to Indonesian
a. The State of the Republic of Indonesia as a unitary state recognizes the principle of decentralization in the operation of administration by giving opportunities and freedom to regional heads to exercise regional autonomy. Therefore, Article 18 of the Constitution of 1945, among other things, states that the division of the territory of Indonesia into large and small regions with the form and structure of their administration shall be stipulated by the law. In the elucidation on this article it is among other things stated that "as this State of Indonesia is an eenheid-staat, Indonesia shall not have a region within itself with the status of a staat too. Indonesia's territory shall be divided into provinces and provinces shall be divided into smaller areas. In autonomous region (streek en locale rechtgemeenschappen) or merely administrative regions, everything shall conform to the regulations to be stipulated in a law." In autonomous regions, a Regional Representative Board shall me established. There fore, in regions the administration shall have the basis of consensus as its pillar.
b. Therefore, the Constitution of 1945 shall constitute a strong foundation to exercise autonomy by providing wide-ranging, concrete and responsible authority to the regions, as manifested in Stipulation of the People's Consultative Assembly of the Republic of Indonesia No. XV/MPR/1998 on the exercise of regional autonomy; fair regulation, division and utilization of national resources; and financial equilibrium between the central and regional governments within the framework of the Unitary State of the Republic of Indonesia.
c. This law is called "the Law on Regional Administration" because this law in principle regulates the operation of regional administration, which prioritizes the implementation of the principle of decentralization.
d. Pursuant to the Stipulation of the People's Consultative Assembly No. XV/MPR/1998 above, the exercise of regional autonomy shall be implemented by providing wide-ranging, concrete and responsible authority to the regions in a proportionate way to be realized in fair regulation, division and utilization of national resources and in financial equilibrium between the central and regional governments. Besides, the exercise of regional autonomy shall also be implemented under the principles of democracy, community participation, equity and justice and with account being taken of the potential and diversity of the regions.
e. Matters which are fundamental in nature in this law shall be efforts to bolster the empowerment of the community, foster initiatives and creativity, promote community participation and develop the role and function of Regional Legislative Assemblies. Therefore, this law places full regional autonomy in regencies and municipalities, which in Law No. 5/1974 have the position of regencies/second-level regions and municipalities/second level regions. These regencies and municipalities have the position as autonomous regions with the authority and freedom to establish and implement policies in accordance with the community's initiatives and aspirations.
f. Provinces/first-level regions pursuant to Law No. 5/1974 shall in this law be made provinces with a position as autonomous regions and at the same time administrative areas, which shall implement the authority of the central government which is delegated to the governors. Provinces shall not be governments overseeing regencies and municipalities. Therefore, provincial autonomous regions and regencies and municipalities do not have any hierarchical relations.
g. The position of a province is granted the status of an autonomous region and at the same time an administrative area because of the following considerations:
h. With account being of the experience in executing regional autonomy in the past, in which the principle of concrete and responsible autonomy was adhered to with an emphasis on autonomy which constituted an obligation more than a right, in this law the granting of autonomy authority to regencies and municipalities shall be based on the principle of decentralization along as manifested in wide-ranging, concrete and responsible autonomy. The authority of wide-ranging autonomy shall be the freedom of a region to operate an administration encompassing the authority in all areas of administration with the exception of the authority in the areas of foreign, defense and security, judicial, monetary and fiscal and religious policies and the authority in other areas which shall be stipulated by a government regulation In addition, freedom of autonomy shall also encompass full and total authority in operation starting from planning, implementation, supervision, control and evaluation.
Referred to as concrete autonomy shall be the freedom of the region to exercise the authority of administration in a particular area which concretely exists and is needed End which grows, lives and develops in the region.
Referred to as responsible autonomy shall be the manifestation of responsibility as the consequence of the granting of rights and authority to the region in the form of tasks and obligations which must be shouldered by the region in achieving the goal of the granting of autonomy, in toe form of promotion of community service and welfare, the development of a democratic lie, justice and equity and maintenance of a harmonious relationship between the central and regional governments and among regions in the framework of ensuring that the Unitary State of the Republic of Indonesia shall remain intact.
Autonomy for a provincial region shall be granted in a limited manner, encompassing the authority across regencies and municipalities and the authority which is not or has not been implemented by regencies and municipalities and the authority in other particular government areas.
i. On the basis of the above thoughts, the principles in the granting of regional autonomy which are made guidelines in this law shall be:
The content and spirit contained in Article 18 of the Constitution of 1945 along with its elucidation shall become a guideline in the formulation of this law with the main thoughts being as follows:
a. the system of Indonesia's state structure shall be obligated to implement the principle of distribution of authority on the basis of the principles of deconcentration and decentralization in the framework of the Unitary State of the Republic of Indonesia;
b. a region established on the basis of the principles of decentralization and deconcentration shall be provincial regions, while regions established on the basis of the principle of decentralization shall be regencies and municipalities. Regions established on the basis of the principle of decentralization shall be authorized to determine and implement policies at their own initiatives on the basis of the aspiration of the community.
c. regions outside provincial regions shall be divided completely into autonomous regions. Therefore, administrative areas located in regencies and municipalities can be made autonomous regions or abolished;
d. districts which, pursuant to Law No. 5/1974 are administrative areas in the framework of deconcentration, shall, pursuant to this law, be changed in position to that of an apparatus of a regency or municipality.
The principle of operating regional administration shall be:
The structure of an autonomous regional administration shall encompass a regional legislative assembly and a regional administration with a view to better empowering the regional legislative assembly and promoting the accountability of the regional administration to the people. Therefore the rights of the regional legislative assembly are quite broad and are geared towards the absorption and channeling of community aspirations to become the policies of the region and performing the function of supervision.
To become a regional head, someone shall be required to fulfill certain requirements the essence of which shall be that a regional head should always be devout to God, have ethics and morality, knowledge and capability as an administration leader, have a concept of nationalism and enjoy popular confidence.
Apart from acting as the leader of an administration, a regional head shall at the same time be a regional leader and someone protecting the community so that a regional head must be able to think, act and assume an attitude by prioritizing the interests of the nation, the country and the public over the interests of individuals. groups and sectarian groupings. Therefore, regardless of his group or ethnicity and conviction, a regional head must behave wisely, prudently, honestly, fairly and neutrally.
In performing the tasks and obligations of a regional administration, the Governor shall be accountable to the provincial legislative assembly, while in his position as a representative of the government, the Governor shall be accountable to the president.
In the meantime, in implementing regional autonomy in regencies and municipalities, regents or mayors shall be accountable to regency legislative assembly/municipality legislative assembly and shall be obligated to give a report to the president through the minister of home affairs in the framework of fostering and supervision.
Regarding the policy on personnel in this law, the policy adopted shall be one that bolster the development of regional autonomy so that the policy on personnel in the region as implemented by an autonomous region shall conform to its needs, in terms of both installation, placement, transfer and mutation and discharge pursuant to the laws. Inter-regency and inter-municipality mutation within a provincial region shall be regulated by the governor. Inter-provincial mutation and/or inter-regency and inter-municipality or between a provincial region and a regency and a municipality shall be based on the agreement of the said autonomous region.
(1) To implement wide-ranging, concrete and responsible regional autonomy, the authority and ability to dig up a regions financial source itself shall be required, with the support of the financial equilibrium between the governments and between provinces and regencies/municipalities as the prerequisite to the system of regional administration.
(2) In the framework of implementing a regional autonomy the financial authority inherent in every administrative authority shall constitute a regional authority.
(1) A village, on the basis of this law, shall be a village or what is referred to by another name as a unit of legal community with an original structure based on the right of origin which is special in nature, as meant in the elucidation of Article 18 of the Constitution of 1945. The basis of this thought in the regulation on rural administration shall be diversity, participation, original autonomy, democratization and community empowerment.
(2) The implementation of rural administration shall constitute a sub system of a system of administration implementation so that a village shall be an authority to regulate and take care of the interests of its community. A village head shall be accountable to a Rural Representative Agency and convey a report on the implementation of the task to the regent.
(3) A village may conduct a legal act, either the public law of the civil law, own wealth, property and buildings and may be sued and file a lawsuit in the court of law. To this end, a village head shall, with the approval of the Rural Representative Agency, have an authority to conduct a legal act and establish mutually beneficial agreement.
(4) As the realization of democracy, a Rural Representative Agency or what shall be referred to by another name in accordance with the culture prevailing in the said village shall he established and shall function as a legislative institution and shall exercise supervision, in this case, over rural regulations, the rural budget of revenues and expenditures and decisions of village heads.
(5) Other rural social institutions shall be set up in a village in accordance with the need of the village. The said institutions shall constitute partners of the rural government in the framework of the empowerment of a rural community.
(6) A village shall have a financing source in the form of rural revenues, aid from the government and regional governments, other legal revenues, donations from a third party and loans made by the village.
(7) On the basis of the right of origin ofthe village concerned,a village head shall be authorized to settle cases/disputes involving his villagers.
(8) In an effort to promote and speed up services to the community with urban characteristics, a village administration shall be set up as a unit of village administration within a regency and/or a municipality.
What is referred to as fostering shall be stressed on facilitation of efforts to empower an autonomous region, while supervision shall be stressed on repressive supervision in order to provide more freedom to an autonomous region in making a decision and in giving a role to a regional legislative assembly in realizing its functions as an agency exercising supervision over the implementation of regional autonomy. Therefore, a regional regulation stipulated by an autonomous region shall not require prior ratification by an authorized official.
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Referred to as an administrative area shall be an administrative area pursuant to the Constitution of 1945.
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Referred to as not having any hierarchical relations with each other shall be that a province shall not oversee districts and municipalities but that in the practice of administrative execution there shall be coordination, cooperation and/or partnership relations with districts and municipalities in their respective positions as administrative regions. A governor as the government's representative shall establish relations characterized by fostering and supervision with districts and municipalities.
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To determine the said boundaries, every law about the establishment of a region shall be completed with a map which can accurately show the geographical location of the said region and the same shall also apply in the case of a change in the boundaries of a region.
Referred to as being stipulated by a government regulation shall be that it shall be based on a proposal of a regional government with the approval of the DPRD.
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Referred to as monetary and fiscal areas shall be macro-economic policies. Particularly in the religious area, part of the activities may be assigned by the government to the region as an effort to promote regional participation in fostering religious life.
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In exercising the authority of the government which is handed over and or delegated to the region/governor, the region/governor shall have the authority to manage it starting from financing, licensing, planning, implementation and evaluation in accordance with the standard, norm and policy of the government.
The authority in the administrative area which is cross-regency and cross-municipality shall be, for example, the authority in public works, communications, forestry and estates. Referred to as the authority in certain administrative areas shall be:
Referred to as this authority shall be the authority of a regency and a municipality handled by a province after a statement has been made by a regency and a municipality.
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Referred to as national resources shall be natural resources, man-made resources and human resources available in a region.
With the enforcement of this law, basically the entire authority now rests with regencies and municipalities. Therefore, the handing over of authority need not be actively undertaken but should be undertaken through the government's recognition.
Irrespective of the significance of the initiative of a region in implementing its autonomy, to avoid a vacuum in the provision of basic services to the community, regencies and municipalities shall be obligated to exercise authority in certain administrative areas pursuant to this article, in accordance with the condition of the respective agencies.
The authority which shall, by way of obligation, be exercised by regencies and municipalities cannot be transferred to a province.
Specially with respect to the authority of a municipality, this shall be adjusted to urban needs, among others, fire extinguishers, cleanliness, parks and urban spatial layout.
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Specially with respect to traditional fishing, this shall not be confined by the sea territory.
In its position as a regional legislative assembly DPRD shall not constitute part of a regional administration.
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Letter a
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Letter b
The electron of members of the People's Consultative Assembly (MPR) from the category of regional representatives shall be undertaken only by a provincial DPRD.
Letter c
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Letter d
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Letter e
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Letter f
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Letter g
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Letter h
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Referred to as state officials and government officials shall be officials within the working environment of the DPRD concerned.
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Referred to as the election of a regional [it-ad and a deputy regional head simultaneously shall be that a regional head candidate and a deputy regional head deputy shall be elected in pairs. This simultaneous election is aimed at guaranteeing that there shall be harmonious cooperation between a regional head and a deputy regional head.
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Referred to as a plenary meeting shall be a special meeting convened for the election of a regional head.
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The president shall be consulted about a governor candidate and a deputy governor candidate because they are the government's representatives in the region.
A regent candidate and a deputy regent candidate as well as a mayor candidate and a deputy mayor candidate shall be notified to the governor as representatives of the government.
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The oath-taking/promise-making and installation of a regional head may be conducted at a DPRD building or at another building and shall not be undertaken in n meeting of DPRD. The oath-taking/promise-making shall be conducted in accordance with the religions recognized by the government, namely:
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Letter a - d
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Letter e
In an effort to raise the welfare level of the people, a regional head shall be obligated to realize economic democracy by undertaking fostering and development of cooperatives, small-and-medium-scale enterprises, encompassing capitalization, marketing, technological development, production and processing as well as the fostering and development of human resources.
Letter f and g
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Letter a and c
The said prohibition is aimed at avoiding the likelihood of a conflict of interest on the part of a regional head in implementing his tasks of providing administrative services without discriminating the community members.
Letter b, c and d
The said prohibition is aimed at preventing the abuse of power, among other things, in the form of corruption, collusion and nepotism.
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A copy of a written notice about the termination of the term of office of a government shall be sent to the President, while a copy of a written notice about the termination of the term of office of a regent/mayor shall be sent to the governor.
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The oath-taking/promise-making and installation of a regional head deputy may be conducted at a DPRD building or at another building and shall not be carried out in a DPRD meeting. The oath-taking/promise-ma king shall be conducted in accordance with the religions recognized by the government, namely:
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Referred to as a technical institution shall be a research and development agency, a planning agency, a supervisory institution, an education and training agency, and so forth.
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A secretary to a municipality/regency shall give his consideration to the mayor/regent in the process of installing a village head.
A district head may delegate some of his authority to a village head.
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A regional regulation shall be signed only by a regional head and shall not be signed by the leadership of DPRD because DPRD shall not constitute part of a regional government.
Referred to a other regional regulations shall be similar and the same regional regulations except in the case of changes.
Coercion conducted by a regional government to enforce the law by virtue of this law shall be called "law enforcement coercion" or " law maintenance coercion".
This law enforcement coercion generally takes the form of taking or removing, preventing, undertaking or improving everything which has been made, established, run, neglected or abolished if they contradict the law.
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The promulgation of regional regulations and decisions of a regional head which are in the nature of regulating things shall be conducted in a legal manner, as this shall constitute a necessity to ensure that the said regional regulations and regulations of a regional head shall have a legal force and be binding. Besides being intended to fulfill legal formality, the said promulgation is also undertaken in the framework of administrative transparency. A legal promulgation method shall be that it shall be published in the Regional Statute Book by the regional secretary. To make the enforcement of regional regulations and decisions of a regional head more effective, the said regulations and decisions must be popularized.
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The transfer of employees in regencies/municipalities shall be conducted by regents/mayors; the transfer of employees between regencies/municipalities and/or between regencies/municipalities and provinces shall be undertaken by the governors after consulting regents/mayors and the transfer of employees between provinces or between provinces and the central government and the transfer of regional employees between regencies/municipalities and other regencies/municipalities in other provinces shall be stipulated by the government after consulting the regional heads.
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Letter a
Letter b
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Letter c
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Letter d
Other legal original revenues of the region shall be, among other things, grants or receipts from provinces or other regencies/municipalities and other receipts pursuant to the laws.
Letter a
Referred to as receipts from natural resources shall be state's receipts originating in the management of natural resources, among others, in the general mining, natural oil and natural gas mining, forestry and fishery sectors.
Letter b
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Letter c
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Not included in the portion of the government from the receipts of the land and building tax and the fees for the acquisition of the title on land and buildings returned to the region.
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Domestic loans shall originate in the government, commercial institutions and or the issuance of regional bond with the government being notified prior to the establishment of the loans.
Those authorized to establish and bear regional loans shall he regional heads, and this shall be stipulated in a decision of a regional head approved by the DPRD.
In the decision of the regional -head it must be mentioned the amount of the loan and the financial sources which shall be used to fulfill the obligation of repaying the loans.
The mechanism that loans from offshore sources must be approved by the government means that the government shall- evaluate from various aspects-whether or not the proposal of regional loans can be processed further. Therefore, further processing of the proposed regional loans shall indirectly reflect the government's approval of the said proposal.
The region may stipulate taxes and levies in a regional regulation pursuant to the pro-visions of the taw. Sub-article (2).
The determination of the method of regional tax and levy collection, including reimbursement of or exemption from regional taxes and/or levies shall be undertaken with the provision stipulation in regional regulations being used as a guideline.
Referred to as a non-fiscal incentive shall be government aid in the form of facilities in the construction of infrastructures, the spread of strategic industrial sites, the spread of sites for national banking centers and so forth.
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Letter a
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Letter b
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Letter c
Referred to as other legal measures shall be selling, pawning, granting, exchanging with something else of equal value and or transferring.
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Referred to as a joint institution shall be an institution set up jointly by border-sharing regency/municipality governments in the framework of promoting services to the community.
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A regional government needs to facilitate the establishment of an urban forum to create the synergy involving a regional government, the community and private circles.
Referred to as community empowerment shall be involvement in planning, execution and ownership.
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The term village is adjusted to the socio-cultural condition of the local community such as "nagari", "kampong", "huta", "bori" and "marga".
Referred to as origin shall be as meant in Article 18 of the Constitution of 1945 and its elucidation.
In the establishment, abolition and/or merger of villages, it is necessary to consider the extent of the area, the size of the population, the socio-cultural aspects, the village potential and so forth.
The term of Rural Representative Agency may be adjusted to the socio-cultural condition of the local rural community.
The establishment of a village government and a Rural Representative Agency shall be undertaken by the community.
The term village head may be adjusted to the socio-cultural condition of the local village.
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A regency may stipulate the term of office of a village head in accordance with to the local socio-cultural aspects.
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The saying of an oath/pledge by a village head shall be conducted in accordance with the religions recognized by the government, namely:
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A rural government shall be entitled to reject the implementation of the task of assistance not coupled with financing, facilities and infrastructures and human resources.
Letter a - d
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Letter e
To amicably settle community disputes in a village, a village head may be assisted by a rural customary institution. All disputes already amicably settled by the village head shall be binding to the disputing parties.
Letter f
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Letter a
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Letter b
The report of a village head shall be conveyed to a regent with a copy to the district head.
Letter a
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Letter b
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Letter c
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Letter d
To avoid vacuum in the execution of a village administration, a village head whose term of office has ended shall continue to implement his tasks as a village head until the installation of a new village head.
Letter e
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The supervisory function of a Rural Representative Agency shall encompass supervision over the implementation of rural regulations, a rural budget of revenues and expenditures and decisions of a village head.
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Rural regulations do not need the ratification of a regent but must, by way of obligation, be conveyed to him at the latest two weeks after its stipulation with a copy to be sent to a district head.
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Sources of income owned and managed by a village cannot be taken over by the government or a regional government. the empowerment of village potentials in increasing rural revenues shall be conducted, among others, by establishing enterprises owned by villages, cooperation with a third party and the authority to obtain loans.
With respect to regional sources of income located in a village, both taxes and levies already collected by the regency, additional levies imposed by a regional government cannot be justified. Regional revenues from the said source must be given to the village concerned with the amount being proportionately and justly distributed. This provision is aimed at removing the expenses arising high-cost economy and other impacts.
The activities to manage a rural budget of revenues and expenditures which stipulated every year shall encompass the drawing up of a budget, the implementation of financial administration and the amendment to the budget calculation.
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Inter-village cooperation giving a burden to the community must be approved by the Rural Representative Agency.
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A rural government not involved in the said activity shall be entitled to reject the said development.
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Referred to as origin shall be the origin of the establishment of the said village.
Referred to as facilitating shall be an effort to empower an autonomous region through the provision of guidelines, guidance, training, direction and supervision.
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The filing of an objection to the Supreme Court as the last legal effort shall be undertaken at the latest fifteen days after a decision on cancellation from the government is available.
The mechanism for the establishment, abolition, merger and/or expansion of regions shall be conducted in the following manner:
Referred to as an Association of Regional Governments shall be an organization set up by regional governments in the framework of cooperation among provincial governments, regency governments and/or municipality governments on the basis of a guideline issued by the government.
A regional legislative assembly shall elect 6 regional representatives of various kinds of expertise, particularly in the financial and administrative areas, with an independent attitude, comprising 2 persons to represent the province, 2 persons to represent a regency and 2 -persons to represent a municipality with a term of office of two years respectively.
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The granting of special autonomy to the province/first-level region of East Timor shall be based on a bilateral treaty between the Indonesian government and the Portuguese government under the supervision of the United Nations. Referred to as being otherwise stipulated shall be Stipulation of the People's Consultative Assembly further regulating the status of the province/first-level region of East Timor.
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The recognition of the uniqueness of the special province of Aceh shall be based on the history of the national struggle for freedom while the substance of its uniqueness shall constitute the implementation a religious life, customs and education with the role of ulema in the stipulation of regional policies being taken into account.
The recognition of the uniqueness of the special province of Yogyakarta shall be based on its origin and its role in the history of national struggle, while the substance of its uniqueness shall be the appointment of the governor with a candidate descended from the Sultan of Yogyakarta to be considered and a deputy governor with a candidate descended from Paku Alam to be considered, fulfilling the requirements pursuant to this law.
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Laws related to the enforcement of this law must already be completed at the latest within one year.
The implementation of re-arrangement shall begin as from the stipulation of this law and must already be completed within 2 years.
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SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NO.3839 No. 22/1999
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