1. REGIONAL AUTONOMY AND
NATURAL RESOURCE MANAGEMENT
By Irfan setiawan, S.IP, M.Si
Abstrack
This paper aims to analyze the relationship of regional autonomy for the management of natural
resources in the area. The implementation of regional autonomy still have problems caused by the
unwillingness of the central government to give broad authority to local governments. The local
government may formally mandated to exercise authority, but there are still many restrictions and
barriers to exercise these powers. In this case there are still shadows of the bureaucratic chain of
command from top to bottom in a vague but real effects. Both may have been valid in the autonomous
region, but the local government itself does not effectively use the authority that has been delegated.
It can be seen from the inability to make good planning, monitoring the progress of implementation
has no government, failed to make a balanced budget plan that led to the persistence of dependence
on financial assistance from the central government.
A. Preliminary
Determination Act No. 32 of 2004 on Regional Government and Law No. 33 of 2004
on Financial Balance between Central and Regional Government, a consequence of the
provision of financial resources proportional to the number of service activities in the local
government. The size of the amount of funds required, highly dependent on the size of the
area, the geographic, population, population density, the complexity of the needs of residents
as well as other things that influence the socio-economic growth of the area. In other words,
the greater the area of a region, the population and the increasing needs of the community,
the greater the funds needed to finance the government in the provision of public good
(Sidik, 2001 : 1).
There are strong correlation between the financial resources of governmental
activities essentially hints that setting financial balance between central and local
governments can’t be separated from the problem the division of authority between levels of

2. government should be clearly defined. Sharing arrangements such authority has been
established by Government Regulation No. 38 of 2007 on Government Authority and
Provincial Authority as an Autonomous Region. The authority set forth therein provinces,
basically an attempt to limit the powers and authority of the provincial government as an
autonomous region, because the provincial government is only allowed limited autonomy
organize activities set out in the regulations.
The authority of the province in accordance with his position as an autonomous
region includes the implementation of self-government authority that is cross county / city
and other areas of governmental authority, while the authority of the provinces as
administrative areas for the implementation of deconcentrated government authority to the
governor. The authority districts / cities are not set in government regulation, as Law No. 32
of 2004 has essentially put all the powers of government in the district / city, except for the
authority as stipulated in Government Regulation No. 38 of 2007.
The implementation of decentralization as a form of regional autonomy also cause
problems in the financial balance between central and local government, in which the duties
and powers of each level of government requires financial support. Fiscal balance between
central and local governments are ideal if each level of government can be independent in
finance to fund the implementation of the duties and powers of each. This means that the
source of income itself becomes the main source of income, or in other words, subsidies from
higher levels of government to be a less important source of revenue.
The economic potential of the region is crucial in order to increase the financial
capacity of the region for the implementation of the household. In fact many found that the
burden of work to be done by the local unbalanced or inconsistent with the conditions and the

3. financial situation of the region itself. The problem is how to create policies and programs to
develop the potential to increase the financial capacity of the area, so that local autonomy can
be implemented. Too much stress on regional initiatives will spur a sharp inconsistency
between regions and stimulate the implementation of the authority lapses, otherwise too
much central direction will be able to turn off local initiatives. The decision apparently is not
always easy to be formulated is to create a balance between central direction and local
initiatives, among standard/national targets and different needs/services (public goods) each
region.
There is also the challenge that comes from the country that affect natural resource
management policies, namely the economic crisis that led to the bankruptcy of companies
and industries in particular who tapped natural resources as raw materials. The economic
crisis was soon followed by a political crisis marked by the collapse of the New Order
government which gave birth order reform. Order reform that brings the dawn of renewal
willed order of the political, social, economic truly democratic and equitable use of natural
resources in line with global demand.
In the financial area, a common phenomenon faced by most local governments in
Indonesia is relatively small role of local revenue in the budget revenue and expenditure
(budget). In other words, revenue sources are relatively large in general managed by the
central government, while the revenue sources are relatively small managed by local
government, so that the role of government revenues coming from as grants, general
allocation fund budget is dominated configuration .
Implementation of Law No. 32 and No. 33 of 2004 should provide more flexibility to
local governments in making a policy development and in managing natural resources, so

4. that the region has the opportunity to earn a decent part and proportional results. To support
local government funds, usually the central government always transfer funds are grouped
into two parts, namely the form of the full transfer (full matching transfer) and the transfer of
supporting selective (selective matching transfers). Full transfer is defined as a form of
transfer is given to fund a full program, can form general help and assistance. Further
supporting selective transfer form or a cost-sharing program is a form of transfer function
only as a supplement to the source of funds owned by the receiving areas, but the allocation
has been assigned to a particular program. Source of fund balance is expected to be a fund
balance in the financing of local government administration. Model or formula whatsoever
and howsoever transfer form is expected to reflect aspects of the income distribution for each
region, in addition to consideration of the aspect of justice for those who have the natural
resources are quite large.
B. Discussion
The implementation of regional autonomy, which refers to Act No. 32 of 2004 on
regional government and Law. 33 Year 2004 on the Fiscal Balance between the Central
Government and local governments, states that the implementation of regional autonomy
presupposes the existence of a fiscal balance between central and local government, which is
a system government financing in the framework of the Unitary State of the Republic of
Indonesia which include financial division between regions in proportion, democratic, fair,
and transparent with regard to the potential, conditions and needs of the region.
In order to create the region's autonomy, local government revenue to be a very
important factor which will be a source of revenue from the fund itself. However, reality
shows that local government revenue is only able to pay the highest local government

5. spending by 20% (Kuncoro, 2007:2). Dependence of local governments to the central
government is still quite high. If the government is too much emphasis on the acquisition of
local government revenue, then society will be burdened with various taxes and levies with
the intention of " target achievement". Exploitative attitude can be burdensome to the
community because the community has burdened the national tax specifically land and
building tax, Income Tax, Value Added Tax and luxury sales), Stamp Duty, Customs
Acquisition Rights Land and Building.
According to Law No. 33 of 2004 that in order to finance the implementation of
decentralization, the balance of funds allocated to the region that consists of the area of
property tax revenue, customs acquisition of land and buildings, natural resource revenues,
the general allocation fund and special allocation funds. For the areas that have the potential
for a lot of natural resources, then logically the potential sources of financing will be greater
than areas that have little natural resources. But be aware that natural resources are mostly
(especially mine excavation) is a regional financial resources are limited and non-renewable
exploitation (unrenewable), so sooner or later sources will be exhausted.
The natural wealth contained a very likely potential to be used as a productive
resource-effective. The objectives are:
1. develop a simple economic model that uses the input of natural resources in the
production process;
2. identify the conditions that must be met in order for the utilization of natural resources
over time becomes economically efficient;
3. determine the pattern of utilization of natural resources over time are optimal from the
point of view of social welfare;

6. 4. knowing the characteristics optimal allocation of natural resources;
5. identify important parameters determine kosumsi sustainable opportunities for long
periods of time.
With decentralization, local government is expected to accelerate the improvement of
social welfare to implement and realize the management of natural resources is better
because the decision makers are and closer to the local community. local government
considered to be more aware of problems and needs of the community in its own compared
to the central government. Thus, decentralization will create a more participatory
development, increased equity income from the local community and natural resource use is
also expected to be more responsible in the application of sustainability principles in the
management of natural resources and environment in the region. Nevertheless, there are
some disadvantages of decentralization that may cause irregularities;
1. if it is not accompanied by the authority and responsibility in the
management and support capabilities in institutional capacity
2. tendency to increase local revenue lead to depletion and unsustainable use
of natural resources.
3. externalities that arise not only harm one sector or region itself but causes
harm beyond the multi-sectoral and administrative boundaries of an area to
provide a range of different regional and national.
For example, deviations from the decentralization process is the emergence of uncontrolled
freedom of local governments, including in the form of utilization of natural forests within
their administrative areas. Feeling the authority and driven by the desire to earn more high
and increase local government revenue, the government then tried to exploit the potential of

7. the forest resources in their respective regions. Forest resources selected to be presented here
because the forest is a strategic resource. Utilization and management affect the quality and
utilization of natural resources.
Damage to forests provide far-reaching consequences on water resources, agricultural
productivity, and bring the threat to the environment which is not limited to the
administrative area where the forests are located. Cases of forest degradation in the era of
regional autonomy, the most prominent and widely prevalent in Indonesia, including in South
Sulawesi Province. With the issuance of Government Regulation No.38 of 2007 which
among other things set up authority and the authority of provincial government as an
autonomous region in forest management, began a new era that is expected to describe the
implementation of forest management within the framework of the implementation of Law
no. 32 of 2004. The duties and authority of forestry affairs regulated in this Government
Regulation. Thing that stands out from the Government Regulation is that to prepare and
adopt standards and criteria. While the provincial government tasked to prepare guidelines
for the implementation of management at the district level. Besides, the provincial
government shall carry out the monitoring and protection of forest areas across the district.
But still seems to need more and more various regulations that are more specific and
detailed (Government, Presidential, decree or regulation) to describe how the operational
technical Law. 32 of 2004 and Law no. 33 of 2004 and its laws related to forestry (Law no.
41 of 1999) that provided the legal basis for the implementation of decentralization that is
clear and does not contain a lot of different interpretations. This is emphasized because many
institutional and implementation raises contradictions use and management of forest
resources in the area. Some of the deviations among others:

8. 1. placement of the staff or employees and assets of the agency disbanded or merged.
Employees who have more technical skills accumulate at the provincial level. In the area
of professional shortages exacerbated by recruitment by the local officials who do not
have the educational background of forestry.
2. roles and responsibilities of the agency or agencies in the area (province and district)
overlapping, inconsistent, or contradictory.
3. disputes and conflicts on the allocation of forest land use.
4. growing and uncontrolled encroachment and illegal logging.
In the actualization of the implementation authority contained in the 2004 regional
autonomy law occurred a few things that are distorted and deviate from the objectives of
forest management and utilization. For example, just as happened in East Kalimantan in 2005
where the district gave permission businessmen scale forest no more than 100 ha. In Papua,
also issued a small-scale logging permits that result in uncontrolled logging also tends to
destroy.
Until now, despite the ban, such practices still go on. Many things can cause this
problem include the differences in the interpretation of central and local authorities as well as
the limitations of human resources where the officers who have technical skills and
management are still stacked in the government offices. The study, conducted by the Center
for International Forestry Research (CIFOR) in collaboration with the Department of
Forestry, Faculty of Agriculture and Forestry UNHAS (CIFOR and UNHAS Forestry
Department, 2006) reveals some of the effects that occur in forest management issues at the
beginning of the era of regional autonomy in the North Luwu and District Mamuju. From the
results of the study revealed that there are various ambiguities of authority delegated to the

9. district as well as any difference of interpretation between the provinces and districts in the
interpretation of legislation related to the autonomous region.
In many cases occur which tend to favor the interpretation of each level of
government. The district government quickly welcomed the enactment of regional autonomy
by making rules that benefit themselves and the region on the other hand the continuous
central government is still reviewing the regulations that may limit the movement of the
regional regulations. The discussion in the House of local Representatives about local
regulation is sometimes hampered by the release of the higher laws that will be used as
reference have been amended. The other thing that was found from the study is the complaint
in issue less allocation of fair balance and falling budget is not timely.
From the results of the study revealed that there are various ambiguities of authority
delegated to the district as well as any difference of interpretation between the provinces and
districts in the interpretation of legislation related to the autonomous region. In many cases
occur which tend to favor the interpretation of each level of government. The district
government quickly welcomed the enactment of regional autonomy by creating a favorable
local regulation him and on the other hand the central government is still reviewing the
continuous regulation may restrict the space of local regulation. From this research, it was
revealed that there are various ambiguities of authority delegated to the district as well as any
difference of interpretation between the provinces and districts in the interpretation of
legislation related to the autonomous region. In many cases occur which tend to favor the
interpretation of each level of government. The local government quickly welcomed the
enactment of regional autonomy by creating a favorable local regulation and on the other

10. hand the central government is still reviewing the continuous regulation may restrict the
space local regulation.
The discussion in House of local Representatives about the local regulations are
sometimes hampered due to the release of the higher laws that will be used as reference have
been amended. The other thing that was found from the study is the complaint in issue less
allocation of fair balance and falling budget is not timely. Rehabilitation funds allocated from
the government's perceived by both districts is unfair and unbalanced. The reason given was
only two regions at the provincial level.
C. Conclusion
Seen in the implementation of decentralization may experience some obstacles caused
by several things. Still visible reluctance of central government to delegate powers. The local
government may formally mandated to exercise authority, but there are still many restrictions
and barriers to exercise these powers. In this case there are still shadows of the bureaucratic
chain of command from top to bottom in a vague but real effects. Both may have been valid
in the autonomous region, but the local government itself does not effectively use the
authority that has been delegated. It can be seen from the inability to make good planning,
monitoring the progress of implementation has no government, failed to make a balanced
budget plan that led to the persistence of dependence on financial assistance from the center.
If the limited assistance from the central government efforts to replenish the budget then
taken to pursue and adding native opinion from various sources including the use of natural
resources available to the environmental and social impacts that are not controlled.

11. BIBLIOGRAPHY
CIFOR and the Department of Forestry UNHAS. , 2005. Preliminary Report of the
Implementation of Decentralization in the Forestry Sector Policy and Community
Response. Case Studies in the North and Mamuju Luwu, South Sulawesi.
Kuncoro, Haryo, 2007, "The phenomenon of flypaper on the Financial Performance of the
City and County governments in Indonesia," National Symposium on Accounting
X.
Martens, H. 1999. Environmental Assessment and Proposed Management of Small Scale
Mining in South Sulawesi. In: Proceedings of the Seminar on Mining and
Environmental Management in Ujungpandang 27 September 1999. Hasanuddin
University Center for Environmental Studies.
Government Regulation Number 38 Year 2007 regarding Government and Provincial
Authority as an Autonomous Region
PPLH (Centre for Environmental Research) UNHAS. , 2006. Integrated Watershed
Management Study Report Jeneberang. PPLH UNHAS, Ujungpandang.
Sidik, M., 2001 Empirical Study of Fiscal Decentralization: Fiscal Balance Policy in the Era
of Central and Regional Autonomy, Seminar Papers Plenary ISEI to IX, 13-14
April 2001 in Batam
Law Number 32 Year 2004 on Regional Governance
Law Number 33 of 2004 on Financial Balance between Central and Regional