Deputy Interior Minister Reminds Regional Heads: Central Funds Must Not Get Stuck with Individuals

Deputy Interior Minister (Wamendagri) Bima Arya Sugiarto has emphasised the importance of ensuring that budgets from the central government reach the people. Bima Arya reminded officials that these funds must not be impeded by individuals or hindered by ineffective programmes.

He made these remarks during a discussion at the State Accelerator Forum in the Appreciation for High-Performing Regional Governments 2026 event, held at the Wyndham Opi Hotel in Palembang, South Sumatra, on Saturday (25/4/2026). He stated that President Prabowo Subianto consistently stresses that budgets must truly be felt by the public.

“There is one perspective that we always capture from the President. This can be debated, but what is happening today is this: there is a new way of managing relations between the centre and the regions that is very different, namely reviewing the format and concept of the scale of central transfers to the regions, and converting them into other programmes,” said Bima Arya.

“The President’s language is simpler and more straightforward: do not let central funds get stuck with individuals, more or less like that, or get stuck because the programmes are not effective,” he added.

However, he could not guarantee that when the central government takes over programmes, the funds would be delivered. Therefore, in his view, it is now necessary to review the pattern of financial relations between the centre and the regions.

“So, for example, when repairing schools, transfer directly, not to the regional head but to the school principal; that is the target. When village funds are converted—for example, I am not saying reduced, but redirected into other programmes in villages, fishing villages, and so on—that is the target. Money circulating in Jakarta is moved directly to the bottom,” he explained.

According to him, this review aims to make budgets more on target. However, he reminded that the policy still requires joint supervision.

“If not, the centre reduces funds to the regions, the regions struggle, but the programmes are not felt either. This is the problem. Therefore, we need to ensure together that it is all supervised,” he said.

He stated that the Ministry of Home Affairs (Kemendagri) has issued several circular letters to guide priority programmes, including the Free Nutritious Meals (MBG). Regional heads, he said, are asked to actively monitor implementation in the field.

“But ultimately, this all comes back to the regional heads on how to supervise this,” he said.

In addition, Bima also highlighted the importance of cooperation between regions. He assessed that much cooperation has not run effectively due to the lack of a clear institutional format.

He gave the example of cooperation in the Jabodetabek area, which is often not optimal in handling shared problems such as flooding and traffic congestion. He said such cooperation is merely formalistic.

“So, the supporting regions of the capital ask for help from Jakarta, and Jakarta just picks and chooses which ones to help and which not. It is not based on joint planning,” he said.

“Therefore, this agglomeration concept is actually an interesting path, the agglomeration approach. Jakarta today should already be an agglomeration council, it should be, because the approach is there, with authority, budgets, and so on,” he continued.

For that reason, Bima encouraged strengthening the regional agglomeration concept so that inter-regional cooperation is more effective, including in controlling inflation and strengthening supply chains.

“I think our homework is to find and think together about the institutional format for this regional agglomeration concept, so that the cooperation is clear, what is needed, what overlapping authorities there are. As Mr Mayor also mentioned earlier, the problem is often related to regulations and so on,” he said.

This event is part of the central government’s efforts to encourage improved regional performance through fiscal incentives. The policy refers to Law No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments, which allows for performance-based awards.

In addition, the implementation of this programme is strengthened by regulations on regional financial management as stipulated in Government Regulation No. 12 of 2019.

In this event, several provincial, regency, and city governments in Sumatra will receive appreciation in four main categories: Inflation Control, Reduction in Unemployment Rate, Poverty Alleviation and Stunting Reduction, and Entrepreneur Government/Creative Financing.

The event in Palembang, South Sumatra, serves as the opening for a series of national activities to be held on six islands in Indonesia.

In addition to the award ceremony, this event will also feature the State Accelerator Forum, a collaborative platform that brings together the central government, regional governments, business actors, investors, MSMEs, academics, and the general public in one forum for dialogue and action.

The Appreciation for High-Performing Regional Governments 2026 and the State Accelerator Forum will feature detikcom Editor-in-Chief Alfito Deannova Gintings as moderator.

The event is also attended by the Ministry of Health (Kemenkes), Ministry of Finance (Kemenkeu), National Development Planning Agency (Bappenas), and Central Bureau of Statistics (BPS). All regional heads in Sumatra, from governors, regents, to mayors, are also present.