MANY REGIONAL GOVERNMENT POLICIES NOT IN LINE WITH CENTRAL GOVERNMENT REGULATIONS

The Regional Autonomy Watch (KPPOD) re­ported that in 2012, approximately 72% of around 1,400 regional regulations are not in harmony with central government policies and regulations. The disharmony is potential to create illegal tax levies collected by the regional government.

Robert Endi Jaweng, Executive Director of KPPOD, in Jakarta, on Monday (2/18/2013), said that the disharmony is because the regions are still adopt­ing Law No. 34/2000 on Regional Taxes and Retribution as guidelines for collection of regional taxes and retribution. While, in fact, there is a new regulation, namely Law No, 2B/2009 on Regional Taxes and Ret­ribution replacing Law No. 34/2000. Many regions are still adopting the old Law. Consequently, many regional governments freely decide and collect taxes in their respective regions.

Robert sees that some regions are too euphoriastic when receiving the delegation of authority. This problem frequently occurs even though autono­my has been applied since 2001. For 11 years, the central government has not been optimal in imple­menting socialization of regional autonomy. Or, may be the regional governments intentionally violate the regional autonomy law for the sake of incoming of regional revenues. Yet, however, the autonomy excess is followed by central government's initiative to strengthen position in the regions through the role of the province.

The Governor position will be optimized only as a representative of the central government in the region. The aim is to enable easy supervision of re­gional autonomy implementation in each regency and city. The delegation of part of central government au­thority to regional government is actually aimed at shortening bureaucratic processes to optimize provision of public services. The main goal is to create social welfare. Now, we hope that the revision for the interest of the public.

Data released by the Ministry of Horne Affairs stated that in 2012, the Ministry of Home Affairs has cancelled 824 regional regulations out of 13,520 regional regulations issued by regional governments. These regulations are prone to problems. In addition to their being in contradictory to the regulations of e higher hierarchy, these regulations are believed to cause problem to investment climate. And, businesses also complain about many levies, even a duplica­tion of central, government taxes, when investing in the regions.

The regional government reasoned that levies are required to increase Regional Revenue (PAD) is the State Budget (APBD). This attempt is a solution when spending in APBD is higher than revenue as it is spent on routine salary payment. Robert believed that the problem occurs every year. Problematic regional regulations are clue to excess of regional autonomy implementation.

He, hoped that the society will participate in criticizing this condition. If not, it may result in a collusive policy and monopoly between businessman and regional government officials. So, it is not a people based system, but a conglomeration. It may also dis­turb business or investment operation. The negative effect of corruptive officials and unproductive regional regulations is bribery between businessmen and state officials. He believed that corruption cases that hap­pened between businessman and state officials are clue to a complicated bureaucratic process. For example, tender for provision of goods and services, government projects, and misuse of permits.

Business News - February 20,2013