‘Failing’ regional autonomy policy to be reviewed
The Ministry of Home Affairs said it was examining the effectiveness of decentralization and preparing new rules on how regions should manage their finances, The
The announcement comes amid rising concerns about the impact of giving greater autonomy to regional authorities.
The Law on Regional Autonomy, adopted by the government in 2004, provides a legal basis for local authorities to manage their own budgets, as part of efforts to accelerate local development.
More regions are trying to benefit from the policy, which has led to the establishment of 205 new regional administrative entities, including provinces, districts and municipalities but many believe it has failed to spur regional development.
Former Home Affairs Minister Ryaas Rasyid, one of the architects of regional autonomy, said the prosperity promised many regions has failed to materialize. “Poverty rates have not dropped significantly and unemployment has increased,” he said.
President Susilo Bambang Yudhoyono also indicated his displeasure over decentralization during his budget presentation to the House of Representatives this month, when he called for a moratorium on the establishment of new regions.
The Supreme Audit Agency last week told the government that only eight of 500-plus autonomous regions had produced positive financial reports.
Ministry of Home Affairs spokesman Saut Situmorang said the government now planned to evaluate the effectiveness of the policy in newly created regions.
He said the ministry would review demands for autonomy from several proposed regions. “We’re developing a master plan on the ideal number of regions in
