• About UGM
  • SIMASTER
  • SINTESIS
  • Public Information
  • SDGs
  • English
    • Bahasa Indonesia
    • English
Universitas Gadjah Mada Universitas Gadjah Mada
Faculty of Economics and Business
  •  About Us
    • Overview
    • History of The Establishment
    • Mission & Vission
    • School Values
    • School Leadership
    • Senate Leadership
    • Department Leadership
    • Study Program Leadership
    • Unit Leadership
    • Faculty Advisory Board
    • Annual Report
    • Campus Facilities
    • Visual Identity
    • News Room
    • The 70th Anniversary
  • Academic Programs
    • Undergraduate Program
    • Master Program
    • Doctoral Program
    • Profession Program
    • Short Academic Programs
    • Professional Programs & Certification
    • International Undergraduate Program
    • International Doctorate in Business (IDB)
    • Academic Calendar
    • Rooms and Events
  • Faculty & Research
    • School Memberships
    • School Accreditation
    • International Networks
    • Faculty Members
    • Visiting Professor & Research Fellows
    • Professional Staffs
    • Publications
    • Published Journals
    • Working Papers
    • Fields of Study
    • Supporting Units
    • International Conference Partnership
    • Call for Papers
    • Community Service
    • Faculty Library
  • Admission
  • Home
  • News

Prof. Wihana: Decentralization and Regional Autonomy Caused Authority Confusion

  • News
  • 24 December 2010, 09.46
  • By : Admin

The failure of decentralization and regional autonomy have been attributed to the uncertainty of the rules of the game. This will eventually caused the high cost economy for the provision of public services and local economic development.

A number of studies in developed and developing countries showed that decentralization and regional autonomy law have encouraged horizontal accountability. However, this condition also gives opportunities for new channels to practices of power abuse, such as corruption, collusion, nepotism, money politics, lobbying, bribery or gratuities. “In addition, one of the risks of the implementation of this system is the possibility of full control by local elites,” said Prof. Wihana Kirana Jaya, M. Soc, Sc., Ph.D., at the Senate Hall on Thursday (23/12), when inaugurated as Professor of the Faculty of Economics UGM.

Some researchers argue that the failures are due to institutional design that has been built inefficiently. This institutional inefficiency is supposed to be the fundamental cause of economic stagnation in some developing countries and industrialized nations of the past.

“The collapse of the Soviet, Central Asia, and Europe, the Middle East, Latin America and the Caribbean economy are evidence of this case,” said the Vice Dean for Students, Alumni, Cooperation, and Business Development.

Then how about Indonesia? According to Wihana, decentralization and regional autonomy policy, which began in 1974 to 2010, became a phenomena of institutional economy research laboratory that is very dynamic, exciting, and challenging to study. The policy not only has changed the rules of the game very drastically (big bang changes), but also changed the organization, the behavior of players, and human resources.

It is said by Wihana, the changes in decentralization and regional autonomy policies took the form of government change which was formerly very authoritarian to very democratic government. The form of government that used to be extremely centralized became decentralized. “But unfortunately, these rules are not followed by the changes in good governance,” he said.

For the last eleven years, the implementation of decentralization and regional autonomy policy in Indonesia has resulted in positive and negative sides. In addition to increasing transparency, the policy of decentralization and regional autonomy has created opportunities for domination of control by local elites, which eventually produce asymmetric information. “Eventually, this also affects the institutional inefficiency,” he continued.

The husband of dr. Usi Sukorini, M. Kes., Sp.PK (K), assessed the lack of institutional supervision and enforcement became a crucial factor for the stakeholders relationship in decentralization and regional autonomy. The institutional changes in decentralization and regional autonomy have resulted in uncertainty of who has the principal authority and who is given the authority or representative (agent). “It’s because institutional disharmony often happens and creates a bottleneck for the implementation of good governance,” the father of Arya Pradipta, Damas Nawanda, and Dea Karina added.

Source: Agung

Views: 199

Related Posts

Apia Dewi Agustin

The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM

Graduation Friday, 25 July 2025

Do you still remember Apia Dewi Agustin? Her name once captured the public’s attention with her inspiring story. This young woman from a remote village in Magetan Regency, East Java, successfully pursued her undergraduate degree and then continued her Master’s and Doctoral studies at the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), free of charge, thanks to her academic achievements.

Now, Apia has once again made her alma mater proud.

Primastuti Indah Suryani

Optimizing Social Media to Boost MSME Visibility

News Friday, 25 July 2025

Building a brand and reaching consumers no longer rely solely on conventional promotions. Social media has become a primary channel for shaping a business’s image.

Field Trip GSW 2025

GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta

News Friday, 25 July 2025

The clinking sound of metal echoes through a silver craft workshop in Kotagede, Yogyakarta. Skilled hands carefully hammer sheets of silver on a steel anvil.

Andar Danova L Goeltom

Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future

News Thursday, 24 July 2025

Significant changes are taking place in the global tourism industry. Today’s travellers, especially younger generations and international tourists, are increasingly concerned about the environmental impact of their travel activities.

Latest News

  • The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM
    July 25, 2025
  • Optimizing Social Media to Boost MSME Visibility
    July 25, 2025
  • GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta
    July 25, 2025
  • Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future
    July 24, 2025
  • Unemployment Rate Declines, FEB UGM Lecturer Says Decent Work Remains a Challenge
    July 24, 2025

Related Article

  • The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM
    July 25, 2025
  • Optimizing Social Media to Boost MSME Visibility
    July 25, 2025
  • GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta
    July 25, 2025
  • Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future
    July 24, 2025
  • Unemployment Rate Declines, FEB UGM Lecturer Says Decent Work Remains a Challenge
    July 24, 2025
Universitas Gadjah Mada

Universitas Gadjah Mada
Faculty of Economics and Business

Jln. Sosio Humaniora No.1, Bulaksumur, Yogyakarta, Indonesia 55281

Map & Direction
More Contact Information

Department

  • Accounting
  • Economics
  • Management

Faculty Directory

  • Public Information
  • Room Management
  • Asset Management
  • Cemetery Management

Alumni

  • Alumni Community
  • Alumni Services
  • Tracer Study
  • Jobs & Internships
  • Scholarships

Social Media

© 2025 Faculty of Economics and Business UGM

DisclaimerSite Map

💬 Need help?
1
FEB UGM Official WhatsApp
Hello 👋
Can we help you?
Open chat