2 - The New State Capital Regulations: Contending for Autonomy, Democracy and Legitimacy?

Summary

Introduction

The end of Indonesia's authoritarian regime in 1998 was the turning point for the state to apply substantive democracy and decentralization by devolving authority to local governments. The commitment to abandon centralization was shown in the amendment of Indonesia's 1945 Constitution by emphasizing the devolution of authority. The Constitution allows regions to have special autonomy, national recognition for those that have a history related to nation-building, and the uniqueness of local cultures and identities.1 Thus, the autonomy granted to all local governments is not limited to administrative and fiscal aspects. Decentralization policy also allows political autonomy, where local governments can administer their regional policies after deliberations in democratically elected regional parliaments. Direct popular elections for the heads of local governments were introduced in 2005.

The commitment to adopt extensive decentralization was also shown in giving the Indonesian capital of Jakarta the status of a special region with greater autonomy under Law No. 34 of 1999 on the Provincial Government of the Special Capital Region of Indonesia. In this arrangement, Jakarta as the state's capital can exercise local government authority in all areas of government affairs excluding five national competencies: national defence and security, fiscal, monetary, judicial and religious matters. The difference (from other local governments) is that only a single structure of autonomy is applied to Jakarta at the provincial level: districts of Jakarta have only administrative power, which allows Jakarta to respond agilely, efficiently, and effectively.

In 2007, in amending Law No. 34 of 1999, the national government granted the special capital region of Jakarta more political autonomy by enacting Law No. 29 of 2007. In this regulation, the Regional House of Representatives (DPRD) no longer decides who the governor of Jakarta is. The new arrangements give more political autonomy by allowing the direct (popular) election of the governor and vice-governor of Jakarta. As a special region, however, a gubernatorial candidate must obtain a majority (50 per cent + 1) vote to win the election.2 This differs from the electoral system in other local governments, where a candidate can win the election by earning the most votes (even if this is less than 50 per cent majority).