Abstract:
This study aims to analyze the existing implementation of regional autonomy and decentralization in
Riau province, based on the law number 32 year 2004 about "local government" and the law number 33
year 2004 about "Fiscal Balance between central and local governments" which began efectif date of
January 1, 2001. To carry out autonomous and decentralized, autonomous region given financial
support by the central government, in existence: (1) Balanced Funds, comprising: (a) the general
allocation fund, and (b) specific allocation of funds, (2) Funds for Yield (DBH ) tax and DBH original
source. The main goal of financial aid is to reduce the degree of difference between rich region
(producers of natural resources) and poor districts (non-producing natural resources). The impact of the
policy is causing dissatisfaction for natural resource-producing region, 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 region 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) Regional selfsufficiency
rate is relatively small. Especially during the years 2004-2007 of 40.51 percent. Based on
the above facts, Riau province has been treated unfairly and demanded that the variables used to
determine the amount of general fund allocation changes, such as by removing the factor of "revenue
sharing" as a variable to determine the magnitude of fiscal capacity. Because of revenue sharing is
"compensation" for damages to natural resources as a result of mining activities (oil and gas) will be
borne by the Riau province.
