Harmonization of the Authority of the Central and Regional Governments in State Financial Management as an Implementation of Regional Autonomy
Abstract
The existence of regional autonomy provided by the central government is one of the implementations of the concept of decentralization, it is based on the desire to change the paradigm of government administration which was originally centralistic towards decentralized regional government. The consequences of these changes can cause new problems, such as incompatibilities between regional autonomy laws and sectoral laws and regulations. One of the most striking phenomena of the relationship between the local government system and regional development is the strong dependence of local governments on the central government. This dependence is clearly seen from the financial aspect, namely that local governments lose their freedom to act (local discretion) to make important decisions and there is interference by the central government against local governments. Development in the regions, especially physically, is indeed quite large, but the level of fiscal dependence between the regions and the center as a result of the center is also increasing. Fiscal dependence can be seen in the relatively low local original income (PAD) and the dominance of transfers from the center. Thus, the issue in this discussion is related to the basic concept of the division of authority between the central and regional governments and how to reduce the occurrence of power feuds in the implementation of regional autonomy. Efforts to reduce the opportunity for conflicts of authority between the central government and local governments in implementing regional autonomy can be minimized by amending several laws and regulations that are not in accordance with the regional autonomy policy.
How to Cite This Article
Ni Putu Kristin Ningtyas Kusuma, I Gusti Ngurah Parikesit Widiatedja (2026). Harmonization of the Authority of the Central and Regional Governments in State Financial Management as an Implementation of Regional Autonomy . International Journal of Judicial Law (IJJL), 5(2), 69-74. DOI: https://doi.org/10.54660/IJJL.2026.5.2.69-74