Indonesian Political, Business & Finance News

Samarinda Tops Creative Financing and Inflation Control in 2026 Outstanding Regional Government Appreciation

| Source: TEMPO_ID Translated from Indonesian | Finance

The Samarinda City Government has recorded a notable achievement by securing the top position in the 2026 Outstanding Regional Government Appreciation for the Kalimantan region. The Samarinda City Government topped the rankings in two categories simultaneously: Entrepreneur Government/Creative Financing and Inflation Control.

This accomplishment in the two categories was rewarded at the 2026 Outstanding Regional Government Appreciation event for the Kalimantan region, held in Balikpapan on Tuesday evening, 5 May 2026. This appreciation affirms the success of the innovative financing strategies and economic control developed under the leadership of Mayor Andi Harun.

“For us, this award is a surprise. We were shocked. We did not expect to receive two awards,” said Andi Harun. “We dedicate this award to the community, colleagues, and the entire Samarinda City Government apparatus because we could not have reached this point without collective effort.”

In implementing creative financing strategies, Mayor Andi Harun stated that policies to increase Local Own-Source Revenue (PAD) cannot be applied haphazardly. “We seek ways and focus on strengthening internal sources, one of which is through Regional Owned Enterprises (BUMD),” said Andi Harun after receiving the award along with incentives from the Ministry of Home Affairs.

Until now, according to him, the structure of the Regional Revenue and Expenditure Budget (APBD) in many regions is still dominated by transfer funds from the central government, such as General Allocation Funds (DAU), Revenue Sharing Funds (DBH), Specific Allocation Funds (DAK), and Fiscal Incentive Funds (DIF). However, the Samarinda City Government has chosen to strengthen fiscal independence by optimising internal sources, particularly through increasing PAD.

Andi Harun explained that one strategic step taken was the revitalisation of BUMD. Previously, BUMD were often seen as a burden on regional finances, but in recent years, comprehensive improvements have been made, from governance to business orientation. As a result, BUMD are now beginning to provide tangible contributions to PAD.

Not only BUMD, the optimisation of Regional Public Service Agencies (BLUD) has also become an important pillar in contributing to regional revenue. The surpluses generated by several BLUD are utilised to support financing in other sectors, thereby creating a multiplier effect for development across various fields. At a broader level, Samarinda has also developed Government Cooperation with Business Entities (KPBU) schemes as well as the productive utilisation of regional assets. This approach opens up investment opportunities without adding a direct burden to the APBD.

Due to securing the top position in two categories, the Samarinda City Government is entitled to a fiscal incentive totalling Rp 6 billion. Mayor Andi Harun stated that the funds will be used to finance basic services, particularly in education and health, in line with national priorities. With this award, Mayor Andi Harun hopes that the entire apparatus will be even more enthusiastic in implementing the established programmes. “This appreciation makes us proud because our programmes are deemed beneficial to the community,” he said.

Interior Minister Muhammad Tito Karnavian stated that the government is committed to providing concrete rewards to performing regions. Through the Ministry of Home Affairs, the government has prepared fiscal incentive allocations of up to Rp 1 trillion to encourage regional government performance. Through this competition, the government hopes to foster more innovations for regional progress.

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