{
    "success": true,
    "data": {
        "id": 1774847,
        "msgid": "home-affairs-ministry-launches-regional-fiscal-incentives-for-local-government-performance-1780156427",
        "date": "2026-05-30 21:48:44",
        "title": "Home Affairs Ministry Launches Regional Fiscal Incentives for Local Government Performance",
        "author": "Yohanes Enggar Harususilo",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Social Policy",
        "summary": "Indonesia's Ministry of Home Affairs has launched regional competitions to fairly assess local governments with differing fiscal capacities. By directing a portion of its one-trillion-rupiah budget towards fiscal incentives, the ministry aims to prevent smaller regions from being outmatched by larger metropolitan areas in national evaluations.",
        "content": "<p>The Ministry of Home Affairs (Kemendagri) and Kompas.com successfully\norganised the 2026 Regional Excellence in Local Government Award for\nSulawesi in Kendari, Southeast Sulawesi on Friday, 29 May 2026.<\/p>\n<p>Unlike conventional national evaluation systems, this award was\ndesigned regionally to ensure fair competition for areas with limited\nfiscal capacity.<\/p>\n<p>Home Affairs Minister Muhammad Tito Karnavian stated that this\nrevised competition structure is a crucial step to prevent smaller\nregions from being immediately outmatched by larger ones.<\/p>\n<p>This innovative approach is supported by Kemendagri\u2019s budget\nallocation, directly converted into tangible fiscal incentives for local\ngovernments.<\/p>\n<p>\u2018As previously communicated with regional leaders, the programme\ndraws from a one-trillion-rupiah Kemendagri budget allocation,\nspecifically for fiscal incentives,\u2019 Tito Karnavian said in his speech\nin Kendari.<\/p>\n<p>Tito explained that previous similar awards were managed by the\nMinistry of Finance and evaluated on a national scale.<\/p>\n<p>However, after internal review, Kemendagri identified clear\ndisparities when non-Java regions were pitted against metropolitan\ncities and regencies.<\/p>\n<p>\u2018After our internal review, if judged nationally, winners would\ntypically be large cities or regencies, leaving smaller ones at a\ndisadvantage,\u2019 the minister explained, stressing the rationale for\nregional separation.<\/p>\n<p>\u2018For instance, strong regions in Sulawesi would not benefit from data\nwhen quantitative indicators are compared with areas having regional\nrevenue and expenditure budget (APBD) many times larger,\u2019 he\nillustrated.<\/p>\n<p>Budget capacity is the key factor behind dividing the competition\ninto 18 regional events across Indonesia.<\/p>\n<p>\u2018For example, Kolaka competing with Badung Regency in Bali with a\n10-trillion-rupiah budget, or Bojonegoro with 10 trillion \u2014 it would be\nimpossible to win,\u2019 Tito added, providing a logical illustration.<\/p>\n<p>\u2018That\u2019s why we\u2019ve moved to a regional system, with competitions\nwithin Sulawesi between governors, regents, and mayors,\u2019 he\nconcluded.<\/p>\n<p>The Sulawesi regional competition features four main categories:\nunemployment reduction, creative financing, inflation control, and\npoverty reduction and stunting mitigation.<\/p>\n<p>Kemendagri confirmed all evaluations are objective and free from\ninterference, using quantitative data from the Central Statistics Agency\n(BPS) and real local revenue (PAD) data.<\/p>\n<p>This healthy competitive platform also demonstrates that many\nregional leaders are working honestly, achieving results, and dedicating\nthemselves to advancing their areas.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/home-affairs-ministry-launches-regional-fiscal-incentives-for-local-government-performance-1780156427",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}