Interior Minister Tito Urges Regional Governments to Optimise Regional Budgets and Control Inflation to Boost Economic Growth
Interior Minister (Mendagri) Muhammad Tito Karnavian is urging the North Sumatra Provincial Government (Pemprov Sumut) to boost economic growth through data-based planning, effective management of the Regional Revenue and Expenditure Budget (APBD), and consistent inflation control.
He conveyed this during the opening of the Development Planning Consultation (Musrenbang) for the North Sumatra Provincial Government’s Work Plan (RKPD) for 2027 at the Santika Dyandra Hotel in Medan, North Sumatra, on Wednesday (22/4/2026).
In his remarks, the Interior Minister emphasised that economic growth is a primary indicator for assessing a region’s progress. He noted that although North Sumatra’s economic performance is relatively good, the figures remain below the national average and thus need to be improved.
He explained that low economic growth rates would only yield limited changes, whereas higher growth would have a significant impact on public welfare.
“Economic growth is a very important figure that must be mastered by all regional heads. Because it has many components, ask the Central Statistics Agency (BPS) at the district/city level,” he stated.
The Interior Minister also highlighted the importance of data-based planning in driving regional economic growth. He urged regional governments (Pemda) to utilise detailed data to identify issues such as poverty, unemployment, and inter-regional disparities.
Through this approach, development programmes can be designed more precisely, including efforts to encourage investment and enhance public purchasing power.
Furthermore, APBD management is a crucial factor in supporting economic growth. The Interior Minister explained that government spending plays a strategic role as an economic stimulus. Therefore, budget realisation must be carried out optimally so that funds can circulate in society and mobilise the private sector.
He also reminded the importance of maintaining a balance between regional revenues and expenditures. Pemda is encouraged to increase Locally Generated Revenue (PAD) through innovation, without burdening the public.
In his view, a fiscally strong region is one that can rely on PAD, rather than solely depending on transfers from the central government. To that end, he urged Pemda to create a conducive and business-friendly investment climate.
“If the private sector is not thriving, never think that the state or region will leap forward; it won’t be possible. Why? Because government spending alone cannot achieve these leaps,” he asserted firmly.