During the reign of President Soeharto, the second president of Indonesia, Indonesian governmental system was unitary state with authoritarian system. At this era, the administrative system was set into a hierarchical system; from the higher level to the lowest level namely central government, provinces, cities (kota) and rural regencies (kabupaten), districts (kecamatan), and urban neighborhoods (kelurahan) and villages (desa); with a large number of military officer designated in many administrative positions. Yet, the central government was implemented a tight control of administration on the lower level of government (Green, 2005; Callavan et al, 2009). The authoritarian regime was ended in 1998 when Soeharto handed over his power to his
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He introduced democratic reform in many aspects as initiated free elections, free media, legislation and administration transparency, and democratic decentralization. He introduced the Regional Autonomy Law (22/1999 and 25/1999) which become the basis for central government to delegate most of its authority to local government. The term of local government refers to provinces and sub-provinces (cities and rural regencies). In 2004, the government published Laws 32/2004 and 33/2004 as an improvement on Law 22/1999 and 25/1999 (Callavan et al, 2009).
The hierarchical system of governance aims to empowered local government promotes good governance in many sectors of government affairs such as education, health, agriculture, infrastructure, transportation, trade, industry and investment. The devolvement of power followed by fiscal decentralization as an effort to support local government by providing more financing capabilities through the right to collect local taxes and taxes and natural resources revenue sharing from central government (Brodjonegoro & Asanuma, 2000; Bahl, …show more content…
The provision of public goods and services reflects to local preferences based on local values and cultures. Likewise, the revenues and spending policies should bring greater productivity on local economy (Ahmad & Mansoor, 2002). From the political perspective, regional leaders should gain support from the people, directly or through local parliament, for the success of government. Therefore, from the political and economical aspects, there will be a strong relationship between state, market and civil
He introduced democratic reform in many aspects as initiated free elections, free media, legislation and administration transparency, and democratic decentralization. He introduced the Regional Autonomy Law (22/1999 and 25/1999) which become the basis for central government to delegate most of its authority to local government. The term of local government refers to provinces and sub-provinces (cities and rural regencies). In 2004, the government published Laws 32/2004 and 33/2004 as an improvement on Law 22/1999 and 25/1999 (Callavan et al, 2009).
The hierarchical system of governance aims to empowered local government promotes good governance in many sectors of government affairs such as education, health, agriculture, infrastructure, transportation, trade, industry and investment. The devolvement of power followed by fiscal decentralization as an effort to support local government by providing more financing capabilities through the right to collect local taxes and taxes and natural resources revenue sharing from central government (Brodjonegoro & Asanuma, 2000; Bahl, …show more content…
The provision of public goods and services reflects to local preferences based on local values and cultures. Likewise, the revenues and spending policies should bring greater productivity on local economy (Ahmad & Mansoor, 2002). From the political perspective, regional leaders should gain support from the people, directly or through local parliament, for the success of government. Therefore, from the political and economical aspects, there will be a strong relationship between state, market and civil