Indonesian Political, Business & Finance News

Home Affairs Minister Discusses Importance of Balancing Oversight and Development for Local Governments

| Source: DETIK Translated from Indonesian | Politics
Home Affairs Minister Discusses Importance of Balancing Oversight and Development for Local Governments
Image: DETIK

The Minister conveyed this during the Evening of Awards for High-Performing Local Governments 2026, Kalimantan Region, held at the Ballroom of Hotel Platinum in Balikpapan, East Kalimantan, on Tuesday (5/5/2026).

He acknowledged that the development function for local governments has so far tended to focus more on oversight aspects. In the future, this approach needs to be balanced with the provision of appreciation as a form of motivation.

“To be honest, during my first five years as Home Affairs Minister, I think we’ve been ‘sticking’ to it all the time. Like the rabbit and carrot saying, we’ve been mostly scaring them, just the ‘stick’, where’s the carrot?” he said in a written statement on Wednesday (6/5/2026).

According to him, the balance between oversight and incentives is important in Indonesia’s governance system, which does not fully implement complete decentralisation. He described the current system as partial decentralisation, where the central government still has a role in developing and controlling regions.

“As part of these efforts, the Ministry of Home Affairs (Kemendagri) continues to strengthen regional development programmes, including through the provision of appreciation to local governments that demonstrate good performance,” he stated.

He emphasised that this awarding is expected to serve as a trigger for local governments to continuously improve performance and introduce innovations in governance.

Furthermore, he also mentioned the increase in the Ministry’s budget for 2026 as an opportunity to strengthen a more balanced development approach between oversight and incentives.

“I immediately conveyed it to the internal team, I said, let’s go ahead, keep going (to provide incentives to regions). I’m confident we can,” he revealed.

On that occasion, Kemendagri awarded high-performing local governments as part of efforts to encourage improved performance and innovation in the regions. The awards were given based on four main categories: reduction in unemployment rates, tackling poverty and stunting, inflation control, and creative financing.

In the unemployment reduction category, at the regency level, North Barito Regency won First Place, followed by Tabalong Regency and Murung Raya Regency. At the city level, Bontang City won First Place and Palangka Raya City Second Place, while at the provincial level, North Kalimantan Province received the award.

In the poverty and stunting alleviation category, Tapin Regency became First Place at the regency level, followed by Lamandau Regency and South Hulu Sungai Regency. At the city level, Banjarbaru City won First Place and Palangka Raya City Second Place, while at the provincial level, South Kalimantan Province received the award.

“Next, in the inflation control category, Sukamara Regency won First Place at the regency level, followed by Gunung Mas Regency and Pulang Pisau Regency. At the city level, Samarinda City became First Place and Banjarmasin City Second Place, while at the provincial level, West Kalimantan Province received the award,” he stated.

Meanwhile, in the creative financing category, Kotabaru Regency won First Place at the regency level, followed by South Hulu Sungai Regency and West Kotawaringin Regency. At the city level, Samarinda City won First Place and Palangka Raya City Second Place, while West Kalimantan Province again received the award at the provincial level.

“As a form of appreciation, Kemendagri provides fiscal incentives to the winners, namely Rp 1 billion for Third Place, Rp 2 billion for Second Place, and Rp 3 billion for First Place and at the provincial level,” he concluded.

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