The Direction of Regional Autonomy Amid National Priority Programmes
Every 25 April, our nation commemorates Regional Autonomy Day. This commemoration is not merely an annual ceremony, but a moment for us to review how far regions have truly been given the space to “manage and administer” their own households. Regional autonomy is fundamentally an effort to bring the state closer to the people, so that decisions are not always centralised in the capital, but also emerge from local needs and potentials.
Historically, the idea of regional autonomy has been present since the early days of independence. It began with Law No. 1 of 1945, which introduced regional structures such as residencies, regencies, and cities, and evolved through various regulations like Law No. 22 of 1948, which emphasised more democratic local governance.
This dynamic continued through various changes in laws, from Law No. 1 of 1957, Law No. 18 of 1965 which promoted the broadest possible autonomy, to Law No. 5 of 1974, which tended to strengthen the central government’s role in the regions. (National Law Development Agency, 2024)
A major change was truly felt after the 1998 reform. Through Law No. 22 of 1999, regional autonomy gained new life. Regions were given broader authority, including in managing finances and resources.
Even through financial balancing policies, regions had the opportunity to enjoy a larger share of their natural wealth. Since 2000, regional autonomy has been implemented gradually and has become an important foundation in promoting equitable development.
Over time, these regulations have been updated, now referring to Law No. 23 of 2014 and its amendments. The goal remains the same: to create independent regions, especially fiscally, while accelerating equitable development. With the authority they possess, regions are expected to tap into local potentials to increase Regional Original Revenue (PAD), without always depending on the central government.
However, the reality on the ground shows that this ideal has not been fully achieved. Not a few regions still have low PAD and are heavily dependent on transfers from the centre. This condition serves as a reminder that regional autonomy is not just about authority on paper, but also about capacity, innovation, and the courage of regions to manage their own potentials.
This is where Regional Autonomy Day becomes relevant. Not viewing it merely as a ceremonial celebration, but as a reflection: has autonomy truly brought independence, or does it still leave dependency? This question is important to keep raising, so that regional autonomy does not stop as a concept, but truly becomes a path to more equitable welfare.
Autonomy and Asta Cita
Today, Indonesia is not only vast geographically, but also complex in its regional governance. The Unitary State of the Republic of Indonesia now consists of 38 provinces stretching from Sabang to Merauke. Within them, there are 416 regencies and 98 cities that serve as nodes of government as well as centres of public services for the community. (Cabinet Secretariat, 9/12/2022)
The increase in the number of regions is seen as a strategic step to bring services closer to the people, shorten bureaucratic control distances, and encourage development so that it is not only concentrated in certain areas. At the same time, this step is also expected to strengthen the sense of nationality that amid regional diversity, we remain within one unified framework, namely the NKRI.
This idea aligns with Prabowo Subianto’s view, who often emphasises that Indonesia is a great nation with extraordinary regional wealth. Each region has potentials in natural resources, culture, and human resources that, if managed well, can become drivers of welfare.
However, the vastness of that potential must also be accompanied by constructive steps to build a local government system. Regional autonomy cannot be simply interpreted as the formation of new regions, but must be accompanied by the ability of regions to manage their resources effectively, transparently, and for the benefit of the people. This is where the true measure of the success of regional autonomy is tested, to what extent regions can deliver tangible welfare to their communities.
If drawn to the current context, the direction of regional autonomy cannot be separated from the major agenda of the Prabowo Subianto and Gibran Rakabuming Raka government, particularly in the seventh mission of Asta Cita: strengthening political, legal, and bureaucratic reforms, while emphasising corruption prevention. Within that framework, the arrangement of decentralisation and regional autonomy is positioned as an important instrument, not merely an administrative concept.
This is reflected in the Presidential Regulation on the National Medium-Term Development Plan (RPJMN) 2025-2029. It is affirmed that the arrangement of decentralisation is directed to improve the quality of local government governance through three main aspects: harmonisation of central-regional relations, strengthening institutional capacity and human resources, and strengthening the regional financial foundation. In other words, regional autonomy is no longer just about dividing authority, but also about the readiness of regions to carry out that authority effectively. (Perpres 12/2025)
From the fiscal side, this commitment is evident; the Ministry of Finance of the Republic of Indonesia records that the realisation of Regional Transfers (TKD) has reached Rp147.7 trillion by the end of February 2026. This figure grew by 8.1 percent compared to the same period last year, or about 21.3 percent of the total 2026 state budget allocation of Rp693 trillion. This shows that the central government remains the main pillar of regional financing. (MetroTV, 13/3/2026)
Challenges of Regional Autonomy
Behind the trend of increases, there are…