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Wednesday, January 03, 2001

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Indonesian Minister quits as devolution takes off

By Amit Baruah

SINGAPORE, JAN. 2. An ambitious devolution programme for Indonesia's 29 provinces and some 300 districts got underway yesterday even as a key Minister charged with implementing the exercise quit the Abdurrahman Wahid Government today.

According to the ambitious devolution plan, the provinces will be empowered to decide on their own budget and administration, leaving foreign affairs, finance, and defence to the Central Government along with 40 per cent of provincial taxes. While the general idea of autonomy seems to have been welcomed in Indonesia, many are not quite sure whether the requisite structures and rules have been put in place to ensure that the devolution plan is a success. Several Indonesian analysts are of the opinion that devolution is the only way out of the country's current crisis. At the same time, they are not sure how the whole plan will be implemented.

The devolution plan took effect as one of its key architects, the State Minister for Administrative Reforms, Mr. Ryaas Rasyid, resigned from the Government, citing differences with the President, Mr. Abdurrahman Wahid, over the implementation of the autonomy proposals. ``I have long proposed the need for a special agency to handle regional autonomy policies. He (Mr. Wahid) was of the opinion that such an agency was also needed....however, it is different from what I proposed,'' Mr. Ryaas said after submitting his resignation. A spokesman for the President confirmed that Mr. Wahid had, indeed, received the resignation, but that a decision on it would be made known tomorrow.

The regional autonomy plan is based on two laws enacted in 1999 during the tenure of Mr. B.J. Habibie as President and envisaged that responsibility for basic services like health, education, agriculture, trade and industry will move to regional administrations.

The Central Government, however, will continue to look after international relations, defence, law and order, monetary, fiscal and religious affairs. In order to ensure parity between resource-rich and resource-poor provinces, Jakarta will provide special outlays to the latter.

Local administrations will, however, be allowed to retain a larger share of their revenues, which will go down well in the disturbed, but resource-rich provinces of Irian Jaya and Aceh. The Government has also proposed special autonomy to these two provinces in order to offer an alternative to the current separatist movements there.

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