ARTICLE REVIEW

Article Review

Article Review

The evolving role of the central government in economic planning and policy making in Indonesia

This article examines the changing role of the central government in the final years of the Soeharto era and since 1998. It argues that although economic policy making is now conducted in a very different political climate from that of the Soeharto period, there remains a powerful institutional legacy. In addition many old problems persist. The paper examines the evolving role of the national planning process and looks at the implications of the new law on national planning, especially for the division of labour between the national planning agency (Bappenas) and the Ministry of Finance (Booth, 2005). It also looks at some ongoing problems that are central to the economic policy process: the need for civil service reform and for a stronger audit process at all levels of government, and the issue of relations between the centre and the regions.

Contesting Power in Indonesia's Resource-Rich Regions in the Era of Decentralization: New Strategy for Central Control over the Regions

This article discusses the different patterns of national-local relationships and the contours of local politics that distinguish mineral-rich East Kalimantan from forested Central Kalimantan in the era of decentralization. To make this comparison, the author factors in the relative profitability of natural resources in these regions and the structures of their resource-related industries, recognizing these as key elements that influence the contrasting politics of the respective provinces (Morishita, 2008).

The article argues that national elites have exercised strong influence over mineral-rich regions because of the importance of mineral resources—especially oil and natural gas—for the state economy, while these same elites have essentially left control over forested regions to local power holders because of the relative insignificance of forest resources in the public sector and the Jakarta-based timber companies' reliance on local subcontractors.

Critical Analysis

Both of the authors are critical of the prevailing situation in the country. After three years of decentralization, it is not too surprising if there were problems due to multi-interpretation or lack of clarity of law 22/1999. In 1999, the law was drafted without a blue print or general design of decentralization scheme and without a white paper. Sequentially, the decentralization process should begin with the blue print followed by a white paper (Booth, 2005). The white paper should be then the foundation for the legal drafting. Due to political condition and limited time availability, the decentralization process in Indonesia jumped directly to the law drafting and as a result, when there is confusion about the law itself, no valid reference is available. Various groups, with their own argument, are competing to be the “true” interpreter of the law, especially law 22/1999. If one group is in verge of having enough power over the implementation and revision of the law, other groups will try very hard to undermine them through frequent and sometimes unfair critiques (Morishita, 2008).

Ironically, this possible conflict or rivalry sometimes takes place between groups in the ministry of home affairs (MOHA) that ...