Governance Brief May 2007 Number 34 Forests and Governance Programme Governance Brief C e n t e r f o r I n t e r n a t i o n a l F o r e s t r y R e s e a r c h May 2007 Number 34 Introduction The end of the New Order regime, after more than 30 years in power, changed the fundamentals of governance in Indonesia at all levels, from central to regional (provincial, district/municipal). One such change was the transition from a highly centralized to a decentralized form of government, as indicated by the enactment of Law No. 22/1999 on Local Governance, which was then revised by Law No. 32/2004. The change had nationwide implications for the development planning system that, as recognized by the National Development Planning Agency (Bappenas 2005), had been plagued by problems such as policy inconsistencies, low levels of public community participation, poor synchronization between programme planning and financing, low levels of transparency and accountability in the utilization of public funds, and ineffective performance evaluations. In conjunction with the new powers delegated to the regions, Law No. 25/2004 2 , governing the national development planning system, was passed in order to deal with these issues. Unlike the top-down approach of the previous planning system, the planning system provided for in Law No. 25/2004 and its implementing regulation 3 applies a combination of top-down and bottom-up approaches that place greater emphasis on aspirations and participatory processes. Worldwide, growing awareness of the shortcomings of top-down approaches in development and poverty alleviation has drawn attention to the role of community participation and the importance of understanding the dynamics of communities and regional governments and how they interact with higher levels of governance (Das Gupta et al. 2003). Having more room for participation motivates communities to act together to express their wishes. In his study in Bangladesh, Mahmud (2001) showed the role of collective action in making community voices heard and opening up opportunities to influence institutions’ decisions about public services. Collective action prepares communities for involvement in participatory processes. The buttom-up and participatory planning approach of Law No. 25/2004 took the form of development planning consultations (Musyawarah Perencanaan Pembangunan – musrenbang, hereinafter referred to as DPCs), taking place in stages from village level through to subdistrict and district levels. The process is one of the efforts to develop annual development programmes and budgets. It provides communities with opportunities to voice their aspirations and participate in producing development programmes that suit their needs. Are Community Aspirations Being Accommodated in Development Plans? A Lesson from Collective Action in Jambi Syamsuddin, Neldysavrino, Heru Komarudin and Yuliana Siagian 1