This research reviews the structuring autonomy system in realizing the peoples’ welfare in Indonesia. The type of study was a normative-juridical research. Research is conducted qualitatively with library research within primary and secondary legal approach. Data were analyzed with descriptive qualitative analysis with content analysis. The outcomes of the research indicate that the basic principle of the enactment of local autonomy is a broad principle, real and responsible. As it turns out in practice, however, it has certain weaknesses, particularly in view of the accountability and legitimacy aspects of its establishment. Unfortunately, this principle is no longer shared by local government laws that exist today, so that it shows the existence of local autonomy into weak. The arrangement of decentralized governance in Indonesia is still influenced by the conflict of interest between the central and local government. Reviewing from the aspect of social welfare, the implementation of local autonomy system has not been fully able to realize the welfare of the people in Indonesia, this is caused by the pattern of relationships between central and local governments is unclear both from the aspect of authority, financial and community empowerment.
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