DOI: http://doi.org/10.21776/ub.blj.2021.008.02.01 | 159 

The Politics of Indonesia's Decentralization Law Based on 

Regional Competency 
 

Ngesti Dwi Prasetyo*, Moh. Fadli, Tunggul Anshari SN,  

Muchamad Ali Safa’at 
  

Fakultas Hukum, Universitas Brawijaya 

*Email: ngesti78@gmail.com 

 

Submitted: 2021-06-25 | Accepted: 2021-09-22 

 

Abstract: Local governments have undergone various regulatory developments since 

Indonesia's independence 75 years ago. Various aspects underlying the development and 

changes in local government policies can be analyzed using several approaches, such as 

historical, philosophical, and sociological. This paper will discuss how the legal politics of the 

development of local government implementation, especially in terms of decentralization. 

Furthermore, the author will explain about the opportunities for implementing decentralization 

based on regional capacity to promote welfare of society. This research is normative juridical 

research using historical approach, conceptual approach, and legal approach. It can be said 

that the implementation and development of local government implementation is strongly 

influenced by various aspects other than the legal factor itself. Furthermore, there is still the 

possibility of implementing decentralization based on regional capacity as an effort to promote 

social welfare. 

 

Keywords: decentralization, regional competence, legal politics 

 

I. INTRODUCTION 

In Indonesia, the discourse about the 

appropriate form of a constitution began 

more than 75 years ago. This discourse 

begins with a discussion of the many 

regulatory processes that control the 

decentralized government paradigm. The 

dynamics are driven by a variety of 

philosophical rationales. For instance, the 

selection of decentralized models occurred 

following regime changes that exposed the 

                                                             
1  Muhammad Noor, Acknowledging the 

decentralization of Indonesia, (Interpena, 2012), 

pp. 52 

void of power and encouraged other 

politicians and their groups to impose greater 

autonomy, or democratization that could 

increase the relevance of decentralization for 

the people, mobilizing grassroots support, 

etc.1 Apart from the pressures and political 

realities outlined above, intellectual disputes 

on the need or otherwise of decentralization 

also have a considerable impact. Differences 

in theoretical perspectives can influence 

http://doi.org/10.21776/ub.blj.2021.008.02.01
mailto:ngesti78@gmail.com


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attitudes toward decentralization and the 

decentralization implementation strategy. 

Indonesia as a country still in the 

process of developing its constitutional 

structure is frequently volatile. This dynamic 

is represented in Indonesia's legal politics of 

decentralization. The relationship between 

legal politics and decentralization in 

Indonesia paints a picture of the evolution of 

the law dictating how decentralization is to 

be implemented in all applicable laws and 

regulations in Indonesia. 

Since the 1950s, Hennry Maddick has 

laid the groundwork for decentralization, 

which was later critiqued by Amy Upton 

Nolan2  in his thesis on the evolution of 

decentralization. Nolan emphasized in his 

article Hennry Maddick's assertion that the 

essence of decentralization was an umbrella 

of deconcentration and devolution 

(decentralization). The second Islah is 

denoted by the following: First, 

deconcentration is “the delegation of 

authority adequate for the discharge of 

specified functions to staff of a central 

department who are situated outside the 

headquarters”; Second, Devolution or 

Decentralization is, “the legal conferring of 

powers to discharge specified or residual 

functions upon formally constuted local 

authories.”3  

Figure 1 illustrates the development 

or dynamics of decentralization 

implementation in each set of laws and 

regulations. According to the Figure 1, prior 

to the 1945 Constitutional amendments, the 

arrangement of regional government evolved 

significantly since the establishment of the 

                                                             
2  Henry Maddick, Democracy Decentralization, 

and Development, (London: Asia Publishing 

House, 1966), pp.23 
3  Henry Maddick, Ibid, pp.23 
4  Bagir Manan, Welcome to dawn of regional 

autonomy, (Center for Legal Studies, Faculty of 

Unitary State of the Republic of Indonesia to 

the enactment of Law Number 5 of 1974 

concerning the Principles of Government in 

the Region. It is crucial to emphasize that 

decentralization policies can also be 

influenced by external pressures and political 

circumstances. As a result, each law is 

philosophically and sociologically distinct in 

terms of its formulation and concept of 

administering regional government's affairs. 

The formulation and concept developed in 

response to the social conditions of the time 

period in which it lived. One of the 

unresolved issues that will continue to haunt 

regional governance's legal politics is the 

suspicion that regional autonomy will result 

in disintegration.4 

According to the preceding 

presumption, the requirement for a re-

appraisal is tied to how Indonesia's legal 

politics of decentralization operate. 

Adjustments are hoped to be made under the 

guise of regional competence. According to 

John M. Cohen and Stephen B. Peterson, the 

fundamental competency framework 

identifies decentralization through 6 (six) 

distinct methods, namely: 5 

1) Basic of historical origins (based on 

history);  

2) By hierarchy and function (based on 

hierarchy and function);  

3) By problem being addressed and the 

values of the investigation (based on 

suspicions and an investigation of 

values);  

4) Focus on patterns of administrative 

structures and functions that are 

responsible for the production and 

Law, Islamic University of Indonesia, 2001), pp. 

4. 
5  John M Cohen and Stepen B. Peterson, 

Adminitrative Desentralization, (Kumarian Press, 

1999), pp. 20-22. 



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provision of collective goods and 

services (concentrated on the patterns 

of administrative structures and 

functions that are accountable for the 

results and provision of goods and 

services);  

5) Typically based on the experience of a 

single country (the type defined by the 

experience of a particular country); 

and  

6) On basis of objectives (selected for the 

purposes). 

 

Figure 1 Development of Decentralization Policy and Regulation in Indonesia  

 

 

Source: secondary material of legal law, processed 2021 

 

 

 

 

 

  

Law 23/2014 concerning Regional 

Government 

Law 32/2004 concerning Regional 

Government 

Law 22/1999 concerning Regional 

Government 

Law 5/1974 concerning the Principles of 

Regional Government 

Act 18/1965 concerning the Principles of 

Regional Government 

Presidential Determination Number 6 of 

1959 concerning Regional Government 

Law 1/1957 concerning the Principles of 

Regional Government 

Law 22/1948 concerning the fundamental rules 

governing the government in areas where it is 

authorized to regulate the household 

Law 1/1945 concerning the regulations 

governing the Regional National 

Committee's position 

Decentralisatie Wet 1903 

Semi centralization 

(The effectiveness 

correction and 
efficiency) 

Semi 
decentralization 

Dominant 

decentralization 

Dominant 
centralization 

Dominant 
decentralization 

Dominant 
centralization 

Dominant 

centralization 

Dominant 

centralization 

Dominant 

centralization 

Dominant 
centralization 

10 years 

 

5 years 
 

25 years 
 

9 years 
  

6 years 
  

2 years 
  

9 years 
  

3 years 
  

42 years 
  



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This regional competency framework 

is also expected to be able to answer several 

objectives from decentralization formulation, 

namely for social welfare. Social welfare 

aspects cannot be separated from social 

justice based on John Rawls in his book A 

Theory of Justice6, explaining the theory of 

social justice as the Difference Principle and 

The Principle of Equality of Opportunity. 

The essence of the distinct principle “prinsip 

pembeda” is that the social and economic 

disparities must be structured in a way that 

benefits those deemed disadvantaged, which 

in this context refers to someone who does 

not have the same possibility or opportunity 

in his attempts to get fundamental 

requirements. While the essence of the 

principle of equality of opportunity means 

that the party who has the smallest 

opportunity to achieve a welfare needs a 

special protection.7 

According to Rawls in “Theory of 

Social Justice”, the unequal situation in this 

socioeconomic sector must be structured in a 

way that benefits the weak parties. The 

enforcement enforcement program that is 

populist in nature must adhere to two 

principles of justice, namely providing equal 

rights and opportunities for basic freedom 

and then reorganizing the socioeconomic 

divide in such a way that there is reciprocity 

that benefits both lucky and unlucky parties. 

So that the predicted decentralization map 

based on the competence model may supply 

an aspect of "The Distinct Principle," this 

area is predicted to benefit the greatest 

number of regions with the most adverse 

conditions. According to the statement 

above, the focus of this study is on how does 

legal politics the development of local 

government implementation, especially in 

                                                             
6  John Rawls, Theory of Social Justice, H. Gene 

Blocker (ed) (Ohio: Ohio University, 1980), pp. 

59. 

terms of decentralization. Furthermore, the 

author will explain the opportunities for 

implementing local capacity-based 

decentralization for the welfare of the 

community.  

 

II. LEGAL MATERIALS AND 

METHODS 

This article discusses the politics of 

regional competency-based decentralization 

law, with an emphasis on the formation of 

laws regulating regional government and the 

process by which authority is distributed 

between the central and regional 

governments in unitary state-related areas. 

Furthermore, this article explores regional 

opportunities that serve as the foundation for 

decentralization with the intention of 

representing the community's spirit and 

needs and increasing community 

engagement in development.  

This research was conducted 

through the normative juridical 

method utilizing 3 (three) approaches, 

namely the historical approach, the 

conceptual approach, and the Statue 

Approach. The researchers took a historical 

approach in analyzing the evolution of 

legislation pertaining to regional 

government. The researchers employ a 

conceptual framework to analyze the 

implementation of regional competency-

based decentralization concepts. The 

legislation approach is used to analyze 

legislation at all levels, from the fundamental 

principles of the Constitution and Law to 

Government Regulations and other 

implementing regulations that pertain to the 

subject of this article.  

As with other normative studies, this 

article draws primary law material from 

7  Ibid., pp. 230. 



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legislation, including Law Number 23 of 

2014 concerning Regional Government and 

related implementing regulations. 

Furthermore, the researchers consult 

secondary legal materials in the form of 

books, papers, comprehensive manuscripts, 

studies published by government and non-

governmental organizations, and other 

literature that can bolster this writing about 

concepts, theories, principles, and standards, 

particularly in the context of regional 

government and others who are closely 

related to the paper's theme. Along with these 

two legal documents, the researchers needed 

tertiary legal sources in the shape of 

dictionaries, both Thursday law and a 

language dictionary that will aid them in the 

process of developing arguments for this 

article. 

 

III. RESULT AND DISCUSSION  

Historical, philosophical, and sociological 

studies of regional competency-based 

decentralization legal politics in Indonesia 

a. History  

Throughout the history, the dynamics 

of trial and error in the legal politics of 

decentralization in our constitutional system 

have seen ups and downs. As stated in Article 

18 of the 1945 Constitution, Indonesia is 

divided into large regions and small areas, 

each of which has the right to self-

sufficiency, also known as autonomy. 

Autonomy refers to a lower government's 

ability to control and administer certain 

government functions. Government issues 

that can be handled and administered freely 

and independently will be referred to as 

autonomous.8 For this reason, founder of the 

Unitary State of the Republic of Indonesia 

long ago had been legally thought about 

                                                             
8  Muhammad Yamin, Proclamation and 

Constitution of the Republic of Indonesia, (Gahlia 

Indonesia, 1982), pp. 145 

regional government. Therefore, the issue of 

regional autonomy must be realized in the 

framework of the unitary state as mandated 

by Article 18 of the 1945 Constitution, the 

substance:  

“The division of the Indonesian 

region for large and small regions 

with the form of the composition of its 

government is determined by the law 

on the basis of 6the provision of the 

state government and the rights of 

origin in a special area.” 

 

There is an attraction in the state's life 

as part of the legal historical documents to 

implement Article 18. Law is not an end in 

itself, but rather a means to an end.9 In order 

to comprehend autonomy, we must first 

understand its purpose. The term "autonomy" 

can be defined in two ways: in the broad 

sense, it encompasses co-administration, and 

in the restricted sense, it excludes co-

administration activities. 

After the Old Order government fell 

and was replaced by the New Order 

government, Law Number 5 of 1974 was 

formed about the principal in the region. The 

formation of the law politically is the impact 

of legal history due to Law Number 22 of 

1948 concerning the determination of the 

main rules regarding its own government in 

regions that are entitled to regulate their own 

household made during the revolutionary 

period accompanied by pressure from Dutch 

colonizers, where at that time the Dutch still 

often conducted his efforts to maintain 

colonialism in Indonesia. After the end of the 

Dutch colonialization and the enactment of 

the 1950 UUDS (Temporary Constitution 

1950), the government still used Law 

Number 22 of 1948 concerning the 

determination of the main rules regarding its 

9  Sunaryati Hartono, Legal Politics Towards A 

National Legal System (Alumni, 1991), p. 11 



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own government in regions entitled to 

regulate their own household. 

On January 17, 1957, Law Number 1 of 

1957 was promulgated, outlining the 

fundamental principles of regional 

governance. This is the statute that pioneered 

the concept of true autonomy. Additionally, 

this law clarifies that there is no clear 

explanation or divide between central and 

regional governments, with being tough and 

rigid if specifics of authority or affairs 

between the central and regional 

governments are involved.10  

After roughly 11 years of application of 

Law No. 1 of 1957, on July 23, 1974, 

promulgated Law No. 5 of 1974 about the 

Principles of Regional Government, we can 

conclude that this law is a regional 

government law of the new order. The law is 

perceived as not explicitly controlling the 

division of powers between the central and 

regional governments, as this division will be 

further defined in Government Regulations. 

Additionally, this law is highly influenced by 

centralism, as the central government has the 

ability to decentralize the functions supplied 

by the central government to the regions. On 

the regional level, elections for regional 

heads lacked democracy as well, as they were 

submitted to the Regional People's 

Representative Council without a direct 

election system.  

After 25 years of applying Law 

Number 5 of 1974 following the fall of the 

New Order regime, the new administration 

felt it as necessary to amend Law Number 5 

of 1974. It promulgated Law No. 22 of 1999 

about Regional Government, which has the 

                                                             
10  Sirajuddin and Et Al., Regional Government 

Administration Law, (Malang: Setara Press, 2016), 

pp. 12 
11  Afif Syarif, 'Tidal Tides Regional Autonomy in the 

Republic of Indonesia Bonds System: Overview of 

effect of repealing Law No. 5 of 1974. When 

the long trip of Law Number 5 of 1974 is 

evaluated in relation to the legal evolution of 

regional autonomy, it becomes a logical thing 

to do to amend the law.11 

Regional Government Law No. 22 of 

1999 promulgated on May 7, 1999 and 

legally official regional autonomous service 

can be expected to be in accordance with the 

mandate of the state of Indonesia's 

containment, thereby improving people's 

welfare. However, there are still others who 

face legal penalties under Law No. 22 of 

1999, which establishes numerous petty 

kingdoms in the area. This is because the law 

promotes company expansion into new areas 

with the primary objective of funneling funds 

to the regions, establishing monopolies on 

mining concessions in the regions, and 

imposing high taxes on regional income 

interests. As a result, this encourages 

oligarchs and political clients to 

decentralize.12 

In light of these circumstances, the 

administration considers the necessity of 

amending Law Number 22 of 1999. On 

October 15, 2004, the government 

promulgated Regional Government Law No. 

32 of 2004. The positive direction indicated 

by this law is the implementation of regional 

autonomy with the goal of accelerating the 

realization of community welfare by 

increasing regional competitiveness while 

taking into account the principles of 

democracy, equity, justice, privileges, and 

area specificity within the Unitary State of 

the Republic of Indonesia system. 

Additionally, the law encourages 

Regional Government Legal History' (2013) Vol. 

6 No.7 Journal of Inovatif, pp. 48 
12 Wasisto Raharjo Jati, ‘Regional Autonomy 

Paradigm Inconsistency in Indonesia: Cultural and 

Decentralization Issues’, (2012), Volume 9 No.4, 

Journal of Konstitusi, pp. 743-769 



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autonomous regions to be able to 

electrocertically expand their potential and 

diversity, as well as give financial autonomy. 

Considering its progress, Law Number 22 of 

1999 did not provide enhanced capability or 

regional dissolution for the province to 

exercise its autonomy.13 

After 10 years of the application of 

Law Number 32 of 2004, the Act was 

amended by the introduction of Law Number 

23 of 2014 concerning Regional Government. 

Although this law is still in its development 

stage, there is discussion about whether the 

newly determined laws are still better than 

Law Number 32 of 2004, or whether Law 

Number 23 of 2014 prefers Autonomy in 

terms of constitutionality and Reformation 

needs over the last decade.14 

In the end, Law No. 32 of 2004 

experienced a paradigm shift in Law Number 

23 of 2014 concerning Regional Government 

that the fundamental shift between what was 

confirmed in the 1945 Constitution and Law 

Number 23 of 2014. In Article 18 paragraph 

(5) The 1945 Constitution is consistent as 

reaffirmed in the Regional Government Act 

2004 Article 10 paragraph (2) that:  

"In carrying out regional 

government affairs, as defined 

in paragraph (1), the regional 

government has the broadest 

autonomy to control and 

manage regional government 

matters based on the principles 

of autonomy and co-

administration." 

The regional government is the legal 

subject of the rules above since it administers 

the widestic autonomy in accordance with 

                                                             
13 Suharno, ‘Critical Review of Law Number 32 of 

2004 concerning Regional Government’, (2004), 

Volume 1 No. 2, Journal of Civics, pp. 168-180 
14 Hesti Armiwulan, ‘Legal politics of regional 

government based on Law Number 23 of 2014 in 

terms of institutions and the relationship between 

the authority of the regions in Inna Junaenah et. al., 

the concept of autonomy and the 

responsibility of co-administration 

established by the Republic of Indonesia's 

laws in 1945. Meanwhile, under Law No. 23 

of 2014 on Regional Governments, which 

was enacted by the government, the focus 

shifted to the government. This can be gained 

by the following provisions of Article 5: 

(1) The President of the Republic of 

Indonesia holds executive authority 

in accordance with the Republic of 

Indonesia's 1945 Constitution;  

(2) Government Authority, as defined in 

paragraph (1), is manifested in a 

variety of government matters;  

(3) The President is helped in conducting 

government affairs, as defined in 

paragraph (2), by the minister who 

arranges some government matters; 

and  

(4) Government affairs, as defined in 

paragraph (2), are carried out in the 

region through decentralization, 

deconcentration, and co-

administration. 

The article unequivocally adopts the 

fundamental principles outlined in Law No. 5 

of 1974 regarding the region's primary points 

of government. The title of the law indicates 

that it regulates the President's authority as 

regional government organizers, not regional 

government itself. Although the term 

decentralization (and co-administration) was 

added at the conclusion of the formulation, the 

verse's meaning is identical to that expressed 

traditionally by Henry Maddick15, namely, 

“the delegation of authority adequate for 

discharge of specified functions to staff of a 

Decentralization or re-centralization? Politics of 

Regional Government Law According to Law No. 

23 of 2014 concerning Regional Government, 

(State Policy Study Center, 2015), p. 102.  
15  Henry Maddick, Democracy Decentralization, 

and Development, (London: Asia Publishing 

House, 1966), p 44 



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central department who are situated outside 

the headquarters” or government tends to 

centralize. 

When the history of regional 

government laws is considered, it is clear that 

our subordinative system has seen its share of 

ups and downs. As previously stated, the 

decentralization model in Indonesia, also 

provided affirmation as a unitary state, even 

though the concept of model (Union) or 

unity has been completed, the model of 

government (whether decentralized or 

centralized) has not been completed. The 

completion of this unity or model of unity is 

based on the Feeting Fathers' legal politics, 

which upholds article 1 paragraph (1), which 

is consistently regulated in various legal 

products.16 The unitary state in question 

Article 1 paragraph (1) of the 1945 

Constitution is a unitary state that applies the 

legal politics of decentralization as stipulated 

in the provisions of Article 18 of the 1945 

Constitution. Conceptually, the unitary state 

can be distinguished in two forms;  

(1) Unitary state with a centralized 

system.  

(2) Unity countries with decentralized 

systems.17 

As explained in the preceding chart, 

Indonesia was effectively faced with two 

options due to the unitary state structure of its 

government administration: centralisk or 

desentralisk. Both options are permissible 

and legitimate, with all of their associated 

benefits and drawbacks. Sentrisk is typically 

run on a country with a small territory, a 

                                                             
16  Minutes of the Workers Meeting of the People's 

Consultative Assembly (MPR) of the Republic of 

Indonesia, 1945 People's Consultative Assembly 

of the Republic of Indonesia, in 2002, HLM 38. 

There are several agreements, including (1) 

preserving and adhering to the 1945 opening, (2) 

preserving the Unitary State of the Republic of 

Indonesia, (3) preserving the Presidential System, 

(4) amending the 1945 Constitution using the 

homogeneous population, and a monarchical 

government. In France, the Netherlands, and 

Sweden, for example. Meanwhile, large 

countries with a diverse population, such as 

Indonesia, are better suited to 

decentralization. Thus, we can say that the 

Founding Fathers' legal politics resulted in 

the formulation of Article 18 of the 1945 

Constitution. There is only one thing that has 

been expressly forbidden in the Unitary State 

of the Republic of Indonesia, which is also 

central region.18 To analyze decentralization, 

we will use six (six) approaches, namely:19  

1) Basic of historical origins (based on 

history);  

2) By hierarchy and function (based on 

hierarchy and function);  

3) By problem being addressed and the 

values of the investigation (based on 

problems that arise and investigating 

values);  

4) fovis on patterns of administrative 

structures and functions that are 

responsible for the production and 

provision of collective goods and 

services (focused on patterns of 

administrative structures and 

functions responsible for the results 

and provisions of services and 

goods);  

5) Typically based on the experience of 

a single country (the type based on a 

particular country's experience); and  

6) on basis of objectives (based on the 

goal) 

 

adendum method, and (5) incorporating the basic 

norms contained in the 1945 Constitution's 

explanation into the 1945 Constitution's Articles. 
17  Indra Perwira, op.cit., p. 436 
18  See in the explanation of Article 18 of the 1945 

Constitution before the amendment 
19  John M Cohen and Stepen B. Peterson, 

Adminitrative Desentralization, (USA: Kumarian 

Press, 1999), pp.20-22. 



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b. Philosophical 

As previously stated, the unitary state 

had both decentralization and centralization 

conceptually. In a unitary state with a 

centralized system, the central government 

regulates and oversees everything in the 

country immediately, and the regions only 

carry out the central government's 

instructions. Whereas in a unitary state with 

a decentralized system, the depiction of areas 

with the ability and authority to regulate and 

manage their own households (regional 

autonomy) is not separated into autonomous 

regions.20 The understanding serves as an 

introduction to the fact that there is a legis 

ratio for why substituted scientific literature 

on decentralization includes regional 

autonomy as a necessary component, as 

regional autonomy is the essence of 

decentralization.21 However, the issue of 

consistency as a unitary state and applying 

this decentralization model based on 

historical perspectives remains immature. 

Simply put, in the autonomy of the 

authority between the center and the region, 

including issues such as how government 

administration is distributed or how regional 

household affairs are determined. This 

criterion will reflect a degree of limited or 

extensive autonomy. It is capable of being 

classified as having limited autonomy if: 

(1) First, Regional household affairs are 

classified categorically, and 

development is directed in specific 

directions.  

                                                             
20  Abdurrahman (Editor), Some Thoughts about 

Regional Autonomy. Media Sarana Press, Jakarta. 

1987, p. 56 
21  Look inside M. Laica Marzuki, Take A Look in 

The Realm of Law, the Secretariat General and 

Registrar's Office of the Constitutional Court of 

the Republic of Indonesia, Jakarta, 2006, p. 161 
22  While the usual broad autonomy departure from 

principle: all government affairs basically become 

(2) Second, If the supervision and 

supervision system is implemented in 

such a way that the autonomous 

region loses its ability to establish and 

manage regional households freely.  

(3) Third, the financial relationship 

system between centers and regions 

raises issues such as the limitations of 

regions' initial financial capacity, 

thereby limiting regional autonomy.22 

The emphasis on "broad autonomy," as 

described previously, is the primary 

impediment to the Indonesian state 

maintaining a (consistent) decentralization 

model. This is because the principle of 

"extensive autonomy" was confirmed and 

codified in Article 18 paragraph (5) of the 

1945 Constitution of the Republic of 

Indonesia, which states that "the regional 

government exercises widestic autonomy, 

except for government affairs that are 

statutorily designated as central government 

affairs." 

Philosophically, despite the fact that 

understanding broad autonomy becomes a 

polemic of interpretations about the 

constitution and its implementation law, at 

least in terms of the decentralization system, 

the 1945 Constitution established a 

constitutional foundation in Article 18, 

Article 18A, and Article 18b. The following 

principles are contained in these articles:23 

a. The state's recognition and respect for 

units of customary law communities 

(kesatuan-kesatuan masyarakat 

hukum) and their traditional rights as 

regional domestic matter, except determined as a 

central business. In modern countries, more - more 

if it is associated with the understanding of the 

country of welfare, government affairs cannot be 

recognized. In Bagir Manan, Welcome to The 

Arising of Regional Autonomy, the publisher of 

the Law Study Center, Yogyakarta, 2005, p. 37 
23  Bagir Manan, Opcit, pp. 5-6 



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long as they remain viable and in 

accordance with the community's 

development, as well as the unitary 

state principle of the Republic of 

Indonesia;  

b. Regional principles regulate and 

administer government affairs in 

accordance with the autonomy and 

co-administration principles;  

c. The principle of operating with the 

maximum possible autonomy;  

d. The principles acknowledge and 

declare the existence of special and 

unique regional governments;  

e. The Representative Agency's 

principle is directly elected in an 

election;  

f. Central and regional relations must be 

conducted in an orderly and equitable 

manner;  

g. The principle of delegation of 

authority between the central and 

local governments must account for 

regional uniqueness and diversity;  

h. Financial relationships, public 

services, natural resources, and other 

resources between the central and 

regional governments are conducted 

fairly and in accordance with the law; 

and  

i. Special or unique is the principle of 

recognition and respect for state 

government units. 

Furthermore, understanding 

decentralization in Indonesia cannot be 

divorced from historical-philosophical-

political debates, as the experience of 

developing countries demonstrates that 

decentralization does not facilitate 

                                                             
24 Haryanto, ‘Future of Decentralization Politics in 

Indonesia: An initial study’, (2016) Volume 9 No. 

2 Government: Government Journal, p. 115  
25 Ni’matul Huda, Law of Regional Government, 

(Bandung: Nusamedia, 2010), p. 1 

"development" or democratic outcomes. The 

realization, numerous studies evaluating 

decentralization demonstrate that success 

stories about decentralization are uncommon 

and that decentralization is not an entirely 

effective strategy for poverty reduction.24 

The level of implementation of regulations 

related to decentralization and regional 

autonomy historically since the beginning of 

the implementation of Law Number 1 of 

1945 concerning the position of the Regional 

National Committee to Law Number 23 of 

2014 concerning the Regional Government 

actually focused on the welfare frame of the 

community. In accordance with the mandate 

of the 1945 Republic of Indonesia, the local 

government is authorized to regulate and take 

care of government affairs according to the 

principle of autonomy and co-administration. 

Provincing of broad autonomy to the region 

is directed to accelerate the realization of 

community welfare through improving 

service, empowerment and participation of 

the community. In addition through 

extensive autonomy, the region is expected to 

increase competitiveness by paying attention 

to the principles of democracy, equity, 

justice, privileges and specificity and the 

potential and diversity of regions in the 

System of the Unitary State of the Republic 

of Indonesia.25 

Moh.Hatta has also confirmed the 

understanding of this regional autonomy 

exercised in the interest of welfare on the 

basis of popular sovereignty or populism 26 :  

“According to the people's 

sovereignty, the people have the right 

to determine their own fate not only at 

the government level, but also in each 

location (in the city, village and 

26 Mohammad Hatta, Towards Indonesian 

independence: 1932-volume I, (Jakarta: Bulan 

Bintang, 1976), p.103. 



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regions). Each fellowship has its own 

governing body (such as 

Gemeenteraad Provinciale Raad, and 

others). As a result, each segment or 

group of people becomes autonomous 

(creating and practicing its own rules 

and running the rules made by a 

higher board). Thus, it is not just a 

large fellowship that has the right to 

determine his or her own destiny, but 

all people, as well as every region of 

the country or group of people. Such 

details are critical, as the 

requirements of each region within a 

country vary.”. 

  

Figure 2. Decentralization concept in Indoensia 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on the Figure 2, it is illustrated 

that the decentralized model mandating the 

existence of autonomy in Indonesia is not a 

regional rape process which in the sense of 

independence (separate sovereignty) or 

autonomy cannot be interpreted as the 

absolute freedom of an area because 

autonomy is a process to provide a process 

To the area to be able to develop in 

accordance with the potential they have, thus 

autonomy must be meaningful as a way to 

optimize all local potential, both nature, 

environment and culture. Furthermore, 

optimization is not exploitation, but a process 

that allows regions to develop themselves 

and change the lives of regional society to be 

better.27 

                                                             
27  M.R. Khairul Muluk, Decentralization and Local 

Government, (Malang: Bayumedia Publishing, Cet 

2, 2007), pp.10 
28  Mardyanto Wahyu Tryatmoko, Mardyanto Wahyu 

Tryatmoko, ‘Democratization of Problems in The 

c. Sociological 

Sociologically, as previously discussed 

in relation to the historical-philosophical 

aspects, the decentralization problem was 

caused by the surrender of the 

implementation of the authority distribution 

mandated by Article 18 paragraph (5), which 

stated that "the regional government 

exercises the greatest autonomy, except for 

central goverment affairs." Thus, in practice, 

the interpretation of the article's provisions 

frequently sparks controversy, particularly 

when it comes to enacting legislation that 

affects the decentralization model. 28 

The context of Indonesia's holding 

model of decentralization, dubbed 

asymmetrical decentralization, which 

New Post-Order Era of Asymmetrical 

Decentralization’, (2012), Volume 38 No. 2, 

Journal of Masyarakat Indonesia, pp. 269-296 

1945 

Constitution 

Republic of Indonesia 

Decentralization 

Autonomy as widely 

as possible 

Legislation 

Public welfare Population 
sovereignty 



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resulted in the emergence of a system of 

autonomy with distinct characteristics based 

on special provisions, is analogous to special 

autonomy.29 In the context of Indonesia's 

decentralization model implementation, an 

introduction to the autonomy system, which 

has distinct characteristics and is governed 

by its own legislation, including Aceh 

Province, Papua Province, Jakarta Special 

Capital Region, and Yogyakarta Special 

Region. As a result of Article 18B paragraph 

(1), the state recognizes and respects 

statutory special or special regional 

government units. As a result, a variety of 

factors have been used to justify the issuance 

of policies that provide specificity for 

regional government organization. For 

instance, Papua Province is a case study in 

terms of politics, economics, and natural 

resources. These factors arose as a result of a 

failure of development during the New Order 

regime, which resulted in the emergence of 

repressive patterns in the context of welfare 

                                                             
29  Ibid. 
30  Papua, is a province that is part of Indonesia not 

together with other regions. Other areas have 

defaCto have become the territory of the Republic 

of Indonesia since August 17, 1945 or juridically 

from December 27, 1949 through the round table 

conference negotiations when the Dutch 

Government officially releases his colonies to the 

Government of the Republic of Indonesia, except 

New Gunea West or Irian Jaya, Now named Papua. 

Papua became part of the territory of Indonesia 

after through the PEPERA (people's opinion) 

whose results were acclamation to join the 

Republic of Indonesia on August 15, 1969, and 

officially since November 19, 1969 became the 

27th province, after the results of the PEPERA 

were received by the General Assembly UN. The 

pepera held on August 15, 1969 was allegedly a 

source that supported the occurrence of conflict in 

Papua, in addition to the work contract conducted 

by the government with PT Freeport in 1967 which 

until now the conflict could not be completed. In 

the era of the New Order, the approach to resolving 

conflicts in Papua was carried out by centralized 

and repressive ways by making Papua a military 

operation area, due to the strengthening of the 

OPM (Papua Independence Organization). The 

conflict in Papua has not yet been over, although 

submission for the people of Papua, which 

would later undermine the purpose of Yatu 

community welfare decentralization.30   

According to reports from the 

partnership team31 said that Papua was the 

most retarded province in Indonesia. In 1997 

- prior to the Papuan crisis - the poverty rate 

was reported to be above 50%, while the 

average national poverty rate was close to 

14%. Papua is Indonesia's province with the 

highest rate of poverty. In 1999, the 

percentage of the Papuan poor population 

was reported to be 54.75%, maintaining 

Papua's status as the province with the largest 

poor population, followed by East Nusa 

Tenggara at 46.73% and Maluku at 46.14%. 

In 2000, poverty was reduced to 41.80%, but 

remained the highest in Indonesia, followed 

by Maluku at 46.14% and East Nusa 

Tenggara at 36.52%. Poverty and profound 

retardation in Papua were recognized as a 

failure of the New Order's approach to 

Papuan development. In comparison to other 

after the collapse of the new Order of the central 

government used a more accommodating 

approach. For example, President Abdurrahman 

Wahid, on January 1, 2000 has apologized to the 

Papuan people for human rights violations carried 

out by the army in the past. The change in name of 

Irian Jaya became Papua based on the Decree of 

the Provincial Parliament of Irian Jaya No. 7 / 

DPRD / 2000 on August 16, 2000 concerning the 

return of Irian Jaya's name to Papua. HLM this is 

a driving device for Papuan special treatment as an 

autonomous region. Even during Gus Dur in power 

of the Morning Star flag could be raised beside the 

Red and White flag. But in the future Megawati 

there was a ban on raising the Morning Star flag. 

At this time the conflict was tapered, even leading 

to violence. View Sulardi, 2011, Researching 

autonomy to strengthen the NKRI, evaluation of 

the implementation of special autonomy in the 

frame of four pillars of life and state "organized by 

the People's Consultative Assembly of the 

Republic of Indonesia (MPR RI) in collaboration 

with the Development Center for Regional 

Autonomy (PP Otoda) Universitas Brawijaya ( 

UB), Malang, December 5 2011, p 5 
31  Agung Djojosoekarto, et al, Papuan Special 

Autonomy Performance, (Jakarta: Updates on the 

Partnership for Governance in Indonesia, 2008) 



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Indonesian regions, Papua has the most 

favorable environmental conditions. 

Internally, this retardation is caused by five 

major factors, namely that when it becomes a 

part of Indonesia: 

1. The majority of Papuans live in 

conditions of retardation, or what 

academics refer to as primitivity; 

2. There is no adequate physical 

infrastructure in terms of 

transportation and 

telecommunications, even at the most 

rudimentary level; 

3. Low levels of welfare and health care 

as a result of a lack of education; 

4. The region's limited capacity for 

human resources to enter directly into 

"machine" development that has a 

"mode" of the community, as in Java 

and other more advanced kawasans 

than Papua; 

5. The lack of capability among the 

local elite ranks is a feature of a 

modern governance system. 

 

As a result of the emergence of the 

objective conditions described above, the 

desire to provide special autonomy 

(asymmetrical decentralization) bolstered 

Papua's development commitments as 

reflected in Law Number 21 of 2001 

concerning Special Autonomy for Papua 

Province. According to the partnership team, 

there are several fundamental elements that 

comprise the law's content, including the 

following:32 

1. The arrangement of authority 

between the government and the 

Papua Provincial Government, as 

well as the specific application of 

authority in the Papua Province; 

                                                             
32  Ibid., p. 19 

2. Recognition and respect for 

indigenous Papuans' fundamental 

rights, as well as their strategic and 

fundamental empowerment; 

3. Implementing good governance: 

a) Participation of as many 

people as possible in planning, 

managing, and supervising 

government administration 

and development 

implementation, including 

indigenous representatives, 

religious leaders, and women; 

b) Implementation of 

development that is geared 

toward meeting the basic 

needs of indigenous Papuans 

in particular and populations 

in the provinces of Papua in 

general, while adhering to the 

principles of environmental 

conservation, sustainable 

development, and purely 

societal benefit; 

c) Government administration 

and the community's 

implementation of transparent 

and responsible development. 

4. A distinct and unambiguous division 

of authority, duties, and 

responsibilities between the 

legislature, executive, and judicial 

branches, and the Papuan People's 

Assembly (Majelis Rakyat Papua) as 

the cultural representative of 

indigenous Papuans endowed with 

certain powers. 

In response to the issue raised above, 

special autonomy in Papua Province began in 

2001 with the enactment of Law Number 21 

of 2001 and Law Number 35 of 2008, which 

mandated the acceleration of development in 



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the provinces of Papua and West Papua. The 

central government's implementation of the 

policy of special autonomy for Papua and 

West Papua is a form of accommodation 

made in order to alleviate various 

speculations that have arisen as a result of the 

Papuan people's dissatisfaction with the 

central government's and regional 

government's relations thus far.33 

In contrast to Papua, which gained 

special autonomy as a result of development. 

Aceh achieved special autonomy after years 

of self-separation characterized by armed 

conflict and identity politics. This 

circumstance resulted in the initial reform 

through MPR IV / 1999 tap, which was 

realized in Law Number 18 of 2001 

concerning Special Autonomy for the 

Province of Nanggroe Aceh Darussalam, 

being ineffective because it was not 

transformed by the Free Aceh Movement's 

(Gerakan Aceh Merdeka) power into the 

structure of modern government in the 

Unitary State of the Republic of Indonesia.34 

Decentralization is primarily expected 

to reduce the disparity or economic divide 

between regions in Indonesia.35 However, 

this gap persists in reality for up to 75 years. 

The following data demonstrate why 

decentralization has not yet succeeded. The 

human development index is one indicator 

that can be used as a benchmark36 in each 

region. In 2019 it can be seen dimensions, 

education, and decent living standards in the 

lowest five provinces, here are the data 

available:37 

 

  

                                                             
33  As stated by Vitelis Yumte as Chair of the People's 

Consultative Assembly of the West Papua 

Province releases that, the basic framework for the 

implementation of special autonomy is for the 

parties. Special autonomy for the parties includes 

Papuan political elites and the House of 

Representatives and the President who viewed that 

Khusu autonomy is the solution. If their point of 

view is a solution that must be confirmed in 

implementation. Therefore in special autonomy 

policies must be given full authority to organize 

and build themselves with the potential. In real 

terms this policy has not been sincere because it is 

influenced by the situation of political upheaval so 

that the substance made raises doubts by the 

central government. In the Autonomy Law 

specifically loaded with various collisions so it is 

difficult in implementing. This quote was taken 

from an interview with the Chairperson of the 

People's Consultative Assembly on November 16, 

2011 
34 The agrarian principal's fundamental regulations 

regulate certain specificities, including the 

Governor of Aceh, the People's Representative 

Council / Regency / City, the Local Political Party, 

the Guardian Nanggroe, the Recognition of 

Indigenous Institutions, Islamic Shari'ah, and the 

Sharia Court. The Dictum stated that the 

government recognized and respected special or 

special regional government units regulated by 

law; Aceh is a special or special regional 

government unit associated with one of the 

characteristics of the Acehnese community's 

history of struggle: high fighting resilience and 

power; Lili Romli, Special Autonomy Policy and 

Implementation in Papua and Aceh, Yogyakarta: 

Center for Assessment of Data Management and 

Information, General Secretariat of the House of 

Representatives of the Republic of Indonesia, and 

Azza Grafika, 2012, p. V 
35  ‘Economic Growth, Income Inequality And 

Decentralization In Indonesia’, (2016), Volume 20 

No. 1, Journal of Kinerja, pp. 53-68 
36 UNDP introduced the first human development 

indicators in 1990. The United Nations 

Development Programme (UNDP) introduced a 

new concept for measuring human development 

called the Human Development Index (HDI). 

Since then, the human development index has been 

included in the Human Development Report's 

annual report (HDR). The HDI elucidates how 

residents can benefit from development outcomes 

in terms of income, health, education, and other 

facets of life. 
37  Central Statistics Agency, 2019 Human 

Development Index 



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Table 1. of dimensions of growth, education, and standard of living in five provinces with 

the lowest human development index from 2017 to 201938 

Provinsi Pertumbuhan Kesehatan Pertumbuhan Indeks 

Standar Hidup Layak 

Pertumbuhan Indeks 

Pendidikan 

2017-2018 2018-2019 2017-2018 2018-2019 2017-2018 2018-2019 

(1) (2) (3) (4) (5) (6) (7) 

Papua 0,49 0,64 1,19 1,25 3,27 2,02 

West 

Papua 

0,51 0,77 2,10 1,89 0,97 1,85 

East Nusa 

Tenggara 

0,67 1,01 1,46 1,31 0,97 1,60 

West 

Sulawesi 

0,54 0,54 1,64 0,92 1,59 1,42 

West 

Borneo 

0,52 0,76 2,10 1,00 0,64 1,22 

Source : Seccondary Data, processed in 2021 

 

According to the data, Papua and West 

Papua are part of five regions with low health 

indices, deplorable living standards, and the 

lowest levels of education. Although papua 

has been granted special autonomy, it 

possesses a variety of specialized 

characteristics.  

In addition to the human development 

index, we can also see how many poor people 

based on provinces, data issued by the 

Central Statistics Agency (BPS) in 2020 in 

semester 2 (September) there are still several 

regions that have quite high numbers in terms 

of population Poor at the provincial level, 

such as Aceh with 15.43%, Bengkulu with 

15.30%, Maluku with 17.99%, West Papua 

with 21.70%, and Papua with 26.80%. If we 

compare it with several regions in Java such 

as East Java and West Java numbers are also 

still above 10%, but if they see West Java the 

numbers are still better at 8.43. Moreover, the 

figure will be very different if we compare it 

with the Special Capital Region of Jakarta, 

which is around 4.63%. Based on the data, 

we can see that asymmetrical 

decentralization with 39 Provincing of special 

and special autonomy is still not maximally 

                                                             
38  Statistics Indonesia, Indeks Pembangunan Manusia 2019, Jakarta, pp 51-52 
39  Central Statistics Agency, the percentage of poor people by province, 

https://www.bps.go.id/indicator/23/192/1/persentase-penduduk-miskin-menurut-provinsi.html , accessed on 

April 20 2021 

to have an impact on welfare. Even some 

areas on Java with a variety of more complete 

infrastructure and geographically closer to 

the center of power are still high in the figure 

of the poor. The data presented also shows 

that massive development is still very thick 

in the capital city of the state with the high 

index of human development indices and the 

small percentage of the poor. 

From this point, it is actually clearly 

one of the serious challenges that accompany 

regional decentralization and autonomy cars 

lies in the availability of administrative 

frames that are able to manage all local 

diversity because of the heterogeneity of 

society in Indonesia, both in the social-

cultural background variant, economic 

potential, administrative capacity to be 

expanded in the charge certain political 

demands.  

Although the space for pluralism in the 

Unitary State of the Republic of Indonesia is 

realized through the authority of regional 

autonomy, as specified in Article 18 of the 

https://www.bps.go.id/indicator/23/192/1/persentase-penduduk-miskin-menurut-provinsi.html


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1945 Constitution.40 However, when 

diversity is implemented, it creates a 

systemic problem and is frequently infused 

with political elements, making the angle of 

legal system analysis increasingly difficult to 

manage uniformly. As a result, certain 

depictions of decentralization documentation 

in Indonesia that emphasize policy 

uniformity actually result in development 

gaps, as stated in an analysis of articles in 

Law Number 23 of 2014, which negates its 

broadest autonomy and adopts the same 

uniformity concept as New Order local laws. 

Thus, based on the explanation above, it is 

possible to deduce the following:  

(1) Historically, the dynamics of the trial 

and error political of decentralization 

law in our constitutional system has 

experienced ups and downs, this is 

seen in Article 18 of the 1945 

Constitutional Court explicitly stating 

that Indonesia is divided into large 

regions and small areas and has the 

right to take care of His own house is 

called autonomy. 

(2) Politically, Indonesia has a 

decentralization model that is used and 

defined in the constitution according 

to the pressures and political situation. 

(3) Regional autonomy in Indonesia was 

confirmed philosophically to be based 

on the principle of "broad autonomy," 

as stated in Article 18 paragraph (5) of 

the Republic of Indonesia's 

Constitution in 1945: "regional 

government operates with the greatest 

autonomy, except for government 

affairs that are statutorily designated 

as central government affairs." 

(4) Sociologically, the serious challenges 

associated with regional 

                                                             
40  M Rifqinizamy Karsayuda, Establishment of 

Local Political Parties in The Unitary State of 

decentralization and autonomy center 

on the availability of administrative 

frameworks capable of managing all 

local diversity, owing to Indonesia's 

extreme heterogeneity, both in terms 

of social-cultural background 

variation, economic potential, and 

administrative capacity to express 

demands specific politics. 

(5) Juridically, because regional 

autonomy is the essence of 

decentralization. The implementation 

of regional autonomy experiences ups 

and downs and tends to not maintain 

its consistency based on the 

formulation of Article 18 of the 1945 

Constitution. Here means there are 

challenges in terms of juridical to find 

a meeting point between the historical 

aspects, philosophy, political and 

sociological to formulate the model of 

decentralization in the future. 

 

A. The Conceptualization of Regional 

Competency-Based 

Decentralization: The Challenges 

Raised by Indonesia's Local 

Government Law 

Based on the paradigmatic context of 

legal reform described above, one aspect that 

the author wishes to study and critique is the 

legal politics of regional competency-based 

decentralization as part of the concept of 

decentralization's transformation or 

evolution. In contrast to Cohen and 

Peterson's interpretation, there is a section 

that details the evolution of decentralization 

as a concept and as a development tool. 

Cohen and Peterson identified six distinct 

types of decentralization in their 

The Republic of Indonesia, (Malang: UB Press, 

2013) 



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identification, which they also used as a 

classification and approach system:41 

a. Decentralization form based on the 

origin of history 

The first approach categorizes forms 

according to their historical 

antecedents. A historical perspective 

enables a specialist to emphasize the 

existence of four fundamental 

decentralization patterns: French, 

British, Soviet, and Traditional. 

Cohen and Peterson argue that this 

classification system is 

oversimplifying and analytically 

deficient. 

b. Territorial and functional 

decentralization of decentralization 

The second approach makes a 

distinction between decentralization 

forms and hierarchies and functions. 

Territorial decentralization / region, 

in this view, refers to the delegation 

of goods and services to the public 

produced and provided centrally to 

units at the regional level in the 

government jurisdiction hierarchy. 

While functional decentralization 

refers to the transfer of center 

responsibility to units under the 

government's supervision as well as 

to units outside the government's 

control, such as non-governmental 

organizations or private businesses. 

c. Forms that convert to problems and 

values 

This approach identifies 

decentralized forms associated with 

the problems presented and the 

investigators' value-nial. This 

approach is exemplified by the 

                                                             
41 Decentralization: A Sampling Of Definitions, 

Working paper prepared in connection with the 

Joint UNDP-Government of Germany 

WeLey decentralization project, 

which is committed to bringing more 

effective programs and development 

projects to rural poor communities. 

The Berkeley group identified eight 

distinct types of decentralization, 

including the following:42  

a. Devolution; 

b. Functional devolution; 

c. Organization of Interest; 

d. Deconcentration prefectation 

deconcentration at the level of 

minister; 

e. Delegation of authority 

against autonomous agents; 

f. Generosity or philanthropy; 

and 

g. Marketization / Marketing 

Process. 

The Berkeley group was not 

interested in illustrating a variety of 

larger general issues associated with 

the concept of decentralization when 

they formatted this collection. This 

group is devoted to the examination 

of various relationships between the 

center and the surrounding area on a 

sector-by-sector basis (a sector-by-

sector base). By examining this 

relationship, they develop a 

distinctive set of shapes that ensure, 

project by project, that the 

development intervention 

demonstrated is extremely vulnerable 

to rural communities and threats to it 

perpetrated by the Central Apparatus 

and area elites seeking their own 

interests. 

d. Form of service provision 

evaluation of the UNDP role in decentralization 

and local governance, October 1999 
42 Fajlurrahman Jurdi, Indonesians Constitutional 

Law, (Jakarta, Kencana, 2019), p 441. 



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This approach focuses on the pattern 

of administrative or government 

structures and functions that are 

responsible for the production and 

provision of collective services. This 

strategy distinguishes four types of 

decentralization: Regional 

Government Systems, Partnership 

Government Systems, Dual 

Government Systems, and Integrated 

Government Systems. The 

disadvantage of this approach is that 

it is analytic in nature, which is in 

conflict with the increasing diversity 

of structural and functional design 

over the last few decades. 

e. Form of state single experience 

This approach exemplifies the narrow 

definition of decentralization that is 

based on a single country's 

experience. Delegating 

responsibility, power, and resources 

to the central government, in this 

view, does not constitute 

decentralization. Decentralization, on 

the other hand, occurs only when the 

local government:  

(1) is formed by law, in the form 

of a charter containing legal 

provisions, which is defined 

as a government formed by 

law with the right to sue and 

be sued;  

(2) is a sense of community, 

consciousness, and solidarity 

located within jurisdictional 

bonds that have a clear limit;  

(3) is governed by officials and 

apparatus elected at the 

regional level;  

(4) creates and administers 

official ordinances or regional 

regulations governing the 

functions of public sectors;  

(5) officially collects taxes and 

other revenue in a legal 

manner; and  

(6) attempts to strengthen and to 

manage the budget, 

expenditure, and financial 

calculation systems, as well as 

to compensate employees, 

including those in charge of 

security. 

f. Form of decentralization based on 

purpose 

The approach divides 

decentralization into four categories 

based on their objectives: politics, 

space, market, and government. This 

strategy then focuses on three distinct 

forms of administrative 

decentralization: deconcentration, 

devolution, and delegation. 

Political decentralization refers to the 

delegation of decision-making 

authority to citizens or selected 

individuals. Decentralization of space 

is a term used by regional planners to 

describe policies and programs aimed 

at reducing excessive concentration 

of urban communities in a large city 

by promoting regional growth poles 

with the potential to become 

marketing, industrial, and agricultural 

centers.  

Market decentralization focuses on 

the establishment of diverse 

conditions that allow for the 

production and provision of goods 

and services through market 

mechanisms that are sensitive to the 

choices made by individuals. This 

type of decentralization has become 

more prevalent in today's trend 

toward economic liberalization, 

privatization, and the abolition of the 

guided economy. Decentralization 



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allows for the production and 

provision of goods by small and large 

businesses, community groups, 

voluntary personal associations, and 

non-governmental organizations, 

among others. While administrative 

decentralization is concerned with the 

distribution of hierarchical and 

functional authority between the 

central and local governments. 

 

The emergence of decentralized 

forms is based on relationships in the form of 

authority, responsibility, and resources being 

transferred from the central government to 

local governments or other social 

organizations. In other words, the nature of 

the relationships between goals and objects, 

as well as the delegation of authority and 

responsibility, are all determinants of the 

decentralization form. To illustrate this, 

consider the following figure of the nature of 

relationships and decentralization forms. 

 

Figure 3. Decentralized forms 

 
Source: secondary legal material, processed 2021 

 

Measurements regarding the level of 

implementing decentralization in a country 

can be taken through measurement of 

"decentralized degrees". Determining the 

degree of decentralization can be determined 

through several factors. These factors are the 

basis for the author in formulating regional 

competency-based decentralization points, 

including: 

(a) First, the degree of decentralization 

can be seen from the function or 

affairs run by the local government. 

The more functions that are 

Government: 
Central 

Government

Partnership

Civil Society 
Organizations

Delegation

Special Agent

Privatization

Private Sector

Deconcentration

Units around The 
Central 

Government

Devolution

Regional 
Government



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experienced, the higher the degree of 

decentralization.  

(b) Second, it is the type of function of 

function. In this case there are two 

types, namely the type of deelegation 

of General Competence and Ultra-

Vires Doctrine. If a regional 

government has a function of the 

General Competence delegation, it 

can be considered a greater 

decentralization.  

(c) Third, it is the type of central 

government control over the local 

government. If the control carried out 

by the government is more 

repressive, the degree of 

decentralization is greater than it is 

preventive.  

(d) Fourth, it is related to regional 

finance related to the extent of 

decentralization to determine or 

decide both in terms of revenue and 

expenditure of local governments.  

(e) Fifth, it is the method of establishing 

a local government. Decentralization 

degrees will be higher if the regional 

authority source comes from 

legislative decisions, not from 

executive delegation.  

(f) Sixth, it is regarding the degree of 

financial dependence on the local 

government against the central 

government. The greater the 

percentage of financial assistance 

from the central government 

compared to regional original 

revenues, the higher the dependence 

which also leads to the low degree of 

decentralization.  

(g) Seventh, it is the magnitude of 

regional government areas. There is 

                                                             
43 Ibid., hlm 18-19 

an assumption when the increasing 

area is the greater the degree of 

decentralization, because local 

governments can overcome the 

dominance of power from the central 

government.  

(h) Eighth, it is a political factor of the 

party. If politics at the local level is 

still dominated by national political 

organizations, the degree of 

decentralization is considered low 

compared to politics at the local level 

dominated by local political parties.43 

 

The eight decentralized descriptive 

measurement factors served as the primary 

determinant of regional competency-based 

decentralization. Decentralization in 

Indonesia is based on international 

experiences, which are then elaborated in the 

constitutional articles. To optimize the legal 

politics of decentralization in Indonesia, it is 

necessary to conduct decentralization 

conceptualization, bearing in mind Cohen 

and Peterson's view that the concept of 

decentralized degree of decentralization is 

influenced by: a small / or a large number of 

authorities, the conditions of regional 

government, government function, and 

regional financial authority.44 

These factors are the basis for the 

capacity-based decentralization and regional 

competence, one of which has been opened 

in the provisions of Article 31 and Article 48 

of Law Number 23 of 2014 concerning the 

Regional Government that in the 

implementation of the decentralization is 

carried out by the regional settings for:  

a. ensuring the effectiveness of regional 

government implementation;  

44 M.R. Khairul Muluk, The Concepts of 

Decentralization and Government, (Itspress, 

Surabaya, 2009), p. 14 



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b. accelerating the growth of 

community well-being;  

c. accelerating the process of enhancing 

the quality of public services;  

d. enhancing the governance quality;  

e. enhancing national and regional 

competitiveness; and  

f. preserving the uniqueness of regional 

customs, traditions, and culture. 

 

Regional arrangements may take the 

form of regional formation or regional 

reorganization. Indeed, according to Cohen 

and Peterson, Law Number 23 of 2014 on 

Local Government has paved the way for the 

development of decentralization models 

based on how the area was formed. It is 

simply that it is still limited to the aspects of 

regional formation and regional adjustments 

that are discussed in detail in the articles and 

does not include the competency-based 

decentralization model or regional capacity. 

On the other hand, this regional competence 

cannot be divorced from the consequences of 

autonomy, as defined in Article 18 paragraph 

(1) of the 1945 Constitution, which provides 

that the provincial government, district 

regions, and cities regulate and manage 

government affairs in accordance with the 

principle of autonomy. The competency of 

this area can be described in terms of regional 

competency parameters within the 

framework of regional government, which is 

composed of several elements based on the 

initial viewpoints desired, such as:  

a. Geography, including: the location of 

the capital; hydrographic; and 

disaster insecurity; 

b. Demographics, including: quality of 

human resources; and population 

distribution; 

c. Security, including: General Criminal 

Action; and social conflict; 

d. Socio-political, custom, and tradition, 

including: community participation 

in general elections; social 

cohesiveness; and community 

organizations; 

e. Economic potential, including: 

economic growth; and the superior 

potential of the region; 

f. Regional finance, including: original 

regional income capacity; potential 

original income prospective 

preparation area; and financial 

management and regional assets; 

g. Government organizing capabilities, 

including: accessibility of basic 

education services; accessibility of 

basic health services; accessibility for 

basic infrastructure services; The 

number of state civil apparatus 

employees in the parent area; and 

design planning spatial plans for the 

preparation area; 

 

According to the competency-based 

decentralization paradigm and the area's 

capacity, this is actually a form of 

decentralization that is currently occurring in 

Indonesia, namely asymmetrical 

decentralization. Where the decentralization 

model is as stated in the sociological 

foundation, resulting in the concepts of 

special autonomous regions, administrative 

areas, and special regions. Where these 

conditions frequently arise as a result of 

political and social pressure. Thus, the 

presence of capacity-based decentralization 

and regional competence creates an 

alternative model for regional government 

management that prioritizes local 

development without resorting to political 

pressure or social conflict. The following 

table illustrates the distinctions between 

asymmetrical decentralization, capacity-



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based decentralization, and regional 

competence: 

 

Table 2. Capacity-Based Decentralization Concepts and Regional Commerce with 

Asymmetrical Decentralization are Summarized. 

 

INDICATOR ASYMMETRIC 

DECENTRALIZATION 

DECENTRALIZATION-BASED 

CAPACITY AND REGIONAL 

COMMITTANCY 

Deeper aspects Korbinwas, Politics, Authority, 

Institutional, Finance 

Korbinwas, Politics, Authority, 

Institutional, Finance 

Shape / Output  Special Autonomy: Special 
Regions and Special Regions 

 Aceh, 

 Papua, 

 West Papua, 

 Special Capital Region of 
Jakarta, and 

 Special Region of Yogyakarta 

Kluster of the immediate area: 

Group A area 

Group B area. 

Group C area. 

Cause / Input  Conflict of Interest 

 Demands / Submissions of 
Asmetrical Forms 

Noted for The Elements. 

 Geography; 

 Demographics; 

 Security; 

 Social politics, customs, and traditions; 

 economic potential; 

 Regional Finance; and 

 Government administration 
capabilities. 

Legal basis Relational 

Article 18, Article 18A, Article 

18B 

Hirarchical - relational 

1. Preamambule, 

2. Article 1, 

3. Article 18, 18a, 18b (Regional 

Government) 

4. Article 23 (Finance); 27 (Tenaker); 28 

(ham); 29 (religion); 31 & 32 (dikbud); 33 

(Economy); 34 (poverty) 

 

Source: Primary legal material, processed 2021. 

 

During the transition period from 

centralized to decentralized government, 

each region, whether provincial, district, or 

city, must exercise as much regional 

autonomy as possible. According to Solichin 

Abdul Wahab, the nature of regional 

autonomy is the capacity to create a large 

public space conducive to the emergence of 

community participation, not only passively, 

                                                             
45 Solichin. A. Wahab, The Future of Regional 

Autonomy: Social, Economic, Political Studies, to 

where participation is determined by the 

power structure (and thus is not participation, 

but mobilization), but also actively, where 

society fully understands its needs, then 

chooses, formulates, and strives to be 

achieved.45  

In the future of political 

decentralization, it will at the very least have 

a more systematic picture of not just 

Create Synergy in Regional Development, 

(Surabaya: SIC Publishing, 2002), pp. iii 



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administrative autonomy indicators, but also 

of potential based on social-cultural 

background variants, economic potential, 

and administrative capacity to be expressed 

in the charge of other political demands. At 

the very least, a decentralization model based 

on regional capacity can provide regional 

autonomy in regulating its natural resources. 

This regional competency base also serves as 

the foundation for determining whether 

regions operating on autonomous frames are 

capable of pursuing backward development 

and welfare retardation in accordance with 

their capacity, not with a model approved by 

the central government. 

To begin, the author's concept of 

regional competencies is to adopt regional 

feasibility and competency assessments in 

accordance with Law Number 23 of 2014 on 

Regional Government. Despite the 

analogical interpretation of the terms 

"Regional Competency" and "regional 

expansion / adjustment," the initial design of 

the region's expansion / incorporation into 

the regional arrangement scheme is 

philosophically sound.46 The 

implementation, both regional competencies 

and regional expansion / adjustments, is 

related to the prudential principle, the 

organization of natural asset maps and 

natural resources, the maintenance of public 

relations, and the assessment of potential 

horizontal-vertical conflict. These 

assessments were made on the assumption 

that future expansion / adjustment of the area 

would be able to make it competent or 

incapable of accommodating the formatted 

otnomy in the Indonesian legal system. On 

the other hand, the regional arrangement 

model exemplifies decentralization in 

action,47 where aiming:  

                                                             
46  Academic Manuscripts of Law 23 of 2014 

concerning Local Government  

a. "Determining the effectiveness of 

regional government 

implementation;  

b. increasing community welfare at a 

faster rate;  

c. accelerating the process of improving 

the quality of public services;  

d. enhancing the governance quality;  

e. enhancing national and regional 

competitiveness; and  

f. preserving the uniqueness of regional 

customs, traditions, and culture.” 

 

The disadvantages, in terms of regional 

expansion / adjustment, are that there is no 

authentic nomenclature for "regional 

adjustments" based on legislation. The 

illustration of the befunctional adjustment is 

solely for the purpose of:  

a. regional;  

b. change of regional names;  

c. giving names and changes in the 

name of the form of earth;  

d. the transfer of the capital; and / or  

e. changes in the name of the capital 

city.” 

 

As a result, the aforementioned concept 

of regional adjustments effectively ends 

regional competency-based decentralization, 

as anticipated by Article 18 of the Republic 

of Indonesia's 1945 state law. As 

demonstrated above, the political politics of 

regional competency-based decentralization 

can be interpreted philosophically, 

sociologically, and historically, as evidenced 

by the presence of several models of 

parameters required in decentralized settings, 

including geographic parameters; 

demographics; security; socio-political, 

custom, and tradition; economic potential; 

47  See article 31 Act Number 23 of 2014 concerning 

Local Government 



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and regional finance. As a result, 

amendments to regional government laws are 

required to incorporate the principle of broad 

autonomy and to provide a classification of 

decentralization models based on regional 

competency parameters affecting the extent 

to which the area's task and authority and the 

appropriate policies / programs for the 

region's center are decentralized. 

 

IV. CONCLUSION  

Based on the research focus and the 

explanations that have been described by the 

author, it can be concluded that based on the 

analysis with historical, philosophical, and 

sociological approaches, it can be said that 

the implementation and development of 

regional implementation is strongly 

influenced by various aspects other than the 

legal factor itself. Challenges to the 

development of decentralization 

implementation arrangements in Indonesia 

are possible to be based on regional capacity 

which is based on several aspects such as 

geography, security, socio-politics, 

economic potential, regional finance, 

government organizational capability. This 

policy aims to enable decentralization to be 

carried out closer to local conditions in the 

regions. A further challenge is regarding the 

regulation of the policy in the legislation. 

 

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