Presented by:
BASILIO DIAS ARAUJO
MINISTRY OF HOME AFFAIRS OF INDONESIA
Jakarta, 9 June 2015
INTERNATIONAL WORKSHOP ON DEMOCRACY
AND INNOVATION IN GOOD GOVERNANCE
SHARING EXPERIENCES ON IMPROVING CENTRAL-REGIONAL RELATIONSHIP PERFORMANCE TO ACCELERATE DEMOCRATIC GOVERNANCE IN
INDONESIA
OUTLINE OF PRESENTATION
THE SIZE AND DIMENTION OF INDONESIA
PRACTICAL ASPECTS OF INDONESIAN
DECENTRALIZATION
LEGAL GROUNDS AND THEORETICAL
ASPECTS
PROPOSAL OF A GRAND DISIGN FOR
DECENTRALIZATION
ADMINISTRATIVE MAP OF INDONESIA as of 2012
FACTS
Area of Lands: 1,922,570 sq km
Area of Ocean: 3,257,483 sq km
Number of Islands: 17,480
Coast lines: 81,000 km
Population: 237 million of people
Indonesia at a Glance: The Size and Dimention of
Indonesia
PRACTICAL ASPECTS
PROVINCIAL GOVERNMENT
CITY GOVERNMENT
REGENCY/DISTRICT GOVERNMENT
SUB-DISTRICT SUB-CITY
DISTRICT VILLAGE URBAN VILLAGE
COMMUNITY GROUPS
NEIGHBOURHOOD GROUPS
HOUSE HOLDS
NOT INCL. AS GOV
STRUCTURE
M P R D P R PRESIDENT
GOVERNMENT STRUCTURE/LAYERS REPUBLIC OF INDONESIA
DPD B P K M A M K
COORDINATING MINISTERS
MINISTERS
MPR = People’s Consultative Council;
DPR = People’s Representative Council
DPD = Regional Representative Council
BPK = Auditor
MA = Supreme Court
MK = Constitutional Court
T H E R O L E O F M O H A I N S U P E R V I S I N G
L O C A L L G O V E R N M E N T S
PRESIDENT
Ministries / Institutions /
Agencies
Coordinator to
provincial/regions/cities government
Article 222 Law 32/2004
Article 2 (6) Revised Law 32/04
Executive
Article 4 (1) Constitution 1945
Coordination Coordination
Affairs
Responsibility
NATIONAL
PROVINCIAL/
REGIONS/
CITIES
Local Autonomy Article 18 (5) Constitution 1945
Article 17 Constitution 1945
National Finance
Local Governments
MOHA
Principles:
• Deconcentration
• Decentralization
• Assistance
Local Finance
STRUCTURE OF LOCAL GOVERNMENT
1. PROVINCE : 34 PROVINCES (AUTONOMOUS)
2. DISTRICT/CITY: 508 UNITS (AUTONOMOUS)
1. DISTRICT : 410 DISTRICTS
2. CITY : 98 CITIES
3. SUB DISTRICT : 6,994 UNITS (ADMINISTRATIVE)
4. VILLAGE : 81,253 UNITS:
1. RURAL VILLAGE (DESA)
2. URBAN VILLAGE (KELURAHAN)
Sumber data : Ministerial Reg. No. 18 /2013
SECRETARY (Staff Function)
PLANNING BOARD (Planning Function)
Art. 150 (2)
PARLIAMENT
SECRETARY (Service Function)
AUDITORI (controlling function)
( Gov. Reg. 79/2005)
Ps. 121
Art. 124 Art. 125 Art. 123
PROVINCIAL GOVERNMENT STRUCTURE
REG. AGENCIES (Implementing
Function)
TECHNICAL AGENCIES (Supporting Function)
Command Line
Coordination Line
Accountability Line
ADVISORY
BOARD
OTHER INST. (Implemntator of
Law)
BUREAUS
(Assisting
Function)
ASSISTANTS
Parliament has the
function of representation,
legislation &
parliamentary control
(hearing & inquiry)
•Carry-on the societal and the governmental
system based on unitary system of NKRI
•Maintain and employ democratic system based
on Pancasila (5 Basic Principles)
•Preserve the dynamic political stability of
plurality
•Keep the ethics and norms of governance
GOVERNOR
COORDINATION
CAPACITY DEVELOPEMT
IMPLEMENTOR OF PUBLIC
ADMINISTRATION
SUPERVISORY
REGENCIES, CITIES, VERTICAL UNITS
Maintain synergy of
development and regional
governance
REGENCIES, CITIES
Accelerate and develop
the capacity of regencies
and cities
REGENCIES, CITIES
•Governing Regencies
and cities
• Improving
accountability
FUNCTION OF GOVERNOR AS HEAD OF REGION AND REPRESENTATIVE OF CENTRAL GOVERNMENT
SECRETARY (Staff Function)
PLANNING BOARD (Planning Function)
Art. 150 (2)
PARLIAMENT
SECRETARY (Service Function)
AUDITORI (controlling function)
( Gov. Reg. 79/2005)
Ps. 121
Art. 124 Art. 125 Art. 123
DISTRICT/CITY GOVERNMENT STRUCTURE
REG. AGENCIES (Implementing
Function)
TECHNICAL AGENCIES (Supporting Function)
Command Line
Coordination Line
Accountability Line
ADVISORY
BOARD
OTHER INST. (Implemntator of
Law)
DIVISIONS
(Assisting
Function)
ASSISTANTS
Parliament has the
function of representation,
legislation &
parliamentary control
(hearing & inquiry)
•Carry-on the societal and the governmental
system based on unitary system of NKRI
•Maintain and employ democratic system based
on Pancasila (5 Basic Principles)
•Preserve the dynamic political stability of
plurality
•Keep the ethics and norms of governance
REGENT/ MAYOR
COORDINATION
CAPACITY DEVELOPEMT
IMPLEMENTOR OF PUBLIC
ADMINISTRATION
SUPERVISORY
VILLAGES Maintain synergy of
development
VILLAGES Accelerate and develop
the capacity of villages
VILLAGES •Suoervise villages
• Improve accountability
FUNCTION OF HEAD OF DISTRICTS/MAYORS
LOCAL GOVERNMENT STRUCTURE
PROVINCE:
1. GOVERNOR AS LOCAL EXECUTIVE AND REPRESENTATIVE OF CENTRAL
GOVERNMENT
2. PROVINCIAL PARLIAMENT HAS THE FUNCTION OF RFEPRESENTATION,
LEGISLATION AND PARLIAMENTARY CONTROL (I.E., HEARINGS, INQUIRIES). -
(45 – 100 MEMBERS)
3. LOCAL CIVIL SERVANT HEADED BY THE SECRETARY OF PROVINCE UNDER THE
COMMAND OF THE GOVERNOR
DISTRICT/CITY
1. CITY MAYOR OR REGENT OF DISTRICT = EXECUTIVE
2. CITY/DISTRICT PARLIAMENT HAS THE FUNCTION OF RFEPRESENTATION,
LEGISLATION AND PARLIAMENTARY CONTROL (I.E., HEARINGS, INQUIRIES) - (20-
45 MEMBERS) = LEGISLATOR
3. LOCAL CIVIL SERVANT HEADED BY THE SECRETARY OF CITY/DISTRICT UNDER
THE COMMAND OF THE CITY MAYOR/REGENT
SUB DISTRICT/CITY (KECAMATAN) STRUCTURE
1. HEADED BY HEAD OF SUB-DISTRICT
2. AS DISTRICT OR CITY LOCAL AGENCY
3. HOLDING THE ROLE AS ADMINISTRATIVE IN NATURE
4. APPOINTED BY THE MAYOR/REGENT
5. FUNDED BY THE CITY/DISTRICT BUDGET
6. FUNCTIONS: COORDINATE FUNCTIONS OF CITY/DISTRICT IN
THE SUB DISTRICT LEVEL
7. POPULATION RANGES FROM 10,000 TO 25,000 PEOPLE
8. ACCOUNTABLE TO CITY MAYOR/REGENT VIA THE SECRETARY
OF CITY/DISTRICT
DISTRICT VILLAGE STRUCTURE
1. HEADED BY THE HEAD OF VILLAGE (KEPALA DESA) AS THE EXECUTIVE
2. HAS A COUNCIL AS THAT FUNCTIONS AS VILLAGE LEGISLATOR TO PASS BY
LAWS
3. HEAD OF VILLAGE ELECTED DIRECTLY BY PEOPLE FOR 6 YEARS TERM
4. GETS DIRECT ALLOCATION OF USD 100.000 FROM NATIONAL BUDGET
5. GENERATES ITS OWN REVENUES BUT IN MOST CASES SUPPORTED BY THE
DISTRICT BUDGET
6. MAY RUN ITS OWN BUSINESS BY ESTABLISHING VILLAGE OWNED
ENTERPRISES
7. SUPERVISED BY THE HEAD OF SUB-DISTRICT
8. POPULATION RANGES FROM 2000 TO 10,000 PEOPLE
9. MAY RECEIVE ASSIATANCE FUNDS FROM GOVERNMENT, PROVINCE OR
DISTRICT
10. MAY RECEIVE DIRECT GRANTS FROM GOVERNMEN, PROVINCE OR DISTRICT
URBAN VILLAGE (KELURAHAN) STRUCTURE
1. HEADED BY THE HEAD OF URBAN VILLAGE (LURAH)
2. APPOINTED FROM CIVIL SERVANTS
3. FUNDED BY THE CITY BUDGET.
4. MAY RECEIVE ASSISTANCE FUNDS FROM GOVERNMENT,
PROVINCE OR CITY
5. MAY RECEIVE DIRECT GRANTS FROM GOVERNMEN,
PROVINCE OR CITY
6. SUPERVISED BY THE HEAD OF SUB-CITY
7. POPULATION RANGES FROM 2000 TO 10,000 PEOPLE
LEGAL GROUNDS AND THEORETICAL
ASPECTS OF DECENTRALIZATION
POLICY
IN INDONESIA
BASIC PRINCIPLES ON DECENTRALIZATION IN THE
INDONESIAN CONSTITUION OF 1945 (AMENDED)
Indonesia is a Unitary State.
President is the holder of power (Art. 4 Par. 1).
Indonesia is a unitary decentralized state ( Art. 18 Par.1 to Par. 6, Art.
18A ).
Local Governments are formed by the central government thru Law.
Indonesian Unitary State is divided into provinces. Provinces are
divided into districts/cities., each of which have their own local
governments based on law. (Art. 18 Par. 1).
Provincial, district and city governments manage their own
affairs based on the principles of autonomy and central
government assistance. (Art. 18 (2))
Provincial, district, city governments have their own local
parliaments whose members are directly elected thru general
elections. (art. 18 (3))
Governors, Head of Districts and Mayors are the
governors, head of districts, mayors elected
democratically. (Art 18 (4)).
The local governments manage a wide range of
autonomy, except functions which are by law
referred to as central government functions. (Art. 18
(5)).
Local Governments have the right to pass local
government laws and other laws to implement
autonomy and central government assistance. (Art.
18 (6)).
The structure and management of local
governments is regulated by law. (Art. 18 (7)).
CONTINUED
Article 18A
(1) The relationship between the central government
and the provincial, district, city government or
among the provincial, district, city
government are regulated by law by taking
into account their specificity and local
variety.
(2) The relation of finance, public service, use of
natural resources and others, between the
central government and the local
government is regulated by law and
implemented fairly and harmoniously based
on law.
CONTINUED
Article 18B
(1) The State recognizes and respects local
government units which are considered
specific or special as mandated by the law.
(2) The State recognizes and respects legal
traditional communities and their traditional
rights as long as they are alive and in line
with the development of communities and
the principles of Unitary State of Indonesia
as stated by the law.
CONTINUED
DECENTRALIZATION IN INDONESIA:
AFTER THE GREAT REFORM (1999 TO PRESENT)
1. Local governments are given broad autonomy where most of
government functions are decentralized to the local government (except 6 functions; foreign affairs, defense, security, justice, monetary and national fiscal, religious affairs). It is often called a “big bang decentralization”
2. Local government has the high discretion to run its functions. The role of the central government is more on providing norms, standards, procedures, criteria, supervision and facilitation.
3. There are 31 government functions devolved to local governments compared to only seven functions in the past.
4. There is a high need to improve the local government capacity to carry out its responsibility satisfactorily
THE OBJECTIVES OF
DECENTRALISATION
1. LOCAL GOVERNMENTS ARE EXPECTED TO
BE ABLE TO PROMOTE PEOPLE WELFARE AT
THE LOCAL LEVEL THROUGH THE
PROVISION OF GOOD PUBLIC SERVICES AS
WELL AS INCREASING LOCAL
COMPETITIVENESS
2. LOCAL GOVERNMENTS BECOME THE
INSTRUMENT FOR POLITICAL EDUCATION
AT THE LOCAL LEVEL TO PROMOTE
DEMOCRATIZATION
DECENTRALIZATION POLICY (laws on local government Past to Present)
LAW 22 / 1999 Decentralization dominant
LAW 32/2004 Find the Balance
LAW 5 / 1974 Centralization dominant
LAW 18 / 1965 decentralization dominant
Presidential Edict 6 / 1959 Centralization dominant
LAW 1 / 1957 Decentralization dominant
LAW 22 / 1948 Decentralization dominant
LAW 1 / 1945 Centralization dominant
DESENTRALISATIE WET 1903 Centralization dominant
LAW 23/2014 Fine Tunning
LOCAL GOVERNMENT FINANCE
PROVINCE:
1. PROVINCIAL TAXES (VEHICLE TAX, UNDER WATER TAX)
2. PROVINCIAL CHARGES
3. CENTRAL SUBSIDY (MAINLY BLOCK GRANT AROUND 70% OF
THE BUDGET)
CITY/DISTRICT:
1. CITY/DISTRICT TAXES (HOTEL, RESTAURANT,
ADVERTISEMENT, PARKING, OTHER SMALL TAXES)
2. CITY/DISTRICT CHARGES (MARKET, BUILDING PERMIT,
HOSPITAL, WATER, BUS TERMINAL AND OTHER SMALL
CHARGES)
3. CENTRAL SUBSIDY (MAINLY BLOCK GRANT AROUND 90% OF
LOCAL BUDGET)
THE STRUCTURE OF GOVERNMENT FUNCTION
GOVERNMENT FUNCTION
ABSOLUTE FUNCTIONS (6) (Retained by Cent. Gov.)
CONCURRENT FUNCTIONS (31) (Shared among Central and Local Govt)
Optional Functions (8) (Specific Competence)
Mandatory Functions (26)
RELATED TO
BASIC SERVICES
(6)
- FOREIGN AFFAIRS
- DEFENCE
- SECURITY
- JUSTICE
- MONETARY AND FISCAL
- RELIGIOUS AFFAIRS
Examples: maritime and
Fisheries, tourism,
agriculture, forestry,
Enery & mineral resources,
Industry and trade
APPLIES THE PRINCIPLES OF REFERRAL, SUBSIDIARITY AND PROPORTIONALITY IN ITS IMPLEMENTATION)
PUBlIC FUNCTIONS
NOT RELATED TO
BASIC SERVICES
(18)
FEDERAL STATE SYSTEM UNUTARY STATE SYSTEM
FEDERAL
STATE
STATES
/PROV
STATES
/PROV
CENRAL GOV
AUTONOOMOUS
REG.
AUTONOMOUS REG.
DIFFERENT SYSTEM OF CONFERRRAL/DELEGATION OF
POWERS
DECENTRALIZATION
AMDMINSTRATION OF GOVERNMENT FUNCTIONS REPUBLIC OF INDONESIA
DELEGATOION THRU ASSISTANCE TASK
STATE OWNED ENTERPRISES
DELEGATION CO-ADMINISTRATION OF CONCURRENT FUNCTIONS
CENT. & REG/Local Govs
PROVINCE
DISTRICT/ CITIES
VILLAGE
MPR = People’s Consultative Council;
DPR = People’s Representative Council
DPD = Regional Representative Council
BPK = Auditor
MA = Supreme Court
MK = Constitutional Court
Tugas Pembantuan = Medebewind/
assistance task
CRITERIA
Externality
Accountability
Eficiency
DEVOLUTION OF FUNCTIONS TO REG/LOC. GOVs
MANDATORY
OPTIONAL
DECONCENTRATION
PROVINCE
NATIONAL GOVERNMENT
DIRECT MANAGEMENT
1) planning follow function;
2) money follow function;
3) structure follow function;
4) personnel follow function;
5) accountability follow function.
5 APPROACHES IN THE IMPLEMENTAION
OF GOVERNMENT FUNCTIONS
GOVERNMENT FUNCTIONS
ACCOUNTABILITY FOLLOW
FUNCTION
MONEY FOLLOW
FUNCTION
PLANNING FOLLOW FUNCTION
STRUCTURE FOLLOW FUNCTION
PERSONNEL FOLLOW FUNCTION
5 APPROACHES IN THE IMPLEMENTAION
OF GOVERNMENT FUNCTIONS
FOR INTERNATIONAL COOPERATION APPLIES
THE PRINCIPLES OF SUBSIDIARITY AND PROPORTIONALITY
1. The Function of International Affairs is retained by the Central Government.
2. Under the principles of Subsidiarity, the Local Governments may
Cooperate with international entities (Twining Cities, Joint Ventures) with the
approval of Central Government.
3. Under the principle of Proportionality, the Local Governments
are not allowed to sign international treaties or agreements,
except with the Full Power of the Ministry of Foreign Affairs.
NOTE: These principles explicitly stated in the Indonesian Constitution
Or Indonesian Law on Decentralization 2014.
Refer to EU Law Art 5 to understand the principles of referral,
Subsidiarity and proportionality
FUNCTIONS DEVOLVED TO LOCAL
GOVERNMENTS
MANDATORY FUNCTIONS RELATED TO BASIC SERVICES
1. EDUCATION
2. HEALTH
3. PUBLIC WORKS AND SPATIAL LAYOUT
4. PUBLIC HOUSING AND SETTLEMENT
5. TRANQUILITY, PUBLIC ORDER AND CIVIL PROTENCTION
6. SOCIAL
MANDATORY FUNCTIONS NOT RELATED TO BASIC SERVICES
1. MANNPOWER
2. WOMEN EMPOWERMENT AND CHILD PROTECTION
3. FOOD
4. LAND
5. ENVIRONMENT
6. POPULATION ADMINISTRATON AN D CIVIL REGISTRY
7. TRANSPORTAION
8. COMMUNICATION AND INFORMATIION
9. COOPERATIVES, SMAAL AND MEDDIUYM SCALE BUSINESS FORESTRY
10. EDUCATION
11. HEALTH
12. SMALL AND MEDIUM ENTERPRISE AND COOPERATIVE
13. INVESTMENT
14. YOUTH AND SPORTS
15. STATISTICS
16. CODES
17. CULTURE
18. LIBRRY
19. FILING
FUNCTIONS DEVOLVED TO LOCAL GOVs……
MANDATORY FUNCTIONS NOT RELATED TO BASIC SERVICES 1. MANNPOWER 2. WOMEN EMPOWERMENT AND CHILD PROTECTION 3. FOOD 4. LAND 5. ENVIRONMENT 6. POPULATION ADMINISTRATON AN D CIVIL REGISTRY 7. TRANSPORTAION 8. COMMUNICATION AND INFORMATIION 9. COOPERATIVES, SMAAL AND MEDDIUYM SCALE BUSINESS
FORESTRY 10. EDUCATION 11. HEALTH 12. SMALL AND MEDIUM ENTERPRISE AND COOPERATIVE 13. INVESTMENT 14. YOUTH AND SPORTS 15. STATISTICS 16. CODES 17. CULTURE 18. LIBRRY 19. FILING
1. CENTRAL GOVERNMENT:
Provide norms, standards and procedures, monev and supervision plus implementing functions under the principles of subsidiarity through assistance funds and deconcentration funds.
2. PROVINCE:
Implement functions within norms, standards, procedures and criteria set by the central government and other functions based on the principles of subsidiarity and proportionality (e.g. international co-operation).
3. DISTRICT/CITY:
Implement functions within norms, standards, procedures and criteria set by the central government and other functions based on the principles of subsidiarity and proportionality (e.g. international co-operation).
FUNCTIONS OF CENTRAL, PROVINCE AND
DISTRICT/CITY
BASIC ELEMENTS OF LOCAL
GOVERNMENT
1. LOCAL GOVERNMENT FUNCTION
2. ORGANISATION STRUCTURE OF LG
3. LOCAL GOVERNMENT PERSONNEL
4. LOCAL GOVERNMENT FINANCIAL MNGMT
5. PEOPLE REPRESENTATION
6. PUBLIC SERVICES
7. SUPERVISION
THOEE ELEMENTS BUILD UP THE LOCAL GOVERNMENT AS A SYSTEM. THE APPROACH SHOULD BE HOLISTIC
BASIC QUESTION
WHAT STRATEGY SHOULD BE ADOPTED
TO SUPPORT THE CAPACITY OF LOCAL
GOVERNMENT TO PROMOTE WELFARE
AND DEMOCRATISATION AT THE
LOCAL LEVEL
STRATEGY
1. STRENGTHEN THE 7 BASIC ELEMENTS OF LOCAL
GOVERNMENT
2. IDENTIFY THE IDEAL ARRANGEMENT OF EACH
ELEMENT WITHIN THE CORRIDOR OF LAW 32/2004
3. IDENTIFY THE EXISTING CONDITION OF EACH
ELEMENT
4. IDENTIFY THE GAP BETWEEN THE IDEAL AND THE
EXISTING PROBLEMS, CONSTRAINTS, ETC
5. ARRANGE THE ACTION PLAN OF EACH ELEMENT TO
FILL THE GAP
6. ALL ACTION PLANS WILL BE BOUND IN A GRAND
DESIGN OF AUTONOMY
GRAND DESIGN
FOR DECENTRALIZATION
DESIGN OF RELATIONSHIP BETWEEN CENTRAL AND LOCAL
GOVERNMENT (PROVINCE, DISTRICT/CITY AND VILLAGE
DESIGN OF RETAINED AND DEVOLVED FUNCTIONS OR ABSOLUTE
AND CONCURRENT FUNCTIONS
DESIGN OF LG PARLIAMENT AND THEIR FUNCTIONS
DESIGN OF LG ORGANISATION STRUCTURE
DESIGN OF LG PERSONNEL
DESIGN OF LG FINANCE
DESIGN OF PUBLIC SERVICES
DESIGN OF LG CONTROL/SUPERVISION
DESIGN OF VILLAGES UNDER LG
TERIMA KASIH
THANK YOU
TERIMA KASIH
