CURRENT SITUATION AND PROBLEM CONCERNING OF URBAN AND REGIONAL

DEVELOPMENT IN INDONESIA By Hari Purwanto, KRIHS Korea

WHAT HAPPEN WITH INDONESIA ?

OK, FOLLOW ME TO LOOK AT THAT

The Law

Legal developments during the the recent years have been focusing on the promotion of law supremacy and improvement of good governance, to be executed through four development programs: the legislation Formulation Program; the Empowerment of Judiciary and other Law Enforcement Institutions Program; the Program for the Settlement of Cases of Corruption, Collusion and Nepotism and Human Right Abuses; and the Program for the Enhancement of Legal Awareness and Development of Legal Culture among the people.

In the context of reinforcing law supremacy, the 1999-2005 Guidelines of State policy gives directions to promoting legal affairs as follows :

To develop legal culture to all levels of society to make them have legal awareness and obedience within the frame of upholding law supremacy and law state, to arrange a comprehensive and integrated national legal system by recognizing religious and traditional laws, and replacing statutory regulations inherited from the Dutch colonial government as well as discriminative laws, including those related to gender; to uphold consistently regulations to secure legal certainty and respect to human rights;

to continue ratifying international conventions, particularly those pertaining to human rights, suitable with the need and interests of the nation; to improve moral integrity and professionalism of law enforcers, including the police of the Republic of Indonesia, to cultivate the public’s trust in them by improving their welfare, supportive means and facilities, education and control; to realize independent legal institutions that are free from interference by any party whatsoever; to develop statutory regulations conducive to economic activities in facing the free trade era without hampering national interests; to manage fast, low-cost operations, and corruption-collusion-and nepotism-free judicial process by upholding the justice and truth principles; to nurture legal understanding and consciousness, and to promote the protection, resettle completely various judicial processes on unsettled abuses of laws and human rights.

Human Right

Under law No. 39 of 1999, the National Commission on Human Rights came into being to among other things promote and maintain human rights and help settle human right cases arising in the public. Further, under Law No. 26 of 2000, the Human Rights Court is established. This law in principle accommodates conventions of Rome Statute that Contains definitions of international crimes such as genocide and crime against humanity.

In relation with the Human Rights Court, there have been issued as well Law No. 2 of 2002 concerning Procedure for the Protection of the Witnesses and the Victims of Serious Abuses of Human Rights, and Government Regulation No. 14 of 2003 on Compensation, Restitution, and Rehabilitation to the Victims of the Crimes of Human Rights.

REGIONAL DEVELOPMENT

Policy on regional underlines the development of regional autonomy focusing on the creation of balance in financial proportion between the central and regional administrations

The policy covers 20 regional development schemes as Law No 25 of 2000 regulates

REGIONAL AUTONOMY

The implementation of decentralization and regional autonomy policy based on Law No. 22 of 1999 concerning Regional Administration has caused changes in the paradigms that contained in the concept of regional autonomy

EXPANSION OF REGIONAL ADMINISTRATIONS Up to 2004 there have been six new

provinces added to the system to make the country’s total provincial governments 32, along with 80 new district administrations to total 349, and six new municipal administrations to number 91 in total

DEVELOPING LESS DEVELOPED AREAS

Disparities, particularly in economic and welfare term, are tangible and common between the relatively more developed regions in the country’s western part and the relatively less-developed regions in the country’s eastern half

Up to 2004 some regional development program have been carried out

ISSUE ON THE PROVINCES OF ACEH, PAPUA, AND MALUKU

Aceh has been implementing the Law 18 of 2001 on Special Autonomy Status. On August, 15th 2005 Aceh Freedom Movement signed the Peace Agreement with Central Government

Papua be regulated by Law No 21 of 2001 on Special Autonomy

In Maluku, the scheme has been designed as well as to reconcile the hostile parties, and to normalize the life of the local people

ERADICATION OF CORRUPTION

During the period of 2001-2005, the Attorney General handled 1,807 special criminal cases including corruption cases, of which, 1,099 cases has been adjudicated

ECONOMY

Entering the year of 2005, the country’s macro economy was enjoying a heartening and significant improvement, following the maintaining of more favorable political and security conditions.

Those assumptions : economy is projected to grow at 4.8 %; investment 2.8 %; agriculture 2.3 %; manufacturing at 3.5 %

INVESTMENT

Domestic Investment is regulated under Law No 6 of 1968 which has been amended by Law No 12 of 1970

Direct Foreign investment is regulated under Law No 1 of 1967, as amended by Law No 11 of 1970

DOMESTIC INVESTMEN

Approvals on domestic investment during the period of January-June 2005 or the first semester of 2005 were 72 project with Investment value of Rp. 15,773 billion.

Electric, gas & drinking water sector Rp. 4,994.3 billion; foodstuffs industry Rp. 4,591 billion; transport warehouse and telecommunication Rp. 1,038.4 billion

DIRECT FOREIGN INVESTMENT

There were 551 approved project of direct investment worth US $ 3,049.2 million during the period of January-June 2005. In addition, there were also 118 expanded foreign investment project with investment value of US $ 1,046.8 million

Japan US $ 882.4 million; UK US$793.4 million; Malaysia 321.3 million; South Korea US$230.1 million

MANUFACTURING INDUSTRY AND TRADE

Developing popular economy based on market mechanism, fair competition, and non monopolistic

In 2005 the utilization of installed production capacity of manufacturing industries was about 61.7 %, or growing on an annual average of 1.9 % during the last five years; and of metal, machinery, electronics and multifarious industrial group was 55.2 %, or increasing 0.4 % per annum

POLICY

The country’s fee and active foreign policy aims to bilateral, regional and international levels, in the context of speeding up the recovery of the nation’s and country’s dignity and trust of foreign government, including institutional creditors and investor towards the Indonesian Government.

Umbrella Law and diplomacy