Implementation of Regional Autonomy in Riau Province

Abstract

This study a1ms to analyze the ex1stmo ImPlementation of reo1onal autonomy and decentralization 1n Riau province. based on the law number 32 year 2004 about "local oovernment" and the law number 33 vear 2004 about "F1scal Balance between central and local qovernments" which beqan efecllf date of January 1 2001. To carry out autonomous and decentralized, autonomous reg1on g1ven financial support bV the central qovernment. 1n existence: {1l Balanced Funds. comprislnq· {al the oeneral allocation fund and (bl specific allocation of funds. (2l Funds for Y1eld (OBH ) tax and DBH oriq1nal source. The main qoal of financial aid is to reduce the deoree of difference between rich reoion {producers of natural resources) and poor districts (nor-producinq natural rescurces). The 1mpact of the policv is causinq dissatisfaction for natural resource-producinq reqion. because of the financial support received is too small. so Riau Province and some other areas (such as: the province Darussalam and Papua province). was able to claim the status of "autonomous reo1on specific " Funds to support childhood Riau provincial administration can be seen through (1) the degree of fiscal decentralizations small. between 30.86 percent to 43.66 percent (less than 50 percent). (2) the level of financial dependence, between 56.32 percent to 69.17 percent (over 50 percent) and (3) Reoional sellsuffK: iencv rate is relatively smalL Especially durinq the years 2004-2007 of 40.51 percent Based on the above facts. R1au province has been treated unfairly and demanded that the va riables used to determine the amount of qeneral fund allocation chanqes. such as by rermvmo the factor of "revenue sharinq" as a vanable to determine the maqnitude of f1scal ca pacity. Because of revenue sharinq is "compensation" for damaqes to natural rescurces as a result of mining activities (oil and gas) Will be borne by the R1au prov1nce