DECENTRALIZATION National Programs in RPJMN : National Programs in RPJMN (initial agreement)

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Noah Leonard
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1 DECENTRALIZATION NationalProgramsinRPJMN : 1. Synchronizationofregulationsondecentralizationand localautonomy 2. Improvinglocalgovernments'institutionalcapacities 3. Improvingprofessionalismamonglocalgovernment staffs 4. Cooperationamongsub nationalgovernments 5. Evaluatingthecreationofnewlocalautonomous regions(theterritorialreforms) 6. Enhancingfinancialcapacityofthelocalgovernments. NationalProgramsinRPJMN (initial agreement) 1. Functionalassignmentmainstreaming/synchronizing regulationsondecentralizedgovernance 2. Improvinglocalgovernmentpublicservices 3. Enhancingcapacityoflocalgovernmentapparatus 4. Improvingcooperationamonglocalgovernments 5. Territorialreforms,specialzones,andspecial autonomyregions 6. Improvingdevelopmentfinancialsystemforlocal governments 7. Controlandevaluationoflocalgovernment expenditures 8. Politicalaccountabilityoflocalgovernments. Program#1:Functionalassignmentmainstreaming/ synchronizingregulationsondecentralizedgovernance This program is aimed at creating a more coherent and consistent approach to decentralization in Indonesia. The principles of devolution, deconcentration, and assistance tasks have not consistentlydevelopedintheregulations. In line with Law No.32/2004 revision, there is an urgent need to harmonizethislawwithothersectorallawsandsubsequentancillary 1

2 regulations. Most importantly, the program should be able to formulate inter governmental functions more clearly so as to solve thecurrentproblemofoverlappingtasksbetweendifferentlevelsof government. Oncetheregulatoryharmonizationiscarriedoutandtheproblemof functional assignments is solved, vertical and horizontal tensions amongthegovernmentagencieswouldbeminimized.thisstrategic programisalsodesignedtoavoidfragmentedpolicymakingprocess thathasbesetindonesiangovernmentafterdecentralization. Program#2:Improvinglocalgovernmentpublicservices According to the National Long Term Development Plan (RPJP), publicservicequalityimprovementisthemandatefortheperiodof Therefore,centralgovernmentagenciesandsub national governments have to create viable programs for improving public services. The minimum service standards (SPM) that is slowly progressing should be given priority among the sectors of the central government. At the same time, the sub national governments have also apply the SPM sufficiently in their planning and budgeting process. In line with the nation wide effort for administrative reforms, improvementofthepublicservicesthathasbeenlongoverduehasto beprioritized.thiswouldneedexpansivedisseminationinorderto generate significant changes. There is an urgent need to give incentives for local governments to improve standards of public services. Program#3:Enhancingcapacityoflocalgovernmentapparatus It is recognized that the failure of administrative reforms after decentralization is due to insufficient capacity to realize the formulated reforms. Therefore, it is fundamental to enhance the capacityoflocalgovernmentapparatusandstaffs.capacitybuilding is a long term program that must be incorporated in all the sectors anditisparticularlyurgentafterdecentralization. There are actually plenty of potentials to support capacity building, from the national research and development units, national 2

3 institutes,localuniversities,andconsultantssuppliedbythedonors. However, there is still problem of coordination and utilization of these resources. In a more decentralized environment, the capacity building process should be more targeted to localities and all the regionsinthecountry. Program#4:Improvingcooperationamonglocalgovernments Thelocalgovernmentassociationsareloosingtheirrelevanceifthey focusedmerelyonpoliticalmedia.itisthetimefortheassociations to provide sufficient services to their members, not only as strong advocates toward central government but also as focal points to createmorebeneficialcooperativeactivities. Nevertheless, there are cases of spontaneous initiatives that turned out to be productive and further strengthen decentralized governances.inthemediumterm,suchinitiativeshavetobefurther developedbasedoncommoninterestsamongthelocalities. To improve cooperative initiatives among local governments, it is importanttorelateinitiativeswithanythingthatcanberealistically attainedandcreatetangibleoutputs. Program#5:Territorialreforms,specialzones,andspecial autonomyregions As the national leadership is eager to give a moratorium to the pemekaran, it is the time to evaluate the overall territorial adjustments in order to create the most effective administrative units. Proposals for new regions is to be suspended while objective studieshavetobeusedfortheterritorialreform. The mechanism for directly delegating functions from the central government to special zones (Batam, KAPET, etc.) should be established appropriately. This is important to generate industrial activities in these special zones. The similar policy shoud also be takeninthespecialregions(aceh,papua,jogja). In order to maintain national integrity, the program to give more attention on regions at the national boundaries must also be prioritized. The 13 islands of the national boundaries do not only 3

4 needpoliticalcommitmentonnationaldefenseandsecurity,butalso economicdevelopmentthatwouldimprovethelocalpeople. Program#6:Improvingfinancialsystemforlocalgovernments As the main part of administrative reform, the local government financial system have to be improved appropriately. The planning process must have a direct link with the budgeting process and the spatial potential at the local level. There have been initiatives for reforms including the nation wide implementation of performancebased budgeting. However, the capacity building in financial system islaggedbehind. Although there are many initiatives to improve inter governmental fiscalrelations,theconceptandimplementationneedtobeimproved substantially. The proportion of wage bill from general allocation grant(dau)isstilltobigandneedtobefocusedmoreonlocalpublic services. Program#7:Controlandevaluationoflocalgovernment expenditures Of the critical issues in the next five years is how to improve efficiencyandeffectivenessoflocalgovernmentexpenditures.while the central government has to run deficit, the reserve and unspent expenditures among the local governments have been alarmingly increased. National policy for curbing corruption should not by all means reduce the effectiveness of local budgeting. Therefore, there mustbestrategicprogramstosolvethisproblem. Control and supervision is also needed as many local regulations beingproducesarecontravenethenationallegalframework.whileit isimportanttocontinuedecentralizationmeasures,controlonlocal regulationsisalsoneededbyutilizingdirectinterventionorutilizing theroleofprovincialgovernors. Program#8:Politicalaccountabilityoflocalgovernments The more democratic elections at the national and local levels need tobefollowedbymoreeffectiveandaccountablegovernment.there should be more comprehensive programs to link the political 4

5 activities at the House of Representatives (DPRD) to the public management activities at the local level. The capacity of the DPRD membersinlegislatureandbudgetingmustbeimprovedwhiletheir rolemustbeconnectedtotheirconstituents. Therearemoreprogressiveregulationsthatobligelocalgovernment officialstobemoreaccountabletothepublic.theseregulationshave to be followed by more transparent and sincere governance on the partoflocalgovernmentofficials. Toensurethatlocalgovernmentsareaccountabletothepublic,itis also important to carry out programs targeted to create more engagement among CSOs, press, universities and other civil society elements. ***** 5

Indonesia rising: 2012 and beyond Indonesia s potential and the challenges to realizing it

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