Home Affairs Minister Muhammad Tito Karnavian is encouraging regional\nheads to adopt technocratic leadership to increase revenue while\nstrengthening regional economies. This approach requires regional heads\nto be results-oriented, willing to make decisions, and capable of\nexploring economic potential and creating a business climate conducive\nto investment.<\/p>\n
\u201cTechnocratic leadership is leadership based more on skill,\nexpertise, and being results-oriented rather than process-oriented,\u201d\nTito said in a written statement on Friday (14\/8\/2026).<\/p>\n
He made the remarks while speaking at a sharing session themed\n\u201cOpportunities and Challenges in Creating Technocratic-Based Leaders in\nSupporting Regional Economies\u201d during the Briefing for Prospective OJK\nHeads (PCKO) Batch 3 of 2026 at Hotel Bidakara, Jakarta, on Thursday\n(13\/8).<\/p>\n
He explained that technocratic leadership emphasises expertise and\nthe achievement of results. This differs from a bureaucratic approach,\nwhich places greater emphasis on process and compliance with procedures.\nAlthough bureaucracy remains necessary in government, existing\nprocedures must not hinder the achievement of development targets.<\/p>\n
\u201cThe key to technocratic leadership is, once again, a\nresults-oriented approach, and bureaucracy must not obstruct the\nachievement of results. If there are regulations with convoluted\nbureaucracy, simplify them,\u201d he stressed.<\/p>\n
According to Tito, this approach is important because regional heads\ncome from diverse backgrounds. Some come from the bureaucracy and have\nexperience in government administration, while others have backgrounds\nin the private sector or other professions.<\/p>\n
Therefore, technocratic capability is needed so that regional heads\ncan manage government effectively while achieving development\ntargets.<\/p>\n
One capability that needs strengthening is regional financial\nmanagement. The minister emphasised that a regional head\u2019s success is\nmeasured not only by the ability to spend the budget but also by efforts\nto increase revenue.<\/p>\n
Regional revenue comes, among other sources, from Transfers to\nRegions (TKD) and Regional Own-Source Revenue (PAD), including taxes and\nlevies. To strengthen fiscal capacity, regional heads need to explore\nvarious economic potentials, both from natural resources and the\nservices sector, while encouraging investment.<\/p>\n
In this context, the growth of the private sector is one of the keys\nto strengthening regional economies. Business activity not only creates\njobs and drives the economy but can also increase regional revenue\nthrough taxes and levies.<\/p>\n
Therefore, regional governments need to create a business climate\nthat is friendly to investors, including through ease of licensing and\nbusiness certainty.<\/p>\n
The minister also reminded that the management of Regional Revenue\nand Expenditure Budgets (APBD) should not be solely oriented towards\nbudget absorption. Every expenditure must be directed towards producing\nquality development and providing tangible benefits to the public.<\/p>\n
At the same time, regional governments need to maintain a balance\nbetween revenue and expenditure.<\/p>\n
\u201cSo what must not happen is spending more than revenue. A deficit,\u201d\nhe said.<\/p>\n
To strengthen the capacity of regional heads in managing the economy,\nthe minister requested support from the Financial Services Authority\n(OJK). This support is considered important because not all regional\nheads have the same background or understanding of the economy and the\nfinancial services sector.<\/p>\n
\u201cI strongly request OJK\u2019s support in providing input to our\ncolleagues in the regions,\u201d he said.<\/p>\n
The minister hopes OJK can provide assistance and input to regional\ngovernments in developing economic potential, strengthening the private\nsector and financial services, and improving the quality of regional\nfinancial management.<\/p>\n
This collaboration is expected to help regional heads make more\nappropriate policies to drive economic growth while increasing regional\nrevenue.<\/p>\n
The event was attended by OJK Board of Commissioners Chairperson\nFriderica Widyasari Dewi, and was followed by OJK office heads across\nIndonesia virtually as well as participants of the Briefing for\nProspective OJK Heads Batch 3 of 2026.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/home-minister-urges-regional-heads-to-adopt-technocratic-leadership-1786686763", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }