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LAW OF THE REPUBLIC OF INDONESISA
No. 22/1999

CONCERNING
REGIONAL ADMINISTRATIONS

By THE GRACE OF GOD THE ALMIGHTY
THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Elucidation on No. 22/1999

Considering:

In view of:

With the approval of:

THE HOUSE OF PEOPLE'S REPRESENTATIVES OF THE REPUBLIC INDONESIA

DECIDES

To stipulate:

THE LAW ON REGIONAL ADMINISTRATIONS

CHAPTER I
GENERAL PROVISIONS

Article 1

Referred to in this law as:

CHAPTER II
REGIONAL DIVISION

Article 2

(1) The territory of the Unitary State of the Republic of Indonesia shall be divided into provinces, regencies and urban areas which are autonomous in nature.

(2) A province shall also be in a position of an administrative area.

Article 3

The territory of a province, as meant in Article 2 sub-article (1) shall comprise the overland area and the water area extending 12 nautical miles offshore measured from the shoreline and or towards archipelagic waters.

CHAPTER III
ESTABLISHMENT AND STRUCTURE OF A REGION

Article 4

(1) In the framework of implementing the principle of decentralization provinces, regencies and municipalities are established and arranged in a structure with an authority to regulate and take care of the interests of local communities at their own initiatives on the basis of the aspirations of the community.

(2) The regions as meant in sub-article (1) shall each be independent and shall not have any hierarchical relations with one another.

Article 5

(1) A region is established on the basis of economic capacity, regional, socio-cultural and socio-political potential, population size, regional extent and other considerations enabling the implementation of regional autonomy.

(2) The establishment, name, boundaries and capital as meant in sub-article (1) shall be stipulated by the law.

(3) A change in boundary which snail not lead to the abolition of a region, a change in the name of a region and a change in the name of and transfer of a regional capital shall be stipulated in a government regulation.

(4) The requirements for the establishment of a region, as meant in sub-article (1 ) shall be stipulated in a government regulation.

Article 6

(1) A region incapable of implementing regional autonomy may be abolished and or merged with another region.

(2) A region may be expanded into move than one regions.

(3) The criteria for the abolition, merger and expansion of a region as meant in sub-articles (1) and (2) shall be stipulated in a government regulation.

(4) The abolition, merger and expansion of a region as meant in sub-articles (1) and (2) shall be stipulated by the law.
CHAPTER IV
REGIONAL AUTHORITY

Article 7

(1) Regional authority shall encompass authority in the entire governmental area, with the exception of the authority in foreign policy, defense and security, judicial, monetary and fiscal, religious and other areas.

(2) The authority in other areas, as meant in sub-article (1) shall encompass policies on national planning and control of national development on a macro basis, the funds in the context of financial equilibrium, the state administrative system and the state economic institutions, fostering and empowerment of human resources, efficient use of natural resources and strategic high technology, conservation and national standardization.

Article 8

(1) The authority of the Government handed over to the Region in-The context of decentralization coupled with the delegation and transfer of financing, facilities and infrastructure and human resources in accordance with the authority handed over.

(2) The authority of the Government delegated to the governor in the context of deconcentration must be must be coupled with financing in accordance with the authority delegated.

Article 9

(1) The authority of a province as an autonomous region shall encompass cross-district and cross-municipality authority in the governmental area and the authority in other specific governmental areas.

(2) The authority of a province as an autonomous region shall also include the authority which is not or is yet to be implemented by regencies and municipalities.

(3) The authority of a province as an administrative area shall encompass the authority in the governmental area delegated to the governor as the representative of the Government.

Article 10

(1) A region shall be authorized to manage national resources available in its territory and shall be held responsible to maintain environmental sustainability pursuant to the laws.

(2) Regional authority in the territorial waters, as meant in Article 3, shall encompass:

(3) The authority of regencies and municipalities in the territorial waters as meant in sub-article (a) shall be to an extent equal to one third of the sea boundary of a province.

(4) Further regulation of the provision as meant in sub-article (2) shall be stipulated in a government regulation.

Article 11

(1) The authority of regencies and municipalities shall encompass all governmental authority with the exception of the authority excepted in Article 7 and regulated in Article 9.

(2) Governmental matters which regencies and municipality shall be obligated to handle shall encompass pubic works, health, education and culture, agriculture, communications, industry and trade, investment, environment, land affairs, cooperatives and manpower.

Article 12

Further regulation on the provisions as meant in Articles 7 and 9 shall be stipulated in a government regulation.

Article 13

(1) The government may assign the Regions specific tasks in the framework of an assistance task along with financing, facilities and infrastructure and human resources with an obligation to report their implementation and account for them to the Government:

(2) Every assignment, as meant in sub-article (1), shall be stipulated by the law.

CHAPTER V
FORM AND STRUCTURE OF REGIONAL ADMINISTRATION

Part One
General

Article 14

(1) A DPRD as a regional legislative assembly and a regional government as a regional executive agency shall be established in a region.

(2) A regional government shall be made up of a regional head with other regional apparatuses.

Part Two
DPRD

Article 15

The position, structure, tasks, authority, rights, membership, leadership and apparatuses of a DPRD shall be regulated by the law.

Article 16

(1) DPRD as a people's representative institution in the Region shall constitute a means for the implementation of democracy based on Pancasila.

(2) DPRD as a regional legislative agency shall be of equal position to a regional government and be its partner.

Article 17

(1) Membership of DPRD and the number of DPRD members shall be stipulated pursuant to the laws.

(2) The apparatuses of DPRD shall be made up of the leadership, commissions and committees.

(3) DPRD shall establish factions, which shall not be DPRD apparatuses.

(4) The implementation of the provision as meant in sub-articles (2) and (3) shall be regulation in the Regulation of Conduct of DPRD.

Article 18

(1) DPRD shall have the following tasks and authority:

Article 19

(1) DPRD shall enjoy the right:

(2) The exercise of the rights as meant in sub-article 111 shall be regulated in the Regulation for Conduct of DPRD.

Article 20

(1) In implementing its tasks, DPRD shall reserve the right to request that state officials, government officials or community members should give information about something which must be dealt with in the interest of the state, the nation, the administration and development.

(2) State officials, government officials or community members rejecting the request as meant in sub-article (1) shall be subject to a maximum imprisonment of one year because of lowering the dignity of and respect for DPRD.

(3) The exercise of the right as meant in sub-article (1) and sub-article (2) shall be regulated in the Regulation of Conduct of DPRD.

Article 21

(1) DPRD members enjoy

(2) The exercise of the rights as meant in sub-article (1) shall be regulated in the Regulation of Conduct of DPRD.

Article 22

DPRD is obligated to:

Article 23

(1) DPRD shall convene periodic meetings at least six times a year.

(2) Excepting what is referred to in sub-article (1), the chairman of DPRD may, at the request of at least one-fifty of the number of members or at the request of the regional head, summon its members for a meeting at the latest within one month after the receipt of the request.

(3) DPRD shall convene a meeting at the request of the chairman of DPRD.

(4) The implementation of the provision as meant in sub-articles (1), (2) and (3) shall be stipulated in the Regulation of Conduct of DPRD.

Article 24

The Regulation of Conduct of DPRD shall be stipulated in a decision of DPRD.

Article 25

DPRD meeting shall be open to the public, except if they are declared closed on the basis of the Regulation of Conduct of DPRD or on the basis of the agreement of the leadership of DPRD.

Article 26

Closed meetings may make a decision with the exception of the following cases:

Article 27

DPRD members cannot be sued in the court because of the statement and or opinions put forward orally or in writing in the DPRD meetings, either open or closed, except if the member concerned makes public. what has been agreed in the closed meeting to be kept confidential or matters referred to by the provision on the announcement of state's secrets in the second book of Chapter I of the Criminal Code.

Article 28

(1) An investigation into a member of DPRD may be carried out upon a written approval from the Home Minister, in the case of members of provincial DPRD and the governor in the case of members of district and municipality DPRD, except if the member concerned is caught in the act while committing a crime.

(2) In the event that a DPRD member is caught in the act while committing a crime, as meant in sub-article (1 ), at the latest within 2 x 24 hours this should be notified in writing to the Home Minister and/or the governor.

Part Three
Secretariat of DPRD

Article 29

(1) The Secretariat of DPRD shall assist DPRD in implementing its tasks and exercising its authority.

(2) The Secretariat of DPRD shall be led by a DPRD secretary who shall be appointed by the regional head from among civilian civil servants fulfilling the requirements, with the approval of the leadership of DPRD.

(3) In implementing his/her tasks, the DPRD secretary shall be under and accountable to the leadership of DPRD.

(4) The DPRD secretary may provide experts to be assigned to assist DPRD members in performing their functions.

(5) The budget of the secretariat of DPRD shall be stipulated by virtue of a decision of DPRD and set forth in the regional budget of revenues and expenditures.

Part Four
Regional Heads

Article 30

Every Region shall be led by a regional head as an executive head, assisted by one deputy regional head.

Article 31

(1) The regional head of a province shall be called a governor, who, because of his position, shall also act as the Government's representative.

(2) In performing his tasks and exercising his authority as a regional head, a governor shall be accountable to the provincial DPRD.

(3) The procedure for the implementation the accountability as meant in sub-article (2) shall be stipulated in the Regulation of Conduct of DPRD in accordance with the guideline stipulated by the Government.

(4) In his position of the Government's representative, a governor shall be under and accountable to the president.

(5) The procedure for the implementation of accountability as meant in sub-article (4) shall be stipulated by the Government.

Article 32

(1) The regional head of a district shall be called a district head.

(2) The regional head of a municipality shall be called a mayor.

(3) In performing his tasks and exercising his authority as a regional head, a district head/mayor shall be accountable to the district/municipality DPRD.

(4) The procedure for the implementation of accountability as meant in sub-article (3) shall be stipulated in the Regulation of Conduct of DPRD in accordance with the guideline stipulated by the government.

Article 33

Those who can be stipulated as regional heads shall be the citizens of the Republic Indonesia fulfilling the following requirements:

Article 34

(1) The positions of a regional head and deputy regional head shall be filled by DPRD through simultaneous election.

(2) Regional head candidates and deputy regional head candidates shall be stipulated by DPRD through the stages of nomination and election.

(3) An election committee shall be set up for the nomination and election of a regional head and a deputy regional head.

(4) The chairman and deputy chairmen of DPRD shall, because of their positions, be chairman and deputy chairmen of the election committee concurrently members.

(5) DPRD secretary shall, because of his/her position, be the secretary of the election committee.

Article 35

(1) The election committee as meant in Article 34 sub-article (3) shall be assigned to:

(2) Prospective regional head candidates and prospective deputy regional head candidates fulfilling the requirements in accordance with the result of the examination conducted by the election committee as meant in sub-article (1) shall be put forward to DPRD in order to be stipulated as regional head candidates and deputy regional head candidates.

Article 36

(1) Every faction shall sort out the pair of prospective candidates pursuant to the requirements stipulated in Article 33.

(2) Every faction shall stipulate the pair of prospective regional head candidate and prospective deputy head candidate and put this forward to the leadership of DPRD in the plenary meeting.

(3) Two or more factions may jointly put forward the pair of prospective regional head candidate and prospective deputy regional head candidate as meant in sub-article (1).

Article 37

(1) In a plenary meeting of DPRD every faction or a number of factions shall give an explanation about their prospective candidates.

(2) The leadership of DPRD shall invite the said prospective candidates to explain their vision, mission and policy plans if the said prospective candidates are elected regional heads.

(3) DPRD members may interview the prospective candidates.

(4) The leadership of DPRD and the leadership of the factions shall evaluate the capability and personality of the prospective candidates and through a consensus or voting they shall determine at least two pairs of regional head candidates and deputy head candidates, of whom one pair shall be elected by DPRD.

Article 38

(1) The names of governor candidate and deputy governor candidate already determined by DPRD leadership shall be brought up for consultation with the president.

(2) The names of district head candidate and deputy district head candidate as well as mayor candidate and deputy mayor candidate who shall be elected b DPRD shall be stipulated by virtue of a decision of DPRD leadership.

Article 39

(1) The election of regional head candidate and deputy regional head candidate shall be carried out in a plenary meeting of DPRD to be attended by 1 minimum of two-thirds of the total number of DPRD members.

(2) If number of DPRD members is yet to reach the quorum as meant in sub-article (1), the chairman of the meeting may adjourn the meeting for a maximum of one hour.

(3) If the provision as meant in sub-article (2) is yet to be fulfilled, the plenary meeting shall! be adjourned for a maximum of another hour and afterwards the election of the regional head candidate and the deputy regional head candidate shall continue to be held.

Article 40

(1) The election of a regional head and a deputy regional head shall be held directly, freely, honestly and fairly.

(2) Every DPRD member may vote on one of the pairs of regional head candidates and deputy regional head candidates already determined by the leadership of DPRD as meant in Article 37 sub-article (4).

(3) The pair of regional head candidate and deputy regional head candidate enjoying the majority of votes in the election as meant in sub-article (2) shall be stipulated as the regional head and the deputy regional head by DPRD and this shall be endorsed by the President.

Article 41

A regional head shall have a term of office of five years and can be re-elected only for another term of office.

Article 42

(1 ) A regional shall be installed by the president or another official appointed to act on behalf of the president.

(2) Before assuming his position, a regional head shall say an oath/make a pledge.

(3) The words in the said oath/pledge shall be as follows:

"By the Grace of Allah (God), I swear/pledge that I will fulfill my obligations as a governor/district head/mayor in the best, most honest and fairest possible manner; that I will always be obedient in applying and defending Pancasila as the state's foundation; and that I will uphold a democratic lie and the Constitution of 1945 as the state's constitution and all laws prevailing in the regions and in the Unitary State of the Republic of Indonesia."

(4) The procedure for the saying of the oath/making of the pledge and the installation of a regional head shall be stipulated by the Government.

Part Five
Obligations of a regional head

Article 43

A regional head shall be obligated to:

Article 44

(1) A regional head shall lead the execution of regional administration on the basis of policies stipulated jointly with DPRD.

(2) In performing his tasks and obligations, a regional head shall be accountable to DPRD.

(3) A regional head shall be obligated to submit a report on the execution of regional administration to the president through the home minister with a copy to the governor, in the case of a district head or a mayor, at least once a year; or when it is deemed necessary by the regional head or if so requested by the president

Article 45

(1) A regional head shall be obligated to submit his accountability report to DPRD at the end of every budget year.

(2) A regional head shall be obligated to submit his accountability report to DPRD for a specific case at the request of DPRD as meant in Article 44 sub-article (2).

Article 46

(1) A regional head whose accountability report as meant in Article 45, whether an accountability report on administration policies or a financial accountability report, is rejected must complete and/or improve it within a maximum period of thirty days.

(2) A regional head already completing and/or improving his accountability report shall submit ft again to DPRD as meant in, sub-article (1 ).

(3) In the case of a regional head whose accountability report is rejected for the second time, DPRD may propose his discharge to the president.

(4) The procedure as meant in sub-article (3) shall be stipulated by the government.

Article 47

A regional head shall represent his region inside and outside a court of law and may appoint a proxy to represent him.

Part Six
Prohibitions to regional heads

Article 48

A regional head shall be prohibited from:

Part Seven
Discharge of a regional head

Article 49

A regional head shall resign or be discharged because of:

Article 50

(1) The discharge of a regional head because of the reasons as meant in Article 49 shall be stipulated in a decision of DPRD and endorsed by the president.

(2) The decision of DPRD as meant in sub-article (1) must be attended by a minimum of two-thirds of the number of DPRD members and the decision shall be made with the approval of a minimum of two-thirds of the number of members present.

Article 51

A regional head shall be discharged by the president without a decision of DPRD if he proves to have committed a crime threatened with imprisonment of five years or more or a death penalty as regulated in the Criminal Code.

Article 52

(1) A regional head assumed to have committed treason and/or other acts which may disintegrate the Unitary State of the Republic of Indonesia shall be discharged temporarily from his position by the president without a decision of DPRD.

(2) A regional head who proves to have committed treason and other acts which may disintegrate the Unitary State of the Republic of Indonesia as stated in a ruling of the court of law already obtaining permanent legal force shall be discharged by the president without the approval of DPRD.

(3) A regional head who, after going through a judicial process, proves not to have committed treason and acts which may disintegrate the Unitary State of the Republic of Indonesia as meant in sub-article (1) shall be reinstated and rehabilitated as a regional head until the end of his term of office.

Article 53

(1) DPRD shall notify in writing a regional head that his term of office shall end six months earlier.

(2) With the notification as meant in sub-article (1), a regional head shall prepare the accountability report to DPRD at the end of his term of office and submit the said accountability report at the latest four months after the notification.

(3) At the latest one month prior to the end of the term of office of a regional head, DPRD shall begin to process the election of a new regional head.

Article 54

A regional head whose accountability report as meant in Article 53 is rejected by DPRD cannot be nominated again as a regional head for the next term of office.

Part Eight
Acts of investigation into a regional head

Article 55

(1) Acts of investigation into a regional head shall be taken after a written approval has been obtained from the president.

(2) Matters excepted from the provision as meant in sub-article (1) shall be:

(3) After the acts of investigation as meant in sub-article (2) have been made, they must be reported to the president at the latest within 2 x 24 hours.

Part Nine
Deputy Regional Head

Article 56

(1) In every region there is a deputy regional head.

(2) A deputy regional head shall be installed by the president or another official appointed, at the same time as the installation of a regional head.

(3) Prior to assuming his position, a deputy regional head shall say an oath/make a pledge.

(4) The words in the said oath/pledge shall be as follows:

"By the grace of Allah (God), I swear/pledge that I will fulfill my obligation as a deputy governor/deputy regency head/deputy mayor in the best, most honest and fairest manner possible; that I will always be obedient in applying and defending Pancasila as the foundation of the state; and that I shall uphold a democratic life and the Constitution of 1945 as the state's constitution and all laws prevailing in the regions and the Unitary State of the Republic of Indonesia".

(5) The provisions as meant in Article 33, Article 41, article 43 except letter g, Article 47 up to Article 54 shall also apply to a regional deputy head.

(6) A deputy regional head for a province shall be called a deputy governor, a deputy regional head for a regency shall be called a deputy regency head and a deputy regional head for a municipality shall be called a deputy mayor.

Article 57

(1) A deputy regional head shall be assigned to:

(2) A deputy regional head shall be accountable to a regional head.

(3) A deputy regional head shall perform the tasks and exercise the authority of a regional head if a regional head is prevented from doing so.

Article 58

(1) If a regional head is permanently prevented from performing his tasks, the position of regional head shall be replaced by the deputy regional head until the end of the term of office.

(2) If a deputy regional head is permanently prevented from performing his tasks, the position of deputy regional head shall be left vacant.

(3) If the regional head and the deputy regional head are permanently prevented from performing their tasks, the regional secretary shall implement the tasks of the regional head for the time being.

(4) If the regional head and the deputy regional head are permanently prevented from performing their tasks, DPRD shall elect a regional head and a deputy regional head at the latest within three months.

Part Ten
Financial position of Regional Head and Deputy Head of Region

Article 59

The financial position of Regional Head and Deputy Head is regulated by Government Regulation.

Part Eleven
Regional Apparatuses

Article 60

Regional apparatuses shall be made up of a regional secretariat, regional services and other regional technical institutions in accordance with the regional needs.

Article 61

(1) A regional secretariat shall be headed by a regional secretary.

(2) A regional secretary of a province shall be appointed by the governor with the approval of the leadership of DPRD from among civilian civil servants who fulfill the requirements.

(3) A regional secretary of a province shall, because of his position, be a secretary of an administrative region.

(4) A regional secretary of a district or a regional secretary of a municipality shall be appointed by a district head or a mayor with the approval of the leadership of DPRD from among civilian civil servants who fulfill the requirements.

(5) A regional secretary shall be obligated to assist a regional head in formulating policies and fostering working relations with services, technical institutions and other executive units.

(6) A regional secretary shall be accountable to the regional head.

(7) If a regional secretary is prevented from implementing his tasks, the tasks of a regional secretary shall be performed by an official appointed by a regional head.

Article 62

(1) A regional service shall be an executive component of a regional government.

(2) A service shall be headed by a service head who shall be appointed by the regional head from among civilian civil servants who fulfill the requirements at the suggestion of the regional secretary.

(3) A service head shall be accountable to a regional head through a regional secretary.

Article 63

The exercise of the authority delegated by the Government to the governor as the Government's representative in the framework of deconcentration as meant in Article 9 sub-article (3) shall be implemented by a provincial service.

Article 64

(1) The execution of the area of administration which is within the authority of the Government as meant in Article 7 shall be implemented by vertical government agencies.

(2) The establishment, organizational structure, formation and its administration as meant in sub-article (1) shall be stipulated in a presidential decree.

Article 65

In a region technical institutions may be established in accordance with regional needs.

Article 66

(1) A district shall be an apparatus of a district and a municipality and is headed by the head of a district.

(2) The head of a district shall be called a district head.

(3) A district head shall be appointed by a district head/mayor at the suggestion of the regional secretary of a district/municipality from among civilian civil servants who fulfill the requirements.

(4) A district head shall receive the delegation of part of authority in administration from a district head/mayor.

(5) A district head shall be accountable to a district head or a mayor.

(6) The establishment of a district shall be stipulated in a regional regulation.

Article 67

(1) A village administration shall be an apparatus of a district and is headed by the head of a village administration.

(2) The head of a village administration is called a village administration head.

(3) A village administration head is appointed from among civilian civil servants who fulfill the requirements by a mayor/district head at the suggestion of a district head.

(4) A village administration head shall receive the delegation of part of the authority in administration from a district head.

(5) A village administration head shall be accountable to a district head.

(6) The establishment of a village administration shall be stipulated in a regional regulation.

Article 68

(1) The organizational structure of regional apparatuses shall be stipulated in a regional regulation pursuant to the guideline already stipulated by the Government.

(2) The formation and requirements for the positions in regional apparatuses shall be stipulated in a decision of the regional head pursuant to the guideline stipulated by the Government.

CHAPTER VI
REGIONAL REGULATIONS AND DECISIONS OF REGIONAL HEADS

Article 69

A regional head shall stipulate a regional regulation' with the approval of DPRD in the framework of the implementation of regional autonomy and further spelling out of the laws of a higher order.

Article 70

Regional regulations cannot contradict public interests, other regional regulations and laws of a higher order.

Article 71

(1 ) Regional regulations may contain a provision on the imposition of a law enforcement coercion fee, either entirely or partly, on violators.

(2) Regional regulations may contain a penalty threat of imprisonment of a maximum of six months or a fine of a maximum amount of Rp 5,000,000.00 (five million rupiah) with or without the confiscation of specified items "or the Region, unless otherwise stipulated in the laws.

Article 72

(1) To implement regional regulations and by the force of the prevailing laws, a regional head shall stipulate decisions of a regional head.

(2) The decisions as meant in sub-article (1) may not contradict public interests, regional regulations and the laws of a higher order.

Article 73

(1) Regional regulations and decisions of a regional head which are regulating in nature shall be promulgated by publishing them in the Regional Statute Book.

(2) The provision as meant in sub-article (1) shall have a legal force and shall be binding after it has been promulgated in the Regional Statute Book.

Article 74

(1) Investigation into and prosecution of violations of the provisions in regional regulations shall be undertaken by an investigating official and a prosecutor pursuant to the laws.

(2) By virtue of a regional regulation another person may be appointed and assigned to undertake an investigation into violations of the provisions in regional regulations.

CHAPTER VII
REGIONAL CIVIL SERVICE

Article 75

Norms, standards and procedure for the installation, transfer, discharge and the stipulation on pension, salaries, allowances, welfare, rights and obligations as well as the legal positions of civilian civil servants in the region and regional civilian civil servants shall be stipulated by the law.

Article 76

The regional shall enjoy the authority to install, transfer, discharge, stipulate the pension, salaries, allowances and welfare of the personnel as well as their education and training in conformity with the need and capacity of the region as stipulated by a regional regulation on the basis of the laws.

Article 77

The government of a province shall exercise supervision over the implementation of personnel administration and career of employees in its territory shall be in keeping with the laws.

CHAPTER VIII
REGIONAL FINANCE

Article 78

(1) The performance of the tasks of regional administration and DPRD shall be financed by and at the cost of the regional budget of revenues and expenditures.

(2) The performance of the tasks of the Government in the Region shall be financed by and at the cost of the state's budget of revenues and expenditures.

Article 79

Sources of regional revenues shall be comprised of:

Article 80

(1) The equilibrium fund as meant in Article 79 shall be comprised of:

(2) The portion of the Region from the proceeds of the land and building tax in the rural, urban and estate sectors and the fees for the acquisition of the title on land and buildings as meant in sub-article (1) letter a shall be received directly by the producing Region.

(3) The portion of the Region from the proceeds of the land and building tax in the mining and forestry sectors and the receipts from natural resources, as meant in sub-article (1) letter a shall be received by the producing Region and other Regions for equity pursuant to the prevailing laws.

(4) Further provisions as meant in sub-articles (1), (2) and (3) shall be stipulated in a law.

Article 81

(1) A Regional Government may establish loans from domestic sources and/or foreign sources to finance administration activities with the approval of DPRD.

(2) Domestic loans shall be notified to the Government and established pursuant to the guideline stipulated by the Government.

(3) Borrowing and sources of loan funds originating abroad as meant in sub-article (1) must obtain the Government's approval pursuant to the prevailing laws.

(4) The procedure for borrowing as meant in sub-articles (1) and (2) shall be stipulated by the Government.

Article 82

(1) Regional taxes and levies shall be stipulated by the law.

(2) The stipulation of tariffs and the procedure for collection of regional taxes and levies shall be stipulated by a regional regulation pursuant to the laws.

Article 83

(1) To bolster the empowerment of a Region, the Government shall give certain fiscal and non-fiscal incentives.

(2) The provisions as meant in sub-article (1) shall be stipulated in a government regulation.

Article 84

A region may own an enterprise owned by the region pursuant to the laws and its establishment shall be regulated in a regional regulation.

Article 85

(1) The property owned by the region and used to serve public interests cannot be pawned, mortgaged and/or transferred.

(2) A regional head shall, with the approval of DPRD, be able to stipulate a decision on:

Article 86

(1) A regional budget of revenues and expenditures shall be stipulated in a regional regulation at the latest one month after the stipulation of the state's budget of revenues and expenditures.

(2) An amendment to the regional budget of revenues and expenditures shall be stipulate in a regional regulation at the latest three months prior to the end of a budget year.

(3) The calculation of a regional budget of revenues and expenditures shall be stipulated in a regional regulation at the latest three months after the end of the budget year concerned.

(4) A guideline for the drawing up, amendment and calculation of a regional budget of revenues and expenditures shall be stipulated in a regional regulation.

(5) A regional budget of revenues and expenditures already stipulated in a regional regulation shall be submitted to the governor in the case of a district/municipality government and to the president through the home minister in the case of a provincial government for their knowledge.

(6) A guideline for processing, accountability and supervision of regional finance and the procedure for the drawing up of a regional budget of revenues and expenditures, the implementation of the administration of regional finance and the drawing up of the calculation of a regional budget of revenues and expenditures shall be stipulated pursuant to the laws.

CHAPTER IX
COOPERATION AND SETTLEMENT OF DISPUTES

Article 87

(1) A number of regions may establish inter-regional cooperation which shall be regulated in a joint decision.

(2) A region may set up an agency for inter-regional cooperation.

(3) A region may establish cooperation with other agencies and this shall be regulated in a joint decision.

(4) A joint decision and/or a cooperation agency as meant in sub-articles (1), (2) and (3), which shall be burdensome to the community and the Region, must obtain the approval of the respective DPRD.

Article 88

A region may establish mutually beneficial cooperation with a foreign institution/agency, which shall be regulated in a joint decision except if it is concerned with the authority of the Government as meant in Article 7, the procedure as meant in sub-article (1) shall be stipulated by the Government.

Article 89

(1) Inter-regional disputes shall be settled by the Government on the basis of a consensus.

If in the settlement of inter-regional disputes as meant in sub-article (1), there is one party which does not accept a decision of the Government, the said party can file an application for a settlement to the Supreme Court.

CHAPTER X
URBAN AREAS

Article 90

Apart from the urban areas with the status of municipality areas, it is necessary to stipulate urban areas comprising:

Article 91

(1) A municipality government and/or a district government whose areas share a borderline may set up a joint institution to manage urban areas.

(2) In a rural area planned and built to be an urban area in a district, a development management agency which shall be accountable to the regional head may be set up.

(3) The provision as meant in sub-articles (1) and (2) and other matters about the management of urban areas shall be stipulated in a regional regulation pursuant to the guideline stipulated in a government regulation.

Article 92

(1) In implementing the development of an urban area, a regional government must involve the community and private circles.

(2) The involvement of the community as meant in sub-article (1) shall constitute efforts to empower the community in urban development.

(3) The regulation about urban areas shall be stipulated in the laws.

CHAPTER XI
VILLAGES

Part One
Establishment, Abolition and/or Merging of Villages

Article 93

(1) Villages may be established, abolished and/or merged with account being taken of their origin at the initiative of the community with the approval of the district government and DPRD.

(2) The establishment, abolition and/or merging of villages as meant in sub-article (1) shall be stipulated in a regional regulation. .

Article 94

A rural government and a rural representative agency shall be set up in a village, constituting a rural government.

Part Two
Rural Government

Article 95

(1) A rural government shall comprise a village head or by any other names and village apparatuses.

(2) A village head shall be directly elected by villagers from among eligible candidates.

(3) A village head candidate who is elected with a majority of votes as meant in sub-article (2) shall be stipulated by the rural representative agency and legalized by the district head.

Article 96

The term of office of a village head is a maximum of 10 years or two terms of offices as from the date of stipulation.

Article 97

Those who can be elected village heads shall be villagers who are citizens of the Republic Indonesia and fulfill the following requirements:

Article 98

(1) A village head shall be installed by a district head or another official who is appointed.

(2) Before assuming his position, a village head shall say an oath/make a pledge:

(3) The composition of the words of the oath/pledge referred to shall be as follows:"I swear/make a pledge by God that I will fulfill my obligations as a village head in the best, most honest and most fair manner and that I will always be obedient in applying and defending Pancasila as a state's foundation; and that I will uphold a democratic life and the Constitution of 1945 as the state's constitution and all laws prevailing for villages, regions and the Unitary State of the Republic of Indonesia.

Article 99

The authority of a village shall encompass:

Article 100

The assistance task from the government. provincial government and/or district government to a village shall be accompanied with financing, facilities and infrastructures and human resources.

Article 101

The tasks and obligations of a village chief shall be:

Article 102

In performing its tasks and obligations as meant in Article 101, a village head shall:

Article 103

(1 ) A village head shall be dismissed from his job because:

(2) The discharge of a village head as meant in sub-article (1) shall be undertaken by a district head at the suggestion of a rural representative agency.

Part Three
Rural Representative Agency

Article 104

A Rural Representative Agency, or referred to under other names, shall have the functions of protecting customs, drawing up rural regulations, accommodating and channeling the aspirations of the community and exercising supervision over the implementation of regional administration.

Article 105

(1) Members of the Rural Representative Agency shall be elected from and by villagers who fulfill the requirements.

(2) The leadership of the Rural Representative Agency shall be elected from and by members.

(3) The Rural Representative Agency shall, along with the village head, stipulate village regulations.

(4) The implementation of village regulation shall be stipulated in a decision of a village chief.

Part Four
Other Institutions

Article 106

In a village other institutions may be established in accordance with the needs of the village and this establishment shall be stipulated in a village regulation.

Part Five
Village Finance

Article 107

(1) Sources of revenues of a village shall comprise:

(2) Sources of village revenues as meant in sub-article (1) shall be managed through the village budget of revenues and expenditures.

(3) A village head shall, along with the Rural Representative Agency, stipulate the village budget of revenues and expenditures every year in a village regulation.

(4) A guideline for the drawing up of a village budget of revenues and expenditures shall be stipulated by the district head.

(5) The procedure for and collection of the objects of revenues and expenditures of the village shall be stipulated jointly by the village head and the Rural Representative Agency.

Article 108

A village may have a business undertaking pursuant to the laws.

Part Six
Inter-Village Cooperation

Article 109

(1) A number of villages may establish cooperation in the interest of the village which shall be regulated in a joint decision and notified to the sub-district head.

(2) To implement the cooperation referred to in sub-article (1) a cooperation agency may be established.

Article 110

A district government and/or a third party planning to develop part of a village territory into residential, industrial and service areas shall be obligated to involve the village government and the Rural Representative Agency m the planning, implementation and supervision.

Article 111

(1) Further regulation about a village shall b pursuant to the general guideline stipulated by the government on the basis of this law.

(2) The regional regulation as meant in sub-article (1) shall be obligated to recognize and honor the rights, origin and customs of the village._e stipulated in district regulateons.

CHAPTER XII
FOSTERING AND SUPERVISION

Article 112

(1) In the framework of fostering, the government shall facilitate the implementation of regional autonomy.

(2) A guideline for the fostering of and control over the implementation of regional autonomy shall be stipulated in a government regulation.

Article 113

In the framework of supervision, regional regulations and regional head decisions shall be conveyed to the government at the latest fifteen days after their stipulation.

Article 114

(1) The government may cancel regional regulations and regional head decisions which contradict public interests or laws of a higher rank and/or other laws.

(2) The decision to cancel regional regulations and regional head decisions as meant in sub-article (1 ) shall be notified to the regions concerned with the reasons being mentioned.

(3) At the latest one week after the decision to cancel regional regulations and regional head decisions as meant in sub-article (2), the enforcement of the said regional regulations or regional head decisions shall be canceled.

(4) Regions which cannot accept the decision to cancel regional regulations and regional head decisions as meant in sub-article (2) may file an objection to the Supreme Court after filing it to the government.

CHAPTER XIII
REGIONAL AUTONOMY ADVISORY COUNCIL

Article 115

(1) A Regional Autonomy Advisory Council shall give its opinions to the president about:

(2) The Regional Autonomy Advisory Council shall be made up of the home minister, the finance minister, the minister/state secretary and other ministers in accordance with the needs, representatives of Regional Government Association and regional representatives elected by tile DPRD.

(3) The home minister and the finance minister shall, owing to their positions, be the chairman and deputy chairman of the Regional Autonomy Advisory Council.

(4) The Regional Autonomy Advisory Council shall convene at least one meeting in six months.

(5) The Regional Autonomy Advisory Council shall be accountable to the president.

(6) The Regional Autonomy Advisory Council shall be stipulated in a presidential decree.

Article 116

In implementing its tasks the Regional Autonomy Advisory Council shall be assisted by the head of a secretariat overseeing the regional autonomy division and the division of financial equilibrium between the central and regional governments.

CHAPTER XIV
MISCELLANY

Article 117

The capital of the State of the Republic of Indonesia, Jakarta, shall because of its position be regulated separately in a law.

Article 118

(1) The province/first-level region of East Timor may be granted special autonomy in the framework of the Unitary State of the Republic of Indonesia, unless otherwise stipulated in the laws.

(2) The regulation about the implementation of the special autonomy as meant in sub-article (1) shall be stipulated in a law.

Article 119

(1) The authority of districts and municipalities as meant in Article 11 shall also apply to areas of authority located within an autonomous region, encompassing authority agencies, port areas, airport areas, mining areas, forestry areas, tourism areas, toll road areas and other similar areas.

(2) Further regulation as meant in sub-article (1) shall be stipulated in a government regulation.

Article 120

(1) In the framework of establishing peace and public order and in order to enforce regional regulations a civil service police unit shall be established as an apparatus of a regional government.

(2) The organizational structure, formation, position, authority, rights, tasks and obligations of civil service police shall be stipulated in a regional regulation pursuant to the provision stipulated by the government.

Article 121

Units of provinces/first-level regions, districts/second-level regions and municipalities/second-level regions as meant in Law No. 5/1974 shall be changed into respectively provinces, districts and municipalities.

Article 122

The special character attached to the province/special region of Aceh and province/special region of Yogyakarta as meant in Law No. 5/1974 shall remain with a provision that the implementation of administration in the special province of Aceh and special province of Yogyakarta shall be based on this law.

Article 123

As for the authority of a region, either the core authority on the basis of the establishment of the region or the additional authority on the basis of government regulations and/or on the basis of other laws, its exercise shall e adjusted to Articles 9, 10 and 11 of this law.

CHAPTER XV
TRANSITIONAL PROVISIONS

Article 124

At the time when this law comes into force, the names, boundaries and capitals of provinces/first-level regions, special regions, regencies/second-level regions and municipalities/second-level regions as meant in the laws shall remain.

Article 125

(1) Batam municipality, Paniai district, Puncak Jaya district, Mimika district, Simeulue district and all administrative cities may be promoted into autonomous regions with account being taken of Article 5 of this law.

(2) At the latest 2 years as from the date of the stipulation of this law, the municipality, regencies and administrative cities as meant in sub-article (1) shall have already changed in status into regencies/municipalities if the provisions stipulated in Article 5 of this law are fulfilled.

(3) The municipality, regencies and administrative cities as meant in sub-article (1) may be abolished if they fail to fulfill the stipulation on the promotion of their status into autonomous regions.

Article 126

(1) Districts, villages and rural areas existing when this law comes into force shall remain districts, villages and rural areas or those referred to with other names as meant in Article 1 letters m, n and o of this law, unless otherwise stipulated in the laws.

(2) Rural areas existing within the territory of municipalities, administrative municipalities and administrative cities on the basis of Law No. 5/1974 shall, at the time when this law takes effect, be stipulated as villages as meant in Article 1 letter n of this law.

Article 127

Pending the stipulation of the implementation regulation of this law, all instructions, directives or guidelines already in existence or established by the government and regional governments shall remain valid if they do not contradict with this law.

Article 128

Governors/heads of first-level regions, deputies to governors/heads of first-level regency, district heads/heads of second-level regions, municipality heads/heads of second-level regions, deputies to regency heads/heads of second-level regions, deputies to municipality heads/heads of second-level regions, regency heads, municipality heads, mayors, district heads, village heads and rural chiefs along with the existing apparatuses as meant in Law No. 5/1974 and Law No. 5/1979 shall, at the time when this law comes into force, continue to perform their tasks, unless otherwise stipulated on the basis of this law.

Article 129

(1) With the enforcement of this law, the institutions assisting governors, district head assistants, municipality head assistants and the Regional Advisory Council as meant in Law No. 5/1974 shall be abolished.

(2) Vertical agencies in the region, except those handling foreign affairs, defense and security affairs, judicial affairs, monetary and fiscal affairs and religious affairs as meant in Article 7 shall become regional apparatuses.

(3) With respect to All vertical agencies which become regional apparatuses as meant in sub-article (2), their assets shall be transferred into the property of the region.

Article 130

(1) If the term of office of a regional head deputy expires earlier than the term of office of a regional head, the position of the regional head deputy shall be left vacant.

(2) If the term of office of a regional head deputy expires later than the term of office of a regional head, the term of office of a regional head deputy shall be adjusted to the term of office of the regional head.

CHAPTER XVI
CLOSING PROOVISIONS

Article 131

When this law comes into force,

Article 132

(1) Implementation provisions as a follow-up to this law must already be completed at the latest one year as from the stipulation of this law.

(2) This law shall be effectively implemented at the latest within two years as from the stipulation of this law.

Article 133

The provisions of the laws contradicting and/or not conforming to this law shall be adjusted.

Article 134

This law shall take effect as from the date of promulgation.

In order that everybody may take cognizance of it, this Law shall be published in the Government Gazette of the Republic of Indonesia.

Ratified in Jakarta
On May 7, 1999

THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Sgd.
BACHARUDDIN JUSUF HABIBIE

Promulgated in Jakarta
On May 7, 1999

STATE MINISTER/STATE SECRETARY
sgd.
AKBAR TANDJUNG


Elucidation
on Law of the Republic of Indonesisa No. 22/1999 concerning Regional Administration