MPR Research Body Examines Decentralisation and Regional Autonomy

The People’s Consultative Assembly (MPR) Research Body is examining various issues in the implementation of decentralisation, regional autonomy, regional government, and village governance. This is part of efforts to assess the effectiveness of constitutional mandates while addressing evolving constitutional challenges.

Chair of Group III of the MPR Research Body, Hindun Anisah, said the discussions were directed at identifying fundamental problems in the implementation of decentralisation and regional autonomy, including the implementation of Article 18, Article 18A, and Article 18B of the 1945 Constitution of the Republic of Indonesia.

According to Hindun, it is important to re-examine whether these constitutional provisions remain sufficiently relevant to current constitutional developments or require refinement and improvement.

“Are Article 18, Article 18A, and Article 18B of the 1945 Constitution of the Republic of Indonesia still sufficiently relevant to current constitutional developments or do they require refinement and improvement,” said Hindun Anisah on Tuesday (25/8/2026).

This was revealed in a Focus Group Discussion (FGD) of Group III of the MPR Research Body with the theme ‘Decentralisation, Regional Autonomy, Regional and Village Government’ held in Bogor, West Java, on Monday (24/8).

The FGD featured three speakers: Professor of Public Administration at the University of Indonesia Prof. Eko Prasojo, Professor at the Faculty of Economics and Management of IPB University Prof. Alla Asmara, and Lecturer at the Faculty of Law of the University of Indonesia Qurrata Ayuni.

Hindun explained that one issue of concern is the relationship between central and regional governments as regulated in Article 18A of the 1945 Constitution, particularly regarding authority, finance, public services, and the utilisation of natural resources.

“If we look at it, there is still a tug-of-war of interests between the centre and the regions,” she said.

In addition, the FGD also discussed the provisions of Article 18 paragraph (4) of the 1945 Constitution, which states that governors, regents, and mayors as heads of provincial, regency, and city regional governments are elected democratically.

“What does ‘elected democratically’ actually mean? If we look at it, regional elections still face many challenges, including very high political costs and the occurrence of social polarisation,” she said.

Meanwhile, Prof. Eko Prasojo assessed that the main problem in the implementation of decentralisation and regional autonomy lies in the aspects of implementation and consistency. According to him, the authority granted to regions must be accompanied by the ability of regional heads and the bureaucracy to carry out government affairs effectively.

“I see the problem lies in the ability of regional heads and the bureaucracy to realise the goals of decentralisation and regional autonomy that have been granted in the authority to manage 32 affairs that have been handed over to the regions,” he explained.

Eko assessed that the capability of regional heads and the bureaucracy is one of the main challenges in achieving effective decentralisation. Regional bureaucracies, according to him, must be able to become engines of development in carrying out the various affairs that have been decentralised.

“Generally speaking, if we were to conclude, the problem lies in the capability of regional heads and the bureaucracy as the engine of development for the affairs that have been handed over. The capability of regional bureaucracies is a problem. This occurs in almost all regions. The bureaucracy is not competent,” he said.

Therefore, Eko emphasised that decentralisation must go hand in hand with strengthening regional governance. Without strengthening institutional and bureaucratic capacity, the authority granted to regions will not be optimal in achieving the goals of decentralisation.

“Decentralisation without strengthening governance will never achieve its goals. Why? Because they are not capable, unable to carry out the affairs that have been handed over. So, the acceleration of decentralisation must be accompanied by strengthening regional governance,” he said.

In contrast to Eko, Prof. Alla Asmara highlighted the fiscal decentralisation aspect. He said the level of regional dependence on the central government remains high even though fiscal decentralisation policies have been in place for more than two decades.

Alla said around 85 percent of regional revenues still depend on transfers from the central government. Meanwhile, Regional Own-Source Revenue (PAD) on average only contributes around 10-15 percent of total regional revenues.

“This means that fiscal decentralisation, which has been running for more than 20 years, has not made regions more independent. Dependence on the centre remains high,” he said.

According to Alla, another problem is the persistent inequality in fiscal capacity between regions. Regions with abundant natural resources tend to have higher fiscal capacity compared to regions with limited economic bases.

“It turns out that the regional transfer formula has not been able to overcome fiscal disparities between regions,” he explained.

He assessed that this condition shows that regional autonomy has not fully produced fiscal independence.

“From this phenomenon, it is evident that regional dependence on the centre remains high. So, autonomy itself is more ‘administrative autonomy’, not yet fully fiscally independent,” he added.

From a constitutional perspective, Qurrata Ayuni said the idea of regional autonomy has an important foundation in MPR Decree Number XV/MPR/1998 concerning the Implementation of Regional Autonomy; Regulation, Distribution, and Equitable Utilisation of National Resources; and Financial Balance between the Centre and Regions within the Framework of the Unitary State of the Republic of Indonesia.

According to Qurrata, the birth of this decree cannot be separated from the demands of regional communities to obtain greater authority in managing life and resources in their regions.

“MPR Decree No. XV/MPR/1998, the issue of regional autonomy was to accommodate the anxiety of citizens whose right to life in the regions seemed to be revoked by the centre,” she said.