Enactment of Local Government Act no 23/2014 impacted to governance of forestry, marine, and energy resources sectors, particularly on the changes of budget policy in land and forestry governance. This is exposed in a discussion about “Mitigate the Impact of Local Government Act no. 23/2014 toward Budget Policy on Land and Forestry Governance held by FITRA RIAU (16/2).
The impact from this act is transferring the authority from regency to province, including the bureaucracy, direct spending employee, and etc., which indeed related to the readiness of province government particularly on budgeting.
Coordinator of FITRA Riau, Usman further explained, due to the transitional authority, natural resource affairs becomes the optional issue of Forestry Agency of Province Riau. “Because of the transition, Forestry Agency of Province Riau complained that the portion of the budget allocated for expenditure in land and forestry governance is still inadequate,” said Usman. In forestry, the province only allocate no more than IDR 7,500/hectare for unit cost for the targeted forest area. This is calculated based on the accumulation of total forest area and budget allocation (2012-2015).
The portion of allocated local budget for expenditure in land and forestry governance still inadequate.
Despite of the existing deadline for two years since the enactment of 2014 Local Government Act, Letter of Minister of Environment and Forest No. 5/2015 about the forestry management between central and local government delegates the authority to province. In the letter, the government, financing, and employee should be synchronized with the Act in two years.
Even though there is a gap time between the enactment of local government act no. 23/2014, the circular letter of Minister of Environment and Forest no. 5/2015 about the forestry management between central and local government has bestowed the authority to province. In this circular letter, the government, finance, employee, should adapt to local government act in 2 years.
Before the Act is enacted, there are several regulations governed sector based issues, such as Act No. 32/2009 about Living Environment and Act No. 4/2009 about Mineral and Coal. Both regulations give mandate to province and regency on those affairs.
Before the local government was assigned, there are several regulation related to sectoral affairs such as the Environmental. Efforts will be taken in accelerating forest and land governance improvement in Riau Province through budgeting scheme is conducting study on rationalization the need of budget to improve forest and land governance.