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In the Dutch East Indies the principles of regional autonomy have been applied and since the
establishment of the Unitary State of the Republic of Indonesia (NKRI), regional autonomy has
been applied in the implementation of local government in Indonesia. This can be seen from the
existence of various laws and regulations concerning regional autonomy since independence
until now.
Regional autonomy in Indonesia was born in the midst of massive social turmoil in 1999. The
social turmoil was preceded by the economic crisis that struck Indonesia around 1997. The social
turmoil that swept Indonesia around 1997 then gave birth to political upheaval which marked the
end of the end of the New Order government which has been in power for about 32 years in
Indonesia. After the collapse of the New Order government in 1998, a number of issues related
to the constitutional system and the demands of regions that have been contributing greatly to the
natural wealth it has. The discourse of regional autonomy then rolled as an alternative conception
to answer the social and state of Indonesia problems that are considered obsolete and need to be
replaced. This is the background of regional autonomy in Indonesia.
The principle of autonomy to the extent that it means that the jurisdiction regulates all
governmental matters outside the governmental affairs set by the Law (eg in addition to the
fields of foreign policy, defense, security, justice, monetary and national fiscal, and religion).
The principle of real autonomy is that to deal with governmental affairs, on the basis of tasks,
actual authority and obligations have existed and have the potential to live and develop according
to the potential and uniqueness of the region.
Decentralization is the transfer of authority from the central government to local governments
to take care of local affairs.
Deconcentration is the delegation of authority from the central government to the central
government apparatus that exists in the region to carry out the duties of the central government in
the regions. In other words, deconcentration is an extension of the central government in the
region.
Co-administered tasks shall be the inclusion of duties or programs of the Central Government
or Provincial Governments of Provinces which are granted to be executed and accountable by the
Regional Government of the Regency / Municipality of the Level II Region, where the
implementation may be reflected in the contribution of the Central or Provincial Financing of
development, then the amount of contribution can be used to measure the size of centralized
governance.
The financial balance between the central and regional governments is a system of vertical
financial relations between the central and intergovernmental (intergovernmental fiscal relation
system), as a consequence of the implementation of regional autonomy in the form of the transfer
of some of the authority of the government. Therefore, it is said that the financial relationship is
a system of financing the implementation of central and local government.
In Law no. 25 of 1999 explained about the new regional financial structure after the
implementation of regional autonomy in Indonesia. The law states in Article 3 that the sources of
regional revenue (TR) in the implementation of decentralization include: PendapatanAsli Daerah
(PAD); Balancing Fund (DP); Regional Loan (LOAN); Other legal receipts (OTH.REV). Then
the equation is shaped.
The Governor notifies the work plans and budgets of ministries of State/institutions
relating to deconcentration activities in the regions to the DPRD during the discussion of the
RAPBD. Deconcentration activities in the regions are implemented by the Satuan Kerja
Perangkat Daerah (SKPD) established by the governor at the beginning of the fiscal year.
Deconcentration Fund is channeled through the State General Treasury Account. In the case of
deconcentration, implementation resulted in APBN revenue and paid to the State General
Treasury Account. The remainder of the budget is the revenues of the state budget, all goods
obtained from deconcentration funds into state property which later can be granted to the local
government.
The Regional Head shall notify the working plan and budget of the state
ministries/institutions relating to the activities of Co-administered tasks to the DPRD at the time
of the discussion of the RAPBD. The Co-administered tasks in the regions shall be carried out by
the SKPD established by the governor, regent, or mayor at the beginning of each fiscal year.
SKPD organizes the administration of money/goods in the framework of the task of assistance in
an orderly manner.
Co-Administration Funds that are part of the State Ministry/institution budget are
allocated based on work plans and budgets of ministries/institutions. The financial administration
in the execution of the union duties shall be carried out separately from the financial
administration in the implementation of deconcentration and decentralization and managed
through the general treasury account of the State. In this case, the remaining budget remains over
the implementation of the Co-Administration duties, the remainder represents the revenues of the
APBN and the balance shall be deposited into the General Treasury Account of the State. In the
event that there is an excess of the budget over the implementation of the Co-Administration
duties, the remainder shall be the revenues of the APBN and the balance shall be deposited in the
State General Treasury Account. In the case of execution of Co-administered tasks to generate
acceptance. Then the acceptance is the revenue of the state budget and must be deposited into the
State General Treasury Account. All funds received from the Co-Administration Fund become
the property of the State. If granted then the goods must be managed and administered by the
ministry of State/institution that gives the assignment.
Some people think that the policy of Regional Autonomy under Law 32/2004 is one of
the best regional autonomy policies. The policy of regional autonomy which is essentially an
effort to empower and democratize the life of the community is expected to fulfill the aspirations
of various parties in the context of state government administration and the relationship between
central government and local government. To know the future prospects of Regional Autonomy,
it can be used to look at several aspects of the regional muscles themselves, i.e. ideology,
political, economic, socio-cultural, and defense aspects.
From the aspect of Ideology, Pancasila is the view, the philosophy of life and at the same
time the basis of the State. If we can live and understand the values of Pancasila then it can be
concluded that the policy of regional autonomy is acceptable in the administration of life of
nation and state. Through regional autonomy, the value of Pancasila will be realized and
preserved in every aspect of Indonesian life.
From the Political aspect, the central government's recognition of the existence of local
government as well as the trust by giving wide authority to local government will create a
harmonious relationship between government. Furthermore, the condition will encourage the
growth of regional support to the central government which will eventually strengthen the unity
and unity of the nation. The policy of regional autonomy as an effort of people's political
education will have an impact on the improvement of political life in the regions.
From the economic aspect, the improvement and growth of the regional economy will
bring a significant influence on the improvement of people's welfare in the area. Local
governments will seek to improve the economy in accordance with conditions, needs, and
abilities. The authority of the government, including regional autonomy, is expected to provide
maximum services to the economic actors in the regions, whether local, national, regional, or
global.
From the aspect of Socio-Culture, the recognition of the Central Government towards the
regional awareness is an important value for the existence of the region because the region will
feel parallel to the likes of other nations.
From the aspects of Defense and Security, regional autonomy empowers each region to
strengthen the condition of regional resilience within the framework of national security, which
in turn will foster the local government's trust in the Central Government and can disseminate
separatist movements that want to secede from NKRI. From all aspects mentioned earlier, it can
be concluded that the policy of regional autonomy is a very appropriate policy in the
implementation of government in the region so that the policy of regional autonomy has good
prospects in the future in facing the challenges in organizing the life of society, nation, and state.
However, obstacles in regional autonomy must also be faced for the implementation of regional
autonomy in the future.