Indonesian Political, Business & Finance News

Messy autonomy

| Source: JP

Messy autonomy

The regional autonomy policy which came into effect at the
start of this year reared its ugly head in Jakarta this week with
the disruption of water supplies to some 117,000 households in
the capital.

The Tangerang mayoralty, which controls one of the two main
streams that supply Jakarta's drinking water company PT PAM
Lyonnaise Jaya, unilaterally decided this week to slow down the
rate of flow while it negotiates for higher fees from Jakarta
water authorities.

This practice of blackmailing a neighbor by manipulating the
control of vital commodities or services was virtually unheard of
in the past. Before Jan. 1, the central government controlled the
supply and distribution of natural resources and vital
commodities so that problems could be addressed at the central
government level.

Now, with the regions virtually in control of all the natural
resources in their respective territories and with most of the
regional administrations hard-pressed to raise income locally
because the central government is reducing its financial
contribution, naturally, they want to extract as much money as
they can get. Frictions between the regions begin to emerge.

Since the beginning of the year, we have seen regional
administrations scrambling to get their hands on whatever natural
resources in their areas to boost their revenues. The end result
has been sheer confusion, especially where resources overlap
territorial boundaries. Many investors, local and foreign, have
decided to sit it out until this mess is cleared up. Judging by
the recent trends, they will probably have to sit this one out a
little longer.

Until recently, the rows between regional administrations have
been limited to the right to tap mining and forestry resources.
The Tangerang administration has now expanded the theater of
controversy to include water. Since Tangerang controls some
upstream sections of the rivers from which Jakarta's drinking
water authorities procure their water resources, it is now
demanding more money.

Determined to win the negotiations, Tangerang cut the flow of
water in the stream to Jakarta. As deplorable and demeaning the
Tangerang administration's action is in depriving millions of
Jakarta residents of their water supply, this is a trend that we
will probably have to put up with in the coming years as regions
flex whatever muscle they possess to boost revenues.

One of the unforeseen consequences of the regional autonomy
policy is that every regional administration must now think for
itself to ensure its own survival. The water row between Jakarta
and Tangerang shows that some administrations are prepared to
throw principles underpinning national unity, including peaceful
coexistence and cooperation, out of the window.

We have known all along that the regional autonomy policy was
poorly planned and prepared. But the plan was forged ahead
regardless because of concerns that any further delay would
antagonize many regions and increase the aspirations of more
provinces to secede from the republic.

It will take a firm but wise central government to resolve the
diverse range of problems and conflicts that are emerging from
the implementation of the regional autonomy policy. The current
domestic political situation, unfortunately, is not helping
Indonesia negotiate this very difficult transition toward a more
decentralized system of government.

All parties, including the central government and the regional
administrations, must exercise wisdom in dealing with these
problems. Without wisdom and a greater sense of nationhood, each
region will be fighting for itself. Would it not be ironic if the
final outcome of regional autonomy were to accelerate the process
of this republic's disunity, precisely the very thing it seeks to
prevent?

View JSON | Print