Fiscal Incentives to Build Competitive Climate Among Regions: Ministry

RRI.CO.ID, Jakarta - The Ministry of Home Affairs has announced that awarding high‑performing regions with fiscal incentives is expected to foster healthy competition among local administrations and encourage improved performance.

Home Affairs Minister Muhammad Tito Karnavian said the awards also serve as recognition for regional leaders who demonstrate strong results. “The goal is to foster a competitive environment, reward high‑achieving regions, and motivate others to perform better,” Minister Tito said on Wednesday, May 20, 2026.

The awards include trophies and fiscal incentives funded by the ministry’s budget. At the subdistrict level, the Best I region will receive IDR 3 billion, the Best II region IDR 2 billion, and the Best III region IDR 1 billion. At the provincial and city levels, the Best I region will receive IDR 3 billion.

Tito explained that the award scheme is divided by region to ensure fair and equitable competition. The regions include Sumatra, Kalimantan, Sulawesi, Maluku–Nusa Tenggara, Java–Bali, and Papua. Categories cover poverty alleviation, stunting reduction, creative financing, unemployment reduction, and inflation control.

“The data used is verified by the Central Bureau of Statistics (BPS) and the Ministry of Home Affairs,” he said, adding that the program also aims to show the public that many regional leaders have achieved strong results.

The ministry has prepared a fiscal incentive budget of IDR 1 trillion, which will be distributed in stages based on the designated regions. (Misni Parjiati)