Deputy Home Affairs Minister Pushes Central-Regional Synchronisation to Revitalise Regional State-Owned Enterprises
Strengthening policy synchronisation between central and regional governments is seen as the key to revitalising regional state-owned enterprises (BUMD). Deputy Minister of Home Affairs Bima Arya Sugiarto said institutional reform is a critical component of this effort.
In his presentation, Bima said that current governance reforms are anchored in a concept consistently emphasised by President Prabowo Subianto during cabinet meetings — namely statecraft, or the art of governing.
“In every cabinet meeting, there is one concept, one nomenclature that the President invariably raises: statecraft, the art of managing government. What is very different this time is not merely a matter of ideology, but of governance, financial management, and highly technical initiatives,” Bima said in a written statement on Saturday (21/2/2026).
Bima made the remarks during a meeting with House of Representatives Commission II as part of a working visit during the recess period of the third session of the 2025-2026 parliamentary year, held at the Mahligai Pancasila Building in Banjarmasin, South Kalimantan (20/2).
He affirmed that in this context, the Ministry of Home Affairs carries out three principal roles: synchronisation, acceleration, and synergy of central-regional policies, including for the reform of BUMD.
“Today, the Ministry of Home Affairs, together with Commission II, is endeavouring to carry out an overhaul — a complete engine rebuild, a comprehensive reform,” he explained.
Bima also outlined several substantive elements included in the draft BUMD Bill that will be deliberated with House Commission II. One key point he emphasised was the separation of regional governments’ roles as regulators and as capital owners.
In addition, he highlighted the need for clear performance indicators to distinguish between BUMD’s public service functions and commercial functions. He noted that BUMD frequently find themselves in a dilemmatic position, having to fulfil both roles simultaneously, which often blurs the measure of their success.
He therefore proposed separating KPIs: one set for service delivery and another for financial performance, so that achievements in each function are clearer and more measurable. Bima also urged regional heads to prepare for the forthcoming policy deliberations.
“So prepare yourselves, regional heads — this is a wake-up call for all of us. It will be deliberated for our collective benefit. We will revitalise BUMD just as the President is currently endeavouring to revitalise state-owned enterprises (BUMN),” he concluded.
With strengthened central-regional synergy and legislative support, the reform of BUMD is expected to become more targeted and transparent, whilst simultaneously reinforcing public services and regional financial performance.
The meeting was also attended by House Commission II Chairman Muhammad Rifqinizamy Karsayuda, Commission II Deputy Chairman Zulfikar Arse Sadikin, and a number of South Kalimantan provincial government officials.