Universitas Gadjah Mada
Faculty of Economics and Business

UGM Economist from Master of Economic Development (MEP) urged the government to merge the Law No. 32/2004 on Regional Government and Law No. 33/2004 on Fiscal Balance between Central and Local Government. This is necessary because of the disharmony between central and local institutions on allocation of funds, the rampant legal and corruption cases afflicting government officials, and social welfare which is not achieved optimally.

"The new amendment law is expected to put forward the importance of division of authorities and affairs between central and local government which is followed by guidelines. For example, regions that have the ability in finance and administration will get different allocation of funds from other regions," the economist who is also a Team member of Academic Manuscript of Fiscal Decentralization, Dr. Anggito Abimanyu, said in a workshop and seminar 'A Decade of Fiscal Decentralization'. The event was held at Hotel Melia Purosani, Friday (3/6).

According to Anggito, fiscal decentralization has been less successful so that it needs revision. Emergence of legal cases afflicting officials in the central and local governments is evidence of disharmony and authority division. "Not to mention the articles which are ambiguous. For example, local governments are given affairs to resolve, but not given budget, or vice versa, they are not given the affairs but the budget," he said.

Likewise, Prof. Wihana Kirana Jaya, Ph.D., said that separation of the two laws leads to the emergence of different perceptions of the meaning and implementation. The result causes a predator government because it is not concerned with the public interest. "If it prioritizes the public interest, the authority and check and balance will be clear and budget allocation is more efficient," Wihana said.

Meanwhile, Dr. Revrisond Baswir, M.B.A., said that procedure of managing domestic affairs through two umbrella acts is placed in the context of Indonesia as part of the community. Unfortunately, to manage household affairs, international interests come into play. "The actors are not only domestic actors, but also international ones, then I see this is as the legalization of neocolonialism," Revrisond said.

Revrisond also assessed the impact of the implementation of Law No. 32 and 33 Year 2004 is to weaken the security and sovereignty of Indonesia.

Source: Satria/UGM