The Illusion of Local Autonomy: Central Power and Subnational Governance in Indonesia
Keywords:
Illusion, Local Autonomy, Central Power, Subnational Governance, IndonesiaAbstract
Decentralization has been a key reform agenda in Indonesia since the post-1998 transition, aiming to scale up democratic governance and reduce regional disparities. While assumptions about (central) authority lead to a linear transfer of authority, this article argues that decentralization has produced a counterintuitive configuration, best understood as a recentralization of bureaucracy within a formally decentralized system. This connectivity emphasizes that local governments retain administrative responsibilities, while the central government reasserts control through regulatory, fiscal, and sectoral instruments. Further, qualitative content analysis and data collection, guided by iterative coding and triangulation, are applied to laws, implementing regulations, policy documents, and peer-reviewed literature to explore how authority is distributed and reconfigured across levels of government. Findings suggest that variations in governance are insignificant and reflect local capacity, which is inherently part of decentralization, rather than a strategic reconfiguration of authority in which high-risk functions are administrative burdens and then delegated. It has resulted in overlapping mandates, fragmented accountability, and consistently uneven concretization since the reform era. This article also reframes Indonesian decentralization as an evolving institutional solution formulated by selective recentralization. It suggests that reforms should prioritize clarifying authority and strengthening accountability rather than relying solely on capacity building.
Downloads
References
Adrison, V. (2024). Fiscal Sustainability in Indonesia: Policies and Progress. Asian Economic Policy Review, 19(2), 224–247. https://doi.org/10.1111/aepr.12468
Arkorful, V. E., Lugu, B. K., Hammond, A., & Basiru, I. (2022). Decentralization and Citizens’ Participation in Local Governance. In Global Encyclopedia of Public Administration, Public Policy, and Governance (pp. 2930–2946). Springer International Publishing. https://doi.org/10.1007/978-3-030-66252-3_4237
Budi Santoso, P. (2024). Exploration of Accountability Practices: A Study of the Secretariat of the House of Representatives. Jurnal Ilmu Administrasi Negara ASIAN (Asosiasi Ilmuwan Administrasi Negara), 12(2), 198–203. https://doi.org/10.47828/jianaasian.v12i2.247
Burhanuddin, B., Syufri, S., Asriani, A., Hartawan, H., & Saputra, A. N. (2024). Exploring the role of regional capacity in human resource development in Indonesia. Frontiers in Political Science, 6. https://doi.org/10.3389/fpos.2024.1412098
Cairney, P., & Toomey, C. (2024). Collaborative Policymaking: a qualitative systematic review of advice for policymakers. Open Research Europe, 4, 204. https://doi.org/10.12688/openreseurope.18440.1
Creswell, J. W., & Báez, J. C. (2020). 30 essential skills for the qualitative researcher. Sage Publications.
Creswell, J. W., & Poth, C. N. (2016). Qualitative inquiry and research design: Choosing among five approaches. Sage publications.
Damenta, U. A., & Digdowiseiso, K. (2023). Collaborative Governance Oversight in Corruption Prevention Efforts in Indonesia. Journal of Governance, 8(3). https://doi.org/10.31506/jog.v8i3.20905
Digdowiseiso, K. (2016). Governance, fiscal decentralization, and growth in indonesia. POPULIS, 1(1), 1–18.
Digdowiseiso, K. (2022). Is fiscal decentralization growth enhancing? A cross-country study in developing countries over the period 1990–2014. Economies, 10(3), 62.
Digdowiseiso, K. (2023). Institutional quality as the driver of fiscal decentralization in developing countries. Cogent Economics & Finance, 11(2), 2234220.
Digdowiseiso, K. (2024). Fiscal decentralization and social stability in selected developing countries: the role of institutional quality. Cogent Social Sciences, 10(1). https://doi.org/10.1080/23311886.2024.2432070
Digdowiseiso, K., W, N. P. L., & Andriani, F. (2023). Analisis Kemandirian Fiskal, Ketergantungan Fiskal, dan Efektivitas Fiskal Provinsi Kalimantan Utara Periode 2017-2022. JURNAL ILMIAH GLOBAL EDUCATION, 4(1), 127–137. https://doi.org/10.55681/jige.v4i1.556
Karim, M. F., & Kholid, M. (2025). The Return of Authoritarian Neo-Liberalism in Indonesia? Journal of Contemporary Asia, 1–29. https://doi.org/10.1080/00472336.2025.2529013
Kase, P. (2024). Government-Business Relations in Policymaking During the New Order Indonesia. Administration & Society, 56(9–10), 1104–1145. https://doi.org/10.1177/00953997241275486
Kwabena Obeng, S. (2021). Fiscal decentralization, democracy and government size: Disentangling the complexities. Journal of International Development, 33(6), 975–1004. https://doi.org/10.1002/jid.3545
Lewis, B. D. (2023). Indonesia’s New Fiscal Decentralisation Law: A Critical Assessment. Bulletin of Indonesian Economic Studies, 59(1), 1–28. https://doi.org/10.1080/00074918.2023.2180838
Li, S., & Li, G. (2024). Fiscal decentralization, government self-interest and fiscal expenditure structure bias. Economic Analysis and Policy, 81, 1133–1147. https://doi.org/10.1016/j.eap.2024.01.014
Martínez‐Vázquez, J., Lago‐Peñas, S., & Sacchi, A. (2017). The impact of fiscal decentralization: A survey. Journal of Economic Surveys, 31(4), 1095–1129.
Martínez-Vázquez, J., Sanz-Arcega, E., & Manuel Tránchez-Martín, J. (2024). Fiscal aspects of subnational governments. In Handbook on Subnational Governments and Governance (pp. 2–20). Edward Elgar Publishing. https://doi.org/10.4337/9781803925370.00007
Mauri, N. (2024). How fiscally autonomous are local governments? An empirical test. Journal of Public Economics, 239, 105210. https://doi.org/10.1016/j.jpubeco.2024.105210
Mitra, A., & Pal, S. (2022). Ethnic Diversity, Social Norms and Elite Capture: Theory and Evidence from Indonesia. Economica, 89(356), 947–996. https://doi.org/10.1111/ecca.12423
Newman, J., & Hoole, C. (2024). The intersection of productivity and governance capacity in spatial inequality: the case of England’s devolution periphery. Contemporary Social Science, 19(4), 555–582. https://doi.org/10.1080/21582041.2024.2435440
Putri, R. A., Werang, N. P. L., & Werang, M. L. F. (2026). Formulating Positive Public Administration in Indonesia: An Actor, Structure, Discourse Analysis. Jurnal Manajemen Dan Ilmu Administrasi Publik (JMIAP), 8(1), 91–104.
Ramesh, S. (2025). Reflections on Indonesia’s Economic Journey (2000 BC–2024 AD). In The Political Economy of Indonesia’s Economic Development, Volume II (pp. 417–452). Springer Nature Switzerland. https://doi.org/10.1007/978-3-032-03140-2_13
Rohdewohld, R., Carrasco, B., & Rahemtulla, H. A. (2022). Decentralization, Local Governance, and Localizing the Sustainable Development Goals in Asia and the Pacific. Routledge. https://doi.org/10.4324/9781003282297
Santoso, P. B. (2025). Uncovers The Dynamics of The State Civil Apparatus in Indonesia: Implications for Governance and Institutional Quality. Public Policy and Management Inquiry, 9(2), 11–20. https://doi.org/https://doi.org/10.20884/ppmi.v9i2.17230
Smith, B. C. (2023). Decentralization. Routledge. https://doi.org/10.4324/9781003404927
Smoke, P., Tosun, M. S., & Yilmaz, S. (2023). Subnational government responses to the Covid‐19 pandemic: Expectations, realities and lessons for the future. Public Administration and Development, 43(2), 97–105. https://doi.org/10.1002/pad.2010
Vikalista, E., Warsono, H., Martini, R., Erowati, D., & Muharam, R. S. (2026). Elite-centered regimes as barriers to meritocracy: the case of Indonesia. Frontiers in Political Science, 7. https://doi.org/10.3389/fpos.2025.1687026
Werang, M. L. F. (2025). Fiscal Decentralization in Sikka Regency: Analyzing Local Financial and Intergovernmental Transfers. Jurnal Manajemen Dan Ilmu Administrasi Publik (JMIAP), 6(4). https://doi.org/10.24036/jmiap.v6i4.1143
Werang, M. L. F., Rizki, M., Yolandasari, P., & Werang, N. P. L. (2025). Revitalizing Governance: How West Java’s SAKIP Transformed Public Accountability Post-COVID-19. Ilomata International Journal of Social Science, 6(2), 520–534. https://doi.org/10.61194/ijss.v6i2.1614
Werang, N. P. L., Putri, R. A., & Werang, M. L. F. (2026). Nickel Mining and Environmental Trade-Off in Raja Ampat Papua: A Conceptual Note on Legal and Policy. Journal of Social and Policy Issues, 6(1), 1–8.
Werang, N. P. L., Werang, M. L. F., & Putri, R. A. (2025). Urban governance and sustainability barriers in Indonesia: Tracking the forward policy design. Sustainable Urban Development and Environmental Impact Journal, 2(2), 121–136. https://doi.org/10.61511/sudeij.v2i2.2025.2052
Wijaya, T. (2025). The Rise of Authoritarian Statism in Indonesia and the Crisis of Crisis Management. Journal of Contemporary Asia, 1–29. https://doi.org/10.1080/00472336.2025.2565367
Wiryawan, B. A., & Otchia, C. (2022). The legacy of the reformasi: the role of local government spending on industrial development in a decentralized Indonesia. Journal of Economic Structures, 11(1), 3. https://doi.org/10.1186/s40008-022-00262-y
Yi, C., & Qiu, X. (2025). From local government to local governance: A systematic literature review and future research agenda. Australian Journal of Public Administration, 84(1), 102–124. https://doi.org/10.1111/1467-8500.12644
Published
How to Cite
Issue
Section
Copyright (c) 2026 Maria Lusiana Florentin Werang, Nicolaus Petrus Likuwatan Werang, Mia Rizki, Rizky Amalia Putri

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).



