More regions could mean less public service

More regions could mean less public service

Berni K. Moestafa, The Jakarta Post, Jakarta

The creation of new regencies and municipalities has increased
concerns over deteriorating public services in regions across the
country, as more local governments claim a share of the limited
state budget, experts said.

Indonesia grew by 23 regencies and two municipalities on
Monday, when the House of Representatives endorsed 10 bills on
the formation of the new regencies in 10 provinces throughout the
country.

But whether the creation of new regencies and mayoralties will
mean better public services remains questionable, said University
of Indonesia political analyst Chusnul Mar'iyah on Tuesday.

"Public money shouldn't be spent financing new local
administrations, but on improving public service," she said.

The central government has set aside Rp 78 trillion (about
US$8.76 billion) this year under the General Allocation Fund to
help finance all of the regencies and mayoralties in 30
provinces, according to a government statement released on
Tuesday.

The money, however, did not include the 23 new regencies and
two municipalities. Now, since the same amount of money must be
shared by more local administrations, some might receive less
until the next fiscal year at the earliest.

And although this year's general allocation fund marks an 11
percent rise from last year's Rp 69 trillion, Indonesia's tight
state budget provides little leeway to increase spending on new
administrations.

"Is a region's own revenue enough to support itself, since
otherwise it will only become a burden?" asked Chusnul.

"Our worry is that this will affect public services," she
said.

Under the autonomy law, regions must be able to support
themselves as Jakarta grants them greater authority to manage
their own affairs. But many among the new regencies and
mayoralties come from provinces that boast little revenue.

"Bangka-Belitung and Gorontolo aren't exactly rich," said
Chusnul, referring to six of the 23 new regencies and mayoralties
that are located in two new provinces.

Residents in the newly created province of Banten have
complained about a drop in income since they broke away from the
province of West Java, Tabrani Rab, a member of the government-
funded Autonomy Council Board, said.

"They earn less than they did before the split," Tabrani said,
citing a survey he did before and after Banten became a province
in 2000.

The secretary-general of the Ministry of Home Affairs, Siti
Nurbaya, said new regencies would receive financing from the
local governments of the regencies from which they broke off
from.

"For now, new regencies are still entitled to receive the
funds which were meant for them under the old budget," she said.

Ideally, however, a local government that plans to split off
should have set aside funds to help the new government during the
transition period, Siti said.

She said the amount of money required to establish a new
administration varied in line with the size, population and needs
of the particular region it served.

Both Chusnul and Tabrani, however, questioned the motives
behind the desire to set up new regencies.

Under Law 22/1999 on regional autonomy, regencies have more
power than provinces in managing their affairs.

During the last four sittings of the House last year, the
legislative body endorsed the creation of 36 new regencies, one
municipality and the Riau Islands province.

"Of course, the rhetoric at the House is about public service,
but is it really?" asked Chusnul.

Legislators said the aspiration of the people to govern
themselves under the autonomy law was a key consideration in
deliberating the bills on the new regions.

Chusnul said many regions felt they were underrepresented at
their local legislative council or in the House. Being a separate
regency boosts local politicians' chances of securing a seat in
the legislative body, she said.

Seats in the legislature are partially distributed in
accordance to the number of voters in the regions.

"I am afraid this is a reform euphoria where everyone wants to
become a regent," said Tabrani.

He said no region should be established based on political
motives, especially if these motives only served the local
political elite.

"The autonomy law clearly states that the only reason for the
government to establish a new region is to improve public service
in that area," Tabrani said.