A quarter-century after decentralization was introduced in Indonesia, the relationship between the central and regional governments continues to be shaped by ongoing dynamics in the distribution of authority. Amid demands for more effective national development, debates have emerged over the extent to which regional autonomy still provides local governments with the space to determine strategic policies in their respective regions.
Professor Agus Pramusinto of the Department of Public Policy and Management, Faculty of Social and Political Sciences, Universitas Gadjah Mada (Fisipol UGM), believes that the implementation of decentralization policy over the years has been marked by a persistent struggle for authority between the central and regional governments.
According to him, the central government has become increasingly dominant in determining the direction of national development, particularly in areas such as investment licensing, mining, and national strategic projects. As a result, decision-making authority at the regional level has become increasingly limited.
“Over the past quarter-century of decentralization, we have witnessed fluctuations in its implementation, characterized by a continuous tug-of-war over authority between the central and regional governments,” he said on Thursday (June 24).
The trend toward recentralization has become increasingly evident through the central government’s strong control over various strategic policies. At the same time, the authority of regional governments and regional legislative councils (DPRD) to determine development priorities within their own regions has continued to weaken. Consequently, the space for local governments to make strategic decisions has become increasingly constrained, as many policies and budget allocations are determined by the central government.
“The president’s control is becoming stronger, while the regions’ veto power is growing weaker,” he remarked.
Professor Agus further argued that regional autonomy is now increasingly exercised in a largely symbolic manner. Although regions continue to receive budget allocations, the use of these funds is tightly regulated. As a result, regional governments primarily function as implementers of policies formulated by the central government.
“Regional autonomy still exists, but it has become largely symbolic. Regional heads and regional legislative councils still exist, but their authority to make strategic decisions has become very limited. Financially, regions may still receive the same level of funding, but their allocation has already been determined by the central government,” he explained.
To address these challenges, Professor Agus emphasized the need to redesign Indonesia’s decentralization framework. He suggested establishing a clearer division of responsibilities, including matters that fall entirely under regional authority through devolution mechanisms, matters administered by the central government through deconcentration mechanisms, and national strategic affairs implemented with the involvement of regional governments through co-administration tasks.
“Through a more appropriate division of roles, public aspirations and regional strategic needs can be accommodated by local governments, while national interests can continue to be effectively pursued by the central government,” he stressed.
According to Professor Agus, development success cannot be achieved solely through the dominance of the central government nor by placing full responsibility on regional governments. Instead, a balanced partnership between the two levels of government is essential to ensure that local aspirations are accommodated without neglecting national interests.
“Not everything can be managed by the central government alone, and not every region is capable of addressing its own challenges without central government intervention. The proper balance of roles between the central and regional governments is the key to successful development,” Professor Agus concluded.
Author: Cyntia Noviana
Editor: Gusti Grehenson
Post-editor: Zabrina Kumara
Photo: unggahan.id