Since the end of Suharto’s rule, Indonesia has initiated an ambitious decentralisation programme. To some extent, this has addressed long-standing local and regional demands for greater autonomy. But it has also opened up space for new forms of competition amongst local identity groups and interests.

The size and diversity of Indonesia – close to 400 traditionally self-aware ethnic groups spread over 10,000 islands – lends a special complexity to the issue of decentralisation. After half a century of centralised government administration, post-Suharto Indonesia opted to implement policies to boost local and regional autonomy.

A paper from the Centre for Research on Inequality, Human Security and Ethnicity (CRISE), in the UK, looks at these changes in the context of modern Indonesian history. The author also explores the impact of the new decentralisation laws on conflicts through the cases of Poso and Donggala districts in Central Sulawesi, two areas with multi-ethnic and religious populations and a history of communal violence and conflicts involving the state.

Indonesia’s ethno-religious diversity has long existed within the larger ‘Indonesian’ identity crucial to the independence movement against the Dutch. Since 1954, however, these identities have been suppressed by nationalist governments based in Java. The New Order administration of Suharto (from 1966) tried to create stability through centralised development. Within this framework regional and local identities were incorporated into a national identity.

Post-Suharto, decentralisation laws were implemented in 2001. Power was devolved from the central government to the districts. Apart from granting greater autonomy over district and village level policy, regulations and budgetary control, the laws allow for recognition of the diverse local identities of Indonesia. They have also led to new regions being carved out of pre-existing administrative areas. New local governments can create taxes and elect the Governor and District Head of local parliaments, while local populations can elect councils and village heads.

The authors argue that:

• expressions of diversity in the regions are a part of Indonesia’s cultural and ethno-religious heritage, and do not necessarily threaten the unified state
• the increased emphasis on the importance of regional identities reflects long-standing dissatisfaction with centralised rule and the repression of diversity
• continued dissatisfaction could lead to local and regional loyalties becoming more important than national loyalty, although mainly to draw attention back to local needs rather than to threaten the state.

Key findings on the impacts of decentralisation in Central Sulawesi include:

• The direct election of regional heads has changed the nature of local politics, heightening

local tensions through competition for power, though the population is now more involved in decision making.

• Changed population demographics, due to redrawing administrative boundaries (district-splitting) in Poso have led to greater ethno-religious segregation and reduced inter-group tensions in the original districts.
• District-splitting can create tensions if the new boundaries reinforce sensitive identity groupings, or through competition for power and resources.
• Similar dynamics are at play in Donggala and policymakers need to be aware of the potential consequences of planned district-splitting: conflict management strategies may be required.

Source(s):
‘Passing on the Challenges or Prescribing Better Management of Diversity? Decentralisation, Power Sharing and Conflict Dynamics in Central Sulawesi, Indonesia’, CRISE Working Paper No.38, CRISE: Oxford, by Rachael Diprose, 2007 (PDF) Full document.

id21 Research Highlight: 25 April 2008

Further Information:
Rachael Diprose
Department of International Development
Centre for Research on Inequality, Human Security and Ethnicity (CRISE)
Queen Elizabeth House
University of Oxford
Mansfield Road
Oxford OX1 3TB
UK

Tel: +44 (0)1865 281810
Fax: +44 (0)1865 281801
Contact the contributor: rachael.diprose@qeh.ox.ac.uk

Queen Elizabeth House, University of Oxford, UK

Other related links:
'Managing change in local governance'

'Designing social funds for government decentralisation'

'European aid to strengthen governance, democracy and human rights'

'Strong but fragile: Horizontal inequalities in Indonesia'