Deputy Minister of Home Affairs (Wamendagri) Bima Arya Sugiarto is\npushing for changes in the implementation of regional autonomy so that\nit no longer focuses solely on the division of authority. According to\nhim, regional autonomy must be directed towards creating added value and\nstrengthening new centres of economic growth.<\/p>\n
Bima conveyed this while speaking at the National Seminar of the\nIndonesian Economists Association (ISEI) at the IPB International\nConvention Center Botani Square, Bogor City, West Java, on Thursday\n(27\/8\/2026).<\/p>\n
In that forum, he emphasised the importance of reinterpreting fiscal\ndecentralisation as an instrument to encourage more equitable economic\ngrowth across regions.<\/p>\n
\u201cFiscal decentralisation today must also become an instrument that\ncreates more growth centres, not merely a division of authority,\u201d he\nsaid in a written statement on Friday (28\/8\/2026).<\/p>\n
In line with this, the Ministry of Home Affairs (Kemendagri) is\ncurrently finalising the Grand Design for Regional Autonomy Arrangement.\nThis arrangement is directed at clarifying the division of authority\nbetween levels of government while refining the Revenue Sharing Fund\n(DBH) and General Allocation Fund (DAU) formulas to be more proportional\nfor regions.<\/p>\n
He said there are three paradigm transformations that local\ngovernments (Pemda) need to undertake to strengthen fiscal independence\nsustainably.<\/p>\n
First, shifting the development approach from one based solely on\nresources towards the creation of added value. Regions cannot simply\nrely on the commodities or resources they possess, but need to develop\neconomic ecosystems from upstream to downstream to generate added\nvalue.<\/p>\n
\u201cFrom resource-based decentralisation towards value creation-based\ndecentralisation. So we encourage our regions, we ask them, we inspire\nthem, we provide motivation. Not only based on resources, but there is\nvalue creation there,\u201d he stressed.<\/p>\n
Second, changing the pattern of inter-regional relations from\ncompetition towards collaboration. Inter-regional cooperation is needed\nto build supply chains, strengthen economic potential, and create\nmutually supportive growth.<\/p>\n
Third, changing the role of local governments from merely\ninstitutions that spend budgets into drivers of development. Local\ngovernments are encouraged to open investment space, reduce various\nbarriers, optimise alternative financing sources, and strengthen\ncollaboration with various stakeholders.<\/p>\n
According to him, the success of this transformation depends heavily\non leadership capacity in the regions. This is important considering\nthat most regional heads today are new leaders who do not yet have much\nexperience in running government.<\/p>\n
\u201c80 per cent of regional heads are newcomers. And most are Gen X,\nwith some millennials as well. So no longer baby boomers. So they are\nyoung and not incumbents. On one hand this is new hope, on the other\nhand they do not yet have much experience,\u201d he revealed.<\/p>\n
According to him, the presence of new leaders in the regions opens up\nopportunities as well as challenges. The presence of a new generation\ncan encourage the birth of various innovations, but on the other hand\ncapacity building and mentoring are needed so that the resulting\npolicies continue to operate according to the principles of good\ngovernance.<\/p>\n
For this reason, the Ministry of Home Affairs continues to provide\nguidance and assistance to local governments to strengthen leadership\ncapacity, encourage accountable innovation, and realise local government\nadministration that is increasingly responsive to the needs of the\ncommunity.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bima-arya-urges-regional-autonomy-to-become-engine-of-economic-growth-1787914416", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }