Abstrack:
The real impact of the implementation of decentralization policies in Indonesia is the spirit formation of a new area called the regional proliferation that is very prevalent throughout Indonesia. On one side, proliferation policy as part of the autonomous region itself is expected to be able to overcome the coordination control range is very long and local government closer to the community in improving public services and local development interests. But, on the other hand, proliferation policy has spawned varieties of inequality is in fact greatly impede the ideal of autonomy itself. As known, the proliferation policy has spawned hundreds of new areas throughout Indonesia. Of course, these areas have the same status and rights with autonomous regions other such broad authority to manage his household affairs including the directly election of regional head. The pros and cons of proliferation policies occur throughout the country go side by side the various negative impacts of the implementation of this policy, look at the riots that occurred in different areas are caused from seizing regional boundaries, seizing of local assets, even caused riots between pro and contra with the establishment of a new area. Apparently Government Act No. 78 year 2007 to regulate the division of territory is still not yet given a clear referral system. This paper discusses the other side of the potential negative effects, even the failure of the implementation of the decentralization policy in Indonesia. According to Fitriani (2005) and Tanje (2007) that one cause of the demands to establish a new area is rent seeking, where local elites and local politicians try to regain power through the formation of new regions. This condition cannot be denied that almost occurred in all regions. But one thing is overlooked by scholars that are the existence of a local businessman who also played in the formation of new regions. Their presence did not look so real compared to the presence of local elites and party elites, because they take a role behind the scenes as lenders, the group was later referred to as the “Black Market”. The existence of black market in the regional area is always needed by local elites and political elites as one force to regain power. And such a practice would continue and even be more developed role as a legislative elections or direct election of regional head executed. Generally, local leaders or local politicians who get back his powers are sustained by the presence of many black markets. This condition then which formed a cartel of power among the regional head, the political elite and businessman that will eventually lead to ?Pseudo Democratic Government? in the local government, because the deviation of power through political barter and business interests.
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