MODEL OF LOCAL GOVERNMENT IN INDONESIA: WHAT DOES THE 1945 CONSTITUTION INTEND?

The character of the current local government in Indonesia is moving forward to re-centralisation instead of decentralisation. Meanwhile, some comparative studies on models of local governments are catching eyes as they attempt to systemise a classification. This paper aims to describe a legal doctrinal assessment of the model of local government in Indonesia. It also gives some options for a separate comparative study, if it needs an ‘apple to apple’ or an inspiring object of study, to achieve the purposes of comparison for better legislation constituting local government in Indonesia. In doing so, the previous studies on global models of local government are examined to assess the current Indonesian legislations, covering the nature of the legal entity, source of authority and financial, organisation, and the extent in making the decision. This study points that the recent model of local government in Indonesia is a hybrid system, which implies close to Franco rather than the Anglo model, with certain specifications. However, the 1945 Constitution contains some future and global values without disregarding the root of local government function in the community. Therefore, the study considers the normative model of local government in Indonesia inconsistent with the legal policy in the 1945 Constitution. It is then considerable if an amendment of the local government Act is an option to re-modify the model of local government, which can reflect the ideas in the Constitution and is not left behind the global trends. Abstrak: Karakter Pemerintahan Daerah yang Nampak hari ini di Indonesia lebih mengarah pada re-sentralisasi daripada desentralisasi. Sementara itu, beberapa kajian perbandingan mengenai model-model pemerintahan daerah cukup menarik untuk dapat dilihat bagaimana untuk mengklasifikasi suatu sistematisasi. Dalam tulisan ini hendak dipaparkan sudut pandang yuridis-normatif terhadap model Pemerintahan Daerah di Indonesia. Termasuk di dalamnya terdapat suatu pilihan untuk studi perbandingan, apakah dibutuhkan syarat suatu kesetaraan atau syarat suatu objek kajian yang dapat mengispirasi, untuk mencapai tujuan perbandingan yaitu penyempurnaan suatu hukum yang mengatur Pemerintahan Daerah di Indonesia. Untuk itu, kajian-kajian terdahulu mengenai model-model Pemerintahan Daerah secara global telah ditelaah berikutnya sebagai bahan untuk dapat mencermati peraturan perundang-undangan di Indonesia, yang meliputi makna entitas hukumnya, sumber kewenangan dan keuangan, kelembagaan dan sejauh mana untuk menentukan keputusan. Ditemukan bahwa model Pemerintahan Daerah di Indonesa merupakan system hybrid, yang lebih mendekati model Franco dibandingkan dengan model Anglo beserta spesifikasi di dalamnya. Bagaimanapun, Undang-Undang Dasar 1945 berisi nilai-nilai masa depan dan global tanpa mengesampingkan akar dari fungsi Pemerintahan Daerah di masyarakat. Dengan patokan seperti itu, model normatif Pemerintahan Daerah di Indonesia tidak sejalan dengan dengan gagasan dalam UUD 1945. Maka dari itu, suatu perubahan terhadap Undang-Undang Pemerintahan Daerah dipandang sebagai suatu upaya yang dapat dipertimbangkan untuk re-modifikasi model Pemerintahan Daeeah dapat mencerminkan gagasan dalam Konstitusi tanpa tertinggal oleh kecenderungan global. Kata Kunci: Perbandingan Pemerintahan Daerah, Desentralisasi, Model Pemerintahan Daerag, UUD 1945 Negara Republik Indonesia

Impact of reputational loss on financial performance of the bank

Purpose – the purpose of the article is to identify the criteria influencing on the reputational performance of a financial organisation and recognise the impact of reputation on the activities of a financial institution. Research methodology – to estimate the reputational impact on a financial organisation an interview with experts was conducted. In order to process the received data SAW, COPRAS and geometric mean methods were used. The mentioned methods were applied for performance measurement to ensure the inclusion of the reputation-sensitive data. Findings – the weakest position of the financial company in terms of reputational condition implies decreased efficiency of its performance. The degree of reputation and the impact of repercussions on the organisation’s performance can be further measured through financial analysis. Research limitations – the financial organisation analysed in the current study does not provide services for local clients, hence there is no possibility to obtain primary data from direct interactors. Practical implications – the research results provide insight towards key areas to look on while conducting root-cause analysis for decrease of financial performance; reputational impact measurement model can be used for further planning processes related to the future repercussions prevention. Originality/Value – literature overview results prove that it is still argued over the way reputational impact could be measured due to the fact that organizational reputation is attributed to a long-term intangible asset which is sensitive towards the subjectivity of the analysed matter. While it is usual to measure the reputation from the clients’ perspective, the research on reputation impact relies on the particular statistical data on company’s condition in the market.

Empowering Market-Based Finance: A Note on Bank Bailouts in the Aftermath of the North Atlantic Financial Crisis of 2007

The North Atlantic Financial Crisis of 2007 did suddenly and massively disrupt the activities of financial markets and financial institutions that were organised under a market-based financial architecture at local and international levels. Both corporate and public policies were at the origin of this financial organisation that was established since the seventies and put at issue by this crisis. Finance and government were then as much complementary as rival actors throughout this market-driven transformation of local and international financial systems. Bank bailouts of 2007–2008 may be situated in this comprehensive and historical pattern, and embedded in the institutional structure that was designed and implemented to organise trans-national financial markets and financialisation.

On the financial structure and personnel organisation of the Trịnh Lords in seventeenth to eighteenth-century North Vietnam

After the restoration of the Lê dynasty, the Red River delta region was flooded with military men who set up and controlled irregular departments from the end of the sixteenth to the first half of the seventeenth century. The imperial administration became a shell during the Lê-Trịnh period, with the Trịnh Lords as de facto rulers who constructed their own parallel government on the basis of these local departments. This analysis of contemporary inscriptions indicates that the Trịnh Lords subsequently expanded their administration and secured their rule by absorbing large numbers of Red River delta literati, while retaining many eunuchs in influential financial and military roles. Overall, the Trịnh bureaucracy, comprising of the Lục Phiên andLục Cung,was a kind of financial organisation combined with a military district system because it harnessed the existing military organisation.

Data Mining in the Investigation of Money Laundering and Terrorist Financing

In this chapter, the authors explore the operational data related to transactions in a financial organisation to find out the suitable techniques to assess the origin and purpose of these transactions and to detect if they are relevant to money laundering. The authors’ purpose is to provide an AML/CTF compliance report that provides AUSTRAC with information about reporting entities’ compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Their aim is to look into the Money Laundering activities and try to identify the most critical classifiers that can be used in building a decision tree. The tree has been tested using a sample of the data and passing it through the relevant paths/scenarios on the tree. The success rate is 92%, however, the tree needs to be enhanced so that it can be used solely to identify the suspicious transactions. The authors propose that a decision tree using the classifiers identified in this chapter can be incorporated into financial applications to enable organizations to identify the High Risk transactions and monitor or report them accordingly.