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54<br />

Orig<strong>in</strong>s and Scope <strong>of</strong> <strong>Indonesia</strong>’s <strong>Decentralization</strong> Laws<br />

More specifically, the M<strong>in</strong>ister <strong>of</strong> Home Affairs is given authority to review draft<br />

regulations from the prov<strong>in</strong>cial level related to regional taxes, regional fees, prov<strong>in</strong>cial<br />

government budgets, and the general spatial plan (Rencana Umum Tata Ruang,<br />

RUTR) before they can be approved by the Governor <strong>in</strong> the prov<strong>in</strong>ce <strong>in</strong> which they<br />

have been formulated. Likewise, Governors are authorized to review drafts <strong>of</strong> such<br />

regulations from district and municipal governments before they can be approved<br />

by the Bupati or Mayor. For all other types <strong>of</strong> regional regulations (i.e. those that do<br />

not perta<strong>in</strong> to budgetary or fiscal matters), district and municipal governments must<br />

submit to the Governor a copy <strong>of</strong> each regulation after it is ratified; and prov<strong>in</strong>cial<br />

governments must submit a copy to the M<strong>in</strong>ister <strong>of</strong> Home Affairs. Law 32/2004<br />

states that regional regulations that are, through this review process, determ<strong>in</strong>ed to<br />

contradict higher laws will be revoked. In this way, the prov<strong>in</strong>cial government is<br />

effectively given ‘veto power’ over decisions, policies, and regulations that are made<br />

at the district and municipal levels; and the central government is given ‘veto power’<br />

over those made at the prov<strong>in</strong>cial level (Cahyat 2005). To ensure full compliance on<br />

the part <strong>of</strong> regional governments, Law 32/2004 authorizes the central government to<br />

impose sanctions aga<strong>in</strong>st regional government <strong>of</strong>ficials who are found to be violat<strong>in</strong>g<br />

or circumvent<strong>in</strong>g the central government’s supervision and monitor<strong>in</strong>g process.<br />

Specifically, potential sanctions <strong>in</strong>clude re-gazettement <strong>of</strong> an autonomous region;<br />

demotion or dismissal <strong>of</strong> an <strong>of</strong>ficial; delay or revocation <strong>of</strong> a regional government<br />

policy, regulation, or decision by the Head <strong>of</strong> Region; and/or crim<strong>in</strong>al prosecution.<br />

Law 32/2004 appears to further strengthens the central government’s power<br />

over regional governments by partially re<strong>in</strong>stat<strong>in</strong>g Jakarta’s authority over the state<br />

adm<strong>in</strong>istrative bureaucracies at the prov<strong>in</strong>cial, district, and municipal levels. While<br />

<strong>of</strong>fer<strong>in</strong>g few details <strong>in</strong> this area, the law emphasizes that the regional civil service is<br />

a ‘subsystem’ <strong>of</strong> the national civil service and part <strong>of</strong> the same national bureaucratic<br />

network. Law 32/2004 acknowledges that due to the regional autonomy process,<br />

<strong>Indonesia</strong> does not have a s<strong>in</strong>gle unified system that <strong>in</strong>tegrates the civil service<br />

bureaucracies at all levels. However, the law also emphasizes that neither are the<br />

regional and national bureaucracies totally separate – as the 1999 regional autonomy<br />

law implied. Rather, Law 32/2004’s explanatory notes state that the country now has<br />

a “comb<strong>in</strong>ation <strong>of</strong> a ‘unified system’ and a ‘separated system’, mean<strong>in</strong>g that there are<br />

some tasks that are the responsibility <strong>of</strong> the [central] government and some that are the<br />

responsibility <strong>of</strong> the regional governments.” While the Bupati is generally responsible<br />

for manag<strong>in</strong>g the civil service with<strong>in</strong> his/her district, Law 32/2004 specifies that any<br />

promotions, transfers, and dismissals <strong>of</strong> civil servants at that level must be approved<br />

by the Governor. Moreover, the law states that the President ultimately holds the right<br />

to dismiss civil servants (presumably at any level); however, for practical purposes,<br />

this authority has been partially delegated to the regional authorities charged with<br />

supervis<strong>in</strong>g the bureaucracies with<strong>in</strong> their jurisdictions.<br />

In strengthen<strong>in</strong>g the power <strong>of</strong> the central government vis-à-vis regional<br />

governments at the prov<strong>in</strong>cial, district, and municipal levels, Law 32/2004<br />

simultaneously weakens the authority <strong>of</strong> regional legislatures (Cahyat 2005).<br />

Whereas the DPRD at each level previously held the authority to choose the Head<br />

<strong>of</strong> Region, Law 32/2004 specifies that Governors, Bupatis, and Mayors will now be

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