Regional Innovation Is the Mandate of the Law
Regional Innovation Is the Mandate of the Law
The Head of the Domestic Policy Strategy Board (BSKDN) of the Ministry of Home Affairs (Kemendagri), Yusharto Huntoyungo, stressed that regional innovation is the mandate of Law Number 23 of 2014 on Local Government, which provides space for regional administrations to innovate in governance to improve public service delivery and regional development.
‘I would like to remind once again the legal basis for implementing this activity; we operate based on Law 23 of 2014, particularly where local governments carry out regional innovation and report it to the central government,’ Yusharto said at the Mojokerto City event for Strategic Policy Strengthening and Regional Innovation Synergy at Pendopo Sabha Kridatama (19 May).
He also praised Mojokerto for maintaining a status as an exceptionally innovative region for five consecutive years.
Yusharto explained that the regional innovation assessment conducted by the ministry is not only aimed at regions with outstanding performance, but also to map the relative position of all regions in Indonesia in developing innovation. In this way, the government can see each region’s strengths and analyse national innovation development.
‘This assessment is not only carried out in high-performing regions but across all regions; thus we can determine the relative position between one region and another, and identify each region’s advantages,’ he said.
Yusharto revealed that the government continues to strengthen regional innovation through awards and fiscal incentives. ‘In 2026 we are discussing with the Ministry of Finance the distribution of the fiscal incentive fund, among others, with the criterion that the most innovative regions will be the beneficiaries,’ he said.
Nevertheless, Yusharto noted several challenges in Indonesia’s innovation development. He cited three main issues: limited funding for innovation, weak downstreaming of innovation, and not yet a strong innovation culture among stakeholders.
‘Thankfully, in January last year (2026) the President increased the budget allocation to enhance the development of innovation. It is hoped this will positively affect our innovation climate going forward,’ he asserted. (M-3)
PT Berdikari (Persero) is refining the implementation of the Integrated Poultry Downstreaming (Hilirisasi Ayam Terintegrasi, HAT) project in Malang.
Indonesia is taking serious steps in the downstreaming agenda.
President Prabowo Subianto chaired a limited meeting in Hambalang to discuss strategic issues in education, downstreaming, and national defence and security.
This downstreaming programme is supported by financing consolidation through the Daya Anagata Nusantara Investment Management Agency (Danantara).
Yusharto Huntoyungo urged regional administrations to accelerate the leaps in innovation as a means of enhancing competitiveness and the quality of public services.
The Head of BSKDN Kemendagri reiterated the importance of eight principles of regional innovation based on science and evidence-based policy.
He also stressed that achievements and awards for regional innovation should not be a stopping point for further innovation.
BSKDN Kemendagri collaborates with BRIN in promoting regional innovation through optimising the National Scientific Repository (RIN).
The Domestic Policy Strategy Board (BSKDN) of the Ministry of Home Affairs (Kemendagri) strengthens its steps to support the optimal deployment of regional innovation across Indonesia.