Attraction of Executive Interest in the Establishment of Regional

Regulation Number 3 of 2011 in Medan City

Zakaria, Badaruddin, Heri Kusmanto and Fikarwin Zuska

Faculty of Social and Political Science, Universitas Sumatera Utara, Medan, Indonesia

Keywords: Perda (Regional Regulation), Executive, Community, Political.

Abstract: Public policy is absolutely necessary as a guideline for implementation and technical guidance and also

applies internally in the government bureaucracy and required public service standards, elaboration on the

community of services to which they are entitled, who can get them, what are the requirements, and what

form of service. This will bind the government (state) as the service provider and the community as the service

recipient. In making public policy, the Medan City government must prioritize the interests of the community

rather than the personal interests or interests of certain groups. And the government should give more time in

the socialization of the making of this Perda or regional regulation and better accommodate all proposals and

suggestion from the public.

1 INTRODUCTION

Regional Regulation is one of the legal products or

regulations that are legally made by the Regional

Government in carrying out the administration in the

region consisting of the Regional Head and the

Regional People's Representative Assembly (DPRD).

Regional Regulations have a position in the hierarchy

of laws regulations as regulations governing regions

in accordance with the conditions and interests of

each region. In the establishment of a Regional

Regulation, it must consider several aspects and

existing provisions to create a good regulation for

each region. One of the implementation of public

policy in Medan City is the birth of Regional

Regulation No. 3 of 2011 where there are several

interests such as economic, political and social. This

factor is often the main consideration and greatly

influences the process and content of public policy.

There is a political mission of policy makers that

cannot be avoided. Likewise, an understanding of

public policy also affect the attitudes of policy

makers. One of the policies regarding Regional

Regulations that was successfully issued by the

Medan City Government and DPRD of Medan City

was Regional Regulation No. 3 of 2011 concerning

Land and Building Taxes.

Conditions that occur in the Medan city show a

pattern of interaction between bureaucracy and

politics in the context of the preparation of regional

regulations that contains political interests and the

role of interest groups to intervene, and try to

influence political decisions between the Mayor of

Medan (executive) and the DPRD of Medan City

(legislative) so that the bureaucracy and politics like

two currencies that will never be separated from each

other, although these two institutions have very

different characters, they must co-exist.

Characteristic of bureaucracy is the form of tiered

institutions, recruitment based on expertise, and is

impersonal. While politics, is an effort to determine

regulations that are acceptable to some citizens to

bring the community towards a harmonious common

life. Bureaucracy still needs the support of politicians

to carry out the public policies that it establishes. On

the other hand, politicians also need bureaucratic

support which at the real level functions as executors

or implementers of public policy (Haryatmoko,

2003).

The Medan City Government through the

mechanism of the Regional People's Representative

Assembly (DPRD) has compiled and poured a

regulatory policy relating to the Land and Building

Tax into a Medan City Regional Regulation No. 3 of

2011 concerning the PBB of Rural and Urban. From

the observations in the field, various interest groups

were identified because these agencies have legal

authority as policy makers, and have an impact on the

interests of individuals and groups. Researchers try to

116

Zakaria, ., Badaruddin, ., Kusmanto, H. and Zuska, F.

Attraction of Executive Interest in the Establishment of Regional Regulation Number 3 of 2011 in Medan City.

DOI: 10.5220/0010012501160121

In Proceedings of the 3rd International Conference on Social and Political Development (ICOSOP 3 2019) - Social Engineering Governance for the People, Technology and Infrastructure in

Revolution Industry 4.0, pages 116-121

ISBN: 978-989-758-472-5

explain and explore the role of interest groups

through Political Parties, DPRD and Medan City

Government.

2 REVIEW OF LITERATURES

2.1 Public Policy

Keban (2004) provides an understanding of public

policy can be seen from the philosophical concept, as

a product, as a process, and as a framework. As a

philosophical concept, policy is a set of principles, or

desired conditions, as a product, policy is seen as a

series of conclusions or recommendations, and as a

process, policy is seen as a way through which an

organization can know what is expected of it, that is,

programs and mechanisms in achieving its products,

and as a framework, policy is a process of bargaining

and negotiation to formulate issues and methods of

implementation.

While Woll (1966) public policy is a number of

government activities to solve problems in society,

both directly and through various institutions that

affect people's lives. In the implementation of public

policies there are three levels of influence as the

implications of these government actions namely; 1)

there are policy choices or decisions made by

politicians, government employees or others who aim

to use public authority to influence people's lives, 2)

the existence of policy outputs, where policies

implemented at this level require the government to

make arrangements, budgeting, personnel formation

and make regulations in the form of programs that

will affect people's lives, 3) the impact of policies

which are the effects of policy choices that affect

people's lives.

2.2 Interest Groups

Interest groups have an understanding as an

organization formed by a number of people because

of the similar attitudes, beliefs, and / or goals. The

interest groups are basically organized human

associations, having membership, leadership

patterns, financial resources to finance activities, and

communication patterns inside and outside the

organization. In the political system, as is the

functional structural theory proposed by Almond and

Bingham (1995).

The interest group has 4 (four) roles in state life,

namely (1) catalyzing system change by advocating

and trying to form a collective awareness of the

community on important issues in life. Through this

role, interest groups try to develop political will and

community initiatives so that they can jointly

influence policy; (2) Monitoring or supervising

government administration. Conduct criticism to

protest if there are indications of abuse of authority

and law violations by state officials; (3) facilitate the

reconciliation of citizens with justice institutions.

This interest group often defends the general public

who are often victims of violence and victims of legal

injustice by the government, and (4) realizing a

number of programs in the context of community

empowerment (Gaffar, 1999).

In conveying interests, interest groups may turn

into pressure groups if efforts to deliver demands are

conveyed intensively by launching extraordinary

tactics and political pressure to influence policy, so

that the government and political officials are willing

to approve their demands (Duverger, 1984). There are

also tactics or strategy of the movement carried out

by interest groups in conveying their demands

through the following methods:

a. Conveying demands/aspirations to political

parties

b. Participation in the policy formulation process

c. Lobbying and negotiating with political officials

d. Make use of personal relationships with the

political elite

e. Submitting criticism and aspirations through the

mass media

f. Non-conventional movements, namely forms of

political participation by means of violence such

as demonstrations, strikes, blocking roads, large-

scale convoys and other acts of violence.

Based on the tactics or strategy of the movement

above, the effectiveness of the implementation of the

role of interest groups is very dependent on the

intensity of the movement, public support for the

issues raised, the strength of argument and

communication in lobbying and negotiations,

interpersonal relations and how much ability to gather

as much mass as a source of movement authority in

exerting pressure so that it forces the government to

follow demands from interest groups (Duverger,

1984).

An interest group is a group of people who form

an alliance that is driven by certain interests. These

interests can be in the form of general or public

interest or interests of certain groups. Examples of

alliances that are interest groups, namely mass

organizations, alumni associations of a school, groups

of origin, and certain hobby groups. Interest groups

aim to fight for something "interests" by influencing

political institutions in order to obtain favorable

decisions or avoid adverse decisions. The interest

Attraction of Executive Interest in the Establishment of Regional Regulation Number 3 of 2011 in Medan City

117

group does not try to place its representatives in the

House of Representatives, but rather influences one

or several parties in it or the competent agency or

minister.

2.3 Executive Institutions

An executive institution is an institution that

implements laws, in daily life an executive institution

is an institution that runs the wheels of government.

In democratic countries the executive body usually

consists of heads of state such as kings or presidents,

and their ministers. According to Budiardjo(2008)

stated that: "The Executive Board in a broad sense

also includes civil servants and the military. The task

of the executive body, according to the traditional

interpretation is azaztriaspolitica, only implements

policies that have been determined by the legislature

and enforces the laws made by the legislature.

However, in the implementation of the executive

institution very freely in the space of motion ". The

function of the Local Government is to make policy,

development and social. Article 25 of Law Number

32 Year 2004 concerning Regional Government

states that the Regional Head has the following duties

and authorities:

1. Leading the administration of regional

government based on policies determined by the

regions

2. Submitting draft of Regional Regulation.

3. Establish a Regional Regulation that has been

approved by the DPRD.

4. Arranging and submitting a Regional Regulation

plan on the APBD to the DPRD to be discussed

and determined together

5. Strive for the implementation of regional

obligations

6. Representing the area inside and outside the court,

and can show the authority of attorney to represent

it in accordance with statutory regulations, and

7. Carry out other duties and authorities in

accordance with statutory regulations.

Regional authority as regulated in Law Number

22 Year 1999, article 7 states:

1. Regional authority encompasses authority in all

fields of government, except authority in the field

of foreign policy, defence, justice, monetary and

fiscal affairs, religion and authority in other fields.

2. The authority of other fields, as referred to in

paragraph (1) includes policies on macro national

development planning, financial balance funds,

state administration systems and state economic

institutions, development and human resources,

utilization of natural resources and strategic high

technology, conservation and national

standardization.

Seeing from the authority of autonomous regional

government, government can be divided into three

groups (Manan, 1996)

1. Government in the strict sense of the

administration of executive authority or state

administration.

2. Government in a rather broad sense, namely the

implementation of certain executive and

legislative authority attached to autonomous

regional government.

3. Government in the broadest sense which includes

all spheres of state positions in the executive,

legislative, and so on.

The executive and legislative relationship can be

seen from two main alternatives, namely the

parliamentary government system and the

presidential government system. The government

system is defined as a way of working relations as

well as functional relations between state institutions.

The parliamentary system is usually defined as a form

of constitutional democracy possessed by the

legislature. Thus, the executive can be dismissed

through a vote of no confidence. In contrast to the

presidential system, usually the chief executive is

directly elected by the people through presidential

elections. Because it is directly elected by the people,

the president as chief executive cannot be overthrown

through a motion of no confidence by parliament.

According to the concept of "triaspolitica"authority

in the state is divided into three namely, Legislative

authority, Executive authority and judicial authority.

With the separation system, the concept of

"triaspolitica" is an atmosphere of "check and

balance" because each authority can supervise each

other, test it so that it is impossible for the authority

organs to exceed the predetermined authority. Thus

there will be consideration of authority between these

institutions. The concept of "triaspolitica" is a

modification in the western system of government.

Based on the opinions of the experts above, the

researcher argues that the participative dominance of

the political legislature can lead to the dominance of

the executive or legislative body in government. That

is due to competition so that political parties are not

united in supporting the government. This situation

will make the executive unable to control the

members of the council / legislature through the

political party concerned (coalition), so that the

members of the board will lose their authority over

the executive.

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2.4 Division of Executive and

Legislative Authority

Indonesia adheres to anauthority-sharing system

which is greatly influenced by philosophical thoughts,

especially by philosophers John Lock and

Montesquieu. John Lock in the book titled Treatises

on Civil Government in Ismail Suny (1985) separates

authority in each country into legislative authority (the

authority to make laws) and also executive authority

(implementing laws). The two authorities between the

executive and the judiciary must be separated. In

addition, every country has other authorities, which

are also called federative authorities. Half a century

later a philosopher named Montesquieu in his book

entitled "L'Espirit des Lois" perfected that in every

government there are three types of authority namely

executive, legislative and judiciary.

According to him, these three authorities must be

separated from each other. Jennings (1956) discusses

more about "Separation of Authority" and divides it

into two meanings, namely the separation of material

authority and also the separation of authority in a

formal sense. The separation of material authority is

the separation of authority in the sense that the

distribution of authority is maintained firmly in the

tasks or functions of the state which characteristically

shows the separation of authorities in three parts

(executive, legislative, and judiciary). Whereas what

is meant by the separation of authorities in the formal

sense is if the division of authority (executive,

legislative and judiciary) is not maintained firmly.

The Indonesian constitutional system does not

adhere to any state system, but is a unique system

according to the personality of the Indonesian nation,

but is inseparable from the teachings of Trias

Politica. Trias Politica is a normative principle that

authority should not be handed over to the same

people to prevent abuse of authority by those in

authority so that citizens' human rights are guaranteed

and there is no arbitrariness from the authorities.

TriasPoliticawhich are now being widely applied are,

the separation of authority to 3 different institutions:

the Legislature, the Executive, and the Judiciary. The

legislature is an institution for making laws; the

executive is the institution that implements the law;

and Judiciary is an institution that oversees the

running of the government and the country as a

whole, interprets the law if there is a dispute, and

imposes sanctions on any institution or individual that

violates the law.

With the separation of the 3 authorities in the 3

different institutions, it is hoped that the running of

the government of the country will be unequal, avoid

government corruption by one institution, and will

bring up a check and balance mechanism (mutual

correction, mutual balance). Nevertheless, the course

of TriasPolitica in each country is not always smooth

or without obstacles. According to the teachings of

the TriasPolitica, the authority of the State must be

separated and each is carried out by its own organs.

The separation of authority is not only differentiated

and separated from one another, but must also be

handed over and carried out by separate organs of the

state. The separation of state authority is not in one

hand or organ only, so it is feared that it can cause

abuse by these organs.

3 METHODS

The research design used in this study is a descriptive

method with a qualitative approach. The basic

consideration of why a qualitative approach is used,

namely: first, the researcher wants to find meaning,

understanding, and understanding of a phenomenon,

event, or human life by being directly and/or

indirectly involved in the setting under study,

contextual, and holistic.

The researcher is not collecting data once or all at

once and then processing it, but step by step and the

meaning is concluded during the process from the

beginning to the end of the narrative activity. Second,

researchers try to interact with people in these

situations in other words researchers try to enter the

subjective aspects of people's behavior to understand

better on how and what meaning do they construct

around events in their daily lives. Third, training

sensitivity and adaptability by sharpening the mutual

influence and value patterns encountered. The results

of the data obtained were done using descriptive-

analytical methods.

Descriptive analytical method is also a solution to

the problem investigated by describing or describing

the state of the subject or object of research (a person,

institution, community and others), at the present time

based on facts that appear or as they are. There are

two characteristics of the descriptive method, namely:

first, focusing on the problems that exist when the

research is done or the problems that are actual;

secondly, describing facts about the issues

investigated as they are, accompanied by sufficient

rational interpretations.

The location of this research is the Office of the

Regional Tax and Retribution Management Agency

(BPPRD) of Medan City, the Office of the Regional

People's Representative Assembly (DPRD) of Medan

City, the Office of the Mayor of Medan, and the

Attraction of Executive Interest in the Establishment of Regional Regulation Number 3 of 2011 in Medan City

119

Office of the Land Agency of Medan City, State

Enterprises/Private Companies, and the community

in Medan City.

4 DISCUSSION

Regional autonomy has implications for governance

that must be oriented to improving the welfare of

society by always paying attention to the interests and

aspirations that grow in society. Many aspects have

emerged from regional financial reforms. However,

the most common spotlight for regional financial

managers is the aspect of fundamental changes in the

management of local budgets (Regional Regulation

No. 3 of 2011), namely the change from traditional

budget to performance budget.

Changes in the regional budget paradigm are

carried out to produce regional budgets that truly

reflect the interests and expectations of the local

community towards economic, efficient and effective

management of regional finances. And reduce the

role of both executive and legislative interest groups

so that the Medan City Regional PAD target is

achieved and avoided by dirty games that harm the

people of Medan City.

While the rules that must be followed in the

Regional Head's policy are Law No.32 of 2004,

among others the direct election of regional heads

will make the accountability of regional heads

stronger than the accountability of DPRD. As a result

of these conditions, there will be an emphasis on

political authority that is not balanced, so that the

position of regional heads is strengthened. That the

consequences of direct elections, the DPRD and

regional heads will be directly responsible to the

voters. Therefore the regional head no longer submits

the report.

The responsibility to the DPRD, but the

mechanism is regulated in article 27 paragraph 2,

therefore the mechanism of responsibility of the

Regional Head is regulated as follows: a)

Circumstances to the President. The Minister of

Home Affairs in the form of LPPD (Regional

Government Implementation Report), b) Next to the

Regional People's Representative Assembly but in the

form of LKPJ (Accountability Statement Report), c)

Down to the community in the form of IPPD

(information on the Implementation of Regional

Government).

The DPRD will continue to have authority in the

fields of legislation, budgeting and control if the

DPRD is able to use that authority effectively, then

the DPRD is expected to be able to create balance and

strength with the executive (Regional Head).

Significant changes have occurred in the construction

of the current Regional Government, where there is

clarity between political officials (Regional Heads

and DPRD) and career officials. Political officials are

tasked with formulating political policy, while career

officials operate the policy into public service.

Based on the description above it appears that

with the direct election of regional heads by the

people will be able to increase their political

legitimacy in leading regional governments and at the

same time create checks and balances in relation to

the DPRD. However, if the DPRD is too weak or

controlled by the same party as the regional head, it

will create anauthority shift towards executive heavy.

For this reason, the empowerment of the DPRD and

the community is very important to create a balance

between the regional executive and the DPRD.

The Regional House of Representatives is a public

policy maker while the Regional Government

(Regional Head) is the implementer of public policy.

But both have their respective duties and functions, as

stated in article 25 of Law No.32 of 2004 concerning

the duties and authorities of Regional Heads, as well

as the duties and functions of the Regional House of

Representatives listed in article 1 point four, which

states that the DPRD is an institution people's

representatives as elements of regional government

organizers. The article shows that the Regional House

of Representatives has a position that is as a people's

representative and as an element of regional

government administrators. These two positions often

cause problems, especially in conflicts of interest

which will complicate the position of the DPRD's

political elite in the decision making process,

especially in determining public policy.

The interest groups, especially the executive in the

enactment of Regional Regulation No. 3 of 2011 in

Medan, have an executive effort to influence the

placement of articles on tariffs and tax targets whose

results are then expected to be a tool for political

campaigns and imaging to the public. While other

interest groups include the legislative, property

developers, land speculators, mass organizations in

the city of Medan trying to influence the placement of

articles on tariffs, the sale value of tax objects, the

determination and reduction of tax targets that the end

result of political transactions for the interests of the

party, personal, colleagues and cronies who will

benefit as much as possible from the difference in the

rates and value of the tax object.

The view of Perda No. 3/2011 as the target of the

Medan City government in realizing PAD determines

the UN target based on its own will without academic

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studies and consideration of its tax potential (it can be

seen that the UN target jumped up 100% more in 2012

when it became a local tax). As a result, the Medan

City Government's balance sheet has soared but the

potential sources are unclear. By raising the tax

target, especially the United Nations, it seems to

indicate a good performance and successfully made a

breakthrough in achieving PAD.

Policies that prioritize procedures for managing

the budget by carrying out large-scale spending and

accommodating it into the budget of the new Medan

Municipal Government then determine its resources

(buy/procure and then adjust the funds), resulting in

the many Pemko Medan projects that cannot be paid

for and camouflaged by the tax target as a source of

PAD was not achieved, whereas on the one hand the

determination was not based on academic studies and

the potential value of the region. Determine the UN

tax rate based on Perda No. 3 of 2011 only 2 tariffs,

namely 0.2 for under 1 billion tax object sales value

and 0.3 for NJOP above 1 billion, so that people are

burdened with significant taxes without going

through thorough study and calculation".

According to Ahmad Arif in an interview in July

2018 stated: "Because this is an interest of the Medan

Municipal Government in adding PAD as a real

support, our interests are only fighting for the

aspirations of the people. Yes, there really is because

the determination of the tax proceeds is too large so

that changes to the Perda occur by issuing Perda No.

6 of 2012 as an amendment to Law No. 3 of 2011. At

that time, the aspirations of our people were conveyed

and an agreement was made to make important

changes. Because this tax is a mainstay in the

development of Medan City".

Seeing these conditions, we can analyze that the

stipulation of policies or regulations that become the

basis for running a governmental wheel based on the

wants and needs of the people and to create good local

government (good local government) is only an issue

and phenomenon at the theoretical level and the result

of relations between the executive and legislative

branch in a discussion on Perda No. 3/2011 does not

seem to have implications for the development and

welfare of the people of Medan City, the results may

be directly at the level of the bureaucracy and

stakeholders.

Public policy issued after approximately nine

months processed in the womb of the government

plus the DPRD is an effort to tackle the problems

faced by the community in an area, because it is an

effort to tackle public problems, the policy should

favor the interests of the people. It would be very

logical if the problem and alternative solutions to the

problem also come from the people and this is where

the function of development is not just a spark of

thought or even imagination of the policy makers in

the house of the people's representatives plus the

government.

5 CONCLUSIONS

In the process of establishing Regional Regulation

No. 3 of 2011 in Medan City, some of the main actors

involved, that are the executive, legislative and

various community organizations that seem to have a

direct interest in the Regional Regulation, play the

most dominant role, especially in providing

suggestion on the legality aspects and information

about whether or not a Regional Regulation is born.

Whereas the legislature has more absorbent role than

those who defend and fight for the interests of the

community.

In making public policy, the Medan City

government must prioritize the interests of the

community rather than the personal interests or

interests of certain groups. And the government

should give more time in the socialization of the

making of this Perda and better accommodate all

proposals and suggestion from the public, so that the

interests of the community can be a counterweight to

the interests of the government.

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