Regional Autonomy in Indonesian
Effective on January 1, 2001 the government of Indonesia has been implementing the policy on regional autonomy. Policy of regional autonomy is covered and regulated in two laws, namely Law No. 22 Year 1999 on Regional Governance and Law No.. 25 Year 1999 on Financial Balance between Central and Local. To support both these laws, the government has issued several additional government regulations to accelerate the implementation of the decentralization policy. In this context, there are at least three government regulations have been issued so far.
Both these laws are subject to a wide-seluasnya freedom of action to the area but still within the framework of regional autonomy, which is responsible for setting and rule over the territory independently without any interference from the central government based on local community initiatives and aspirations in accordance with conditions and the potential for their respective regions. The presence of both laws can be viewed as the positive impact of the reform process of the rolling since the economic crisis that marks a paradigm change, namely changes in the government system from centralized to decentralized systems.
The main purpose of the Law No. 22 Year 1999 is to lay the groundwork for the implementation of regional autonomy by giving discretion to the local freedom of action in order to become an autonomous region in an effort to preserve the integrity of the Unitary Republic of Indonesia (Homeland) in accordance with the mandate of the Constitution of 1945. Implementation of regional autonomy is widely based on the principles of democracy, responsibility, community participation, equality and justice as well as consideration of potential and diversification of the region.
Meanwhile, the main purpose of Law No. 25 Year 1999 is to effectively increase the ability of regional economies, to create a fair system of local finance and realization of system financial balance between central and local.
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