http://www.thejakartaglobe.com/opinion/when-it-comes-to-regional-autonomy-in-indonesia-breaking-up-should-be-harder-to-do/377006

May 25, 2010 
Yosua Sitomorang

When it Comes to Regional Autonomy in Indonesia, Breaking Up Should be Harder 
to Do

Is Indonesia breaking up before our very eyes? Since the advent of the 1999 Law 
on Regional Government, the nation's regional administrations have been in a 
state of significant transition. Larger units of government are being broken 
down into smaller ones, and questions abound about who the real winners and 
losers are, why pressure for the process emerged and just where it will end. 

Underpinning arguments for the 1999 law for this process of regional division, 
or p emekaran , were political elements. For some, the potentially 
destabilizing force of separatist pressures was the main incentive. It is not 
clear, however, how much the law was a reaction to thinking on separatism in 
some regions - and therefore a preventive measure - or if, by devolving new 
powers, it was hoped that separatism would never raise its divisive head. 

What is clear, though, is that those who had not thought before about pemekaran 
very quickly noticed the potential benefits to their communities - financially, 
identity-wise and, most important, politically. 

The enthusiasm with which Indonesia was "breaking down" rather caught the 
central government off guard. Seemingly politically stable parts of the nation 
suddenly could not function, or so it was said, without more accountable 
government, and closer to home, through the creation of their own district or 
subdistrict. With the advent of the revised Law on Local Government in 2004, 
local governments achieved even better local autonomy. In essence, the distance 
between decision makers (local government) and those affected by these 
decisions narrowed significantly, with a view to synchronizing policies, laws 
and actions more effectively and efficiently with locally expressed notions of 
public welfare. 

The speed with which pemekaran was embraced by many regions caught many people 
by surprise, and the Ministry of Home Affairs figures speak for themselves - 
districts and subdistricts increased from 440 in 2004 to 497 in 2009. For many, 
what was even more surprising was the lack of discussion on the pros and cons 
of this process. Disgruntled civil society leaders emphasized the word "con." 

Many questioned the validity of the process, unconvinced as to whether everyone 
benefited equally. While improved public services were the goal for all, it was 
the perception of the masses that initial motivation for this division had been 
led by a handful of elites, ambitious to strengthen their power. 

Those who heard of the economic efficiencies of increased autonomy countered 
with a whole slew of ideas ranging from a loss of economies of scale, the 
implementation of a new public administration system that prevented the entry 
of foreign investment, the mess that surrounded regional budget planning and 
the disproportionately large allocation of the local budgets focused on new 
local governance structures rather than any improvement of public services. 
This is further reflected in increased central government expenditures on newly 
created regions as a result of this rampant expansion of regions. 

Legal aspects of autonomy have fared little better. Local laws, derived from 
local "parent" laws and not directly from national equivalents, are often in 
contradiction with national laws. Parallel sets of customary ( adat ) laws can 
make citizen rights even less clear. 

Overall, if a 2007 Ministry of Home Affairs evaluation on the then 148 newly 
autonomous regions in 2005 is accurate, 80 percent of the local governments 
created through pemekaran are "failing" to do a good job. As reported in Media 
Indonesia, at least one survey in the same year found that pemekaran did not 
succeed in improving society's welfare. 

Given all of this, should unfettered regional division be allowed to continue, 
and if so, on what basis? 

Carrots and sticks work in other parts of government, so why not here? Sticks 
should be brought to bear in regions where regional division has failed. 
Reintegration (though not a popular action even with central the government) 
and restricting flows of funds could be used. Carrots could be liberally 
distributed if future regional division is allowed. 

Japan, for example, allows easy access to credit facilities for regions (though 
it also reduces budget allocations reserved for regions that want to expand). 
Allowing successful regions to raise funds independently may also encourage 
better performance. 

However, for many these measures are seen as just tinkering, as are application 
of various new laws and regulations governing the sustainability of local 
government, performance evaluations of autonomous regions and the region 
merging processes. If pemekaran is here to stay, the government should focus on 
strengthening the overall implementation of the newly autonomous governments, 
helping them to undertake their role in looking after the welfare of all 
citizens. 

But what about stopping further regional division altogether? The central 
government has already imposed a moratorium on expansion of this process. 
According to one researcher, the government should not focus purely on the 
"ideal" number of regions for the archipelago based on some topological, ethnic 
or religious imperative. Any further division should be based on real and 
proven advantages to the local population. Otherwise, what's the point? 

If pemekaran was expected to increase the economic welfare of residents through 
improved public services and create new job opportunities through the 
establishment of the regional administrations, then evidence for its success is 
thin. Indeed, such countries as Japan and Australia are reintegrating regions, 
burying regional differences for the benefit of national gains. 

The central government is right to take a breather and re-evaluate its policy 
in this regard, because the cost of going back to complete centralization will 
not be measured just in rupiah terms, but in many intangible currencies: 
credibility, conflict and failure. 



Yosua Sitomorang is a research associate at Strategic Asia, a Jakarta-based 
consultancy promoting cooperation among Asian countries.


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