Home Affairs Ministry Awards Incentives to Six Regional Governments Successful in Reducing Unemployment Rates

The Ministry of Home Affairs (Kemendagri) has granted incentives to six regions in Kalimantan that have successfully reduced unemployment rates. The incentives consist of Rp 3 billion for first place, Rp 2 billion for second place, and Rp 1 billion for third place, presented by Minister of Home Affairs Muhammad Tito Karnavian at the 2026 Regional Kalimantan Outstanding Regional Government Appreciation event in Balikpapan on Tuesday, 5 May 2026. Minister of Housing and Settlement Areas Maruarar Sirait represented the Home Affairs Minister in symbolically handing over the prizes.

At the provincial level, North Kalimantan emerged as the best in reducing unemployment rates, securing first place. At the district level, North Barito achieved first place, while Tabalong took second and Murung Raya third. At the city level, Bontang obtained first place and Palangka Raya second.

Home Affairs Minister Tito Karnavian stated that the achievements in reducing unemployment rates, which show a positive trend, deserve appreciation. Data, he said, indicates that Indonesia’s open unemployment rate has dropped to around 4.74 per cent as of November 2025. “This is one of the lowest in the last five years.”

Nevertheless, Tito continued, structural challenges remain, particularly the dominance of the informal sector, which accounts for more than 57 per cent of the workforce. According to Tito, successful regional governments are typically able to integrate policies and budgets related to employment planning, workforce placement, vocational training, and other relevant employment development. This aligns with Law No. 11 of 2020 on Job Creation, which promotes job creation and investment facilitation.

Meanwhile, the Regent of Murung Raya, Heriyus Midel Yoseph, stated that Murung Raya Regency continues to demonstrate real commitment to improving community welfare. One of these efforts is to suppress unemployment figures.

The focus of his administration is to create an ecosystem that equips job seekers with skills and access to employment opportunities. Therefore, various initiatives have been undertaken, such as enhancing workforce competencies through training more relevant to industry needs, as well as facilitating placement and mentoring to connect more quickly with job opportunities. “We are also strengthening the role of the business world and MSMEs.”

Murung Raya was assessed as capable of reducing unemployment rates in a planned and sustainable manner in the 2026 Outstanding Regional Government Appreciation. The assessment covers the quality of programme planning, budget support, and actual achievements in lowering unemployment figures. In addition, regional innovations for reducing unemployment serve as added value in creating effective and impactful solutions.

“We receive this award as a form of appreciation for collaborative work in efforts to reduce unemployment in Murung Raya Regency,” said Heriyus.

Meanwhile, Tabalong SMaRT, an acronym for Prosperous, Advanced, Religious, and Leading, is the vision of the Tabalong Regency Government, which is believed to be able to lower unemployment rates. This success was achieved by Tabalong Regent Muhammad Noor Rifani by focusing on seven priority programmes, one of which is improving the quality of human resources, including the workforce and entrepreneurs.

“There is a programme we have already implemented, namely training 15,000 skilled workers through the workforce training centre, the Manpower Office, NGOs, and the business world,” said Noor Rifani. This programme enables Tabalong residents to have skills for employment or entrepreneurship.

Through various efforts to realise these seven priority programmes, Tabalong Regency received an award from the Ministry of Home Affairs. “This is an extraordinary step taken by the Home Affairs Minister to appreciate regions that have innovations,” said Regent Noor Rifani. “This award further motivates us to provide the best service to the community,” he added.