Indonesian Political, Business & Finance News

Regents show goodwill to amend autonomy law

| Source: JP

Regents show goodwill to amend autonomy law

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Amid controversy over the ongoing revision of Law No. 22/1999 on
regional autonomy, the Regency Administrations' Association
(Apkasi) expressed willingness on Tuesday to amend many regional
rulings, considered to have hampered economic development.

Apkasi executive director Syarifuddin Lubis said after meeting
with Vice President Hamzah Haz that the central government should
have provided proof and data on the various regional rulings said
to be disadvantageous to investors.

"If there is something wrong with the regional rulings just
give us proof so we can amend or retract such rulings ... do not
just make accusations without giving us any inputs," Syarifuddin
said in a press conference.

Regional autonomy has become a thorny issue in Indonesia with
critics voicing concerns that the laws have given too broad an
authority to regency governments in generating their own revenue
and managing their domestic affairs. The rapid rate of
destruction of forests in places like Sumatra and Kalimantan
since the law came into effect has been attributed to the new-
found autonomy.

Demands for regional autonomy grew after the fall in 1998 of
the New Order regime which was widely resented for ignoring
development in the provinces.

President Megawati Soekarnoputri has repeatedly expressed her
opposition to the implementation of the Autonomy Law, which
became effective in January last year under former president
Abdurrahman Wahid.

In its application, the law is viewed by many as having
deviated from its original objective, in that the regional
administrations become overly independent to the point that it
threatened the unity of the nation.

The central government, therefore, decided to amend the law,
saying that it was part of the government's efforts to "support
local growth without sacrificing national unity."

One regional ruling, Decree No. 5/2000 on coal tax issued by
Tapin regency in South Kalimantan, has been annulled by the
central government and another 14 are being reviewed as the
rulings are said to have produced unacceptable tax burdens on
mining companies.

The annulment was made in response to complaints by
businessmen who said that there were over 1,000 rulings issued by
regional administrations concerning local taxes and charges which
were placing a heavy burden on businesses.

Syarifuddin underlined that most of the complaints on the
regional rulings were frequently made without any clear evidence,
while on the other hand the central government hastily decided to
revise the Autonomy Law, saying that it provided excessive power
to the regional administrations.

"We, as the association, have the right to provide advise to
the regional administrations if something goes wrong, but they
should tell us what is wrong," Syarifuddin remarked.

He reiterated Apkasi's demand that the central government
concentrate on issuing government regulations needed as
guidelines for the regencies on how to use their authority.

"Maybe the Autonomy Law needs revision, but at least give more
time to evaluate its implementation and also give the necessary
regulations, then we can talk about revising the law,"
Syarifuddin added.

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