Institutional Failures in Decentralization: Insight from Batam, Indonesia

https://doi.org/10.22146/jkap.93507

Muhammad Zaenuddin(1*), Wahyudi Kumorotomo(2), Irwita Erlangga(3)

(1) Business Management, Politeknik Negeri Batam, Indonesia
(2) Faculty of Social and Political Sciences, Universitas Gadjah Mada, Indonesia
(3) Faculty of Social and Political Sciences, Universitas Gadjah Mada, Indonesia
(*) Corresponding Author

Abstract


Batam’s development began in 1970 by the Batam Authority (now called BP Batam) and was projected as an industrial area. At that time, Batam was transformed into a city with growth above the average national economic growth. Yet, the contrasting situation occurred after the implementation of regional autonomy in Batam. The presence of the Batam City Government as an executor of regional autonomy has a very strong legal and political position. Therefore, this paper focuses on institutional failures which have implications for the decline of the economy during the decentralized era. The methodology used in this research is descriptive exploratory, which extracts information from primary and secondary data. Primary data was obtained using surveys and interviews with expert informants. The data was analyzed using the Delphi method and Analytical Hierarchy Process (AHP). The results of the study showed that the problem was institutional dualism between the Batam City Government and BP Batam, which had implications for legal uncertainty. The Delphi method resulted in recommendations for the Free Trade Zone (FTZ), Special Economic Zones (SEZ), and the implementation of special autonomy in Batam. Meanwhile, the Analytical Hierarchy Process (AHP) method resulted in a finding that special autonomy was the best policy choice. The concept of asymmetric decentralization based on economics is a possible model of special autonomy. However, in its implementation, further stages are needed to prepare a special law regarding the substance of specialization given to Batam.

 


Keywords


decentralization; institutional failures; special autonomy

Full Text:

PDF


References

Adams, S., & Agomor, K. (2020). Decentralization, Partisan Politics, and National Development in Ghana. Public Organization Review, 20(2), 351–366. https://doi.org/10.1007/s11115-019-00442-8

Arif, A., & Maksum, I. R. (2017). Functional decentralization Construct in Decentralization Policy in Indonesia (A study of Irrigation, Education, and Free trade sectors). JKAP (Jurnal Kebijakan Dan Administrasi Publik), 21(1), 59. https://doi.org/10.22146/jkap.25383

Asadabadi, M. R., Chang, E., & Saberi, M. (2019). Are MCDM methods useful? A critical review of Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP). Cogent Engineering, 6(1). https://doi.org/10.1080/23311916.2019.1623153

Aspinall, E., & Fealy, G. (2003). Decentralization, Democratization and the Rise of the Local. In Local Power & Politics in Indonesia (pp. 1–12). ISEAS Publishing. https://doi.org/10.1355/9789812305237-006

Ayuningtyas, D., Haq, H. U., Utami, R. R. M., & Susilia, S. (2021). Requestioning the Indonesia Government’s Public Policy Response to the COVID-19 Pandemic: Black Box Analysis for the Period of January–July 2020. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.612994

Braun, D., & Guston, D. H. (2003). Principal-agent theory and research policy: an introduction. Science and Public Policy, 30(5), 302–308. https://doi.org/10.3152/147154303781780290

Chien, S.-S. (2010). Economic Freedom and Political Control in Post-Mao China: A Perspective of Upward Accountability and Asymmetric Decentralization. Asian Journal of Political Science, 18(1), 69–89. https://doi.org/10.1080/02185371003669379

Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches, 3rd ed. In Research design: Qualitative, quantitative, and mixed methods approaches, 3rd ed. Sage Publications, Inc.

Damuri, Y. R., Christian, D., & Atje, R. (2015). Kawasan Ekonomi Khusus dan Strategis di Indonesia: Tinjauan atas Peluang dan Permasalahan. Centre for Strategic and International Studies.

Darko, A., Chan, A. P. C., Ameyaw, E. E., Owusu, E. K., Pärn, E., & Edwards, D. J. (2019). Review of application of analytic hierarchy process (AHP) in construction. International Journal of Construction Management, 19(5), 436–452. https://doi.org/10.1080/15623599.2018.1452098

Dewi, K. (2008). Bureaucratic corruption in Indonesia: Challenges and opportunities for change. Asian Journal of Political Science, 16(3), 283–308.

Diprose, R., McRae, D., & Hadiz, V. R. (2019). Two Decades of Reformasi in Indonesia: Its Illiberal Turn. Journal of Contemporary Asia, 1–22. https://doi.org/10.1080/00472336.2019.1637922

Emrouznejad, A., & Marra, M. (2017). The state of the art development of AHP (1979–2017): a literature review with a social network analysis. International Journal of Production Research, 55(22), 6653–6675. https://doi.org/10.1080/00207543.2017.1334976

Englebert, P., & Mungongo, E. K. (2016). Misguided and Misdiagnosed: The Failure of Decentralization Reforms in the DR Congo. African Studies Review, 59(1), 5–32. https://doi.org/10.1017/asr.2016.5

Faguet, J.-P., & Sánchez, F. (2014). Decentralization and access to social services in Colombia. Public Choice, 160(1–2), 227–249. https://doi.org/10.1007/s11127-013-0077-7

Haggard, S., & Kaufman, R. R. (2000). The Political Economy of Democratic Transitions. Princeton University Press.

Herath, T. N. (2009). Decentralization of Governance and Economic Development. South Asia Economic Journal, 10(1), 157–185. https://doi.org/10.1177/139156140901000107

Hofman, B., & Kaiser, K. (2006). Decentralization, Democratic Transition, and Local Governance in Indonesia. In Decentralization and Local Governance in Developing Countries (pp. 81–124). The MIT Press. https://doi.org/10.7551/mitpress/2297.003.0004

Holzhacker, R. L., Wittek, R., & Woltjer, J. (2016). Decentralization and Governance for Sustainable Society in Indonesia. In Decentralization and Governance in Indonesia (pp. 3–29). Springer International Publishing. https://doi.org/10.1007/978-3-319-22434-3_1

Hutchison, F. E. (2017). Trends in Southeast Asia: Rowing Against the Tide? Batam’s Economic Fortunes in Today’s Indonesia. Yusof Ishak Institute.

Koelble, T. A., & Siddle, A. (2014). Institutional complexity and unanticipated consequences: the failure of decentralization in South Africa. Democratization, 21(6), 1117–1133. https://doi.org/10.1080/13510347.2013.784270

Kurniadi, B. D. (2012a). Desentralisasi Asimetris di Indonesia.

Kurniadi, B. D. (2012b). Menakar Otonomi Khusus Aceh dan Papua. Kompas.

Landeta, J. (2006). Current validity of the Delphi method in social sciences. Technological Forecasting and Social Change, 73(5), 467–482. https://doi.org/10.1016/j.techfore.2005.09.002

Lay, C. (2009). Pengembangan Assymetrical Decentralization sebagai Model Pengelolaan Hubungan Pusat-Daerah di Indonesia.

Lele, G. (2023). Asymmetric decentralization, accommodation and separatist conflict: lessons from Aceh and Papua, Indonesia. Territory, Politics, Governance, 11(5), 972–990. https://doi.org/10.1080/21622671.2021.1875036

Mietzner, M. (2012). Indonesia’s democratic stagnation: anti-reformist elites and resilient civil society. Democratization, 19(2), 209–229. https://doi.org/10.1080/13510347.2011.572620

Miller, G. J. (2005). The Political Evolution of Principal-Agent Models. Annual Review of Political Science, 8(1), 203–225. https://doi.org/10.1146/annurev.polisci.8.082103.104840

Mookherjee, D. (2006). Decentralization, Hierarchies, and Incentives: A Mechanism Design Perspective. Journal of Economic Literature, 44(2), 367–390. https://doi.org/10.1257/jel.44.2.367

Murti, M. S. (2014). The Importance of Special Autonomy of Batam According to Implementation of ASEAN Economic Community 2015. Jurnal Rechts Vinding, 3. Jurnal Rechtsvinding, 3(2).

Okoli, C., & Pawlowski, S. D. (2004). The Delphi method as a research tool: an example, design considerations and applications. Information & Management, 42(1), 15–29. https://doi.org/10.1016/j.im.2003.11.002

Pamadi, M., & Pramono, N. (2007). Implikasi dualisme kebijakan pertanahan terhadap industri properti Kota Batam. Universitas Gadjah Mada.

Permana, A., Djohan, D., Sartika, I., & Lukman, S. (2022). Disharmonization in Managing Government Affairs in Batam City, Riau Islands Province. Indonesian Journal of Multidisciplinary Science, 2(3), 2169–2182. https://doi.org/10.55324/ijoms.v2i3.352

Pradana, I. P. Y. B. (2019). Mengukur Kinerja Desentralisasi Administrasi di Kota Kupang. NATAPRAJA, 7(2). https://doi.org/10.21831/jnp.v7i2.26725

Pradana, I. P. Y. B. (2024). Memahami Dinamika Pembangunan Multidimensi (1st ed.). PT. Penamuda Media.

Pradana, I. P. Y. B., Kumorotomo, W., & Susanto, E. (2023). The institutionalization of public innovation: Evidence from Indonesia. Administration & Society, 1–26. https://doi.org/DOI: 10.1177/00953997231151438

Pradana, I. P. Y. B., Susanto, E., & Kumorotomo, W. (2022a). Analyzing the critical factors for innovation sustainability in the public sector: evidence from Indonesia. International Journal of Public Sector Management, 35(7), 733–748. https://doi.org/10.1108/IJPSM-02-2022-0044

Pradana, I. P. Y. B., Susanto, E., & Kumorotomo, W. (2022b). Bibliometric Analysis of Public Sector Innovation. Jurnal Ilmu Sosial Dan Ilmu Politik, 25(3), 297–315. https://doi.org/https://doi.org/10.22146/jsp.69862

Pradana, I. P. Y. B., Wijayanti, N. S., Andayana, M. N. D., & Oktavianto, A. B. (2023). Challenges in Developing Indonesia’s National Innovation System for Strengthening the Bureaucratic Reform Agenda in the VUCA Era: A Literature Review. Cendana International Conference of Public Administration 2023, 49–64. https://conference.undana.ac.id/semintadm/article/view/554

Putra, B., & Kumorotomo, W. (2014). Dampak Dualisme Kewenangan Dalam Pelayanan Administrasi Penanaman Modal: Studi Kasus Implementasi Desentralisasi Di Kota Batam. Universitas Gadjah Mada.

Ricks, J. I. (2018). Agents, Principals, or Something in Between? Bureaucrats and Policy Control in Thailand. Journal of East Asian Studies, 18(3), 321–344. https://doi.org/10.1017/jea.2018.17

Rijoly, J. C. D., & Pradana, I. P. Y. B. (2023). Decentralization & Performance From A Social Equity Lens. Cendana International Conference of Public Administration 2023, 1(1), 56–66. https://conference.undana.ac.id/semintadm/article/view/556

Rondinelli, D. A. (1981). Government Decentralization in Comparative Perspective. International Review of Administrative Sciences, 47(2), 133–145. https://doi.org/10.1177/002085238004700205

Slater, D. (2014). Ordering power: Contentious politics and authoritarian Leviathans in Southeast Asia. Cambridge University Press.

Smoke, P. (2015). Managing Public Sector Decentralization in Developing Countries: Moving Beyond Conventional Recipes. Public Administration and Development, 35(4), 250–262. https://doi.org/10.1002/pad.1736

Sugiyono, S. (2011). Metode Penelitian Kuantitatif, Kualitatif dan R&D. Alfabeta.

Suwanmala, C., & Weis, D. (2009). Thailand’s decentralization: Progress and prospects. (S. Ichimura & R. Bahl (eds.)). World Scientific Publishing Co. Pte. Ltd.

Talitha, T., Firman, T., & Hudalah, D. (2020). Welcoming two decades of decentralization in Indonesia: a regional development perspective. Territory, Politics, Governance, 8(5). https://doi.org/10.1080/21622671.2019.1601595

Turner, M., & Hulme, D. (1997). Governance, administration and development: making the state work. In Governance, administration and development: making the state work.

Wahyuni, H., & Qodir, Z. (2021). the Effectiveness of Social Assistance in the Development of Human Resources in Bina Siwi 2018-2020. Jurnal Ilmu Sosial Dan Humaniora, 10(2), 216–225.

Wibisono, D. (2006). Manajemen Kinerja, Konsep, Desain dan Teknik: Meningkatkan Daya Saing Perusahaan. Erlangga.

Wicaksono, A. (2018). The role of policy transfer in Indonesian governance: the case of academic administrative entrepreneurs. Policy Studies, 39(6), 622–637. https://doi.org/10.1080/01442872.2018.1530335

Wijayanti, N. S., & Pradana, I. P. Y. B. (2024). Peran Transformational Leadership untuk Meningkatkan Innovative Work Behavior Menuju Bantul Smart City. Jurnal Manajemen Dan Ilmu Administrasi Publik (JMIAP), 6(2), 251–261.

Wiryawan, B. A. (2019). Institutional Change and the Impact Towards Innovation Competitiveness in the Industrial Development of The Batam Free Trade Zone. Indonesian Journal of Computing, Engineering and Design (IJoCED), 1(1), 9. https://doi.org/10.35806/ijoced.v1i1.32

Wood, B. D., & Waterman, R. W. (2011). The Dynamics of Political Control of the Bureaucracy. American Political Science Review, 85(3), 801–828. https://doi.org/10.2307/1963851

Wu, C. (2011). Economic Freedom, Economic Growth, and China. The Chinese Economy, 44(5), 104–119. https://doi.org/10.2753/CES1097-1475440506

Yusuf, N. (2020). Fiscal Decentralization Policy in Improving the Regional Economy: A Spatial Econometric Approach. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 24(1), 20. https://doi.org/10.22146/jkap.54803



DOI: https://doi.org/10.22146/jkap.93507

Article Metrics

Abstract views : 26 | views : 24

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Copyright (c) 2024 JKAP (Jurnal Kebijakan dan Administrasi Publik)

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.