INTERGOVERNMENTAL RELATIONS IN DECENTRALIZED INDONESIA: BALANCING REGIONAL AUTONOMY AND CENTRAL STEERING

Guntur Khayangan Sitompul (Universitas Sumatera Utara)

KOLABORASI: Journal of Multidisciplinary
Vol. 3 No. 1 (2026): February

This study examines intergovernmental relations in Indonesia’s decentralized governance system by focusing on the continuing tension between regional autonomy and central government steering. Decentralization has expanded subnational responsibilities, yet subsequent regulatory and fiscal reforms have strengthened central coordination through authority allocation, fiscal transfers, planning, budgeting, regulatory supervision, and performance control. Using a qualitative document-analysis approach, this study analyzes statutory regulations, fiscal decentralization policies, planning and budgeting arrangements, and recent scholarly studies on central–regional relations. The findings demonstrate that Indonesia operates through a hybrid intergovernmental model rather than a simple centralization–decentralization dichotomy. Regional governments retain substantial responsibility for public service delivery and local development, but their discretion is conditioned by fiscal dependence, nationally defined policy frameworks, uneven institutional capacity, and sectoral regulatory intervention. Central steering can strengthen policy coherence and minimum service standards, but excessive control may weaken local responsiveness and innovation. The study concludes that effective decentralization requires clearer authority distribution, stronger regional fiscal capacity, adaptive coordination, institutional capacity development, and accountable multilevel governance.