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Brief Description of the Country and its
National/State Government Structure
Demography
In terms of population, Indonesia is the fifth largest country
in the world, consisting of more than 17,000 islands. The
country's population based on the 1990 census was almost 180
million people. This number is expected to reach 258 million
by the year 2018 at the end of the country's second long-term
development plan (1993-2018). There are two problems associated
with this. Firstly, most of the country's population lives
on Java and Sumatra. Secondly, the other islands, comprising
the largest land area of the country, are only inhabited by
less than 20 per cent of the total population.
Table 1. Population Trends
| Islands |
1990 |
2018 |
| Total |
Urban |
Total |
Urban |
| Million |
% |
Million |
% |
Million |
% |
Million |
% |
| Java |
107.50 |
60.02 |
36.70 |
67.09 |
144.05 |
55.79 |
81.23 |
60.53 |
| Sumatra |
36.40 |
20.32 |
10.20 |
18.65 |
58.40 |
22.61 |
33.32 |
24.83 |
| Kalimantan |
9.10 |
5.08 |
2.50 |
4.57 |
16.47 |
6.38 |
5.15 |
3.84 |
| Sulawesi |
12.15 |
6.98 |
2.70 |
4.94 |
18.67 |
7.23 |
8.15 |
6.07 |
| Others |
13.60 |
7.59 |
2.60 |
4.75 |
20.63 |
7.99 |
6.36 |
4.74 |
| Total |
179.10 |
100 |
54.70 |
100 |
258.20 |
100 |
134.20 |
100 |
Source: Central Bureau of Statistics
The population of Indonesia is increasingly urban. In the
1961 census the urban population of the country was little
more than 17 per cent; in the 1990 census, urban population
has increased to 30 per cent. It is estimated that by the
year 2000 urban population will increase to some 40 per cent
and that by the year 2018 it will be more than 51 per cent
of the total population. This urban population will be living
in various metropolitan areas (of which at present there are
6, whereas there would be 16 by the year 2018), e.g. in large
cities, in medium cities and in small towns
Table 2. Estimated Number of Urban Settlements
by Size (1990 and 2018)
| City sizes |
Number of cities |
Population (million) |
| 1990 |
2018 |
1990 |
2018 |
| Metropolitan |
6 |
16 |
14.10 |
45.01 |
| Large |
7 |
23 |
4.95 |
14.09 |
| Medium |
62 |
175 |
12.50 |
49.98 |
| Small & Others |
1237 |
1674 |
23.15 |
25.12 |
| Total |
1312 |
1888 |
54.70 |
134.2 |
Source: Central Bureau of Statistics
The increase in the proportion of people living in urban
areas will pose a challenge in providing the needed urban
infrastructures, new employment opportunities, etc. This is
more so in the larger urban settlements than in the smaller
ones. Generally speaking, the provision of infrastructure
and services needed by the urban population of the country
is still far from sufficient. Even in the urban areas part
of the population (16 per cent) is still using kerosene rather
than electricity for lighting.
Table 3. Percentages of Household and Living
Conditions (1981-1989)
| Access to facilities |
Indonesia |
Urban |
Rural |
| 1981 |
1989 |
1981 |
1989 |
1981 |
1989 |
| Lighting*
- Electricity
- Kerosene
Sources of water
- Pipe/pump
- Well
- Spring
- River
- Other
Toilet
- Private with septic tank
- Private no septic tank
- Shared
- Public
- Other (including none)
|
14.0
84.9
11.4
59.5
14.6
8.6
5.7
9.7
22.8
11.7
8.8
46.9
|
43.8
71.1
21.8
55.2
13.3
6.4
3.3
17.6
25.3
9.6
4.9
46.6
|
46.7
52.6
38.6
53.3
1.4
1.3
5.3
28.8
20.3
18.8
10.2
21.7
|
83.9
15.9
51.5
43.9
1.9
0.6
2.0
39.0
20.0
16.3
5.7
18.9
|
5.6
93.2
4.4
61.1
18.1
10.5
5.8
4.7
23.4
9.8
8.5
53.7
|
28.3
71.1
10.4
59.6
17.7
8.7
3.7
9.3
27.3
7.1
4.6
51.8
|
Source: National Committee for Habitat II, National
Report for Habitat II, Twenty-Year Shelter Sector Review
The bulk of the country's gross domestic product is produced
on Java and Sumatra. Some other islands seem to perform almost
as well Java and Sumatra, if not better.
Table 4. Gross Regional Domestic Product by
Province (in billions of Rupiah)
| Province |
1993 |
1994 |
1995 |
Growth rate % |
Aceh
North Sumatra
West Sumatra
Riau
Jambi
South Sumatra
Bengkulu
Lampung
West Java
Jakarta
Central Java
Yogyakarta
East Java
West Kalimantan
Central Kalimantan
South Kalimantan
East Kalimantan
North Sulawesi
Central Sulawesi
South Sulawesi
South East Sulawesii
Bali
West Nusatenggara
East Nusatenggara
Maluku
Irian Jaya
East Timor |
10,883.4
18,215.5
6,027.5
17,253.8
2,463.4
10,736.2
1,391.8
5,410.5
51,106.5
52,675.4
33,978.9
4,058.0
49,172.2
5,148.0
3,006.9
4,560.1
16,021.5
2,806.9
1,755.5
7,511.8
1,289.2
5,689.9
2,550.6
2,096.8
2,453.2
4,475.7
515.4 |
11,026.2
19,941.3
6,475.9
17,976.7
2,664.6
11,515.3
1,486.8
5,796.5
55,505.3
56,385.0
36,345.2
4,387.1
52,727.5
5,536.1
3,309.9
4,953.8
17,692.5
3,018.2
1,885.1
8,088.1
1,373.9
6,117.2
2,735.9
2,276.2
2,613.1
5,103.3
566.7 |
11,151.1
21,802.5
7,015.8
18,814.8
2,883.9
12,546.3
1,608.1
6,400.5
60,638.2
60,840.1
39,125.3
4,741.9
57,047.8
6,062.2
3,608.7
5,405.0
18,401.2
3,271.9
2,037.9
8,737.1
1,472.0
6,602.4
2,955.6
2,478.0
2,756.6
6,123.1
620.2 |
1.22
9.40
7.89
4.43
8.20
8.10
7.49
8.76
8.93
7.47
7.31
8.10
7.71
8.52
8.47
8.47
7.17
7.97
7.74
7.85
6.85
7.72
7.65
8.71
6.00
13.59
9.69 |
| GDP |
323,584.1 |
347,503.5 |
375,148.1 |
7.67 |
Source: Nota Keuangan dan Rancangan Anggaran Pendapatan
dan Belanja Negara TA 1997-1998
National governmental and political structure
The Constitution of the Republic of Indonesia is usually
referred to as the 1945 Constitution. The fundamental ideas
of the Constitution are that the State is a unitary and seeks
to realize social justice for all the people. Sovereignty
is in the hands of the people, based on democracy and deliberation
among the representatives to reach a consensus. The State
is founded upon the belief in God, so that the government
and other authorities are obliged to nurture the nobility
of human character and hold fast to the moral ideals of the
people.
The highest authority of the State is in the hands of Majelis
Permusyawaratan Rakyat (MPR). This is a people's assembly
that exercises the sovereignty of the people, determines the
Constitution and guidelines of State policy and appoints a
President and a Vice President to carry out that State policy.
The Majelis is a representative body and its power
is final. The President is the highest Executive of the government,
in whom authority and responsibility are concentrated. The
President acts in concurrence with the Dewan Perwakilan
Rakyat (DPR) or the House of Representatives in making
acts or laws and in determining the national budget. The President
is not responsible to the Dewan, nor can he dismiss
it. Both the President and the Dewan are responsible
to the Majelis but the Dewan can control
the President through the Majelis, since the members
of the Dewan are ex officio members of the Majelis
that can require the President to answer for his responsibility.
Members of the Dewan comprise half the members of
the Majelis.
The Dewan, which can be roughly equated with a Parliament,
is an elective representative body, with a membership, in
conformity with laws, composed of the representatives of the
political parties as well as appointees of the armed forces.
The other bodies, in addition to the President, with whom
they have equal standing are the Supreme Court, the State
Audit Board and the Supreme Advisory Council. They are subordinate
only to the Majelis. The President forms and leads
the Cabinet. The President, to whom they are responsible,
appoints the Ministers who lead the ministries. They are not
responsible to the Dewan, which cannot dismiss them.
The Dewan, however, has the right to call the Ministers
to answer members' questions about the conduct of the ministries.
It can also hold a public hearing, in which professional experts
can express their opinion on particular problems in front
of the members of the Dewan. There are two types
of Ministers: Ministers leading the technical or administrative
departments (hereinafter referred to as ministries) and Ministers
without portfolios or departments to lead (State Ministers).
Local government
In addition to the national government, article 18 of the
1945 Constitution also provides for the creation, maintenance
and development of local governments in Indonesia and for
the enactment of a local government act. The current law concerning
local government in Indonesia is Act Number 5 of 1974, which
is entitled Governance at Regional Level (hereinafter referred
to as the Local Government Act of 1974). This title is intended
to indicate that the territorial division and sub divisions
of Indonesia are not only administered locally, but also nationally
as well as jointly. The entire territory of the Republic of
Indonesia is divided and sub divided with regards to the principle
of deliberation and consensus in administration and the traditional
rights of the regions that have a special character according
to the Constitution. This last provision is concerned with
the great diversity of people constituting the Indonesian
nation. The different ethnic cultural groups not only have
their own customs and dresses, but even languages, cultures
and attitudes that vary from one part of the country to another.
This diversity enriches Indonesia's unity.
The country is divided into autonomous entities and administrative
ones in accordance with the provisions of article 18 of the
Constitution. The autonomous entities are the manifestation
of the decentralization principle, while administrative entities
are the manifestation of the deconcentration principle. According
to the provisions of article 1 of the Act, the decentralization
principle is known as: "The transfer of responsibilities from
the central or higher level government to the lower level
government to have its own autonomous responsibilities". Local
autonomy, on the other hand, is defined as: "The right, authority
and responsibility of subnational entities to regulate and
manage their own affairs". According to the same article,
deconcentration is referred to as: "The delegation of responsibilities
from the central government, the Governor, the Mayor or the
Chief of the provincial and local offices of ministries to
their officers at the subnational levels". Under the decentralization
principle, two levels of autonomous entities are created:
autonomous provinces and autonomous localities. These locality
administrations are what we call local governments, while
provincial administration is more associated with the administration
of a region to which, the central government transfers some
of its responsibilities or authorities. Every province except
Jakarta is divided into a number of autonomous localities.
Jakarta is a province and a special territory as it is the
seat of the national government. Therefore, it is not divided
into smaller autonomous regions or localities. Presently there
are 27 autonomous provinces and 300 autonomous local governments.
Under the deconcentration principle, three levels of administrative
regions are created: regions, County or Municipality and Districts.
Thus the country is divided into regions, regions are divided
into County and Municipality and County and Municipality are
divided into Districts. The areas of autonomous provinces
and local governments are necessarily identical to those of
the regions and County or Municipality. Thus an autonomous
province is necessarily an administrative region, while an
autonomous locality is necessarily either a County or a Municipality.
However, an administrative entity does not necessarily have
to be an autonomous one. Thus there are several entities which
are merely administrative County or Municipality. Jakarta,
for example, is divided into 5 administrative Municipalities.
Also, under the deconcentration principle, there are two other
smaller entities. One is the so-called Governor, which is
an administrative entity within a County. There are presently
only 36 Townships in the country, so that not all the Counties
in the country have a Governor in their area. The other is
District. Thus the County is divided into regions, a region
is divided into County and Municipality, a County is divided
into a Governor (which itself consists of several Districts)
and a number of Districts. A Municipality, on the other hand,
can be only divided into Districts.
The government agency administering the administrative region
is the regional government, while the one administering the
autonomous province is the provincial government. The regional
government consists of a Governor with a secretariat and the
regional offices of central ministries. The provincial government,
on the other hand, consists of the Governor with a secretariat
and a number of departments as well as the provincial House
of Representatives. The Governor of the administrative region
is necessarily the Governor of the autonomous province. As
the Governor of the administrative region, he is the representative
of central government, while as the Governor of the province
he is Chief Executive of the autonomous province. Thus, a
Governor has double function. As the central government representative,
his job is to supervise the working of the autonomous provincial
and local governments in his region and to coordinate the
regional offices of ministries.
The County Commissioner or the Mayor of a Municipality is
also the Chief Executive of the respective autonomous local
governments. As the representative of central government,
his tasks include supervising the local government and coordinating
the local offices of ministries, while as the County Commissioner
or the Mayor of the local government he acts as the Chief
Executive of his area. Meanwhile, throughout the country there
are 3,605 Districts and 66,974 grass-roots divisions of which
61,924 are villages and 5,055 are urban villages. The first
are rural subdivisions where old forms of democracy are still
practised, while the second are city wards or suburban subdivisions
part of Kelamatan.
Evolution of Local Government, its Legal
and Political Background
Dutch era
The evolution of local government in Indonesia can be traced
back to the era of Dutch Colonialism. The Dutch Decentralization
Law of 1903 created local councils for the autonomous Residencies
and Municipalities. Then with the Bestuurshervormingswet of
1922 the area of the country was divided into gouvernementen
or provinces. In 1925 the Council for Residencies was abolished
and replaced with the Council for Regencies. In addition to
that the Council for Provinces was created. The first province
established was the West Java (Jawa Barat) in 1926,
East Java (Jawa Timur) in 1929 and Central Java (Jawa
Tengah) in 1930. The Governor chaired the council of
a province while the Regent chaired the Councils of the Regency
(similar to a County). Meanwhile, the council of a Municipality
was to be chaired by a Mayor. Under this act there were 76
Regencies and 32 Municipalities on Java and 13 Municipalities
outside of Java.
Post independence era
Local Government Act 1 (1945)
The 1945 proclamation brought a new system of local government
in Indonesia. The Constitution of 1945 provides for a local
government system and makes it clear that local autonomy is
one of the principles of governance in Indonesia. The article
provides for the basic principle of the local government system:
"With regards to the principle of deliberation and consensus
in administration and with regards to the traditional rights
of the regions that have a special character". The first of
a series of laws enacted by the new republic was the Local
Government Act Number 1 (1945), in which the following provisions
were covered:
- In each region a Local Board of the People's Representatives
(BPRD) was formed;
- The BPRD elects a Chief Executive of the local government;
- The Chief Executive is both a central government officer
as well as a leader of the local government;
- Three levels of local government were created: Residency,
County and Municipality.
Local Government Act 22 (1948)
- Local government consisted of the House of Representatives
and the Local Advisory Board (LAB);
- The Local Advisory Board was headed by the Chief Executive;
- The Local Advisory Board was responsible to the House
of Representatives;
- The Chief Executive was both a central government representative
as well as a leader of the local government;
- Three levels of autonomous local government were created:
Province, County or Municipality and Village or Governor.
Local Government Act 1 (1957)
- Local government consisted of the House of Representatives
and the Local Advisory Board;
- The local Chief Executive was the leader of the Local
Advisory Board;
- Three levels of autonomous local government were created:
first, second and third.
Presidential Decree 6 (1959)
- The local Chief Executive was both a local leader and
a central government representative;
- The local Chief Executive was not responsible to the local
House of Representatives;
- The local Chief Executive was to be assisted by the Daily
Executive Board (DEB).
Presidential Decree 5 (1960)
- The Chief Executive was also the chairman of the local
House of Representatives;
- The local government secretary was elected and appointed
by the local House of Representatives.
Local Government Act 18 (1965)
- Local autonomy was to be executed as extensively as possible;
- The Chief Executive was the leader of the local House
of Representatives;
- The local Chief Executive was responsible to the President
through the Minister of home affairs;
- Three levels of local government were established: Province,
County or Municipality and District or Governor.
Note: This act was never implemented because of a change
in national government in September-October 1965 that changed
the policies of the central government on local government.
Local Government Act 5 (1974)
- Local autonomy was to be real and responsible local autonomy;
- Local autonomy was focused on the local government level
rather than on the regional government level;
- Local autonomy should give priority to aspects of both
harmony and democracy;
- Local autonomy was aimed at increasing efficiency and
productivity, especially in the execution of development
process, providing public services and maintaining political
stability as well as national integrity;
- Both the decentralization and deconcentration principle
were to be applied.
Local Government Categories and Hierarchies
Structure of local government
Local authority organizations consist of five components:
the Chief Executive and his/her deputy (one to three at the
provincial government and one or none at the county and municipal
governments), the House of Representatives, the secretariat,
the operational units and the planning agency.
Chief Executive
The Chief Executive of autonomous authorities for both the
regional and local level (Governor, County Commissioner and
Mayor) are elected by the House of Representatives of the
respective autonomous authorities, according to the following
procedures:
- Political parties in the area suggest at least three and
a maximum of five candidates who are acceptable to the House
of Representatives. The respective House of Representatives
to the Minister of Home Affairs forwards the list of candidates
to the Minister of Home Affairs. If the Minister does not
have any objection to the proposed candidates, the candidates
are put into a vote in the respective House of Representatives.
The result will be a ranking of candidates based on the
number of votes collected by each candidate.
- For the position of a governor of a province, the provincial
House of Representatives through the Minister of Home Affairs
submits the names of at least two candidates to the President.
The President decides which one of them is to be appointed.
That is to say, governors are appointed by the President
at the recommendation of the Minister of Home Affairs from
among the candidates proposed by the provincial House of
Representatives. After Presidential Decree appointing the
Governor issued, the new Governor will be sworn in by the
Minister of Home Affairs in front of a special session of
the provincial House of Representatives.
- For the position of County Commissioner or Mayor, almost
the same procedures are applied. The only difference is
that the Governor of the respective region, the local House
of Representatives and the Minister of Home Affairs will
scrutinize the candidates proposed by the local House of
Representatives. The Minister decides which one of them
is to be appointed. That is to say, the County Commissioner
and Mayor are appointed by the Minister of Home Affairs
at the recommendation of the Governor from among the candidates
proposed by the local House of Representatives. The respective
Governor inaugurates the County Commissioner and Mayor.
- The Governor, the County Commissioner and the Mayor are
appointed for a term of five years and are eligible for
immediate re-election and appointment for another term.
House of Representatives
According to the provision in article 13 of the Local Government
Act (1974), the provincial government consists of the Governor
and the provincial House of Representatives. Similarly, the
local government consists of the County Commissioner (or the
Mayor in the case of an autonomous Municipality) and the local
House of Representatives. The House of Representatives, in
concurrence with the Chief Executive of the respective autonomous
entity (Governor, County Commissioner or Mayor), enacts provincial
or local laws, including those defining provincial and local
budgets. Provincial and local laws are only allowed to regulate
matters that are covered in the responsibilities already transferred
to the provincial and local governments by the central government,
the so-called autonomous responsibilities.
Secretariat
The secretariat of an autonomous provincial or local government
is part of the provincial or local government organization.
Its main job is to assist the Chief Executive in running the
administration of the provincial or local government and provide
administrative supports for the whole provincial and local
government administration. Its duties cover financial management,
budgeting (in concurrence with the planning agency), personnel
management, asset management, legal affairs and procurement.
A provincial secretary heads the secretariat of a province
and a local secretary of a local government. Similar to the
Chief Executive who acts as central government representative
in the region as well, the secretariat of an autonomous entity
also performs the tasks of the secretariat of its respective
administrative entity. Thus the secretariat of a province
is also the secretariat of the region, while the secretariat
of a local government is also the secretariat of the County
or the Municipality.
Operational units
Executive elements of the provincial and local governments
performing mandatory responsibilities of provincial and local
governments that are transferred to them by the central government
(i.e. autonomous responsibilities). Provincial and local laws
regulate their duties.
Planning agency
The planning agency is a staff unit of the autonomous entity.
There are a provincial and a local government-planning agency.
The planning agency, however, using the responsibility of
the Governor at the regional level to coordinate regional
offices of ministries, also coordinates the planning activities
of the regional offices of ministries. Thus the regional offices
of ministries send to their respective ministries the development
plans which are already coordinated at the regional level
and are approved by the provincial-planning agency. Similarly,
at the local level, the planning agency coordinates the planning
activity of the local offices of ministries; only sectoral
plans which have been approved by the local planning agency
are sent to the regional offices of the ministries and finally
to the ministries at central level.
Local Government Functions
Although to varying degrees, responsibilities that have been
transferred (devolved) by the central government to local
governments nationwide may cover parts of the following areas.
Agriculture government regulation 47 (1951)
Provision of seeds, agricultural tools, demonstration plots
agricultural extension services, etc.
Animal husbandry government regulation 48
(1951)
Provision of animal markets, slaughterhouses, animal health
services expert training, etc.
Fisheries government regulation 49 (1951)
Provision of demonstration projects, prevention and eradication
of fish diseases through provision of medications and extension
services with regards to fishery technology, the development
of fishermen's communities, the management of fish trading
in the region, etc.
Housing government regulation 6 (1958)
Allocation of housing for government agencies, para-statal
organizations and non governmental organizations, the allocation
of spaces for the processing of goods, the warehousing of
vehicles and the stabling of animals.
Education and culture government regulation
65 (1951)
Provision of elementary school education including the selection
of students, financing, administration, equipment, school
buildings and yards, school employees including teachers,
certification and library.
Social development government regulation
5 (1958)
Provision of homes for homeless children and babies, the
placement of orphans into families, the provision of homes
for homeless adults, disaster relief except national disasters,
coordination of private and non-governmental organizations
providing the above services.
Manpower government regulation 14 (1958)
Provisions for workers' welfare and the welfare for the unemployed.
Plantation government regulation 22 (1975)
Guidance and monitoring of large plantations in terms of
technology and production, the promotion of investments in
plantations, the control of land used for plantations as well
as the development and guidance on rubber plantations by the
people.
Public administration government regulation
8 (1963)
Assisting central government ministries in delivering basic
necessities to the people.
State projects and enterprises government
regulation 7 (1964)
State enterprises can be transferred to local governments
to become local enterprises.
Forestry government regulation 64 (1957)
Provisions for the sale and distribution of forest products
and their conservation.
Small industry government regulation 23 (1962)
Provisions for the promotion and development of small industries.
Tourism government regulation 24 (1979)
Provision and care of tourist sites, tourist guides, guesthouses,
youth hostels, camping grounds, restaurants, bars, tourist
areas, recreations and the promotion of local tourism.
Health government regulation 7 (1987)
Provision of welfare to mother and child, family planning,
nutrition, hygiene and sanitation, community health extension,
treatment of casualties, school health, mouth and teeth health,
the provision of medical assistance, medical rehabilitation
and care and the provision of medicines and medical equipment.
Public works government regulation 18 (1953)
and 14 (1987)
Parts of government responsibilities in water resources,
in road and highways and in human settlements including spatial
planning.
Transport and traffic government regulation
22 (1990)
Speed limits, parking, traffic signs, pedestrian crossings,
tariffs for public/local transports, public transport routes,
operation permits for private public transport companies,
etc.
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