinces will
get 15 percent of the government's oil revenues, 30 percent of
gas receipts and 80 percent of mining royalties.
When asked about the biggest advantage the regions had
obtained from autonomy, Syaukani said it was increased revenues.
He said that in the first semester of this year, his regency,
for instance, had raked in some Rp 270 billion (about US$23.8
million) in revenue from the exploitation of its natural
resources.
"We never saw that kind of money before. There used to be
nothing from natural resources except from the forestry sector,
and local taxes," he said.
During the seminar, the secretary-general of the Directorate
of Geology and Mineral Resources, Sukhyar, said his office
planned to revise the existing statutory environment governing
mining so as to accommodate the impact of the autonomy laws.
"It's a shortcut for providing legal certainty while waiting
for the new mining law to come out," he said.
He said he could have the revision ready in one month. (bkm)