The Ministry of Home Affairs Grants Fiscal Incentives to High-Performing Local Governments in the Maluku–Nusa Tenggara Region, Strengthening Regional Performance

Lombok Barat, VIVA – The Ministry of Home Affairs (Kemendagri) is awarding and granting fiscal incentives to high-performing local governments (Pemda) in the Maluku and Nusa Tenggara region (Nusra). The award is provided as central government support to strengthen regional performance.

Minister of Home Affairs (Mendagri) Muhammad Tito Karnavian said the award is part of Kemendagri’s efforts in guiding and supervising local governments. ‘This year, we have allocated a budget of one trillion rupiah for fiscal incentives for the regions. The consideration is that the duties of Kemendagri under the Regional Government Law are to guide and supervise local government,’ he said at the 2026 Apresiasi Pemerintah Daerah Berprestasi 2026 Regional Nusa Tenggara and Maluku at the Merumatta Ballroom, Senggigi, Lombok, West Nusa Tenggara (NTB), Tuesday (19/5/2026).

Mendagri likened the awarding of the prize to the application of the ‘carrot’ and ‘stick’ concept in governance. Because the government not only provides evaluation and supervision, but also rewards with direct impact for the regions.

‘If that is already ordinary, the trophy and certificate are the prizes. So [the prize] is in the form of fiscal incentives, and then we certainly think, so far it has been given at the national level. If national, the competition would not be fair,’ he said.

The reason, clearly Mendagri, is that national-level competition tends to be won by regions with large fiscal capacity. Meanwhile regions with limited budget capacity will find it difficult to compete.

‘Their innovations are greater, because the money is available. The same goes for the city level; if you pit city against city, for example Surabaya, big cities, Medan, they would even dominate,’ he added.

Therefore, Mendagri continued, regional awards are expected to provide a fairer opportunity for districts to receive recognition as well as additional fiscal incentives that can be used in the APBD (Anggaran Pendapatan dan Belanja Daerah).

‘Well, for the categories, we choose the lighter ones, for which data is already certain. For example unemployment data, sourced from BPS,’ he explained.

The Pemda receiving awards in the Regency-level category of Poverty Alleviation and Reduction of Stunting were Morotai Islands Regency as Best I, North Halmahera Regency as Best II, and Central Halmahera Regency as Best III. For the city level, Ternate City; for the provincial level, North Maluku Province. The awards were presented symbolically by the Minister of Public Housing and Settlement (PKP) Maruarar Sirait.