Home Affairs Minister to Reward Regional Heads Active in Curbing Inflation and Poverty

Minister of Home Affairs Tito Karnavian has proposed a Rp1 trillion budget to be allocated as additional incentives for well-performing or high-achieving regions. He wants the incentive scheme for outstanding regions to be reinstated through additional Regional Budget (APBD) funds. “The aim is to provide additional money of Rp3 billion, Rp2 billion, and Rp1 billion. First place gets Rp3 billion, second place Rp2 billion, and third place Rp1 billion. This is not for the regional heads personally but is added to the APBD,” Tito stated at the DPR Building in Central Jakarta on Thursday, 11 June 2026.

Prior to the budget reallocation by the Ministry of Finance, Tito mentioned that the reward programme had been implemented previously, divided into six regions. According to him, this scheme is designed to give regions with small fiscal capacities an opportunity to compete. “If it were a national competition, it would be unbalanced. Regions with strong finances would always win. That is why we used regions,” he said.

Furthermore, this incentive is intended to encourage regional heads to improve their performance, so that the Ministry of Home Affairs does not have to continually issue reprimands to poorly performing regions. “So at that time I conveyed to the Ministry of Finance, please hand over a portion to the Ministry of Home Affairs to hold the event so that I am not constantly striking down on regional heads,” Tito revealed.

The assessment criteria for obtaining the incentive include reducing poverty, controlling inflation, lowering unemployment, and improving regional revenue generation.