Research ReportExtractive Industry

Law 23 of 2014: Division of Natural Resources Government Affairs

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Current decentralization (before Law 23/2014) cannot create effective government in the context of carrying out comprehensive economic development activities.

In Law Number 23 of 2014, the emphasis on autonomy lies with the provinces. The emphasis on autonomy can be seen from the large number of affairs that are withdrawn from the district/city government to the provincial or central government. Apart from this, there was also a reduction in the number of affairs from 31 government affairs carried out by regions in Law Number 32 of 2004 to 21 affairs).

Regional autonomy is a logical consequence of the formation of regional governments, this is stated in Article 18 paragraph (2) and paragraph (5) of the 1945 Republic of Indonesia Constitution, stating that Regional Governments have the authority to regulate and manage Government Affairs themselves according to the Principle of Autonomy and Assistance Duties and are given autonomy as wide as possible. Providing the broadest possible autonomy to regions is directed at accelerating the realization of community welfare.