Integrated Coastal Management in a Decentralized Indonesia: How It Can Work

This paper describes the mechanics of establishing a voluntary, incentive-based integrated coastal management program in Indonesia that is consistent with the newly established laws relating to decentralization. It first offers a close analysis of those laws, specifically Act No. 22/1999 and its implementing Regulation No. 25/2000 regarding management authorities, and Act No. 25/1999 and its implementing Regulation 104/2000 regarding financial relations and financial management. The paper then discusses why these new laws increase the need for a vertically and horizontally integrated coastal resource management (ICRM) program in Indonesia. Lastly, the paper describes how a program can be developed under decentralization. The paper proposes a voluntary program in which the central government establishes standards and guidelines for developing provincial and district ICRM programs. In addition to developing standards, the central government would also put in place specific programs providing incentives available to provinces and districts that prepare a ICRM plans in accordance with these standards and guidelines. After coordination with relevant village and provincial governments, the districts, through the provincial government, would submit their plan for approval by the central government. Upon approval, the central government would provide technical and financial assistance, and as additional incentive, would commit to adhering to the regional plan itself. The paper further identifies sources of discretionary funding available to the central government to use for financing such a program.