The Importance of Improving Regulatory Transparency: Public Consultation in the Regulatory-Making Process - Huda Bahweres

The Importance of Improving Regulatory Transparency:

Public Consultation in the Regulatory-Making Process

Coordinating Ministry of Economic Affairs Republic of Indonesia

Huda Bahweres Assistant Deputy for Regional and Sub-Regional Economic Cooperation Coordinating Ministry of Economic Affairs Republic of Indonesia

Why we need public consultation?

• Public consultation is a key element of regulatory decision-making.

• Public consultation is pre-requisite for the implementation of good regulatory practices

• Public consultation will ensure transparency, accountability and acceptability of the propoposed regulations.

• Public or stakeholders can inform regulators how proposed regulations would impact their business and activities.

• Stakeholders may also offer ideas on alternative, less burdensome, and more cost effective approaches to achieving legitimate regulatory objectives.


Overview of Indonesia’s Legal Framework on Public Consultation in the Formulation of Laws and Regulations

Laws No. 33/2004 and No. 33/2004 jo Laws No. 22/1999 and No. 29/1999 on Decentralization shifted part of the central government's decision making power to the provinces,

and districts/cities Allow more opportunity for participation in the legislation and regulation process.

Law No. 12/2011 jo Law No. 10/2004 on the Formulation of Laws and Regulations Outlines the general principles for making laws and regulations Emphasizes transparency and participation – people’s right to comment verbally or

in writing Implementing regulation is still in the process.

Law No. 14/2008 on Transparency of Public Information Sets forth principles and requirements of openness, encouraging the active role of

the community in deciding on public policy and monitoring public bodies.

Law No. 25/2009 on Public Service also states as a principle that the provision of public service is to be “participative”.


What is missing (in terms of public consultation) in the legal framework?

1) Detailed provisions on public participation 2) Provisions for monitoring or record-keeping in

the process of public consultation. 3) Guidelines for Public Consultation mechanism . 4) Provisions for a comprehensive data-base of

laws and regulations.


Mechanism of Preparing the Drafts of Laws and Regulations in Indonesia It covers the drafting of Laws, Regulations in Place of Laws

(PERPU) and Local Regulations. The first step, proposed laws and local government regulations

should be approved to be included under the National Legislation Programme (PROLEGNAS) and Local Government Legislation Programme (PROLEGDA), respectively.

The second step is to prepare the Academic Draft led by an Inter-ministerial Committee.

The next step is to prepare the draft law or local government regulation.

Stakeholders and Public/NGOs are invited for comments in the seminar or socialisation of the draft law.

Completed draft law is submitted to Ministry of Law and Human Rights for harmonization with other laws, regulations and policies . This process may have another round of stakeholders consultation.


The Practice of Public Consultation in Indonesia*)

Law No. 12/2011 gives the general public the right to provide input, either orally or in writing, in the formulation of laws and regulations.

The forms of public consultation mostly including: public hearings, working visits, socialisation as well as seminars, workshops and discussions.

Detail records of the public participation are not required.

There are no formal guidelines for consultation and monitoring of consultation with affected parties in the regulatory decision-making process


*)Based on APEC Case Study on Improving Public Consultation in the Rulemaking process – 2009 & OECD Regulatory Reform Review of

Indonesia 2012

The Risks.. There might be no clear input from public 0r

stakeholders on proposed laws and regulations.

The possibility of misperception that public particpation in the regulatory process is just a kind of formalities.

The regulation produced may result in unintended impact and unecessary cost to the public; it is unaccountable and unacceptable.

Lack of support in the implementation.


Summary Snapshots Providing a legal framework for allowing

public to provide inputs and get responses in all steps of regulatory making process.

Preparing guidelines for public consultation. Raising awareness and capacity building to

improve public participation in the regulatory making process.

Improving the quality and quantity of public consultation by implementing e-rulemaking.

Political will to implement good regulatory practices.


Current Activity.. Developing Guidelines of Public Consultation Mechanism in

Indonesia.

National Law Development Agency (BPHN)-Ministry of Law and Human Rights supported by Coordinating Ministry of Economic Affairs (Kemenko Perekonomian) are the Focal Point.

The guidelines are intended to be used by line ministries as well as the parliament (DPR) on conducting public consultation

It is expected that the guidelines are to be adopted under the implementing regulation of Law No. 12/2011 and it may contribute to the draft of Regulatory Framework for the next National Mid-term Development Planning 2014-2019 (RPJMN) proposed by BAPPENAS


THANK YOU

THANK YOU

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The Importance of Improving Regulatory Transparency: Public Consultation in the Regulatory-Making Process - Huda Bahweres