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Yudhoyono: No More New Regions Speaking to the press after his meeting with leaders of seven main state institutions in Bogor, West Java, the president asserted he had had enough of seeing the birth of new provinces JAKARTA (TPP) – President Susilo Bambang Yudhoyono last week came out firmly against any plan to create new adminstrative regions such as provinces, regencies and cities, pending what he said to be “an overall review on the ruling itself as well as the results and performances of the newly established state entities.” Speaking to the press after his meeting with leaders of seven main state institutions in Bogor, West Java, the president asserted he had had enough of seeing the birth of new provinces, while at the same time more regencies and cities are being set up with no end in sight. He has the figures to back up his complaint: in the past 10 postreform years, seven new provinces (from 26 to 33), 164 regencies and 34 cities have been established (from 293 to the present total of 491). “Clearly, we can’t let this go on forever unless we can come up with a new concept,” he said. The head of state further said the government is currently assessing the regions that have been newly established as spin-offs of already existing provinces or regencies. Pending the evaluation process, he said, “the government has put a halt on expanding regions (into new provinces or regencies).” President Yudhoyono explained that the evaluation will look into whether the new regions have achieved the targetted results or have in fact undermined the quality of life of the surrounding communities. “There will be no more expansions until we know the results of the evaluation,” the president said. “We will be decisive on this matter.” Separately, Coordinating Min-
ister of the Economy Hatta Radjasa noted that “many regions that should not have been expanded in the first place were actually expanded.” He added that the government is currently preparing “a new design” on the ideal number of provinces, regencies and cities for the nation. “The Home Minister is working on it, but in the meantime the current PP (government regulation) on regional expansion will be tightly controlled,” said Hatta. Hatta does not rule out the possibility that expanded new regions will be reverted to their original form “as the regulation allows that to happen.” As things stand now, Indonesia (size: 1.9 million km2) comprises 33 provinces, 398 regencies and 93 cities. (By comparison, the US covers 9.3 million km2, or nearly five times Indonesia’s size, and has 50 states, or only 50 percent more than the number of Indonesia’s provinces.) High on the president’s mind is the huge funds, most of which come from the state budget, and resources required to prop these new state entities as they need to have offices, governors, vice governors, regents and the usual oversize bureaucracies. Even higher on his mind,as the president himself pointed ouit, is that the bulk of their budgets is used to maintain officials’ facilities and inspection trips instead of on efforts to improving the people’s welfare. In 2006 the government proposed a moratorium on new provinces and regencies, but it did little to prevent the House from approving new autonomous regions. As it turned out, many of the
President Susilo Bambang Yudhoyono talks to the press after the Bogor meeting.
new regions did not only have the human resources to manange them, they also relied solely on central government financial handouts to sustain themselves. According to figures compiled by the state-run statistics body BPS, if in 2000 (the year new regions started to sprout) the government allocated Rp 32.9 trillion to keep them afloat, in 2008 the amount jumped to Rp 250,34 trillion. To be sure, expanding the number of provinces goes back to the early days of post-indepen-
dence Indonesia. But at the time management imperatives over the country’s cumbersome geographical spread dictated more administrative regions than the original seven provinces (Sumatra, West Java, Central Java, East Java, Kalimantan, Sulawesi and the Lesser Sunda Islands). In post-reform era the measure took a life of its own as often enough governments came under strong pressure from local leaders who wish to have their own kingdoms.
Jakarta, Beijing Explore Coop in Defense Industry The two countries have agreed to strengthen their already good relations through cooperation in the field of security and defense industries The Indonesian and Chinese governments are seeking possibilities in forging bilateral cooperation in the field of security and defense industries. “The two countries have agreed to strengthen their already good relations through cooperation in the field of security and defense industries,” vice presidential spokesman Yopie Hidayat said here last week. Hidayat made the statement after Vice President Boediono had received Chinese Coordinating Minister for Political, Legal
and Security Affairs Dai Bingghuo.
of Indonesia-Chinas bilateral relations, “there would be no more freezing of diplomatic relations”. Indonesia-China diplomatic relations once soured, but both sides hope “there will be no low tide in the 60th year of bilateral relations,” Hidayat said.
The vice president on the occasion was accompanied by Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto and Foreign Affairs Minister Marty Natalegawa. Hidayat said China regarded Indonesia as an important and strategic partner, and as such wants to help Indonesia develop its security and defense industries. “China also asked that the
good relations between the two countries would continue to be stepped up for mutual benefit,” Hidayat said. He pointed out that as this year marks the 60th anniversary
Hidayat said that the subject of China offering arms to Indonesia was not discussed at the meeting of Vice President Boediono and Bingghuo. “The vice president and his guest only discussed political and security matters besides other issues related to the improvement of cooperation in various fields,” Hidayat said, adding that Bingghuo had invited Boediono to make an official visit to China.
VIEWPOINT
FEATURES
BUSINESS
TOURISM
Coastal Zones and Small Island Management of Indonesia
Betting on the Future
Matahari Department Store Up for Grabs
Borobudur, Prambanan Temples Set to Become More Attractive
Indonesia alone could lose about 2000 small low-lying islands by 2030 if the sea level continues to rise, and no sufficient mitigation and adaptation efforts are being taken. PAGE 2
The Indonesian film industry is still in its infancy but it won’t be long before it starts to really take off; we are at the crucial time when the government can help the industry grow.
PAGE 7
Vice President Boediono
Matahari Putra completed an ownership restructuring of MDS to Pacific Utama, which changed the name to Matahari Department Store in December 2009. PAGE 9
As an organiser of tour packages, TWC BP & RB wanted to inform potential buyers about the forthcoming attractions of these tourist destinations. PAGE 13
Photo: www.presidenri.go.id
And more often than not, the ‘proposals’ came with more than a subtle hint on secession should their demand not be granted. Although such threats would unlikely become a reality, the very idea of it was enough to make past governments succumb to their demands. When Mardiyanto was Home Affairs Minister during President Yudhoyono’s first term, he said that a report on 48 new administrative regions shows that “they have had no impact on raising the welfare of local people”.
Ironically, that is one of the very reasons why new regions were allowed to exist in the first place. In as much as the president’s concern over new regions is valid,there is also no constitutional way he could prevent the establishment of new regions in the future. So long as Law No. 32/2004 on Regional Governments remains in place and House members continue to allow themselves to be wooed by regional local leaders to have their ways, it is
likely that new regions will continue to come to being. As the Yogyakarta-based Gajah Mada University scholar Sutoro Eko correctly pointed out, “unless the government and the House sit together and revise the exisiting law, pressure to set up new regions will continue unabated as the law allows people in the regions to propose such an idea.” By Eko’s reckoning, “80% of all the new regencies and cities have become poorer than they were before.”
20 Indonesians Receive Australian Endeavor Awards This year six Australians also won Endeavor Awards to conduct research in Indonesia.
Australian Ambassador to Indonesia Bill Farmer last week honored 20 high-achieving Indonesian recipients of the Australian Government Endeavor Awards for 2010. According to an Australian Embassy media release, the recipients included two winners of The Prime Minister`s “Australia Asia Endeavor Award”, a prestigious scholarship newly announced by Prime Minister Kevin Rudd. “Australia is very proud of these high-achieving Endeavor Awardees,” Farmer said, adding that the recipients of these prestigious Awards would continue to strengthen research and professional linkages between Australia and Indonesia and enhance their professional careers in their chosen field. A recipient of the Prime Minister`s Australia Asia Endeavor Award, Agustian Sutrisno, National Program Officer for UNESCO, said that furthering studies at a PhD level in Australia will refine his educational management skills by conducting research based on actual educational management practices.
“Qualified researchers in the field of education are very rare in Indonesia and, by completing my PhD, I will be a researcher and an academic who is able to provide evidencebased inputs and advice on the development of our educational sector,” Sutrisno said.
Bill Farmer
The Endeavor Awards are an internationally competitive, meritbased scholarship program providing opportunities for leading researchers and professionals to undertake short or long term study, research and professional development in a broad range of disciplines.
Agnes Sumargi, a senior lecturer at Widya Mandala Catholic University in Surabaya, is also a recipient of The Prime Minister`s Australia Asia Endeavour Award and plans to research the effect of parenting education programs on parenting skills in Indonesia. Australia has been providing scholarships to Indonesia for almost 60 years. The Endeavor Awards are an internationally competitive, merit-based scholarship program providing opportunities for leading researchers and professionals to undertake short or long term study, research and professional development in a broad range of disciplines. This year six Australians also won Endeavor Awards to conduct research in Indonesia.