Deputy Interior Minister: Efficiency and Synergy Key to Boosting Regional Economies
Jakarta (ANTARA) - Deputy Interior Minister (Wamendagri) Bima Arya Sugiarto stated that budget efficiency and strengthening synergy between the central and local governments are the primary keys to accelerating regional economic growth.
Bima conveyed that the central government continues to encourage regional heads to prioritise spending efficiency, innovation in Locally Generated Revenue (PAD), and oversight of National Strategic Projects (PSN) to deliver tangible impacts on the economy.
“So, we often motivate regional heads with points on efficiency, PAD innovation, and then PSN, which some regional heads find burdensome, but if overseen together, it can actually boost the regional economy,” said Bima in a statement received in Jakarta on Wednesday.
He delivered this during the Central Java Provincial Development Planning Consultation (Musrenbang) for 2026, aimed at preparing the Draft Regional Government Work Plan (RKPD) for Central Java Province in 2027, at the Gradhika Bhakti Praja Building in Semarang, Central Java, on Tuesday (28/4).
He assessed that Central Java Province’s fiscal capacity is generally strong and stands out at the national level. This is reflected in the regional revenue structure, where the PAD portion reaches 66.07 percent, while transfers from the central government amount to 33.83 percent.
“If we look at it, ladies and gentlemen, Central Java’s fiscal capacity is solid,” he said.
Nevertheless, he reminded that there are still several challenges, particularly for regions with low fiscal independence that still rely on central government transfers.
In line with that, Bima stressed the importance of rational and responsible budget management, especially amid increasing transparency that makes every public policy more easily scrutinised.
“We all must be careful. Do not allocate budgets for things that are unreasonable,” he said.
In addition to efficiency, he also highlighted the importance of strengthening synergy between the central and local governments in implementing development programmes. According to him, although not always easy, synergy is a key factor in ensuring the success of national priority programme implementation.
Furthermore, Bima explained that the government is promoting more innovative financing approaches to support regional development, through careful fiscal management, spending efficiency and effectiveness, optimisation of asset utilisation, as well as strengthening synergy and financing innovation.
In that context, asset optimisation and financing innovation are viewed as strategic instruments to support the implementation of priority programmes while strengthening regional economic independence.
Bima expressed optimism that with strong synergy and collective commitment, regions can turn priority programmes into drivers of inclusive and sustainable economic growth.
“When the bureaucracy and its leaders synergise, when regional heads are enthusiastic about making priority programmes a lever for the regional economy, then Insha’Allah Central Java will always be at the forefront,” said Bima.