BSKDN urges local governments to use IPKD as instrument for governance improvement
Jakarta (ANTARA) - Head of the Agency for Domestic Policy Strategy (BSKDN) at the Ministry of Home Affairs, Yusharto Huntoyoy, has urged regional governments to utilise the Regional Financial Management Index (IPKD) as an instrument for improving financial governance. He stated that the IPKD measurement is a manifestation of research-based policy within the framework of regional financial management guidance. Therefore, the results should be used as a basis for evaluation to continuously improve regional financial governance.
The statement was made during the opening of a Focus Group Discussion (FGD) on the 2026 IPKD Measurement for Bali Province, held virtually from the BSKDN office on Monday. According to Yusharto, through IPKD measurement, regional governments can conduct objective evaluations to enhance the effectiveness, efficiency, transparency, and accountability of regional financial management.
He expressed hope that the FGD would serve as a momentum for the Bali Provincial Government, along with district and city governments, to align perceptions and strengthen understanding of the technical aspects of data input and measurement for the 2025 Fiscal Year, measured in 2026. Through this mechanism, regional governments can obtain a comprehensive picture of the quality of financial management that has been implemented.
Yusharto stressed that the primary objective of IPKD is not to pursue scores or rankings, but to encourage improvements in the quality of regional government performance. He noted that the IPKD score will increase in line with better regional financial governance. ‘I agree that it is not the number that we are improving. The IPKD score follows the performance of regional financial management, not the other way around. What must be strengthened is the quality of regional financial management itself,’ he said.
On the occasion, Yusharto also outlined several refinements in the IPKD measurement for the 2025 Fiscal Year, measured in 2026. These refinements include the addition of indicators in the planning and budgeting dimensions, strengthening aspects of transparency in regional financial management, improving indicators of budget absorption and performance achievement of regional expenditure, and strengthening the verification and validation mechanisms of measurement results. According to him, these refinements are intended to make the IPKD measurement results more credible and capable of depicting the real conditions of regional financial governance, so that regional governments receive more accurate input in formulating improvement measures.