ABSTRACT: The notion of democratic law state adhered by Indonesia is based on the Article 1, Section 2 and 3 of the 1945 Constitution of the Republic of Indonesia. Consequently,every act of the government must be confined by law that is arranged through the process of democracy. In the society, the practice of law require instrument, one of them is the instrument of licence. Through the instrument of licence, ever activity of the society would be controlled and be given sanction if violation occurs. This is technically arranged, one of which is regulated in the Law Number 30 of 2014 on Government Administration. The problem that emerged is that the violation of licence system that are not only intentional but also followed by politics motive after PemilihanUmum Kepada Daerah (Pilkada) or Local Leader Elections. Manylicencesystem violations occur as the impact ofthe local leader elections that stems from the demand from several businessman that support the candidates during the campaign period.Consequently, licence issuance becomes part of political transaction which result in wide impact to the life of the society.
KEYWORDS:Practice of Licence, Correlation, PoliticalLocal Leader Elections