View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by OTHES DISSERTATION Titel der Dissertation Decentralization and Local Governance In Post-Conflict Societies: Sustainable Peace and Development, The Case of Aceh, Indonesia Verfasser Iskhak Fatonie, MA angestrebter akademischer Grad Doktor der Philosophie (Dr. phil.) Wien, im April 2011 Studienkennzahl lt. Studienblatt: A 092 300 Dissertationsgebiet lt. Studienblatt: 300 Politikwissenchaft Betreuer: Ao. Univ.-Prof. Dr. Otmar Höll Table of Contents Acknowledgements ………………………………………………………………... v List of Abbreviations .…….……………………………………………………….. vi List of Tables .……………….…………………………………………………….. viii List of Figures .……...……………..………………………………………………. ix Map of Aceh .………………………………………………………..…………….. x Abstract .……………………………………………..…………………………….. xi Chapter 1 - Introduction .......................................................................................... 1 1.1 Background ……... .……………………………………………………….. 1 1.2 Problem Statement ……..………………………………..………………… 4 1.3 Research Objectives and Research Questions……………...……………… 6 1.4 Research Hypothesis……………..………………………………………… 7 1.5 Research Methodology ……………………………………………………. 7 1.6 Research Paper Structure ………………………………………………….. 8 Chapter 2 - Decentralization and Conflict: Concepts, Theories and Debates ..... 9 2.1 Decentralization at Large……………………….. ……….……………………. 9 2.1.1 Definition and Concept ….……………………................................... 9 2.1.2 Objectives of Decentralization ………………………………………. 13 2.1.3 Autonomy, Self-Governance and Development …………………….. 14 2.1.4 The Linkage between Decentralization and Conflict ……………….. 18 2.2 Socio-Political Decentralization ……………………………............................. 22 2.2.1 Reconstituting Legitimacy …………..….…………….………........... 22 2.2.2 Participatory Local Democracy …...………………….……………... 25 2.2.3 Socio-Cultural Adaptation……………………………..…………….. 27 2.2.4 Challenges and Risks ………………................................................... 28 2.3 Administrative-Economic Local Governance ………………............................. 29 2.3.1 Service Delivery ………...……………………………..…………….. 30 2.3.2 Fiscal and Economic Decentralization ………………………………. 34 2.4 Post-Conflict Situation ……………………...………………............................. 37 2.4.1 The Terminology of Post-Conflict Peace ……………..…………….. 37 2.4.2 Post-Conflict Security Governance ………………………………….. 40 2.4.3Actors in Post-Conflict Governance Reconstruction: Reformers, Preserves and Spoilers ………………………………………………. 41 2.5 Conclusion …………………………………………………………………….. 42 i Chapter 3 - Historical Background: From Center to Periphery, Acehnese Grievances and The Insurgencies ……….……………………………………….. 44 3.1 The Sultanate Domination ……………………………………………….......... 45 3.1.1 Aceh as an Independent Region .………..…………………………… 45 3.2 Colonialism, Independence and Revolution Movement ..................................... 48 3.2.1 The Dutch War …………………...………………………………….. 48 3.2.2 The Ulèëbalang Aristocracy: Aceh Administrators .………………... 49 3.2.3 Aceh Decentralized Government Under Reformist Ulama ……......... 51 3.3. Aceh Administration during Sukarno’s Era ………………………………….. 54 3.3.1 Dissolution of Aceh Province ……………...………………………... 54 3.3.2 The Republican Ulama Revolt ……………………………………… 55 3.3.3 The Decree of Aceh Special Territory Status ..….……………........... 58 3.4 Hasan di Tiro and GAM: Self-Determination Struggle ……………………….. 59 3.4.1 Local Grievances …………………………………………………….. 59 3.4.2 GAM and Contemporary Aceh Insurgency ……..…………………... 62 3.5 Conclusion ……….....…………………………………………………………. 66 Chapter 4 - The Emergence of Decentralization in Indonesia and Decentralization Efforts to Address Grievances in Aceh Conflict …….....……… 68 4.1 National Context: From Centralized to Decentralized Government ….……….. 69 4.1.1 Unitary States versus Federalism in Indonesia ……………………… 69 4.1.2 Guided Democracy Phase, 1959 – 67 ……………………………….. 70 4.1.3 New Order Phase, 1967 – 98 ………………………………………... 72 4.1.4 Decentralization in Post-Authoritarianism ………………………….. 76 4.2. Aceh Context: The Dynamic of Decentralization in Contemporary Aceh Conflict .………………………………………..…………………………………... 79 4.2.1 Special Region Status ..………………………………………………. 80 4.2.2 Special Autonomy Status ……………………………………………. 85 4.2.3 Martial Law ………………………………………………………….. 92 4.2.4 Tsunami Catastrophe ………………………………………………… 97 4.3 The Helsinki Peace Agreement (MoU): The Restoration of Power-Sharing Arrangements ……………………………………………………………………… 99 4.3.1 Aceh Self-Governance …………………………….………..……….. 103 4.3.2 GAM Political Participation …………………………………............ 105 4.3.3 Law on the Governing of Aceh (LoGA) ……………………………. 109 4.3.4 Disarmament, Demobilization and Reintegration …………………… 113 4.4 Conclusion ……………………………………………….....…………………. 116 ii Chapter 5 - Decentralization in Post-Conflict Society: Sustainable Peace and Development in Aceh …………………..…….………………………………….... 118 5.1 Aceh Background: Administration, Population and Islamic Norms ……...…… 119 5.1.1 Administration ………………………………………………………. 120 5.1.2 Population …………………………………………………………… 121 5.1.3 Islamic Norms ……………………………………………………….. 124 5.2 Aceh Institutional Reform: Socio-Political Local Governance ……………..… 125 5.2.1 Local Political Participation …………………………...……..……… 126 5.2.2 Civil Society ………………………….…………………………….... 135 5.2.3 Islamic Sharia Law ….……………………………………..……..…. 138 5.2.4 Police, Violence and Criminality …………………………….……… 141 5.3 Decentralized Governance in Aceh Post-Conflict: Administrative-Economic Governance ..…….………………………………………..……………………….. 146 5.3.1 Aceh Economic Governance ………………………………………… 146 5.3.1.1 Fiscal Revenue ……………………...……………………... 147 5.3.1.2 Economic Structure and Growth …………...……………… 151 5.3.1.3 Employment ……………………………………………….. 159 5.3.1.4 Poverty …………………………………………………….. 161 5.3.2 Administrative Governance and Service Delivery …………………... 163 5.3.2.1 Education Sector …………………………………………... 166 5.3.2.2 Health Sector ………………………………………………. 168 5.3.2.3 Infrastructure Sector ……………………………………….. 171 5.4 Post-Conflict Security Governance …………………..…………………...….... 173 5.4.1 The Implementation of Disarmament, Demobilization and Reintegration (DDR) ………………………………………………... 173 5.4.2 The Challenge of Reintegration Process .……...………….………..... 177 5.5 Conclusion …………………………………………………………………….. 181 Chapter 6 - Maintaining Peace: The Challenge of Decentralization in Aceh Post-Conflict ………………………………………………………………………. 183 6.1 The Challenges of Post-Conflict Governance ...…………………..…………... 183 6.1.1 Capacity to Govern …………………………………………..……… 184 6.1.2 Corruption …………………………………………………………… 189 6.1.3 Patronage ……………………….……...…..………………………... 193 6.1.4 Division of Aceh ……………………..……………………………… 197 6.1.5 Unfinished Agenda on the Implementation of LoGA ……………….. 200 6.2 Conclusion …………………………………………………………………….. 204 iii Chapter 7 - Conclusion ………………………………………………………….... 205 7.1 Conclusion ………….…………………………………………………………. 205 7.2 Research Implications .…...……………………………………………………. 207 - Implication for Future Research ….……………..………………………..….. 207 - Recommendations for Policies of Aceh Government ……………..….…..…. 209 List of References …………………………………………………………………. 214 Curriculum Vitae ……………….………………………………………………… 224 iv Acknowledgements This study is completed with much assistance from several persons. My most sincere thankfulness is given to Prof. Dr. Otmar Höll, my supervisor, who has devoted his valuable time giving me a substantial knowledge, guidelines, suggestions and sharpening the ability to do this study. Many thanks also go to Prof. Dr. Helmut Lukas, University of Vienna and Austrian Academy of Science, Austria, Dr. Puguh Irawan, OPEC, Vienna- Austria and Dr. Zulfan Tadjoeddin, University of Western Sidney, Australia, who has given me many guidance and suggestions with willingness. My dedication for this work goes for my mother in heaven, Ibunda Alm. Hj. Iin Hindasyah; and also for my parents, Ayahanda H. Ali Basyir and Ibu Hj. Sumiati; especially my beloved family, my wife, Hj. Riena Astuty, L.LM and the boys, Zidan and Zaveer, thank you for always supporting and bringing me into your prays. At last, my highest Gratitude to God, Allah SWT; thank you for giving me guidance, caring especially when I was facing difficult time. It makes me understand that You always be with me, wherever I am. Vienna, April 2011 v List of Abbreviations ADG Alokasi Dana Gampong (Village Allocation Fund) ALA-ABAS Aceh Leuser Antara – Aceh Barat Selatan AMM Aceh Monitoring Mission APA Aceh Poverty Assessment APBD Anggaran Pendapatan dan Belanja Daerah (Regional Government Budget) APBN Anggaran Pendapatan dan Belanja Negara (National Government Budget) ASNLF Aceh Sumatra National Liberation Front BAPPEDA Badan Perencanaan Pembangunan Daerah (Regional Development Planning Agency) BAPPENAS Badan Perencanaan Pembangunan Nasional (National Planning and Development Agency) BKPG Bantuan Keuangan Peumakmue Gampong (village block grant program) BPS Badan Pusat Statistik (Central Bureau of Statistics) BRA Badan Reintegrasi Damai Aceh (Aceh Peace and Reintegration Agency) BRR Badan Rehabilitasi dan Rekonstruksi (Tsunami Rehabilitation and Reconstruction Agency) CMI Crisis Management Initiative CSO Civil Society Organization CoHA Cessation of Hostilities Agreement DAU Dana Alokasi Umum (General Allocation Fund) DAK Dana Alokasi Khusus (Special Allocation Fund) DDR Disarmament, Demobilization and Reintegration DPR Dewan Perwakilan Rakyat (House of Representatives) DPRA Dewan Perwakilan Rakyat Aceh (Aceh House of Representatives) DPRD Dewan Perwakilan Rakyat Daerah (Regional House of Representatives)