Administrative Law Aspects in Local Governance Dr. Harsanto Nursadi Bono B Priambodo, M.Sc. FACULTY OF LAW UI

Government Intervention Particularly in Indonesia, prior to any constitutional stipulation, regions i.e. self-ruling principalities and jural communities are free to govern themselves as they please. However, in order to realize unitary state ideal, (Central) Government needs to intervene into local governance vide 1945 Const. Art. 1.1 jo. 18. In order to be able to do so, Government must be equipped with...? FACULTY OF LAW UI

Comparison India has 35 autonomous regions at provincial level with a population of 1,221,000,000. It means that each provincial government serves 34,885,714 persons. Both China and Indonesia have 34 autonomous regions at provincial level. However, China's population is 1,350,000,000 while Indonesia's is 251,000. It means that each provincial government in China and Indonesia serves 39,705,882 and 7,382,353 capita respectively. FACULTY OF LAW UI

Quick Facts Indonesia has 539 autonomous regions, consisting of 34 provinces with 412 regencies, 93 municipalities, both administered 6,994 kecamatans and 8,309 kelurahans. Meanwhile, most of 72,944 desas are declared as autonomous regions pursuant to Law 06/14 jo. GR 43/14. There are 16 proposals for new provinces still waiting to be assessed by the House of Representatives. If they are adopted, Indonesia will have 50 provinces. FACULTY OF LAW UI

Source(s) of Authorities  Constitutional 1945 Const. Art jo. 18 and elucidations Const. 3rd amend. Art. 18, 18A, 18B.  Legislative Law on local governance Laws on region establishment Laws on special region (khusus/istimewa) Laws on financial relation/balance between central and local governments FACULTY OF LAW UI

Authorities  Province, Regency and Municipality are authorized to REGULATE (regelen) and ADMINISTER (bestuuren/beheeren) certain GOVERNMENT AFFAIRS i.e. all affairs except declared as central government's affairs (broad autonomy) by virtue of autonomy/decentralization and joint- administration (medebewind) principles. LOCAL GOVERNMENT, in implementing autonomy and joint-administration, is authorized to adopt local regulation and other regulations LOCAL GOVERNANCE is the implementation of government affairs by local government and DPRD. FACULTY OF LAW UI

Principle vs. Authorities Principle AffairRegulationAdministration CentralLocalCentralLocal Central App. Vertical Inst. Local App. Centralization  Deconcentration  Joint- administration  Decentralization  FACULTY OF LAW UI

Institutions Local Governance = Governor/Regent/Mayor + DPRD Prov/Reg’y/Mun Provincial Local Government = DPRD Prov.Secretariat + Governor + Prov.Reg.Secretariat + Prov.Offices/Tech.Inst. Regency/Municipality Local Government = DPRD Reg’y/Mun.Secretariat + Regent/Mayor + Reg’y/Mun.Reg.Secretariat + Reg’y/Mun.Offices/Tech.Inst. + Kecamatan + Kelurahan FACULTY OF LAW UI

Offices and Technical Institutions Office(s) are autonomy implementation elements, Tech.Inst.(s) are Regional Head’s duties supporting elements in formulating and implementing specific regional policies, in the forms of agencies, bureaus or regional general hospitals. Lead by head(s) appointed and dismissed by Regional Head from state civil apparatus by recomm. from Reg.Sec'y. Answer to Regional Head via Reg.Sec'y. FACULTY OF LAW UI

Officials Regional Heads and members of DPRD are elected officials. In a decentralized framework, they perform regulating function in the form of policy making. Regional Secretary, Heads of Offices and Technical Institutions are appointed officials. They, together with all their subordinate state civil apparatus constitute the regional bureaucracy. They perform administering function in the form of policy executing. FACULTY OF LAW UI

Administrative Acts REGIONAL REGULATIONREGIONAL HEAD REGULATION REGIONAL HEAD DECREE Source of Authority Attribution/delegation AddressatRegional Head FunctionRegulating Administering DPRD Endorsement RequiredNot required DPRD ControlRequired FACULTY OF LAW UI

Finance  Regional Finance: All rights and obligations that have monetary values; and, all money and properties (wealth) that can be owned by Region with regard to the exercise of those rights and obligations.  Regional Finance = Rights + Wealth – Obligations  Budget Structure = Income + Financing - Expenditure FACULTY OF LAW UI

Principles vs Budget Centralization  APBN Deconcentration  APBN Joint-administration  APBN Decentralization  APBD FACULTY OF LAW UI

Financial Management HEAD OF FINANCIAL MANAGEMENT IN REGIONAL GOV’T WORKING UNIT Chief Financial Officer (CFO) HEAD OF REGIONAL GOVERNMENT WORKING UNIT Budget/Procurement User Chief Operational Officer (COO) REGIONAL HEAD Cheif Executive Officer (CEO) REGIONAL SECRETARY Financial Management Coordinator FACULTY OF LAW UI

Sources of Income BALANCING FUND MISCELLANEOUS 1.Regional Tax 2.Regional Retribution 3.Separated Regional Wealth 4.Misc. General Allocation Specific Allocation Grant Contigency 1.Tax Sharing a.Land and Building b.BPHTPB 2.Personal Income Tax 3.Natural Resources a.Forestry b.Fishery c.General Mining d.Oil Mining e.Gas Mining f.Geothermal Mining ORIGINAL INCOME 1.Silpa 2.Loan 3.Reserve 4.Sale of wealth INCOME FINANCING Sharing FACULTY OF LAW UI