The Influence of Local Election to Decentralization

dominates when spillovers are large. With non-identical districts, decentralization is still better when spillovers are small. 25 One of the most important matters in decentralization is the accountability from local elected governments to the central government level. Transfer of expenditures and political responsibility to the local authorities may be supported to alleviate the burdens on the central government. It may also be a means of more revenue generation by mobilising more local resources. This means that decentralisation can be a “win‐win situation” for both central and local governments. Decentralisation processes may simply provide positive development and democratisation options which a centralised governmental system does not offer. Chart 1. Indonesia Central and Loval Government Authorities Central Government 6 Authorities Provincial Government, Local GovernmentMunicipality: 31 Decentralization Authorities + 8 Optional Authorities 6powers in the Central Government: Foreign Relations; Defense; Security; Judicial; Monetary andFiscal; Religion 31 Compulsary Action: Social environment; Trade;Marine and Fisheries; Forestry; Education; Health; SMEs; Workers Transmigration;Farms and Estates Mining; Transportation; Investment; Culture and Tourism; Population; Empowerment of Women; Family Planning and Family Welfare; Industry;PU;Management of space; Youth and Sports; Information and Communication; Housing; Archives; Defense; The Unity of Nation and Politicsl; Statistics;PUM; PMD; Personnel; Library ProposedAction: Marine and Fisheries; Agriculture; Forestry Energy and Mineral Resources;Tourism;Industry;Trade, and Transmigration Source: compiled of law No 32 2004 on Local Goverment 26

B. The Influence of Local Election to Decentralization

Local direct election in Indonesia has been implemented as extension of local government laws No 32 Year of 2004 to make the public services and local interest closely implemented.It was firstly applied in regency of Kutai Kartanegara in June 2005. One year after the first direct election for president and the house of represnetative member. As written in dictionary of babylon, election is one way to make the public services closer to the need of people. Having local executives and legislatives are elected directly supposedly make the relation of member of representatives and their constituents 25 T. Besley, S. Coate Journal of Public Economics 87 2003 2611 –2637Centralized versus decentralized provision of local public goods: a political economy approach Timothy Besleya,, Stephen Coateb a Department of Economics London School of Economics London WC2A 2AE, UK Department of Economics Cornell University, Ithaca, NY 14853, USA Received 13 June 2001; received in revised form 29 April 2002; accepted 10 June 2002 26 Nurliah Nurdin, Comparative of Presidential System Indonesia and the United States; Rivarly Relation between Executive and Legislative 2004-2009, MIPI 2012, page 107 of no boundaries. In other words, people’s need and interest can be easily heard by the representative and as outputs to increase people’s prosperity. Election is the process of voting in order to select one person from a specific group to perform certain duties in a government, society or corporation. Local elections are the elections held for the purpose of choosing representatives for local government or for a county council, town or city. Elections can also be held for the purpose of deciding a state public question. 27 Somehow, as mentioned before, local election and decentralization have made the bureucracy in patology which is only serve for elites in power. There is a swift corruption from central government to the local government to the broad power wealth management and financial areas as well as money politics that occur in local elections. The World Bank lists that at least five criteria are necessary for successfuldecentralization. These requirements are ensuring that local financial resources match theability to provide local public services, the local community should be aware of the costof services, the community should be able to express their desires in a meaningful way,there should be transparency and accountability of local government activities and thelegal and institutional system should match the political objectives. 28 All these criterias have not been implemented as a result of direct local election to decentralization. The evidence shows that public services are still minumum rate due to the high corruption as actually increased after local election. It seems the corruption only sphered out from central government to local government. Some research and publication showed Indonesia was in a chronic corruption state. Corruption ranked by Transparency International Indonesiain 2009 on Corruption Rating Index CPI placed Indonesia at 111 of 180 countries in the world.While for the ASEAN, Indonesia is ranked 5 of 10ASEAN countries, namely Singapore, Brunei Darussalam, Malaysia and Thailandare at 1-4, while Vietnam, the Philippines, Cambodia, Laos and Myanmarwho finished 6-10. 29 Corruption in local election has a nightmare impact on decentralization. Guidance and guard to track the decentralization and transffered power as well as authority must be redesigned. Direct local election has made political transaction between the head of regions with investors, businessman, bureucracy and any level of government to be involved in corruption by bribing, preveledge trading and monopoly and using bureucracy as campaign supporters. By looking at a variety of data, a major challenge to the results of recruitment political leadership through Direct Election is to minimize the impactmoney politics that cause negative political reciprocation before electionimmediate progress. Another challenge is the increasing professionalism of the headareas. Formulation of good policy 27 http:dictionary.babylon.comlocal_elections 28 Green Keith, Decentralization and Good Governance The Case of Indonesia,Munic Personea RePec Archive, Online at http:mpra.ub.uni-muenchen.de18097 , MPRA Paper No. 18097, posted 23. October 2009 13: 29 Dr. Dyah Mutiarin, SIP ,Nur Hayati, SIP,Delina Asriyani,Analisis Dampak Positif dan Negatif Dalam Pemilukada LangsungBagi Kualitas Pelayanan Publik di DaerahUniversitas Muhammadiyah Yogyakarta dalam Forum Ilmiah Nasional Program Pascasarjana, UMY, 24 Desember 2011 is largely determined by the understanding of the regional head of the policy formulation process that putscommunity as a major public policy benefit designed. System of direct election still contains the possibility of the election of regional heads less capacity A recent USAID document on decentralization in Indonesia replicate that local governments have little experience with participatory self-rule and will need assistance to create adequate mechanisms for participation, transparency and accountability. They also have limited technical capacities, particularly to perform functions that have been provided by central agencies, and they will need assistance to demonstrate to citizens that autonomy does lead to improvements in services and the environment. Particular attention will be paid to ensure women’s participation and concerns are included at all levels.10 30 Then what can be done to force elected local head of government only concern to the local public interests as so many political transaction occured during the campaign time. How to make any policies are responsed to the public’ need and avoid the accumulation need of the campaign team and the business cooperation behind the screen? The results thus far correspond to a simple model of political agency. It requires that voters are informed of and care about the program’s impact, and mayors with re- election incentives exert effort on program delivery in order to increase their chances of re-election. A prediction of this model is that first-term mayors are more likely to get re- elected in municipalities where the program performed better. Clearly, re-election responds to the quality of performance in a broader set of public functions which are presumably correlated with effective management.

C. Local Elections Perfomance onPublic Services