Indonesian Political, Business & Finance News

Appreciation for High-Performing Regional Governments 2026: Efforts to Measure Regional Performance Fairly

| Source: TEMPO_ID Translated from Indonesian | Social Policy

The government is continuously seeking a fairer and more objective formula for measuring the performance of regional governments. In various national appreciation events, the main challenge that often arises is the disparity in characteristics between regions.

“With a composition of 38 provinces, 98 cities, and 416 regencies, each region has different capabilities or characteristics,” said Interior Minister Muhammad Tito Karnavian at the Appreciation for High-Performing Regional Governments 2026 event on 25 April 2026.

Differences in fiscal capacity, human resources, and geographical conditions become factors that make each region have an unequal starting point. In practice, a uniform assessment approach risks ignoring this complexity. Therefore, more contextual indicators are needed, which not only look at absolute achievements but also consider the efforts and progress of each region.

One crucial issue that is now a primary focus in assessments is poverty. Indonesia’s social structure shows that the majority are still in vulnerable and low-income groups, with a relatively limited middle class. This condition positions poverty alleviation efforts as an important indicator in evaluating the success of regional governments.

“What does that mean? Our society is still dominated by the less fortunate. Our collective challenge is how to elevate them,” said Tito. This poverty then becomes one of the criteria for assessment in inter-regional competitions, accompanied by another variable, namely stunting.

Tito believes that the issue of stunting or malnutrition is also an important parameter. Stunting not only impacts physical health but also children’s cognitive development. In the long term, this condition has the potential to hinder the quality of human resources and workforce productivity. Therefore, regions that can reduce stunting rates through innovative health and nutrition programmes are deemed worthy of greater appreciation.

On the other hand, the government is also encouraging breakthroughs in regional financial management through the concept of creative financing. This approach emphasises the region’s ability to tap new revenue sources, improve spending efficiency, and create innovations in managing the Regional Revenue and Expenditure Budget (APBD).

Creative financing is crucial amid budget constraints, as it demands creativity and innovation from regional heads in maintaining fiscal balance without sacrificing public services. Regions that can present innovative solutions in this sector are considered to have stronger competitiveness.

In the Appreciation for High-Performing Regional Governments 2026, there are four dimensions for assessing regional performance. First, the dimension of reducing unemployment rates, coordinated by the Domestic Policy Strategy Agency (BSKDN). Second, the dimension of tackling poverty and reducing stunting, coordinated by the Directorate General of Regional Development at the Ministry of Home Affairs.

Third, the dimension of inflation control, coordinated by the Inspectorate General (Itjen) of the Ministry of Home Affairs. Fourth, the dimension of Creative Financing/Entrepreneurial Government, coordinated by the Directorate General of Regional Finance.

The Head of BSKDN at the Ministry of Home Affairs, Yusharto Huntoyungo, stated that the Ministry of Home Affairs has a very broad scope of work. Among them, providing guidance and supervision over government affairs. “Government affairs include mandatory ones, optional ones, and absolute ones,” he said on Wednesday, 29 April 2026.

In addition, the Central Government has several priority programmes that must be completed concurrently between the Central Government, Provinces, and Regency/City Governments. This combination leads the Interior Minister to identify what is most dominant and must be addressed immediately in the short term by regional heads. “Because regional heads were just elected in 2024, the evaluation timeframe is also limited,” said Yusharto.

According to him, what is most feasible to be quickly assessed forms the basis for consideration of those four dimensions. Reducing unemployment rates, tackling poverty and reducing stunting, controlling inflation, and creative financing—all these, according to Yusharto, have nuances that must be addressed and can provide impact to society in the current conditions.

Looking ahead, the regional performance assessment system is expected not only to serve as a competition arena but also as a strategic instrument to drive balanced development. Fair assessments, based on relevant indicators such as poverty, stunting, and financing innovations, are hoped to spur regions to continue innovating and improving societal welfare sustainably.

View JSON | Print