Identifier
Created
Classification
Origin
09SURABAYA60
2009-06-11 03:03:00
UNCLASSIFIED
Consulate Surabaya
Cable title:  

EAST JAVA: A DUEL OVER THE ROLE OF INDONESIA'S GOVERNORS

Tags:  PGOV ID 
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RR RUEHCHI RUEHCN RUEHDT RUEHHM
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ZNR UUUUU ZZH
R 110303Z JUN 09
FM AMCONSUL SURABAYA
TO RUEHC/SECSTATE WASHDC 0425
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBY/AMEMBASSY CANBERRA 0194
RUEAIIA/CIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
RUEHJA/AMEMBASSY JAKARTA 0412
RUEHJS/AMCONSUL SURABAYA 0434
UNCLAS SECTION 01 OF 02 SURABAYA 000060 

SIPDIS

DEPT FOR EAP/MTS, INR

E.O. 12958: N/A
TAGS: PGOV ID
SUBJECT: EAST JAVA: A DUEL OVER THE ROLE OF INDONESIA'S GOVERNORS

SURABAYA 00000060 001.2 OF 002


UNCLAS SECTION 01 OF 02 SURABAYA 000060

SIPDIS

DEPT FOR EAP/MTS, INR

E.O. 12958: N/A
TAGS: PGOV ID
SUBJECT: EAST JAVA: A DUEL OVER THE ROLE OF INDONESIA'S GOVERNORS

SURABAYA 00000060 001.2 OF 002



1. (U) Summary: Do Indonesian governors represent the central
government? Or, are they independent local leaders who must
operate like corporate CEOs? Two well-known governors debated
their roles during decentralization at a seminar sponsored by
the Jawa Pos Institute of Pro Otonomi (JPIP). Decentralization
in Indonesia is the transfer of power from the central
government to local governments. But eight years on, what
decentralization and local autonomy really means is still
unclear. The role of the governor in managing resources and
increased budgets was debated by Fadel Muhammad, Governor of
Gorontalo, and Gamawan Fauzi, Governor of West Sumatra. Crowd
support was clearly behind Fadel and his opinion that governors
should function like a corporate CEO and run their provinces
like companies. End summary.

Dueling Governors
--------------


2. (U) Jawa Pos Institute of Pro Otonomi (JPIP),a research body
belonging to media giant Jawa Pos Group and supported by USAID,
held a seminar on the relations between the central and local
governments on May 27, 2009, in Surabaya. JPIP conducts annual
research on the performance of local governments in East Java
and other Indonesian provinces and awards top perfomers.
USAID's Local Governance Support Program encourages better local
governance in 9 provinces, including East Java. This May
seminar was part of a broader, ongoing dialogue between
Indonesian lawmakers, civil society, and regional governments
about the proper role of local officials. The seminar presented
two well-known governors Fadel Muhammad from Gorontalo and
Gamawan Fauzi from West Sumatra. Both exchanged sharply
different opinions on the role of governors in decentralization.
Under current law, the Governor is both representative of the
central government and the directly elected head of the
province. This dual role leaves room for interpretation,
however. Fadel Muhammad is a businessman known for using modern
management practices, while Gamawan Fauzi insisted that the
governor should do no more than represent the central government.

Governor as CEO
--------------


3. (U) Fadel Muhammad worries about the lack of management
capacity in local governments. During his remarks he said that
civil servants are still trapped in a 'yes sir' culture.
Moreover, a governor is like a corporate CEO and should behave
like one, daring to break rigid rules imposed by the central
government for the good of the province, according to Fadel. He
has made drastic changes in Gorontalo by restructuring the
bureaucracy and salary system, introducing information
technology, and sending employees to study management and
finance at Gadjah Mada University. In one instance, Fadel
abolished the government's motorpool and converted to leased
vehicles, reportedly saving money on maintenance. Fadel's
changes met with strong resistance from many who regarded
official cars as their personal vehicles. Fadel explained that
motorpool savings were given out as bonuses.

Governors Represent the Government
--------------


4. (U) West Sumatran Governor Gamawan Fauzi strongly disagreed
with Fadel. He said that the governor is a representative of
the central government and should do what the central government
says. He added that governors who do not play by the rules
could be arrested. He urged all provincial leaders not to adopt
Fadel Muhammad's methods and reminded the audience that the
provincial government is not a company. Gamawan Fauzi
contrasted decentralization in Indonesia is with federalism in
the U.S or Europe. A governor cannot demand total freedom of
authority. Fauzi also said that decentralization is not a
transfer of all powers from the central government to local
governments. He proposed rolling back the current law and
appointing governors by the president, as was the practice
during the Suharto era. He pointed out that gubernatorial
elections are a waste of money since the governor has limited
powers.

Be Brave, Prosecutors will Understand
--------------


5. (U) Fadel Muhammad retorted that local governments should
have the freedom to innovate for the sake of public welfare. He
complained about reprimands and questions from the Ministry of
Home Affairs, police, and the Attorney General's Office
regarding his creativity based on modern management principles.
He noted that he is able to maintain his reforms by

SURABAYA 00000060 002.2 OF 002


demonstrating the results of his innovations. Fadel urged all
local governments to be brave and creative as the central
government, police, and Attorney General's Office will
understand provided that the governors are able to provide clear
reasons and practical results.
MCCLELLAND