Deputy Minister for Home Affairs Unveils Regional Innovation as Route Out of Middle-Income Trap

The Deputy Minister of Home Affairs, Bima Arya Sugiarto, emphasised that establishing an innovation ecosystem at the regional level is an absolute requirement for Indonesia to escape the middle-income trap and become a developed nation by 2045. Bima stated that structured and sustainable innovation is key to achieving the target of 8 per cent economic growth while also optimising the demographic dividend. He expressed optimism that, despite many regions having limited fiscal capacity, strengthening the innovation ecosystem can create new avenues for growth and drive regional progress. “Our collective task is to build an innovation ecosystem. Regional leaders may change, regents may retire, governors may complete their terms, but innovation must become part of the institutional framework or the established innovation ecosystem. When we talk about the innovation ecosystem, we are talking about research, regulations, institutionalisation, actors, and funding,” Bima said in a statement on Tuesday (24 February 2026). He made these remarks at the launch of the 2025 Regional Competitiveness Index (IDSD), which focused on strengthening regional governance to promote sustainable and inclusive competitiveness, at the B.J. Habibie Building, Jakarta. Furthermore, Bima expressed regret that innovation is sometimes only implemented to win awards without considering the sustainability of the programme. Therefore, he encouraged local governments to move beyond conventional collaboration patterns and adopt a co-creation approach, where all stakeholders are involved from the planning stage to implementation. He then encouraged the establishment of a ‘Regional Innovation House’ as a space for universities, communities, Regional Research and Innovation Agencies (BRIDA), and related departments to create real solutions for the community. “Innovation is not a gimmick. Innovation is about focusing on solutions. Innovation must add value. Innovation must be integrated into the system, not just be a superficial addition. Innovation must provide benefits,” he said. As a concrete step, Bima proposed several initiatives that can be implemented by various parties. These efforts include establishing blended finance to fund regional research, creating fast-track pathways for technology adoption, and making innovation a key performance indicator for civil servants (ASN). He hopes that BRIDA and the National Research and Innovation Agency (BRIN) can play an active role as a driving force in strengthening the research ecosystem in each Regional Government Organisation (OPD). Institutionalised innovation is a growth engine that must not be extinguished, even when leadership changes. Bima reminded regional leaders to use various indices, including the IDSD, as a real policy stimulus, rather than just an administrative burden. (prf/ega)