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Journal of New Government Paradigm Volume 2, 1st Edition, 2015
1
THE PRESIDENT POWER IN DECENTRALIZATION OF INDONESIA
VERSUS FEDERAL SYSTEM OF THE UNITED STATES OF AMERICA
(ANALYSIS ON PUBLIC CONCERN)
Nurliah Nurdin1
Abstract
Indonesia has the fourth Constitution Amandement that tend to have public voices
heard in the process of decision making. One of that by reducing the power of
President in legislation as well as the roles in the local administration. Indonesia
maintain the Unitary by having President as the Head of Government both
internal affairs and foreign affairs. In contrast, the USA with federalism system
tend to have President power in foreign affairs while leave the internal affairs
mostly to the congress and the states. The study aims to describe how the
different power of both President in decentralization and federalism system, how
do the distinction in both countries on local public concern. Is there mechanisms
in both presidential countries where more guarantee on public concerns? What
can be a lesson learnt in both system to accomodate more to people concern? In
answering those questions, the study will examine the differnt between
decentralization and federalism regime by taking a case in both Indonesia and the
USA. The study has a qualitative methods that base on libraby research and
interviews both in Indonesian’s and USA’s experts. The result shows that
eventhough Indonesia apply unitary system which is contrast to federal system,
the practices actually more or less the same. The power that President shares to
local government as known decentralization where six power leave to central
government and the rest are in hand of local government has similirity in the USA
federalism system. The article will discuss Study background;Theoretical
Approach on Decentralization and Federalism; Indonesia president power in
Decentralization; The USA President power in Federalism; Public Concerns in
Decentralization and Federalism and Conclusion.
Key Word: Decentralization, Public Concern, Unity and Federalism
INTRODUCTION
Decentalization in developing countries such Indonesia has given an
effect on the quality of public services, eventhough theoretically ambiguous. The
idea of implementing decentralization in Indonesia is to bring decision-making
closer to the people by enhancing transparency, participation, and accountability.
It is expected through decentralization will make public services better. However,
the 14 years longpath of Indonesia decentralization somewhere still struggling
1 Dr.Nurliah Nurdin,S,Sos,MA is a lecture in the Institute Governance of Home Affairs, Ministry
of Home Affairs, Republic of Indonesia. This chapter is apart of her doctoral study in both in the
Indonesia University and Ohio University,USA. She can be contacted at [email protected].
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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from severe capacity constraints along with weak accountabilities and local
capture. Some argument states that political decentralization by direct local
election for head of , governor,districs and municipality have risen a number of
local corrupt kings (regional head troubles data). Decentrallization can not be
alone blamed on this problems of public services. The performance of leadership,
power sharing central and local government and society capacity should have a
big portion to perform a better public services. A research done by Kaiser at all
shows trends of public service delivery potentially associated with
decentralization and explores how decentralization may impact outcomes
depending on the evolution of associated local accountability mechanisms.
As the topic goals to compare the President power in decentralization of
Indonesia and Federalism of the United States of America, the study will examine
three difference cases in both countries in the frame of social welfare and public
services, gas and oil prices and natural disaster management.
Public Services and Social Welfare
Public services which are usually measured by the improvement of
health, education and economic capacity of the people has been increased
significantly accoiding to People Welfare Index (Indeks Kesejahteraan Rakyat,
IKraR). Indonesia IkraR increases from 44,0 percent in 2009 to 48,4 percent in
2012 2. Meanwhile Social Welfare Program the oldest program among social
assistance programs in Indonesia, provides income support to neglected elderly,
neglected children and poor disabled persons. A temporary scheme is targeted at
the victim of natural disasters/social disasters and troubled migrant workers. The
scheme is implemented by the Ministry of Social Affairs and Local Governments.
The aid are Cash transfer (BLT), Conditional Cash Transfer that are target very
poor households with children between 0 and 15 years and/or a pregnant mother
at the time of registration.3
In addition, currently there are 4 institution run social security
schemes:PT ASABRI Persero) is a State-owned enterprise or Persero that runs
old-age benefits (saving scheme and pension) for armed forces, police personnel
and civil servants employed in Military and Police Offices; PT Persero Tabungan
dan Asuransi Pensiun (PT TASPEN Persero) is a State-owned enterprise or
Persero that runs old-age benefits (saving scheme and pension) for civil servants;
PT Persero Jaminan Sosial Tenaga Kerja (PT JAMSOSTEK Persero) is a State-
owned enterprise or Persero that runs old-age benefits (provident funds), death
benefits, healthcare and maternity benefits, and workplace accident benefits for
private employees. PT JAMSOSTEK also runs voluntary schemes for employees
in informal sector economy and PT Persero Asuransi Kesehatan Indonesia (PT
ASKES Persero) is a State-owned enterprise or Persero that runs healthcare and
maternity benefits for civil servants, government pensioners, military and police
2 Menko Kesra, 2013, Republic of Indonesia
http://bappenas.go.id/files/1.%20RINGKASAN%20EKSEKUTIF.pdf 3 Social Securty Indonesia , System and organization,
http://www.jamsosindonesia.com/english/cetak/3
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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pensioners, and veterans in early 20144. In Indonesia, those managements are
under control of central government eventhough it is stated that only 6 power left
in government and the rest power in the local government. Indonesia remains
centralized in this condition.
In the USA, Human Development Index shows 0,9145. Social welfare
programs in the United States depend on both the federal government and the
state governments for resources and administration. Old age, survivors', disability,
and the Medicare (health) programs are administered by the federal government;
unemployment insurance, dependent child care, and a variety of other public
assistance programs are state administered, although the federal government
contributes to all of them through grants to the States6.
The idea of the "welfare state" "welfare provided by the state" in the the
USA7. USA changed the welfare system from fully federal responsibility become
state authority as quote:
“Federally funded and governed US welfare began in the 1930's during
the Great Depression. The US government responded to the
overwhelming number of families and individuals in need of aid by
creating a welfare program that would give assistance to those who had
little or no income. The US welfare system stayed in the hands of the
federal government for the next sixty-one years. Many Americans were
unhappy with the welfare system, claiming that individuals were abusing
the welfare program by not applying for jobs, having more children just
to get more aid, and staying unmarried so as to qualify for greater
benefits. Welfare system reform became a hot topic in the1990's. Bill
Clinton was elected as President with the intention of reforming the
federally run US Welfare program. In 1996 the Republican Congress
passed a reform law signed by President Clinton that gave the control of
the welfare system back to the states.”8
Then, it is argued that the public services and welfare system are simply
respond to the state power and authority to manage.
Oil and Gas Prices
Oil and gas prices in Indonesia determined by the central government
nationally. The decision to make the price depend on the legislative and executive
decision. Massive demonstration around the parliament government every time
the President decides to make the subsidy dismisses in oil price. However,
eventhough never spoken by government, but practically the mecanism to decide
4 Ibid 5 http://en.wikipedia.org/wiki/Human_Development_Index 6 United States - Social development.
Readmore: http://www.nationsencyclopedia.com/Americas/United-States-SOCIAL-
DEVELOPMENT.html#ixzz3BH28YVfU 7 The welfare state, http://www2.rgu.ac.uk/publicpolicy/introduction/wstate.htm 8 US Welfare System - Help for US Citizens. http://www.welfareinfo.org/
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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the price of oil and gas based on market mecanism which is againt the Consitution
article 33 that state: Land, Water and the rich of natural resource should be used
by the state for the social welfare. Problems on the people perspective that a
liberal perspective. According to Margarito9
“.... the political drama in the House when determining the fuel price hike
last March was very alarming because it shows the ideological struggle
between liberalism is against the constitution Whereas the 1945
Constitution, Article 33 of the 1945 constitution has clearly stated that all
the riches of nature, the earth, must be used much as possible for the
prosperity of the people”
The argument made due to the facts that Oil and Gas Law is one of the
legal product in Indonesia sponsored by foreigners and are often lured with loans.
In the same occasion, Rizal Ramli former minister of energy argued the Asian
Development Bank (ADB), which offers loans of 300 million USD to sponsor the
privatization law, loan assistance from the World Bank amounting to 400 million
USD to sponsor the privatization of water resources Act (SDA). Therefore, Oil
and Gas Prices law are claimed not for the objective welfare of the people.10 In
this case, central government empowered in all issues of oil and gas which is
demand for public scrunity in the decision making process in DPR and President.
As unitary country the decison for prices in the hand of central government
somewhat question remain when the decision far from public concern. In the SBY
rezim, the price has been increased from Rp 2.400/l in 2005 in to Rp 6500 in
2013. 11
While in the USA, the price of gas depend on global market. “Unlike
prices in much of the rest of the world, U.S. prices are set by market forces12 “The
U.S. market will bring not only diversity in terms of physical sources, but
economy. Then people of the USA don’t know what the price will be, but they
know it will be a market and price structure that is not the same as elsewhere in
the world. However, people concerns have no disputes on this international
standard. Federal and state government can not do much on the prices and no
party should be in endangered on the policy nor people of the USA. With the
national average price for regular grade gasoline hitting $3.83 a gallon to over
$4.00 a gallon, the public and politicians of all stripes are screaming to do
9 Margarito said Thursday it was in the Hearing Judicial Law No. 22 of 2001 on Oil and Gas in the
Constitutional Court of Indonesia, Jl. Medan Merdeka Barat, Central Jakarta, Wednesday (18/7). 10Mekanisme Penentuan Harga Migas di Indonesia Mengabdi Pada Sistem Pasar, Rabu,
18/07/2012
http://www.pikiran-rakyat.com/node/196483 11 Ups and Down the Price of oil in SBY Rezim, Laporan Fatkhurohman Taufik, Senin, 17 Juni
2013 http://ekonomibisnis.suarasurabaya.net/news/2013/117775-Naik-Turun-Harga-BBM-
Sejak-Soekarno-Hingga-SBY 12 Stanley Reed, Gas Prices Moving Away From Link to Oil, June 18, 2013
http://www.nytimes.com/2013/06/19/business/energy-environment/gas-prices-moving-away-from-
link-to-oil.html?pagewanted=all
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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something. However, the grim reality is that government policy can't do all that
much in the short run.13
Natural Disaster Management
Decentralization regime is definelity stronger than that of in Federal
system. President Indonesia is the of unitary government. Another example of
power sharing power between decentralization and federalism is handling local
natural disaster. In Indonesia, eventhough exist elected local government but most
likely people rely on central government to solve their problems. As Unitary
system, all the problem seems to be handle in the persfective of central
government. Predencial Regulation No 83 year of 2005 on Preparedness,
emergency management and recovery Disaster management activities in
Indonesia BadanKoordinasi organization guided by the National Disaster
Management (Bakornas NT). This organization is a structural institution for
disaster management and handling of refugees that responsible directly to the
President. 14 Then, it can be argued for the responsiveness of any
disaster seem to have local government powerless and depend only on
the central government. The victims and results of the natural disasters
then have to wait longer to get help.
In Indonesia, decentralized basic services move in tandem, with good
service delivery performance in one sector associated with similar trends in other
sectors. Some remains a substantial sector-specific component of districts
performance in perceived service delivery outcomes. In contrast, centralized
police trends bear no correlation with these other services, although levels of
satisfaction differ significantly across localities.15 The inefficiency and capacity of
local government budget in solving natural disaster must get attention. They
should have power to help their people before central government.16
In contrast, the USA President power in federalism is strongly limited in
foreign affairs while any business internally become the responsibilty of states.
The hurricane of Presiden with his power and authority given by institution as
seen in the Sandy hurricane , each regions are busy to cope with the disaster, they
are nor requires federal government to have a big chunk helping the victims.
“Unfortunately, there was little successful inter-jurisdictional
coordination in the aftermath of Hurricane Sandy. New York City's
13David Shulman What Government Can Actually Do About Gas
Priceshttp://www.usnews.com/opinion/blogs/economic-intelligence/2012/03/19/what-government-
can-actually-do-about-gas-prices 14 Christ iana Yuni Kusmiat i, Menuju Perbaikan Manajemen Penanggulangan
Bencana di Indonesia
http://www.academia.edu/5711154/Menuju_Perbaikan_Manajemen_Penanggulangan_Bencana_di
_Indonesia 15Kai Kaiser,, Daan Pattinasarany, and Günther G. Schulze, Decentralization, Governance and
Public Services in Indonesia http://www.cpps.or.id/images/S333.PDF 16 Pemda Diharapkan Perbesar Anggaran Penanggulangan Bencana
desk informasihttp://www.setkab.go.id/berita-11931-pemda-diharapkan-perbesar-anggaran-
penanggulangan-bencana.html
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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Office of Emergency Management was theoretically responsible for
coordinating the different city agencies. But it was quickly sidelined by
the Mayor's Office. The result was a haphazard approach that led to
some notable failures with respect to evacuations and the safety of
public housing residents.”17
Then we could argued from the talk that it is state responsibility to cope
the natural disaster. Embodied in the U.S. Constitution, the principles of limited
government and federalism give citizens and local communities the greatest role
in shaping their lives. The 10th Amendment states that "powers not delegated to
the United States by the Constitution, nor prohibited by it to the States, are
reserved to the States respectively, or to the people." In matters relating to their
communities, local jurisdictions have the preponderance of authority and
autonomy. The people closest to the problem are the ones best equipped to find
the best solution. America's system for disaster response reflects these principles.
The core assumption is that incidents are typically managed best at the lowest
possible geographic, organizational, and jurisdictional levels. Several reasons
justify this approach.18 The Idea of having natural disaster management in the
state is that:
a. Every community is unique. Preparedness planning must account for
local conditions of culture, geography, language, infrastructure,
politics, and numerous other factors.
b. Local communities have the resources. Since local communities are
responsible for public safety, they already have the preponderance of
assets that are usually required to deal with problems. Of the
millions of emergency responders in the United States-including fire,
police, emergency services, utility workers, medical personnel, and
volunteer groups-the vast majority work either for or with local
communities.
c. Time matters. In most disasters, the first few hours are critical. Most
life-threatening injuries require immediate attention. Since local
responders are already in the jurisdiction, they are likely the only
personnel that can reach the disaster scene in time to make a
difference.
d. Priorities matter. Large-scale disasters will require states and the
federal government to prioritize the allocation of additional
resources to help affected communities throughout a region. The
17 David Wachsmuth, How Local Governments Hinder Our Response to Natural Disasters
Hurricane Sandy didn't respect jurisdictional boundaries, and it challenged us to coordinate
disaster response on a regional scale. Oct 28, 2013
http://www.citylab.com/politics/2013/10/how-local-governments-hinder-our-response-natural-
disasters/7362/ 18James Jay Carafano, Ph.D. and Richard Weitz, Ph.D,Learning from Disaster: The Role of
Federalism and the Importance of Grassroots Response
http://www.heritage.org/research/reports/2006/03/learning-from-disaster-the-role-of-federalism-
and-the-importance-of-grassroots-response
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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more robust the local response, the more aid can be focused on the
areas most greatly affected by the disaster.
e. It encourages preparedness. If local communities are not primarily
responsible for disaster response, they will be less likely to invest in
the resources and assets needed to safeguard their citizens. 19
A federalist approach to disaster response for a nation like the United
States, with its vast population, wide geographical area, diverse regional con-
ditions, and traditions of strong state and local governments and volunteerism, is
the only practical choice.20 As shown in Katrina disaster, it is local community in
many cases provided the most effective response. One district in Louisiana had 40
operating shelters in the immediate aftermath of the storm, and less than 10 were
Red Cross shelters. Tens of thousands of people were sheltered and fed by local
efforts.21
THEORY
Theoretical and Normative Approach on Decentralization and Federalism
The concept of decentralization and federalism as its own favorable sides
and disadvatanges sides. Both are suitable for one countries but not necessary the
other coutries.
Concept of Decentralization
The different between decentralization and federalism could be seen as a
power sharing of vertical hierarchy authority. There is always pros and cons
decentralization over federalism. One argument states that
“... the benefit of decentralization for accommodating political stability in
multinational states has come under strong challenge. Critics highlight
certain federations which illustrate the most serious risks associated with
these arrangements, including the cases of persistent violence and
continued conflict in the Russian Federation (in Chechnya), in the
Basque region of Spain, in India (in Kashmir), Nigeria, and Sudan (in
Darfur). Federations which disintegrated, whether peacefully or
violently, include the West Indies (1962), Pakistan (1971),
Czechoslovakia (1993), the USSR (1991), most of the constituent units in
the Federal Republic of Yugoslavia (1991), and the expulsion of
Singapore from Malaysia (1965). Federalism has had a checkered record
in much of Africa, the Middle East, and Asia.24 Critics argue that the
creation of federal structures may encourage a dynamic unraveling and
break-up of the nation-state, in which accession to demands for increased
19 Ibid 20 ibid 21 Audrey Hudson, "Storm Victims Praise Churches," The Washington Times, December 2, 2005,
athttp://www.washingtontimes.com/national/20051201-114736-6989r.htm (March 15, 2006).
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
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autonomy fuels the flames which lead eventually towards instability,
partition, and even outright succession.22
The argument states that decentralization has been a way out for nation
state problems where sharing authorities to the local government would extended
the capacity of the local to serve their community. Decentralization has been also
an answer for heterogenity in countries that expect different policies and actions.
In her article, Ni Made Inna Dariwardani dan Siti Noor Amani quotes some
argument on decenralization such as:
“Pratikno argues that powers as well as the availability of adequate space
for the meaning of the authority given to lower governmental units (local
government). According to Litvack and Seddon decentralization is
defined as "The transfer of authority and responsibility for public from-
the central government to subordinate or quasi - independent government
organization, or the private sector. Rondinelli emphasizes
decentralization as "the transfer of political power .In line with this
opinion, Wasistiono (2005) states that decentralization itself has two
groups namely the political and administrative purposes. Political
objective is democratization, while the administrative purpose is in order
efekivitas and efficiency. Leemans (1970) distinguished two types of
decentralization: representative local government and field
administration”
The argument above shows that the source of power in the
decentralization is from central government. Most decentralized countries have
practiced a strong centralization. Having decentralization as power sharing to the
local government could be one solution to the demand of more attention from
central government on public services or public concern. Further, decentralization
also a way out from disintegrated nation. The purpose of decentralization:
- Political purposes;
- Administrative purposes;
- Social and economic goals.
Political goal of decentralization is to build infrastructure and political
superstructure local level more democratic. The elections directly, related to the
one-dimensional political objectives of decentralization, while the purpose of
administrative decentralization is creating local government bureaucracy that is
able to maximize four values, namely:
1) effectiveness;
2) efficiency;
3) equity / equality, and
22 http://www.hks.harvard.edu/fs/pnorris/Acrobat/Driving%20Democracy/Chapter%207.pdf
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
9
4) economic
There are some definition and concept of decentralization that widely used
for theoritical arguments. The World Bank has implemented some theories in
perceiving countries power sharing from central government to local government.
It is discussed about the sharing responsibility between central and local
government to guarantee more on public services. The argument defend the
decentralization as democratic element to have a good governance. It states:
“. . . Decentralization, or decentralizing governance, refers to the
restructuring or reorganization of authority so that there is a system of
co-responsibility between institutions of governance at the central,
regional and local levels according to the principle of subsidiarity, thus
increasing the overall quality and effectiveness of the system of
governance, while increasing the authority and capacities of sub-national
levels. … Decentralization could also be expected to contribute to key
elements of good governance, such as increasing people's opportunities
for participation in economic, social and political decisions; assisting in
developing people's capacities; and enhancing government
responsiveness, transparency and accountability.”
The pros of decentralization argues that decentralization applied an open
society, assisting people to have their voices heard through participation.
Somehpw, actually it will be also led to disorientation of public services if the
political decentralization didnt come with society capacity to watch their
government. It is an opposite result when decentralization does not support with
fiscal decentralization. Another argument on decentralization states:
“. . . While decentralization or decentralizing governance should not be
seen as an end in itself, it can be a means for creating more open,
responsive, and effective local government and for enhancing
representational systems of community-level decision making. By
allowing local communities and regional entities to manage their own
affairs, and through facilitating closer contact between central and local
authorities, effective systems of local governance enable responses to
people's needs and priorities to be heard, thereby ensuring that
government interventions meet a variety of social needs. The
implementation of SHD strategies is therefore increasing to require
decentralized, local, participatory processes to identify and address
priority objectives for poverty reduction, employment creation, gender
equity, and environmental regeneration.”
If we could argue from that definition, then decentralization is the answer
for a more public concerns in decision making process. However, related to
Indonesia decentralization should be further research on evaluating public need
and the power of president to hear them. What is interesting on this argument that:
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
10
“... Decentralization Is Not An alternative to centralization:
Decentralization is not an alternative to centralization. Both are needed.
The complementary roles of national and sub-national actors should be
determined by analyzing the most effective ways and means of achieving
a desired objective. For example, a national road system should be
designed with both local input and national coordination. Foreign policy
should be a national function based on the views of the citizenry. Solid
waste management should primarily be dealt with through local
mechanisms. And so forth. In designing a decentralization strategy it is
imperative that such an analysis be done. … 23
Decentralized arrangements may involve:
The distribution of legislative, executive and judicial power, or a
combination of one or more of them, between several levels of
government The division of responsibility for particular government
functions and services between several levels of government. Examples
include education, policing, water, immigration, health, the environment.
The allocation of authority over fiscal matters (charges, taxes, borrowing)
between several levels of government. Giving sub-national levels of
government responsibility for their own institutional arrangements, for
which they are accountable to their own people, with little or no
intervention by the centre The creation of central institutions that involve
the sub-national levels of government in decision-making. 24
From Montesquieu to Madison, classical theorists suggest that
decentralized governance has many advantages, especially (i) for democratic
participation, representation, and accountability; (ii) for public policy and
governmental effectiveness; and (iii) for the representation and accommodation of
territorially based ethnic, cultural, and linguistic differences.
Further, social and economic objective of decentralization is improve the
welfare of society as a whole, to make it better than ever before. Indonesia
Decentralization Law No 32 year 2004 has arranged based regulation to fulfilled
this goal, however as shown on the samples on public services, disaster
management or oil prices, one could argued that decentralization in Indonesia still
struglling and evolving in different practices in regions. It is not only the massive
of corruption and misconduct of elited, but decentralization in Indonesia has been
implemented before human resources ready. The impact is public services still
expensive to achieve such as health, education and economic income.
23 ibid 24 Cheryl Saunders Melbourne Law School Options for Decentralizing Power: Federalism to
Decentralization
http://comparativeconstitutionsproject.org/files/federalism.pdf
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
11
Concept of Federalism
Argument on the federalism is that the states in power from the very
beginning. The USA was born from 13 countries that collaborated to make a
federal nation. Therefore, federalism usually called as “state under state”.
Federalism tend to weaken the corruption and people voices could be heard in
decision making process.25 The way of structural, political and administration
sharing power has strenghtehing the local government to conduct a better public
services. Most countries with federal system such as USA have indicate the level
of higher education and economic power that enable the people to demand for
their rights for a better public servives from their governmnet.
Table 1 below shows the difference of federal and decentralization
(devolution). In term of constitutional quality, federal system has more legal
autority than decentralization, while the competence remains stronger in federal
system than decentralization because it is constituent and central government
who decide the policy. Financial decentralization has always be an issue in
decentralization. In federalism, it becomes the responsibility of both central and
constituent governments, there is no such as transfers from central to state as
occured for example in Indonesia decentralization system. Mechanism in solving
conflict also shows the capacity of federalism to engage many stakeholders
expecially in the local government while it is tend to be only central government
voices heard in conflict resolution in decentralization.
The term federalism is derived from the Latin root foedus, which means
"formal agreement or covenant." It includes the interrelationships between the
states as well as between the states and the federal government. Governance in the
United States takes place at various levels and branches of government, which all
take part in the decision-making process.
Some studies as shown by Jonathan Rodden26 who found that
decentralized federal constitutions are characterized by fairly autonomous
provinces and a weak central authority in the powers granted to the executive and
national parliament. The American version exemplify cases with strong regional
states and a relatively weak central government. In the American model, when
coming together states voluntarily pooled their sovereignty and designed a
constitution to protect their rights against encroachments by the central
government, and hence to limited majority rule. In the US Senate, each state is
equally weighted, with two members per state, whether California or Nebraska,
irrespective of the size of their electorate. The powers of the US Senate are also
roughly counterbalanced by the House of Representatives. The US-model of
federalism therefore limits the powers of the executive and the popular branch of
the legislature.27
25 as strongly disccussed in Nurliah Nurdin, Komparasi sistem presidensial Indonesia dan
Amerika Serikat: rivalitas kekuasaan antara presiden dan legislatif, 2004-2009 MIPI 2012 26 Jonathan Rodden, Comparative Federalism & Decentralization On Meaning and Measurement,
in Comparative Poltics, July 2004.
http://www.stanford.edu/~jrodden/ComparativeFederalism.pdf 27 Chapter 7
Journal of New Government Paradigm Volume 2, 1st Edition, 2015
12
Table 1 Comparing Federalism with Decentralization (devolution)
Indicators Federal Devolution
Consitutional Quality of
the Regions
State Qualitiy Administration
Competence Central and constitutuen
government
Central Level alone
Concept of Sovereignty With people With parliament
“Guaranteed Existence”
of the regions
“ad infinitum” None
Financial Competence Central and constituent
governments
Transfers from the
Central
State
Principle of Allocation
of Tasks
Subsidiarity (“bottom up”) Delegation (“Top
Down”)
Co-Decision in Central
Legislation
Second Chamber None
Conflict Resolution
Mechanisms
Negotiation with necessity to
find consensus
Negotiation with final
say with central
governmen
Conflict Resolution in
Case of Conflict
Consent for (some) legislation
required; in particular
constitutional change.
onstitutional Court
None
Source: Lorenz Blum28
Further definition on federalism that shows the voice of local government
over central government that both level of governmnet could make final decision
in their policy. There is no dependent policy to central government that is occured
in decentralization. It states:
“....In defining federalism, we follow Riker (1975, 101): “Federalism is a
political organization in which the activities of government are divided
between regional governments and a central government in such a way
that each kind of government has some activities on which it makes final
decisions.” Federations thus consist of constituent governments (the
regional governments) and one central government and both levels of
government are endowed with final decision-making power in some
areas”29
Some other concept of Federalims
Federalism and decentralization , DRIVING DEMOCRACY – CHAPTER 7 9/15/2007
2:37http://www.hks.harvard.edu/fs/pnorris/Acrobat/Driving%20Democracy/Chapter%207.pdf 28 ibid 29 Lorenz Blume and Stefan Voigt ,No. 21-2008 , Federalism and Decentralization – A Critical
Survey of Frequently Used Indicators
http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/21-2008_blume.pdf
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a. “An association of states, which are formed for certain common
purposes, but in which the member states retain a large portion of
their original independence.” (K. Wheare)
b. “The combination of shared-rule for some purposes and regional
self-rule for others within a single political system so that neither is
subordinate to the other.” (Watts)
METHOD
This research is using contructive approach with qualitative method
where it is using qualitative data. This research try to collect data from people
with direct interview and secondary data like appropriate document in order to fill
and complete this research. Thus, this research could give an explanation and
summary about executive power to do his role in Indonesia compare with US.
DISCUSSION
Indonesia President Power in Decentralization Policy of decentralization and regional autonomy stems from the desire
of the division of powers and roles between the central and local government. The
policy specifically deals with issues of economy, politics, administration, to fiscal
or financial issues. From this perspective, the current of decentralization promises
changes for local democracy. Liberal thinkers and theorists of decentralization
believe that decentralization will make the government more closer to the people
and will strengthen local accountability.
The changes in legislation, a shift in the primary function of Local
Government originally as "Promoter of Development" changed to "Public
Servicer" then Indonesia government has optimally utilize units Government that
is directly related to the community, such as: Regional Office of the District &
Sub. Good governance paradigm that trust a pressure on government
management, including the management of public services. The government no
longer plays as a ruler with the hierarchical nature of the relationship with the
community, but as a resident partner with other components.
Table 2. The Division of Authority and Roles in Indonesian Decentralization30
Central Government
6 Central Authority
26 Mandatory Affairs Provincial Government
District / City 31 Decentralization Affairs + 8 Optional Affairs
Foreign Relations;
Defence;
Security;
Judicial;
Monetary and Fiscal;
Religion
Social; environmental; Trade; Marine and Fisheries; Forestry;
Education; Health; SMEs (small medium enterprises); Manpower
and Transmigration; Agriculture and Plantations; Mining;
Transportation; Investment; Culture and Tourism; Population;
Women Empowerment; Family Planning and Family Welfare;
Industry; Public Work; Space Regulation; Youth and Sports;
Telecommunications and Information; Housing; Archives;
Defence; Kesbangpol; Statistics; PUM; PMD; Personnel; Library
30 Pasal 10 UU 32 Tahun 2004 tentang Pemerintah Daerah
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Proposed Action:
Marine and Fisheries; Agriculture; Forestry; Energy and Mineral
Resources; Tourism; Industry; Trade, and Transmigration
Source: Law 32 year 2004 on Local Government
As seen in the table above, the power of president actually limited only
sixth authorities, somehow the local government tend to be incompeten to
accomplished the 31 mandatory as well as optional roles. Taking examples in
public services, disaster management or oil and gas prices. The role of local
government hinders while the public services still negleted. The Picture of central
and local government in Indonesia further shows in below picture
The president's powers in decentralized systems are power that managed
by the central government's that are foreign policy, fiscal, Law, Defense and
Security, Monetary and Religion. Decentralization in unitary state still give great
power to the president. In the federal system, the President does not have a
hierarchy of power with the governor, so that the president cannot call the
governor or regional head. However, the power of the President of Indonesia
provides a large door to set the governor because of its deconcentration tasks
performed and also to call regents or mayors for an insightful seminar of
nationality for example.
During the period of centralization, regional development is determined
by the central government due to the dominance of the central government to
regional affairs. In principle, decentralization has reduced the authority of
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president as chief of the executive to determine policy in the region. The authority
of wide autonomy is the freedom of regions to govern areas that include all areas
of government authority, except for authority in the field of foreign policy,
defense and security, judicial, monetary and fiscal, religion, and complete and full
authority in the implementation starting from planning, implementing,
monitoring, controlling and evaluating.
The USA President Power in Federalism
Restrictions on presidential powers is also reflected in the federal system
in which only the dominant powers of the President in foreign policy , but
domestic affairs of concern to members of Congress generally. Powers of the
President in the U.S. presidential system and federalism will be categorized into
three discussion groups . First, the authority of the Interior which includes the
power of the President in the federal system and public policy ; secondly that
power Abroad which includes executive powers , and the latter is the legislative
powers therein, including the pattern of policy-making .
The following shows the power of the president in the national
government are shared with the state government . Respective powers of this
Government in the Constitution in the form of power sharing. Clearly visible in
the table whatever the authority of the federal government and state government
authorities . With details of the duties and authority as this , then between the
Federal Government and the states do not occur each claim authority because it
has been set out clearly . Even with the affairs of the authority between federal
and state are also included to avoid overlapping of power. As seen, the power of
state is very big that federal government only shows in occasional life of
American because most of their time have been fulfilled by the state.
source: taken from USA web
http://usgovinfo.about.com/od/rightsandfreedoms/a/federalism.htm
Therefore, power in the local government (state) is exclusive Powers
reserved to state governments include:
a. Establish local governments
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b. Issue licenses (driver, hunting, marriage, etc.)
c. Regulate intrastate (within the state) commerce
d. Conduct elections
e. Ratify amendments to the U.S. Constitution
f. Provide for public health and safety
g. setting up courts
h. Creating and collecting taxes
i. Building highways
j. Borrowing money
k. Making and enforcing laws
l. Chartering banks and corporations
m. Spending money for the betterment of the general welfare
n. Taking (condemning) private property with just compensation31
U.S. President Executive power is strongly associated with this form of
government federalism . In the U.S. system of federalism , the central government
established by the Constitution divides the sovereignty of each state . The Federal
Government has three branches , namely legislative , executive and judicial .
Through a system of separation of powers and the system of checks and balances ,
each branch has the authority respectively . The authority to regulate the other two
branches and other branches have their own authority . The federal government
affects domestic affairs but little role in U.S. foreign affairs . Federal Government
tends to affect the daily life of the American people . Each state has its own
written Constitution , the state government and the Code of Conduct . Sometimes
it happens far enough policy differences between states , for example about the
property , crime , health and education. In the federal system of government , the
President generally weak domestic power because that takes the dominant role of
members of the House and Senate are .
Public Concerns in Decentralization and Federalism
The president power in decentralization absolutely greater in unitary of
Indonesia. Eventhough some roles as mandate and optional has been shared to the
local government but cases shows local government incapable of capturing the all
function. In public services and local concern, oil prices and gas, natural disaster
management, they are all need central government responsibility to solve and to
run the government. The big bang decentralization in Indonesia has result
indisparity result where the central government has a short hand to handle. It is
too far services expecting central government to capture the natural disaster for
example. Budget management could be one weakness where financial
decentralization without a tight supervisory conducted.
Making the law of oil and gas even worsen where the localities knows
nothing. The prices higher and higher that resulted to the poverty. Further the
31Federalism: National vs. State Government
The powers of national and state governments
http://usgovinfo.about.com/od/rightsandfreedoms/a/federalism.htm
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power relation between executive (president) and legislative is not that transparant
yet. Accountability is in the other side of government.
In Indonesia, those politics that influenced the life of all society has been
negleted the people voices. There is no mechanism where President should hear
the constiuent need as well as the house of representation. Meanwhile federalism
in the USA has strongly bounded the constitional to have a decision based on
public concern. In 2011, July, when the USA in trouble to the financial defisit that
could cause in to unemployment, President Obama pursue the people to make
their voice heard. He urged Republicans and Democrats in Congress to find a
bipartisan solution to avoid default that he can sign by Tuesday. The
President made it clear that there are multiple ways to resolve this problem:
“Now, keep in mind, this is not a situation where the two parties are
miles apart. We’re in rough agreement about how much spending can be
cut responsibly as a first step toward reducing our deficit. Finally, the
President called on the American people to continue to make their voices
heard in this debate: Now, on Monday night, I asked the American people
to make their voice heard in this debate, and the response was
overwhelming. So please, to all the American people, keep it up. If you
want to see a bipartisan compromise -– a bill that can pass both houses
of Congress and that I can sign -- let your members of Congress
know. Make a phone call. Send an email. Tweet. Keep the pressure on
Washington, and we can get past this.”32
The quote was proven how close the public with the decision making
process both in President and the Congress in the USA. Taking attention from
public is necessety to build the trust and legitimacy in public policy.
Comparing decentralization and federalism in public concern is depend
on the quality of leadership and society participation. In federalism, the power of
President is weaker because congress represent the state power. Therefore,
President of the USA usually “going public” to take attention from the public on
the preference issues that need people voices. Oil and gas prices eventhough it is
expensive but President can not do much because rhe price has based on
international market. In natural disaster management, the USA perform better
where the state in power to handle and to get the victims cured. As lesson shows
the managemen of disaster supposedly closer to the places and victim.
CLOSING
In general, public concern is a lot more heard in the federelism than
decentalization due to the closer power of state to manage their own people.
Somehow, this paper does not argue to Indonesia federalism due to the different
government history and society structural. Further, the quality of people in
32President Obama Calls on the American People to Make their Voices Heard, July 29th 2011
http://www.whitehouse.gov/blog/2011/07/29/president-obama-calls-american-people-make-
their-voices-heard
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participating the role of government should be considered as one of source to
make the government perform better.
In conclusion, diverse types of federations and forms of sub-national
decentralization; not equivalent. Decentralization in Indonesia keep growing in
sense of political, administrative and fiscal, in different in teh USA federalism is
probablu more difficult to change. Eventough federalism usually strengthens
democracy as shown in the USA, but Indonesia if supported with educated strong
ecomic people will perform the same. One should also considered the
homogenous population of America and the heterogen of Indonesia make the
country choice of federalism and decentralization in timely better choice to avoid
further disintegration.
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