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University of Groningen the Governance of Small Cities In University of Groningen The Governance of Small Cities in Decentralizing Indonesia Rahayu, Paramita IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below. Document Version Publisher's PDF, also known as Version of record Publication date: 2016 Link to publication in University of Groningen/UMCG research database Citation for published version (APA): Rahayu, P. (2016). The Governance of Small Cities in Decentralizing Indonesia: The Case of Cirebon City and Its Surrounding Regions. Rijksuniversiteit Groningen. Copyright Other than for strictly personal use, it is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license (like Creative Commons). The publication may also be distributed here under the terms of Article 25fa of the Dutch Copyright Act, indicated by the “Taverne” license. More information can be found on the University of Groningen website: https://www.rug.nl/library/open-access/self-archiving-pure/taverne- amendment. Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from the University of Groningen/UMCG research database (Pure): http://www.rug.nl/research/portal. For technical reasons the number of authors shown on this cover page is limited to 10 maximum. Download date: 30-09-2021 The Governance of Small Cities in Decentralizing Indonesia The Case of Cirebon City and Its Surrounding Regions Paramita Rahayu i ISBN: 978-90-367-8823-6 Cover Design : Andika Pramana ([email protected]) Printed by: Ipskamp Printing, Enschede ii The Governance of Small Cities in Decentralizing Indonesia The Case of Cirebon City and Its Surrounding Regions PhD thesis to obtain the degree of PhD at the University of Groningen on the authority of the Rector Magnificus Prof. E. Sterken and in accordance with the decision by the College of Deans. This thesis will be defended in public on Thursday 2 June 2016 at 12.45 hours by Paramita Rahayu born on 7 January 1975 in Palembang Indonesië iii Supervisors: Prof. J. Woltjer Prof. T. Firman Assessment Committee: Prof. R.L. Holzhacker Prof. G. de Roo Prof. T. McGee iv Contents Figures x Tables xi Preface xiii Abstract xv Samenvatting xvi Chapter 1 Small Cities in Java: An Introduction 1 1.1 Introduction 2 1.2 Position of the study within the academic debate on small cities in developing countries 3 1.3 Objective and research questions 9 1.4 Theoretical contribution 11 1.5 Structure 12 Chapter 2 Research Method: Qualitative Single Case Study 17 2.1 Introduction 18 2.2 Selected case study: Preliminary criteria 18 2.3 Data collection, sampling, and data analysis 22 v Chapter 3 Challenges of Small Cities in Developing Countries: The Case of Cirebon City, West Java, Indonesia 29 3.1 Introduction 30 3.2 Rapid urbanization in developing countries and in Java Indonesia 32 3.2.1 Factors responsible for urbanization in Cirebon 35 3.2.2 The pressure of urbanization in the city of Cirebon 39 3.3 Economic forces of globalization in Cirebon City 49 3.4 Indonesian policies of decentralization and regional autonomy: How do they present a challenge to Cirebon City 53 3.4.1 Decentralization and the provision of public services 54 3.4.2 Decentralization, financial capacity, and collaboration 59 3.5 Conclusions 66 Chapter 4 Analytical Framework for Small City Governance and Institutional Design 73 4.1 Introduction 74 4.2 Governance, sustainability, and local government collaboration in small cities in developing countries 75 4.2.1 Understanding governance as implemented in this study 75 4.2.2 Sustainability and small cities in developing countries 77 4.2.3 Previous studies of networks and institutions for local government cooperation 79 4.3 Adopting the concepts of governance, sustainability, and local governments’ cooperation to this study 82 vi 4.4 Formal arrangements for intergovernmental cooperation 84 4.4.1 Background, continuum, and models of governance 85 4.4.2 Different examples for models of governance structure 89 4.4.3 Specific characteristics of developing countries 94 4.5 Institutional capacity to pursue inter-local government collaboration 100 Chapter 5 Systemic Institutional Design for Urban Governance: Indonesia, Cirebon, and Fresh Water Cooperation 107 5.1 Introduction 108 5.2 Inter-local government cooperation under Indonesia’s decentralization policy 110 5.3 Models of governance under decentralization policy and regional autonomy 117 5.4 Government structure for fresh water cooperation between Cirebon City and Kuningan District 124 5.5 Conclusions 137 Chapter 6 Institutional Capacity: A Case of Cooperation between Cirebon City and Kuningan District 141 6.1 Introduction 142 6.2 Episode 1: The central government’s approach to sustainable water resources management under decentralizing Indonesia 146 6.3 Episode 2: The development of piped water service provision for Cirebon City 154 vii 6.4 Episode 3: Kuningan District on innovative idea of local potential in decentralizing Indonesia 159 6.5 Governance process: The current interaction in the fresh water resources cooperation between Cirebon City and Kuningan District 167 Assessment of potential coupling of knowledge and relational capital building 168 Mobilization capital of Kuningan District and the city’s communities 179 6.6 Governance culture: Assessment of the potential transformation of the governance culture in fresh water resources cooperation 184 6.7 Conclusions 191 Chapter 7 General Discussion: Governance of Small Cities in Decentralizing Indonesia, the Case of the Cirebon City 197 7.1 Introduction 198 7.2 Challenges of governance of small cities: Relativistic views gaps in, capacity, and small cities as developing node 199 7.3 Small city governance: Formal structure and regulatory system in decentralizing Indonesia 202 7.4 Small city governance: Institutional capacity in decentralizing Indonesia 206 7.5 Potential institutional design for small city’s governance 210 7.6 Theoretical contribution 215 viii Appendices 219 Appendix 1: List of Interviewees 220 Appendix 2: Interview Guidelines 224 Appendix 3: Indication of Urbanization Process in Small Cities in Java 231 Bibliography 233 ix List of Figures Figure 1.1 Research framework 15 Figure 2.1 Conceptual framework 21 Figure 3.1 General challenges of small cities in developing countries 31 Figure 3.2 Location of the city of Cirebon 37 Figure 3.3 Built up areas in the Cirebon Region 1990-2009 43 Figure 3.4 Structure of revenues of Cirebon City (in thousand) 60 Figure 3.5 The context of Cirebon City 71 72 Figure 4.1 Process of selecting models of governance structure 99 Figure 4.2 Institutional capacity’s framework 103 Figure 4.3 Analytical frameworks: Potential process of institutional design for the governance of Cirebon City and its surrounding regions 106 Figure 5.1 Framework of inter local government cooperation in Indonesia 116 Figure 5.2 Models of governance: the Indonesian context 123 Figure 5.3 Transformation of formal arrangements for freshwater cooperation 127 Figure 5.4 Location of Paniis spring 132 Figure 5.5 Revenue of Cirebon City, 2008-2012 135 Figure 5.6 Revenue of Kuningan District 136 Figure 6.1 Institutional capacity 144 Figure 6.2 Horizontal storage well 158 x Figure 6.3 Actors in the networks for the cooperation on fresh water resources 166 Figure 7.1 Potential intervention of institutional design 212 xi List of Table Table 2.1 Data 25 Table 3.1 Extended urbanization of the city 41 Table 3.2 Share of urbanization in the Cirebon Region (city and district) in 2008 42 Table 3.3 Comparison of LOS: Cirebon City and Cirebon District 46 Table 3.4 Sector contribution to GDRP 2009 of the Cirebon Region 52 Table 4.1 Models of governance structure 89 Table 4.2 Characteristics and backgrounds of models of government structure 98 Table 4.3 Social logic 101 Table 5.1 Regulations related to decentralization policy, regional autonomy and inter-local government cooperation 111 Table 5.2 Principles, stages, and alternatives of inter-local government cooperation 117 Table 5.3 Compensation of the conservation fund for shared water resource and water tax 129 Table 6.1 Episodes related to the ILGC for shared water resources 145 Table 6.2 Potential capital of actors in the case of the ILGC for shared water resources 165 Table 6.3 Letters, memos, and reports 170 xii Preface I offer my thanks to Allah the Almighty. I am truly grateful to the Faculty of Spatial Sciences for the Ubbo Emmius Fellowship. I have been able to conduct this research with the generous support of this fellowship. I am indebted to my supervisors, Prof. Johan Woltjer and Prof. Tommy Firman. The successful completion of this dissertation would not have been possible without your continued encouragement, valuable insights, support, persistence, and patience in every stage of the process. I would also like to express my gratitude to Prof. Inge Hutter and Prof. Ravik Karsidi for their support. Special thanks are due to numerous individuals for their time, assistance, and friendship throughout my study and the wonderful support they gave me and my family in Groningen. I am unable to mention them all here: my friends at the Department of Planning and Environment, Faculty of Spatial Sciences, University of Groningen; the Indonesian student and Muslim community in Groningen; all teachers of the brugklas in Borgmanschool in Groningen, as well as teachers at the Zernike Montessori College in Groningen; and all of my colleagues in the Architecture and Urban and Regional Planning Department, Sebelas Maret University, Surakarta.
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