Indonesian Political, Business & Finance News

Award-Winning Local Governments to Receive Incentives from the Ministry of Home Affairs: What Are the Criteria?

| Source: DETIK Translated from Indonesian | Regulation
Award-Winning Local Governments to Receive Incentives from the Ministry of Home Affairs: What Are the Criteria?
Image: DETIK

Local regions serve as the epicentre of national economic growth, impacting Indonesia’s overall development. Beyond mere development agendas, strengthening regional economies is a strategy to maintain national stability amid global dynamics, economic transformations, and demands for equitable welfare distribution.

Therefore, Local Governments (Pemda) play a significant role in fiscal growth across the nation. Referring to Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments, particularly Article 50, the Central Government may provide fiscal incentives to regions based on specific performance as a form of recognition for achievements.

Furthermore, detailed regulations on the criteria and procedures for granting fiscal incentives are outlined in the Minister of Finance Regulation (Permenkeu) and supported by policies on regional financial management as stipulated in Government Regulation (PP) Number 12 of 2019 on Regional Financial Management.

To appreciate high-performing Pemda, the Ministry of Home Affairs (Kemendagri) is organising the Appreciation for High-Performing Local Governments 2026. This awards event is aimed at Pemda to encourage the realisation of good, clean, and accountable governance.

“This collaboration is our way of recognising Pemda that have successfully accelerated national strategic programmes in their regions,” said Home Affairs Minister Muhammad Tito Karnavian, quoted from Antara on Tuesday (21/4/2026).

Kemendagri will award Provincial Governments, Regencies, and Cities in four fields, including inflation control; reduction in unemployment rates; reduction in poverty and stunting; and creative financing.

The Appreciation for High-Performing Local Governments 2026 is planned to be held across six islands in Indonesia, with the kick-off event in Palembang, South Sumatra (Sumsel).

In addition to the awards, detikcom in collaboration with Kemendagri is presenting the Forum Akselerator Negeri, a national collaborative platform designed to bring together the central government, local governments, business actors, investors, MSMEs, academics, and the public in one ecosystem of dialogue and action.

The event will be attended by various stakeholders, including the Ministry of Health (Kemenkes), Ministry of Finance (Kemenkeu), National Development Planning Agency (Bappenas), Central Bureau of Statistics (BPS), as well as governors, regents, and mayors from Sumatra.

The Appreciation for High-Performing Local Governments 2026 and Forum Akselerator Negeri will feature detikcom’s Editor-in-Chief Alfito Deannova Gintings as moderator and Home Affairs Minister Muhammad Tito Karnavian as speaker.

The event is scheduled for Saturday, 25 April 2026, and can be watched live online via the detikcom platform at 4:00 PM WIB. Don’t miss it!

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