Ministry of Home Affairs Grants Fiscal Incentives to High-Performing Local Governments in Maluku and Nusa Tenggara

The Ministry of Home Affairs (Kemendagri) has awarded and provided fiscal incentives to high-performing local governments in the Maluku and Nusa Tenggara regions. The awards are part of central government support to strengthen regional performance. Minister of Home Affairs Muhammad Tito Karnavian said the awards form part of Kemendagri’s efforts in guiding and supervising local governments. ‘This year we have allocated a budget of one trillion rupiah for regional fiscal incentives,’ Tito said at the Appreciations for High-Performing Local Governments 2026 for Nusa Tenggara and Maluku in Lombok, West Nusa Tenggara (NTB), on Tuesday 19 May. He noted that the budget allocation reflects Kemendagri’s mandate under the Regional Government Act to act as custodian and supervisor of local government. He likened the awards to the application of a ‘carrot and stick’ approach in governance, noting that the government does not only evaluate and oversee but also grants awards that have a direct impact on the regions. He argued that trophies and certificates are common, whereas this award comes in an unusual form. ‘So the prize is in fiscal incentives, and we have to think that until now such awards were given at the national level. If national, the competition would be unfair,’ he said. Tito argued that national-level competition tends to be won by districts with large fiscal capacity, while areas with tighter budgets would struggle to compete. ‘Their innovations are greater because they have funds. The same applies at the city level; if cities were to compete against each other, large cities like Surabaya and Medan would dominate,’ Tito added. Therefore regional awards are expected to provide fairer opportunities for regions to gain recognition while also providing additional fiscal incentives that can be used in the Anggaran Pendapatan dan Belanja Daerah (APBD). ‘The categories are deliberately chosen to be light, with data that are already available. For instance, unemployment data comes from the BPS,’ Tito said. The awards in the Poverty Alleviation and Stunting Reduction category at the district level went to Morotai Island Regency as Best I, North Halmahera Regency as Best II, and Central Halmahera Regency as Best III. For city level, Ternate City, and for provincial level, North Maluku Province (Maluku Utara). The awards were presented symbolically by the Minister of Public Housing and Public Works (PKP) Maruarar Sirait. In the Creative Financing category, West Lombok Regency took Best I at the district level, followed by Lombok Timur and Halmahera Selatan. For city level, Mataram City; for provincial level, West Nusa Tenggara Province (NTB). The award was presented symbolically by the Chair of the II Commission of the DPR RI, Muhammad Rifqinizamy Karsayuda. Next, in the Inflation Control category, East Sumba Regency won Best I at the district level, followed by Bima and Southeast Maluku. For city level, Tual City; for provincial level, East Nusa Tenggara Province (NTT). The awards were handed over in person by Minister Tito Karnavian. In the Unemployment Reduction category, Lembata Regency won Best I at the district level, followed by Alor and Sikka. For city level, Tidore Islands City; for provincial level, North Maluku Province. The award was symbolically presented by Coordinating Minister for Political, Legal and Security Affairs Djamari Chaniago. As a form of appreciation, Kemendagri awarded winners with fiscal incentives of Rp3 billion for Best I, Rp2 billion for Best II, and Rp1 billion for Best III. The Apresiasi Pemda Berprestasi event was attended by NTB Governor Lalu Muhammad Iqbal, NTT Governor Emanuel Melkiades Laka Lena, Maluku Governor Hendrik Lewerissa, North Maluku Governor Sherly Tjoanda, and Forkopimda officials from across Maluku and Nusa Tenggara.