Ahmad Setiawan Nuraya

Restructuring Strategy for Local Government Enterprise: the Challenge and Opportunity of Regional Autonomy in Indonesia Ahmad Setiawan Nuraya

Regional autonomy in Indonesia has endorsed a great opportunities and interesting challenges, in the same time. While national/central government applied this important policy, regional (provincial and district/local) governments with potential local financial resources (natural resources, tourism, etc) assumed there will be a great 'pieces of cake' from central government. Unfortunately, poor local governments (with lack of locally potential financial resources) will be sore. In this phase, local government enterprise (LGE) is becoming strategic partner to be reviewed. Even it has been realized that LGE has important roles to provide basic public services, but most LGEs performed a poor performances. In most provinces, LGE is a unit for 'retired senior official' to be placed as 'the land of last resort', or as a political appointee position for political bargaining position. However, it is widely accepted and a common practices politically. Related to the main idea of regional autonomy, and its basic and natural roles, LGE should be strengthened in order to perform its optimum performance, which means best services for community and financial contribution.