News |  Web Resources |  Yellow Pages |  Free Advertising |  Chat

Bangladesh |  Immigration |  E-cards |  Horoscope |  Matrimonial
Education  |  Music  |  Weather  |  Bulletin Board  |  Photo Gallery

Travel  |  Business World  |  Women's World  |  Entertainment

 Home > News > International News > Full Story

Change Your Life!

Indonesia's government to relax grip on power

News
Sports
Chat
Travel
Dhaka Today
Yellow Pages
Higher Education
Ask a Doctor
Weather
Currency Rate
Horoscope
E-Cards
B2K Poll
Comment on the Site
B2K Club

 

December 31, 2000 

  

JAKARTA-- (AP) - Worried that the world's fourth most populous nation could disintegrate politically, Indonesia is reinventing the way it governs itself. The transformation, taking effect Monday, is so radical it has been labeled "make-or-break" time for this sprawling violence-wracked nation.


Indonesia's highly centralized national government is devolving much of its power to about 360 district administrations across the vast archipelago.


Health, education, water supply, roads and other vital government services are becoming the responsibility of inexperienced and largely unskilled local authorities.


The shift is a dramatic change for Indonesia, a nation of 210 million people from hundreds of ethnic groups, some of them rivals. For decades, power has been hoarded in the capital, Jakarta, and wielded by an elite few, mainly from the dominant island of Java.


With its economy in recession and parts of the country in the throes of religious and separatist conflicts, the central government is pinning its hopes on keeping Indonesia together by allowing communities to manage themselves.


"The sooner and better we decentralize the government, the more chance we have of keeping the unity of the country," said Minister for Resettlement Erna Witular.


But the experiment will be risky. Western analysts say that while in theory it is a good idea, they warn that in practice it may further fracture Indonesia rather than bind it together.


World Bank Senior Economist Bert Hofman said a lack of planning, necessary financing and skilled professionals in outlying areas may lead to greater political and economic chaos.


"It's going to be messy," he said. "There is very little time left with an awful lot to do. It is a make-or-break issue for Indonesia."


Indonesia first toyed with empowering the provinces and having a federal-style government when it won independence from Dutch colonial rule in 1949. The nation's founding fathers even named the country the United States of Indonesia.


But six months later the government scrapped the constitution - seen to have been unduly influenced by the Dutch - and dissolved the collection of states into the unitary Republic of Indonesia. Centralization was further strengthened during the 32-year military dictatorship of former president Suharto.


Establishing a sense of national unity, however, proved difficult and several regions have rebelled against centralized rule.


One of the first to push for independence was the predominantly Christian Maluku islands in the 1950s, afraid of being dominated by the rest of Indonesia, where 90 percent are Muslim.


Later, the staunchly Muslim separatists in Aceh, fed up with broken promises of greater autonomy, launched a battle for independence that has cost 6,000 lives in the past decade alone.


In Irian Jaya province, separatist tribesmen, frustrated with their resource-rich province being exploited by outsiders, have been battling to secede for decades.


There is also growing dissatisfaction toward Jakarta by other resource-rich regions. Riau province, for example, has abundant oil, natural gas and timber reserves that contributed dlrs 8.4 billion to the national budget last year. But the province only received 2 percent of that back, and nearly half of the local population live below the poverty line.


Secessionists everywhere have been emboldened by East Timor's successful break with Indonesia last year.


In attempt to defuse centrifugal pressures, Jakarta will allow district governments to keep 80 percent of revenues from mining, forestry and fishery, 30 percent from natural gas and 15 percent from oil. They also will get a greater share of general tax funds.


The government plans to grant Irian Jaya and Aceh an enhanced autonomy, including the right to impose Islamic Sharia law in Aceh, and an even larger share of revenues.


But analysts caution that extra cash will not necessarily translate into a windfall for the regions. From the new year, local councils will be responsible for managing and paying for most government services in their areas, something Jakarta has done until now.


The national government is retaining responsibility for defense, monetary policy, foreign affairs and justice.


Hofman warned that an acute shortage of human resource talent in the districts and functioning local institutions may lead to a breakdown in local government services.


He said little has been done to prepare for the transfer of power.


Foreign aid workers who have helped local authorities ready themselves for the changes say many communities and even government officials are unaware of what will happen Jan. 1.


As many as 100,000 national-government bureaucrats will have to be relocated from Jakarta to outlying regions, a task that could take months.


Local politicians will have the power to pass new laws and levy new taxes, something that frightens foreign and local investors in a country where corruption is endemic.


The head of the Denver-based Newmont Mining Corp's Indonesian operations, Richard Ness, said investors are being scared away by confusion over what exactly will happen after Jan. 1. His company was not even sure which level of government it had to pay millions of dollars in mining royalties to next year.


"In the short term, doing business in Indonesia will be harder due to a lack of clarity," he said. "It is going to be a big challenge for investors."



Copyright © Bangla2000. All Rights Reserved.
About Us |  Legal Notices |  Advertisement