Local Regulation Cancellation Mechanism and its Legal Consequence based on Lex Superiori Deregot Legi Inferiori Principle in Economy

This article addressed the local regulation cancelling mechanism and its legal consequence based on lex superiori derogat legi inferiori principle. The authorization of local area has contributed positively and negatively. Per June 2016, there have been 3,143 regulations voided or revised by Government including Local Government, Interior Ministry, and Governor: 111 Interior Minister’s decrees and 1,267 Local Regulations or Local Leader Regulations at Regency/City level. This figure consisted of 1,765 Local Regulations or Local Leader Regulations at Regency/City level: 111 Interior Minister’s Regulation or Decree and 1,267 Local Regulations or Local Leader Regulations at Regency/City level. The research method is normative juridical method involving document and regulations which related with the local regulation cancellation mechanism. Those data are sharpen with normative descriptive qualitative analysis. The result of research showed that legislator and drafter could not formulate a provision of Local Regulation freely but it should consider the higher legislations such as 1945 Constitution (thereafter called UUD 1945), Law, Government Regulation, and Presidential Regulation, and Local Regulation Cancellation can be made if the regulation disrupts concord between members of community, access to public service, public orderliness and composure, and economic activity to improve the people’s wellbeing, and or results in discrimination against ethnic, religion and belief, race, inter-group, and gender