Indonesian Political, Business & Finance News

Deputy Home Affairs Minister Wiyagus Urges Regional Heads to Adopt Creative Financing

| Source: VIVA Translated from Indonesian | Economy
Deputy Home Affairs Minister Wiyagus Urges Regional Heads to Adopt Creative Financing
Image: VIVA

Deputy Home Affairs Minister Akhmad Wiyagus is encouraging every regional head to develop an adaptive leadership style by optimising creative financing schemes amidst global economic dynamics. He stated that this approach is key to ensuring regional development continues without depending entirely on the Regional Revenue and Expenditure Budget (APBD).

“We know that amidst the efficiency drive for 2026, regional heads are now truly required to implement what is called adaptive leadership in the face of unpredictable global geopolitical escalation,” he said during a Workshop on Regional Government Financial Governance through Creative Financing and its Impact on the 2026 Efficiency Drive at the Griya Mayang Hall, the Jambi Mayor’s official residence, on Friday.

Wiyagus explained that one step regional governments can take is to optimise the use of assets that have so far been unproductive. Idle land and various facilities owned by the regional government that burden the budget can be managed through cooperation with third parties to generate economic value while increasing Regional Original Revenue (PAD).

As an example, Wiyagus highlighted the successful implementation of creative financing in several regions. One such case is the management of the Gelora Bandung Lautan Api (GBLA) Stadium. The maintenance of the stadium was outsourced in partnership with the Persib Bandung football club, so it no longer burdens the regional government and even provides economic benefits.

According to Wiyagus, Jambi City has strong capital to develop this strategy because it is led by a combination of regional heads with backgrounds in bureaucracy and business. He assessed that this synergy can bring about various financing innovations beyond conventional mechanisms.

“So, when talking about creative financing, it is already ideal. The point is how idle land, which are assets of the regional government, can truly be empowered and generate profit to increase PAD,” he stressed.

Furthermore, Wiyagus invited all ranks of the Jambi City Government to continue strengthening collaboration with the private sector and various other stakeholders. According to him, this step can encourage the realisation of fiscal independence while accelerating regional development.

“Our hope is certainly that the empowerment of third parties also takes responsibility for building Jambi City into a city that no longer thinks conventionally and is not overly dependent on the central government,” he concluded.

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