Jakarta, April 8, 2026 - The PRAKARSA held an audience and discussion with the Directorate General of Regional Development (Ditjen Bina Bangda) of the Ministry of Home Affairs to discuss the evaluation of regional industrial planning, particularly the Provincial Industrial Development Plan (RPIP), as well as strengthening the monitoring and evaluation framework based on the mission approach.
The activity which took place at the Directorate General of Regional Development Building was attended by a research team. PRAKARSA which presents the initial results of research related to the evaluation of regional industrial planning documents. The research develops an approach mission-oriented evaluation, which assesses industrial development not only from the perspective of economic growth, but also its contribution to solving social, employment, environmental and economic resilience problems.
This hearing is part of a series of hearings PRAKARSA with ministries/agencies, following previous discussions with the Ministry of Industry and Bappenas. The meeting with the Ministry of Home Affairs aimed to gain perspectives from local governments, particularly in the context of the Ministry's guidance and oversight functions.
In the discussion, the Ministry of Home Affairs appreciated the mission-based evaluation approach proposed by The PRAKARSAHowever, he emphasized that implementing industrial policy in the regions faces high levels of complexity because regional development is cross-sectoral and cannot be handled by a single government agency.
The Ministry of Home Affairs also explained that dividing government affairs into mandatory and optional matters does not reflect the level of importance of a sector. The industrial sector remains considered strategic, despite being categorized as optional, due to its role in developing regional economic potential.
Furthermore, the Ministry of Home Affairs emphasized the division of roles between ministries, where the Ministry of Home Affairs focuses on general guidance and supervision of regional governments, while technical guidance of the industrial sector falls under the authority of the Ministry of Industry.
In its implementation, the Ministry of Home Affairs has identified several key challenges to industrial development in the regions, including fiscal constraints, dependence on central transfers, limited human resource capacity, and civil service rotation. Furthermore, there are also obstacles in the form of limited sectoral authority and inadequate coordination between ministries/agencies at the central level, which has resulted in inconsistent policy directives for the regions.
The Ministry of Home Affairs also highlighted that the quality of RPIP documents across regions remains uneven, not all regions have industrial regulations, and the process of revising regional regulations tends to be lengthy. On the other hand, a data-based monitoring and evaluation system real-time dashboard not yet available, and cross-sector integration in regional industrial development is still weak.
Regarding policy, the Ministry of Home Affairs stated that the revision of Law Number 23 of 2014 concerning Regional Government is underway, although there is no certainty of significant changes to the classification of government affairs.
This hearing is also part of an effort PRAKARSA in supporting the strengthening of green industrial policies through research entitled Mission-oriented Evaluation Framework for Indonesia's Industrial Development Master Plan, which promotes coherence of industrial policies across ministries and local governments.
Through this discussion, it is hoped that there will be a strengthening of shared understanding regarding the challenges and opportunities for regional industrial development, as well as increased coordination between stakeholders in encouraging industrial development that is more inclusive, sustainable, and oriented towards solving strategic problems.