PRINCIPLES OF LOCAL GOVERNANCE

PRINCIPLES OF LOCAL
GOVERNANCE

PRINCIPLES BASED ON UUD 1945
BEFORE AMENDMENT
• Locality
– Indonesia is divided into large and small local governance;
– Local reffer to society as a unity of law.

• Democratic Deliberation
– Governance based on democratic deliberation as a process
of decicion making;
– Formed local representative body.

• Respect to the Local Originality
– Respect pluralism
– Special local government.

• Administrative Governance
– As a agent of central government  Region

PRINCIPLES BASED ON UUD 1945
POST-AMENDMENT
• Locality and Hierarchy
– NKRI divided into provinces, each province divided into kabupaten
and kota.
– Every single province, kabupaten and kota have their own local
governance.

• Democracy
– Every local governance have representative bodies which members
is elected through general electionl.
– Every chief of local governance popularly elected.

• Local Autonomy
– Every local governance regulate and manage their own bussines
based on autonomy and medebewind principles.
– They have the widest autonomy except the bussines that difinited
as central bussines by the Act.

• Local Regulation

– Have the right to make by law and other regulation to perform
autonomy.

THE PHILOSOPHY OF LOCAL
AUTHONOMY
• Local Governance for Increase public
welfare democraticly;
• Every single local authority shall
create welfare and democracy;
• Public welfare through public
services (basic services and core
services);

WHOSE AUTHORITY?

• Externality: Who bear Impact?
• Accountability: Who Closest to the
impact and more accountable?
• Efficiency  Which more efficient?

UU No. 32/2004
• BACKGROUD:
– Problem of Hierarchy
– Problem of Authority
– Problem of Employment
– Problem of Election of Chief Local
Government.

Principles of Authority based on
UU No. 32/2004
• Central Authority:  Absolute Authority
– Foreign Affairs
– Defence
– Security  Residual Theory
– Judicial
– Moneter and Fiscal
– Religion

• Local Authority:
– Obligatory

– Optional
– Concurent  sharing bussines

OBLIGATORY AUTHORITY
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Planning and restraining development;
Planning and controlling spatial planning;

Perform Public order;
Supplying public infrastructure;
Healtcare;
Education dan Human Development;
Solving social problem;
Facilitate Micro-entrepreneur;
Restraining Enviroment;
Demography and civil services;
Public Administration;
Investment;
Basic Services.

OPTIONAL AUTHORITY
• Riil and Potential for increasing public
welfare due to the local condition, i.e:
– Farming;
– Mining;
– Fisheries;
– Plantation;
– Forestry;

– Tourism;
– Etc.

Obligation of Local
Government
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Protecting and Guarding NKRI;
Develop democratic society;
Perform justice and equity;
Increase healt service;
Fullfil public services;

Develop Social Insurance;
Set up spatial planning;
Concerve Environment;
Etc....

Rights of Local Gov.
• Regulate and Govern their Own
Bussines;
• Elect the chief;
• Govern the Employment;
• Manage Assets;
• Local Fiscal and Restribution;
• Get fund sharing from natural
resources;
• Etc.

LOCAL BUDGET
• PAD (Local Revenue)
• Sharing/Balance Fund:
• Sharing fund;

– General Alocation Fund (DAU);
– Specific Alocation Fund (DAK).