Indonesian Political, Business & Finance News

Head of BSKDN: Regional Innovation is a Legal Mandate

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Head of BSKDN: Regional Innovation is a Legal Mandate
Image: ANTARA_ID

Jakarta (ANTARA) - The Head of the Agency for Domestic Policy Strategy (BSKDN) of the Ministry of Home Affairs, Yusharto Huntoyungo, has reminded that regional innovation is a mandate enshrined in Law Number 23 of 2014 concerning Regional Government. This legal foundation provides space for local governments to implement innovations in governance to enhance public service performance and regional development.

“I want to remind everyone of the legal basis for these activities; we work based on Law 23/2014, specifically where local governments implement regional innovation and report it to the central government,” Yusharto stated in a briefing in Jakarta on Wednesday.

Yusharto made these remarks while presenting material during the Strategy for Strengthening Policy and Synergy of Regional Innovation for Mojokerto City at the Pendopo Sabha Kridatama on Tuesday. He explained that the regional innovation assessment conducted by the Ministry of Home Affairs is not only aimed at high-achieving regions but also serves to map the relative position of all regions in Indonesia regarding innovation development. This allows the government to identify the strengths of each region while analysing national innovation trends.

“This innovation assessment is conducted for all regions, not just those with achievements, so we can understand the relative position between one region and another and identify each region’s advantages,” he said.

Yusharto revealed that the government continues to encourage the strengthening of regional innovation through awards and fiscal incentives. “For 2026, we are currently in discussions with the Ministry of Finance regarding the distribution of fiscal incentive funds, where being one of the most innovative regions will be a determining factor,” Yushante added.

On this occasion, Yusharto also extended special appreciation to the Mojokerto City Government for successfully maintaining regional innovation continuity, successfully retaining its status as a highly innovative region for five consecutive years. Based on the 2025 Regional Innovation Index (IID) results, Mojokerto City once again achieved a ‘highly innovative’ predicate with a score of 95.43, ranking first in the city category nationally, continuing a positive trend since 2021.

“There are many examples from Mojokerto City that I often see as models for other regions. From the ‘Gempah Genting’ innovation to ‘Gempa Genting Ning Emi’, it demonstrates sustainability in the implementation of innovation in Mojokerto,” he noted.

Nevertheless, Yusharto noted that several challenges remain in developing innovation in Indonesia. He identified three main issues: limited funding for innovation, weak downstreaming of innovation, and a lack of a strong innovation culture among stakeholders.

“Fortunately, last January, the President added budget allocations to enhance innovation development. It is hoped that this will have a positive impact on our future innovation climate,” he said.

Furthermore, to strengthen the innovation ecosystem, Yusharto encouraged local governments to build ‘pentahelix’ collaborations involving the government, universities, industry, and the community. He maintained that innovation cannot develop optimally without synergy between stakeholders. He also expressed hope that Mojokerto City would continue to maintain its culture of innovation and serve as an example for other regions in providing public services that are faster, easier, more effective, and adaptive to technological developments and community needs.

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