Table Of Content

LOCAL POWER and POLITICS in INDONESIA The Research School of Pacific and Asian Studies (RSPAS) at The Australian National University (ANU) is home to the Indonesia Project, a major international centre of research and graduate training on the economy of Indonesia. Established in 1965 in the School’s Division of Economics, the Project is well known and respected in Indonesia and in other places where Indonesia attracts serious scholarly and official interest. Funded by ANU and the Australian Agency for International Development (AusAID), the Project monitors and analyses recent economic developments in Indonesia; informs Australian governments, business and the wider community about those developments and about future prospects; stimulates research on the Indonesian economy; and publishes the respected Bulletin of Indonesian Economic Studies. The School’s Department of Political and Social Change (PSC) focuses on domestic politics, social processes and state–society relationships in Asia and the Pacific, and has a long-established interest in Indonesia. Together with PSC and RSPAS, the Project holds the annual Indonesia Update conference, whose proceedings are published in the Indonesia Update Series (previously known as the Indonesia Assessment Series). Each Update offers an overview of recent economic and political developments, and devotes attention to a significant theme in Indonesia’s development. The Institute of Southeast Asian Studies (ISEAS) in Singapore was established as an autonomous organization in 1968. It is a regional research centre for scholars and other specialists concerned with modern Southeast Asia, particularly the many-faceted issues and challenges of stability and security, economic development, and political and social change. The Institute’s research programmes are Regional Economic Studies (RES, including ASEAN and APEC), Regional Strategic and Political Studies (RSPS), and Regional Social and Cultural Studies (RSCS). The Institute is governed by a twenty-two-member Board of Trustees comprising nominees from the Singapore Government, the National University of Singapore, the various Chambers of Commerce, and professional and civic organizations. An Executive Committee oversees day-to-day operations; it is chaired by the Director, the Institute’s chief academic and administrative officer. Indonesia Update Series LOCAL POWER and POLITICS in INDONESIA Decentralisation & Democratisation edited by Edward Aspinall and Greg Fealy INSTITUTE OF SOUTHEAST ASIAN STUDIES SINGAPORE First published in Singapore in 2003 by Institute of Southeast Asian Studies 30 Heng Mui Keng Terrace Pasir Panjang Singapore 119614 Internet e-mail: [email protected] World Wide Web: http://bookshop.iseas.edu.sg All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Institute of Southeast Asian Studies. © 2003 Institute of Southeast Asian Studies, Singapore The responsibility for facts and opinions in this publication rests exclusively with the editors and contributors and their interpretations do not necessarily reflect the views or the policy of the Institute or its supporters. ISEAS Library Cataloguing-in-Publication Data Local power & politics in Indonesia : decentralisation & democratisation / edited by Edward Aspinall & Greg Fealy. 1. Decentralization in government—Indonesia. 2. Local government—Indonesia. 3. Democracy—Indonesia. 4. Indonesia—Politics and government—1998- 5. Indonesia—Economic conditions-—1945- I. Aspinall, Edward. II. Fealy, Greg,- 1957- JS7192 A2L81 2003 sls2003009164 ISBN 981-230-202-6 (soft cover) ISBN 981-230-203-4 (hard cover) Copy-edited and typeset by Beth Thomson, Japan Online. Indexed by Angela Grant. Cover photos: • Photo of elderly woman at the ballot box in Lombok reproduced with kind permission of TEMPO/Rully Kesuma, Jakarta. • Photo of demonstration in Papua is reproduced with kind permission of Sinartus Sosrodjojo/JiwaFoto, Jakarta. • Photo of KPPS member counting ballots in West Kalimantan is reproduced with kind permission of TEMPO/Edi Retebeng, Jakarta. Printed in Singapore by PhotoPlates Pte Ltd. Ass2003-Final 8/4/03 1:45 PM Page v CONTENTS Tables ix Figures xi Contributors xiii Acknowledgments xv Glossary xvii 1 Introduction: Decentralisation, Democratisation and the Rise of the Local 1 Edward Aspinall and Greg Fealy PARTI Political and Economic Update 2 Political Update 2002: Megawati’s Holding Operation 15 Harold Crouch 3 Economic Update 2002: Struggling to Maintain Momentum 35 Mohamad Ikhsan PARTII Decentralisation and Democratisation Overview 4 Regional Autonomy and Local Politics in Indonesia 63 M. Ryaas Rasyid 5 Not Enough Politics! Power, Participation and the New Democratic Polity in Indonesia 72 Hans Antlöv v Ass2003-Final 8/4/03 1:45 PM Page vi vi CONTENTS 6 What Is Happening on the Ground? The Progress of Decentralisation 87 Arellano A. Colongon, Jr. 7 New Rules, Old Structures and the Limits of Democratic Decentralisation 102 Michael S. Malley PARTIII Regional Case Studies 8 Power and Politics in North Sumatra: The Uncompleted Reformasi 119 Vedi R. Hadiz 9 Who Are the Orang Riau? Negotiating Identity across Geographic and Ethnic Divides 132 Michele Ford 10 The Privatisation of Padang Cement: Regional Identity and Economic Hegemony in the New Era of Decentralisation 148 Minako Sakai 11 Coming Apart and Staying Together at the Centre: Debates over Provincial Status in Java and Madura 164 George Quinn 12 Changing the Cultural Landscape of Local Politics in Post-authoritarian Indonesia: The View from Blora, Central Java 179 Amrih Widodo 13 Between Rights and Repression: The Politics of Special Autonomy in Papua 194 Rodd McGibbon PARTIV Institutions and Society 14 Decentralisation and Women in Indonesia: One Step Back, Two Steps Forward? 217 Hana A. Satriyo 15 Shifting Power to the Periphery: The Impact of Decentralisation on Forests and Forest People 230 Ida Aju Pradnja Resosudarmo Ass2003-Final 8/4/03 1:45 PM Page vii CONTENTS vii 16 Business as Usual? The Indonesian Armed Forces and Local Politics in the Post-Soeharto Era 245 Marcus Mietzner 17 Decentralisation and the Indonesian Bureaucracy: Major Changes, Minor Impact? 259 Rainer Rohdewohld References 275 Index 291 Ass2003-Final 8/4/03 1:45 PM Page ix TABLES 3.1 Real GDPGrowth by Expenditure Category, 1998–2002 44 3.2 Trends in Interest Rates, December 1999 – August 2002 45 3.3 Trends in Base Money, 2001–02 46 3.4 Exchange Rate Developments, 1995–2002 47 3.5 Macroeconomic Forecasts for 2003 51 A3.1 The Central Government Budget, 1999–2003 58 A3.2 The Monetary Impact of the Government Budget 59 6.1 Local Government Budget Allocated to Health and Education 95 7.1 Trends in Gubernatorial Inaugurations, 1982–2001 113 7.2 Trends in Bupatiand Mayoral Inaugurations, 1982–2001 114 7.3 Trends in Bupatiand Mayoral Appointments, 1997–2001 115 9.1 Summary of Biodata of Interview Respondents 134 9.2 Distribution of Population by Ethnicity, 2000 Census 136 9.3 GDPof Riau by Industry and as a Proportion of National GDP, 1997–99 138 10.1 Production Volume of Semen Padang, 1994–2000 151 A10.1 Data on Communal Land Traditionally Owned by Nagari Lubuk Kilangan and Used by PTSemen Padang 163 16.1 Level of Agreement with or Rejection of Continued Presence of Territorial Command Units 250 16.2 Functions Transferred to Local Government under Widjojo’s Proposal, and Government Agencies to Take Over these Tasks 253 17.1 Distribution of Civil Servants, 1989–2002 260 17.2 Intergovernmental Fiscal Transfers, 2000–02 262 ix