REGIONAL AUTONOMY AT THE CROSSROAD

BETWEEN DECENTRALIZATION, RECENTRALIZATION, AND LOCAL GOVERNANCE INNOVATION IN INDONESIA

Abstract

This study aims to analyze the dynamics of regional autonomy implementation in Indonesia within the context of the tension between decentralization and re-centralization, as well as to identify the factors determining local government performance. This research employs a qualitative approach with a literature study design combined with comparative analysis across four regions: Banyuwangi Regency, Surabaya City, Sleman Regency, and Bogor City. The analytical framework draws upon decentralization theory, collaborative governance, as well as institutional and constructivist perspectives. The findings indicate that regional autonomy in Indonesia is contextual and multi-variant in nature. Regions such as Banyuwangi and Surabaya demonstrate success through innovation, institutional capacity, and strong leadership, while other regions face limitations in capacity and governance complexity. At the national level, the performance of regional autonomy remains predominantly in the moderate to low category, with limited fiscal independence. A key finding of this study is the existence of a structural paradox between the breadth of decentralized authority and the limited capacity of local governments to manage such authority. This condition suggests that decentralization in Indonesia does not fully lead to efficiency as assumed in classical theory, but rather operates within a hybrid condition between administrative decentralization and fiscal centralization.This study proposes a conceptual model of Hybrid Collaborative Decentralization, which emphasizes the importance of integrating local capacity, leadership, innovation, and collaboration as mediating factors in improving the performance of regional autonomy.