|was to secure national unity and territorial integrity, and to put down separatist movements in a number of provinces (like Aceh, Sumatra, and the Moluccas). The experience of such centrifugal forces again supported a tendency for a centralized administrative system, where the government in the capital determines the activities of the bureaucracy down to the lowest level, and leaves little autonomy to the regional authorities.|
|4.||With the beginning of the "New Order" government under President Suharto in 1996-67, the state assumed a leading role in determining the process of economic and social development. A burgeoning public enterprise sector, high rates of public investment, and the regulation of private economic and social activities by the state gave the public administration a wide area of intervention and jurisdiction. Jointly with the military as the strongest pillar of the "New Order" government, the administrative system assumed the most influential role in the policy-making process.|
Various political concepts constitute the ideological framework of the Indonesian administrative system. The most important one is Pancasila (literally, "five principles"): "Belief in one supreme god," "Just and civilized humanity," "Unity of the Indonesian nation," "Democracy in the form of deliberations of representatives," and "Social justice." Pancasila utilizes indigenous concepts that stress the togetherness of the members of social organizations. The nation becomes one huge family in which conflicting interests of different groups and different sections of the society will be solved in the common interest of the whole. Under the "New Order" government, Pancasila became an all- embracing concept for every aspect of life. The political system of the country was labeled "Pancasila democracy" to distinguish it from the previous phases of "Liberal democracy" ( 1949-1955) and "Guided democracy" ( 1955-1965). The economy is supposed to function as "Pancasila" economy, without antagonistic interests of employers and employees. Since 1985Pancasila is by law the official ideological platform of all mass organizations, including the political parties and religious groups.
By making Pancasila the compulsory ideological platform for all mass organizations, the "New Order" government limited the scope of political discussion in the society. The administration relied on officially recognized and registered bodies and organizations, which acted as channels of communication between the society and the administration, while the direct access of the citizen to the administration was rather limited.
However, a greater openness for public debate, the introduction of a system of administrative law which allows individual citizens to sue the administration, and a greater emphasis on the quality of services provided by the administration are examples of a change of the relationship.
Since 1983, there has been a paradigm shift concerning the public administration and its role in the society. Deregulation of the economy, decentralization of the administration, and debureaucratization have been necessitated by several factors: declining government revenues from the oil and gas sector, which require greater use of and reliance on private sector funds for investment and development; an increasing demand for more and better public services, which cannot be met anymore by a rigid and centralized administrative system; and a politically more mature society, which demands greater political transparency and greater participation in the policy-making process. The principle policy direction now is to shift from direct government involvement to a more indirect mode of administrative operation, in which the government will define the overall rules for private sector activities but will refrain from direct intervention. Functions of the government and their administrative implementation will be decentralized to the autonomous regions (provincial and local administration) while the central government will focus on general policy-making. Professionalism of the civil service will be increased by a stronger emphasis on the so-called "functional positions" (jabatan fungsional), with emphasis on specific professional and technical skills ( Salamoen, 1993).
Devas, Nick, ed., 1989. Financing Local Government in Indonesia. Ohio University Centre for International Studies Monographs in International Studies, Southeast Asia Series Number 84. Athens: Ohio University Press.
Government of Indonesia (GOI), 1989. The 1945 Constitution of the Republic of Indonesia. Jakarta.
-----, 1993. The 1993 Guidelines of State Policy. Jakarta.
MacAndrews, Colin, ed., Central Government and Local Development in Indonesia. Singapore: Oxford University Press.
Salamoen, Soeharyo, 1993. Changes and Trends in Public Administration in Indonesia. Paper for the 15th Eastern Asia Research Organization on Public Administration (EROPA) Assembly and Conference, Tehran, October 31 November 8, 1993.
INDUSTRIAL RELATIONS POLICY. Efforts to influence employee-employer interactions at the national level by government and at the organizational level by management and labor.
Students of industrial relations have long been apprised of the importance of governmental attitudes to the