Home Affairs Ministry's BSKDN Involves Academics and Media in Regional Financial Management Index Validation
The Ministry of Home Affairs’ Agency for Domestic Policy Strategy (BSKDN) is involving academics, experts, and the media in the validation of the Regional Financial Management Index (IPKD) measurement results for the 2024 fiscal year, measured in 2025.
Opening the ‘Validation of IPKD Measurement Results’ event online on Thursday (18/6), Head of BSKDN Yusharto Huntoyungo stated that this step is an effort to strengthen objectivity, transparency, and accountability in the assessment process of regional financial management performance across Indonesia.
‘The implementation of validation involving academics, experts, and the media is a commitment by the Ministry of Home Affairs to present a more independent, transparent, and accountable measurement and assessment process,’ Yusharto said, as quoted from a statement received in Jakarta on Saturday.
He explained that IPKD measurement is an important instrument for mapping the quality of regional financial management while encouraging improved governance. Therefore, Yusharto stressed that the validation process is a crucial stage to ensure the results truly reflect real conditions in the regions.
According to him, the involvement of external parties also follows the Home Affairs Minister’s directive that every regional performance evaluation and measurement process be carried out professionally and with a high level of credibility. Thus, he said, the IPKD results will not only serve as an assessment instrument but can also be used as a basis for formulating policies to improve regional financial management.
He revealed that the 2026 validation adopts a regional island-based approach, aligning with the appreciation mechanism within the Ministry of Home Affairs. These regions include Sumatra, Java-Bali, Kalimantan, Sulawesi, Nusa Tenggara-Maluku-North Maluku, and Papua.
‘This regional approach is expected to encourage healthy competition between regions while providing a more proportional space for regions to demonstrate their best achievements in regional financial management,’ he said.
Furthermore, Yusharto conveyed that the current IPKD validation is still fully facilitated by BSKDN. However, in the future, provincial governments will be encouraged to take a greater role in the validation process. He stated that for the 2025 fiscal year, measured in 2026, provincial governments are expected to start allocating their own budgets for validation with assistance from BSKDN.
Subsequently, for the 2026 fiscal year, measured in 2027, validation authority will be fully exercised by provincial governments as representatives of the central government in the regions. He affirmed that this policy is a strategic step to maintain programme sustainability while strengthening the capacity of regional governments to independently evaluate financial management.
‘Nevertheless, BSKDN will continue to be present to provide assistance and capacity building,’ Yusharto stated. He said the IPKD measurement results will be determined in accordance with the mandate of Home Affairs Minister Regulation Number 19 of 2020 concerning the Regional Financial Management Index.
After the validation process is complete, regional governments achieving the best and good ratings in each region will receive appreciation stipulated through a Home Affairs Minister Decree and will be sought to receive incentives as a reward for good regional financial management performance. Yusharto also expressed hope that all parties involved will maintain integrity and objectivity throughout the validation process.
Additionally, he reminded that IPKD validation should not be viewed merely as an administrative routine, but as a strategic instrument to drive policy change and sustainable improvement in regional financial governance. ‘The IPKD measurement results should become a real portrait of regional financial management conditions that can be followed up through various improvement measures,’ Yusharto said.