Local Governments Amalgamation in Indonesia: Prospects and Challenges

  • Rizqi Bachtiar Universitas Brawijaya, Faculty of Social and Political Sciences
  • Prischa Listiningrum Universitas Brawijaya, Faculty of Law
Keywords: amalgamation, decentralization, Indonesia, proliferation

Abstract

This research focuses on analysing the importance of amalgamation of local governments and critically examine the current neglect of the amalgamation of local governments in Indonesia. By using a case study approach, the investigation on the importance of local government amalgamation in Indonesia found that amalgamation is an alternative policy to be taken by the government, and can be contrasted with the policy practiced until recently, which permitted extensive proliferation in the numbers of local governments. There is no evidence to suggest any specific attempt from the government to implement amalgamation. The government’s objective is to uphold a moratorium on proliferation, even though the government’s target has been broken by the approval of some new local governments during the moratorium period. Adverse economic motives, intertwined with political factors, are the main reasons for the failure to adopt a policy of amalgamation of local governments in Indonesia.

References

Ehtisham, A. & Mansoor, A. (2002) Indonesia: Managing Decentralization (International monetary fund), available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=879921 (August 30, 2021).
Bappenas (2016) Kebijakan Penataan Daerah (Pemekaran Daerah) dan Implikasinya terhadap Kesejahteraan (Badan Perencanaan Pembangunan Nasional / National Development Planning Agency), (Unpublished paper).
Bappenas (2019) Rancangan Awal Rencana Pembangunan Jangka Menengah Nasional, (RPJMN) 2020-2024 (Badan Perencanaan Pembangunan Nasional / National Development Planning Agency), available at: https://www.bappenas.go.id/files/Narasi Rancangan Awal RPJMN 2020-2024.pdf, (January 1, 2019).
Cabinet Secretariat of the Republic of Indonesia (2020) Wapres: Pemerintah Masih Lakukan Moratorium Pemekaran Daerah, available at: https://setkab.go.id/wapres-pemerintah-masih-lakukan-moratorium-pemekaran-daerah/ (July 29, 2021).
Corruption Eradication Commission (2020) Ketua KPK Pastikan Penyelidikan Korupsi Kepala Daerah Tetap Jalan, available at: https://www.kpk.go.id/id/berita/berita-kpk/1923-ketua-kpk-pastikan-penyelidikan-korupsi-kepala-daerah-tetap-jalan (November 10, 2020).
Directorate General Regional Autonomy (2014) Rekapitulasi Daerah Otonom Baru di Indonesia Per Provinsi Tahun 1999-2014, (Unpublished paper).
Directorate General Regional Autonomy (2015) Laporan: Hasil Evaluasi Perkembangan 18 DOB Pembentukan Tahun 2012-2014, (Unpublished paper).
Dollery, B., Byrnes, J. & Crase, L. (2007) An Analysis of the New Perspective on Amalgamation in Australian Local Government, Working paper series, 2007/02, 1835-761X (Armidale: University of New England, Centre for Local Government), available at: https://www.une.edu.au/__data/assets/pdf_file/0015/18060/02-2007.pdf (April 30, 2021).
Dollery, B. & Crase, L. (2004) Is Bigger Local Government Better? An Evaluation of the Case for Australian municipal amalgamation programs, Urban Policy and Research, 22(3), pp. 265–275, https://doi.org/10.1080/0811114042000269290.
Firdaus, R. F. (2020) ‘Saat Ridwan Kamil Tuntut Keadilan Demi Pemekaran Jawa Barat’, Merdeka, available at: https://www.merdeka.com/peristiwa/saat-ridwan-kamil-tuntut-keadilan-demi-pemekaran-jawa-barat-hot-issue.html (December 15, 2020).
Firman, T. (2009) Decentralization Reform and Local-Government Proliferation in Indonesia: Towards a fragmentation of regional development, Review of Urban and Regional Development Studies, 21(2–3), pp. 143–157, https://doi.org/10.1111/j.1467-940X.2010.00165.x.
Firman, T. (2013) Territorial Splits (Pemekaran Daerah) in Decentralising Indonesia, 2000-2012: Local Development Drivers or Hindrance?, Space and Polity, 17(2), pp. 180–196, https://doi.org/10.1080/13562576.2013.820373.
Fitrani, F., Hofman, B. & Kaiser, K. (2005) Unity in Diversity? The Creation of New Local Governments in A Decentralising Indonesia, Bulletin of Indonesian Economic Studies, 41(1), pp. 57-79, https://doi.org/10.1080/00074910500072690.
Grossman, G. & Lewis, J. I. (2014) Administrative Unit Proliferation, American Political Science Review, 108(1), pp. 196-217, https://doi.org/10.1017/S0003055413000567.
Hadiz, V. R. (2004) Decentralization and Democracy in Indonesia: A Critique of Neo-Institutionalist Perspectives, Development and Change, 35(4), pp. 697–718, http://dx.doi.org/10.1111/j.0012-155X.2004.00376.x.
Hadiz, V. R. (2010) Localising Power In Post-Authoritarian Indonesia: A Southeast Asia Perspective (Stanford: Stanford University Press).
Hofman, B. & Kaiser, K. (2004) The Making of the “Big Bang” and Its Aftermath: A Political Economy Perspective, In: Alm, J., Martinez-Vazquez, J. & Indrawati, S. M. (eds.) Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia: The ‘Big Bang’ Program and its Economic Consequences (Cheltenham: Edward Elgar Publishing), pp. 15-46, http://dx.doi.org/10.4337/9781845421656.00007.
House of Representatives of the Republic of Indonesia (2007) Naskah Akademis Rancangan Undang-Undang Republik Indonesia Nomor…Tahun…Tentang Perubahan Kedua Atas Undang-Undang Nomor 32 Tahun 2004 Tentang Pemerintah Daerah, (Unpublished Paper).
Irawan, Y. K. (2018) Gubernur Kalbar Terpilih Prioritaskan Pemekaran Provinsi Kapuas Raya (Kompas), available at: https://regional.kompas.com/read/2018/07/26/18433851/gubernur-kalbar-terpilih-prioritaskan-pemekaran-provinsi-kapuas-raya (July 26, 2018).
Jaweng, R. N. E. (2018) Raport Merah Desentralisasi, available at: https://www.kppod.org/berita/view?id=647 (July 29, 2021).
Jones, S. (2015) Yudhoyono’s Legacy on Internal Security: Achievements and Missed Opportunities, In: Aspinall, E., Mietzner, M. & Tomsa, D. (eds.) The Yudhoyono Presidency: Indonesia’s Decade of Stability and Stagnation (Singapore: Institute of Southeast Asian Studies), pp. 136-154, https://doi.org/10.1355/9789814620727-018.
Kortt, M. A., Dollery, B. & Drew, J. (2016) Municipal Mergers in New Zealand: An Empirical Analysis of the Proposed Amalgamation of Hawke’s Bay Councils, Local Government Studies, 42(2), pp. 228–247, https://doi.org/10.1080/03003930.2015.1007133.
Lewis, B. D. (2006) Local government taxation: An Analysis of Administrative Cost Inefficiency, Bulletin of Indonesian Economic Studies, 42(2), pp. 213–233, https://doi.org/10.1080/00074910600873666.
Listiningrum, P., Bachtiar, R. (2016) A Recipe for Disaster?: What the Closure of A Food Stall During Ramadan Says About the Challenges of Decentralisation In Indonesia (New Mandala), available at: https://www.newmandala.org/recipe-for-disaster/ (September 23, 2016).
Mabuchi, M. (2001) Municipal Amalgamation in Japan (Washington, D.C.: World Bank Institute), pp. 1-25, available at: http://paperroom.ipsa.org/papers/paper_14816.pdf%5Cnhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/26/000090341_20050726131910/Rendered/PDF/330380JP0wbi37175.pdf (May, 2001).
Ministry of Home Affairs of the Republic of Indonesia (2010) Desartada Edisi Revisi (MoHA), (Unpublished Paper).
Muhtadi, B. (2015) Jokowi’s First Year: A Weak President Caught between Reform and Oligarchic Politics, Bulletin of Indonesian Economic Studies, 51(3), pp. 349–368, https://doi.org/10.1080/00074918.2015.1110684.
Municipal Association of Victoria (2015) Snapshot of Victorian Local Government, Municipal Association of Victoria, available at: https://www.mav.asn.au/about-local-government/Pages/default.aspx (July, 2015).
Nurjiyanto (2019) Kemendagri: 25% Perda Tumpang Tindih dengan Aturan yang Lebih Tinggi, Media Indonesia, available at: https://mediaindonesia.com/politik-dan-hukum/211482/kemendagri-25-perda-tumpang-tindih-dengan-aturan-yang-lebih-tinggi (January 18, 2019).
Official Website of the Vice President of the Republic of Indonesia (2016) Lanjutkan Moratorium Pemekaran Daerah, Fokuskan Pembangunan Infrastruktur, available at: http://www.wapresri.go.id/lanjutkan-moratorium-pemekaran-daerah-fokuskan-pembangunan-infrastruktur/ (August 23, 2016).
Pohan, M. (2009) Decentralization and Impact on The Planning and Implementation of Social Development Policy (Jakarta), available at: https://www.bappenas.go.id/en/data-dan-informasi-utama/makalah/artikel-majalah-perencanaan/edisi-27-tahun-2002/decentralization-and-impact-on-the-planning-and-implementation-of-social-development-policy---oleh-max-pohan/ (August 2, 2009).
Rahayu, K. Y. (2019) Rancangan PP Terkait Pemekaran Daerah Belum Tuntas (Kompas), available at: https://www.kompas.id/baca/utama/2019/07/20/rancangan-pp-terkait-pemekaran-daerah-belum-tuntas (July 20, 2019).
Rasyid, M. R. (2004) The Policy of Decentralization in Indonesia, In: Alm, J., Martinez-Vazquez, J. & Indrawati, S. M. (eds.) Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia (Cheltenham: Edward Elgar Publishing), pp. 65-76.
Reid, M. (2013) Amalgamation in New Zealand: An Unfinished Story?, Public Finance and Management, 13(3), p. 239.
Republic of Indonesia (2014) Law of the Republic of Indonesia Number 23 Year 2014 on Local Government, Indonesia, available at: https://peraturan.bpk.go.id/Home/Details/38685/uu-no-23-tahun-2014 (April 30, 2021).
Roudo, M. & Indrawati, D. (2011) Promoting Region’s Amalgamation to Overcome the Burden of Proliferations, Bulletin of Development Planning, 2, (July 1, 2011).
Rouse, P. & Putterill, M. (2005) Local Government Amalgamation Policy: A Highway Maintenance Evaluation, Management Accounting Research, 16(4), pp. 438–463, https://doi.org/10.1016/j.mar.2005.07.003.
Ryandi, D. (2021) Terdapat 325 Usulan DOB, Moratorium Pemekaran Daerah Bisa Dibuka Lagi (Jawa Pos, 9 April), available at: https://www.jawapos.com/nasional/09/04/2021/terdapat-325-usulan-dob-moratorium-pemekaran-daerah-bisa-dibuka-lagi/ (April 30, 2021).
Statistics Indonesia (2015a) Number of Cities, available at: https://www.bps.go.id/indicator/101/155/1/jumlah-kota.html (April 30, 2021).
Statistics Indonesia (2015b) Number of Regencies, available at: https://www.bps.go.id/indicator/101/154/1/jumlah-kabupaten.html (April 30, 2021).
Statistics Indonesia (2017) Total Area and Number of Islands by Province, 2002-2016, available at: https://www.bps.go.id/statictable/2014/09/05/1366/luas-daerah-dan-jumlah-pulau-menurut-provinsi-2002-2016.html (April 30, 2021).
Tiley, I. (2012) Divided We Fall: An Insider’s Perspective on Local Government Amalgamations (Indiana, United States: Xlibris).
Wardhana, D. (2019) Decentralization, Democratization, And Social Protection In Indonesia: A Systematic Review of the Literature, Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 3(2), pp. 164-184, https://doi.org/10.36574/jpp.v3i2.73.
Published
2022-06-21
Section
Article