Indonesian Political, Business & Finance News

Appreciating High-Performing Regions, Interior Minister: Need Balance Between Oversight and Incentives

| | Source: KOMPAS Translated from Indonesian | Politics
Appreciating High-Performing Regions, Interior Minister: Need Balance Between Oversight and Incentives
Image: KOMPAS

Interior Minister (Mendagri) Muhammad Tito Karnavian has emphasised the importance of balancing oversight and the provision of incentives in the development of regional governments (pemda). This approach is seen as key to driving sustainable improvements in regional performance. Tito made these remarks at the 2026 High-Performing Regional Government Appreciation Awards Night for the Kalimantan Region, held at the Ballroom of the Platinum Hotel in Balikpapan, East Kalimantan, on Tuesday (5/5/2026). In his address, Tito acknowledged that regional government development has so far focused more on oversight aspects. Going forward, this approach needs to be balanced with the giving of appreciation as a form of motivation. “To be honest, in my five years as Interior Minister, I’ve thought that we’ve been using the stick all the time. Like the rabbit saying, there’s stick and carrot. Why have we been mostly scaring them, just the stick, where’s the carrot?” Tito said in a press release received by Kompas.com on Wednesday (6/5/2026). Tito described the current system as partial decentralisation, where the central government still plays a role in regional development and control. As part of these efforts, the Ministry of Home Affairs (Kemendagri) continues to strengthen regional development programmes, including through the provision of appreciation to pemda that demonstrate good performance. Tito stressed that these awards are expected to serve as a trigger for pemda to continuously improve their performance and introduce innovations in government management. Furthermore, he mentioned the increase in Kemendagri’s budget for 2026 as an opportunity to strengthen a more balanced development approach between oversight and incentives. On this occasion, Kemendagri presented awards to high-performing pemda as part of efforts to encourage performance improvements and innovation in the regions. The awards were given based on four main categories: reduction in unemployment rates, tackling poverty and stunting, inflation control, and creative financing. In the unemployment rate reduction category, at the regency level, North Barito Regency took first place, followed by Tabalong Regency and Murung Raya Regency. For the city level, Banjarbaru City secured first place and Palangka Raya City second place, while at the provincial level, South Kalimantan Province won.

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