Decentralisation and Local Democratic Governance in Indonesia

Chapter 1: INTRODUCTION

1.1 Decentralisation and Local Democratic Governance in Indonesia

Since Indonesia’s decentralisation process commenced in 2000 there has been significant delegation of authority to local governments, particularly at district and city level, as well as introduction of direct elections for regional leaders bupatimayor by the people. Current discourse generally assumes that decentralisation leads to more democratic forms of governance by bringing the decision making closer to citizens and offering them more opportunity to demand services that meet their needs and greater government accountability and transparency. Efforts to empower citizens can occur at the instigation of the government, CSOs and the communities themselves. There are signs of improved public participation processses and public services in Indonesia which are often linked with governments that promote more efficient and transparent governance and are willing to listen to their citizens. Such local governments are being recoginised through regional excellence awards, media and so on. A study AKATIGA 2012 involving dialogues with five regional heads found that progressive regions share similar features in that they have have clear regional priorities which are consistently implemented and reflected in budgets and there is a willingness from leaders and implementing officials to listen to different stakeholders. Strong local CSOs in these regions have been able to promote sustainable governance changes that underpin village development efforts and village‐based poverty reduction, such as the case of Kebumen Bulan, Hamudy, Widyaningrum, 2010 and AKATIGA, 2012. On the other hand, local government budgets more generally have not yet demonstrated adequate allocation of funds in sectors related to public services like education and health Yappika 2006, in Fitri, Hasannudin, Hiqman, Indiyastutik, 2011 nor have there been significant widespread improvements in local level governance Local Level institutions Study 2011. So that despite a degree of optimism among donors regarding decentralisation Nordholt van Klinken, 2007, improvements in public services and planning and budgeting processes is still not the general picture throughout Indonesia DSRP 2009, in Fitri, Hasannudin, Hiqman, Indiyastutik, 2011. There is also a view among some political commentators that decentralisation is marked by the emergence of a ‘little king’ culture for local elites in some places. Various studies also suggest that the strength of civil society in Indonesia is still low in terms of accessing resources and influencing political and social environments Ibrahim, 2006, and Ganie‐Rochman, 2002.

1.2 ACCESS Phase II Response to Decentralisation