Journal of New Government Paradigm Volume 2, 1 Edition, 2015upm.pps.ipdn.ac.id/wp-content/uploads/2014/11/1.-DR.-NURLIAH-NURDIN.pdfIKraR). Indonesia IkraR increases from 44,0 percent

Journal of New Government Paradigm Volume 2, 1st Edition, 2015

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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].

mailto:[email protected]


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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


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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/

http://www.nationsencyclopedia.com/knowledge/Insurance.html


4

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


5

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


6

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

http://www.heritage.org/about/staff/c/james-carafano

http://www.heritage.org/about/staff/w/richard-weitz


7

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).


8

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


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:


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


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


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


13

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


14

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


15

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


16

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



17

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


18

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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Documents

Journal of New Government Paradigm Volume 2, 1 Edition, 2015upm.pps.ipdn.ac.id/wp-content/uploads/2014/11/1.-DR.-NURLIAH-NURDIN.pdfIKraR). Indonesia IkraR increases from 44,0 percent