Decentralization, Horizontal Inequalities and Conflict Management in Indonesia

The impact of decentralization on conflict dynamics is as important as its impact on service delivery and growth, as violent conflict can undo development gains. This paper argues that the impact of decentralization has been twofold. It has relieved centre-periphery tensions around longstanding grievances towards nationalist agendas in Indonesia. The evidence suggests, through examining the case of conflict affected Central Sulawesi, that decentralization has also to some extent addressed long-standing inter-group tensions and horizontal inequalities at the local level, particularly where geographically concentrated ethno-religious groups have previously been marginalised from government. It has also reduced grievances by increasing local autonomy and participation in decision making through direct elections of district heads, now a hotly contested arena of local politics. However, significant structural and institutional change can result in new tensions, particularly when poorly planned for or monitored. Decentralization has stimulated changes in population demographics in some areas in Indonesia resulting in ethno-religious segregation through splitting of sub-national administrative units into increasing numbers of regions. Groups with previous minority status have found safe-haven as majorities, setting the scene for how future rights of access and representation play out. Tensions run high when high-stakes local elections are contested along sensitive identity lines, or when district governments are not inclusive of minorities in their regions. This is not to say that the demographic, structural, and institutional changes with decentralization will necessarily lead to violent conflict, but rather due attention should be given to ensuring appropriate conflict management mechanisms are in place