Brief History of Decentralization Mainframe in
- The substance of Law No. 5/1974 reflected the emphasis of the central interest than promoting the effort of empowerment of the potential and self-reliance of the local government and society.
- The system of local government organization tended to become bigger without considering the principles of organizational development. Consequently, hierarchical structure with longer span of control was formed, which in turn made the local government less efficient in implementing regional autonomy.
- The articles in Law No. 5/1974 which was already 25 years old had not been operational due to lack of implementing regulations. In other words, the existence and function of Law No. 5/1974 had been no more than just relatively a malfunctioned legal product. (LAN and Local Autonomy Bureau, 1999/2000: 1-2).
- The implementation of regional autonomy is carried out on the basis of democratic principles and the heterogeneity of the regions.
- The implementation of regional autonomy, division, fair use of national resources, and financial balance between central and local government is carried out on the principles of strong social deliberation and sustainability under the supervision of the local parliament and the local people.