PERAN PEMERINTAH PUSAT DALAM MEMPERKUAT DESENTRALISASI: KASUS JEPANG DAN PELAJARAN UNTUK INDONESIA

The role of central government in strengthening sub-national governments is unquestionably vital. Principally, the central government also determines the degree of decentralization in a country. This paper tries to explore the role of central government in Japan in promoting local development through decentralization. There are some lessons that might adopted to build decentralization in Indonesia effectively. Firstly, central government needs to reinforce its commitment to transfer more powers to local government, and to reduce its intervention over local regulations. Secondly, the new framework of decentralization should oblige central government to provide economical incentive system in order to promote competition among local governments.