Saturday, 11 July 2026
MEDAN | INDATANEWS.COM - The Association of Indonesian Municipal Governments (APEKSI) will submit ten strategic recommendations from the 18th National Working Meeting (Rakernas) APEKSI 2026 to President Prabowo Subianto. The organization, which brings together city administrations across Indonesia, has formulated a series of proposals aimed at strengthening regional capacity in implementing development programs while supporting the execution of National Strategic Programs (PSN).
The recommendations cover key areas, including reform of fiscal relations between the central and regional governments, acceleration of infrastructure development, digital transformation of governance, strengthening of local economies, and the development of sustainable and environmentally friendly cities.Strengthening Central–Regional Coordination

Eri made the statement alongside Medan Mayor Rico Tri Putra Bayu Waas and other APEKSI officials. According to him, the recommendations stem from the practical experiences of city governments in addressing development challenges on the ground and are intended to serve as a basis for future national policy decisions.He emphasized that the success of National Strategic Programs does not depend solely on the central government, but also requires strong support from regional administrations that directly implement the programs at the community level.
A key focus of APEKSI's recommendations is strengthening the fiscal capacity of municipal governments. According to Eri Cahyadi, cities require greater fiscal flexibility to effectively implement development programs and improve the quality of public services.
APEKSI proposes reforming fiscal relations between the central and regional governments, particularly by clarifying the management of intergovernmental transfer funds, including the General Allocation Fund (DAU), the Special Allocation Fund (DAK), and the Revenue Sharing Fund (DBH).The organization argues that clearer and more transparent utilization of these transfer funds would provide cities with greater flexibility in setting development priorities based on local needs.
In addition, APEKSI calls for expanding fiscal space for cities so that development financing is not overly dependent on limited central government budget allocations.Eri stressed that strengthening the fiscal foundation is essential for accelerating development programs, improving basic services, and enhancing public welfare.
APEKSI also raised concerns regarding the government policy on the recruitment of government employees under contract status (Pegawai Pemerintah dengan Perjanjian Kerja/PPPK). The organization emphasized that salary financing for these personnel must take into account the fiscal capacity of each region.
Eri explained that fully burdening regional budgets (APBD) with PPPK salaries could push personnel expenditure in several cities beyond the recommended threshold of 30 percent, potentially constraining development budgets due to high wage obligations."We propose that PPPK compensation be partially supported by the state budget (APBN), so that cities can maintain sufficient fiscal space for development and public services," he said.
APEKSI believes that central government support for PPPK salary financing would help cities maintain a balanced allocation between personnel spending and development investment, ensuring optimal public service delivery.
Infrastructure Acceleration and Governance TransformationBeyond fiscal issues, APEKSI also highlights infrastructure development as a critical driver of regional economic growth.
The organization proposes accelerating inter-regional connectivity to improve the flow of goods and services as well as population mobility. Adequate infrastructure is seen as key to creating new regional economic growth centers.APEKSI further urges the central government to prioritize basic infrastructure development in areas with limited accessibility in order to reduce regional development disparities.
At the same time, APEKSI emphasizes the importance of consistent digital transformation in public administration. The organization proposes national integration of social protection data to enable more targeted and effective policymaking by local governments.
It also calls for synchronization between the national licensing system and regional spatial planning frameworks, which is considered essential for accelerating investment processes while preventing land-use conflicts.Digital transformation is expected to improve transparency, efficiency in public services, and coordination between central and local governments.
Environmental management is another major focus area. APEKSI notes that rapid urbanization has significantly increased waste production, while processing infrastructure in many regions has struggled to keep up.
Eri Cahyadi said nearly all cities in Indonesia face similar challenges, urging stronger government support for innovative waste management systems.Special attention is given to Waste-to-Energy programs, which can reduce waste volumes while generating energy for communities.
APEKSI also calls for stronger collaboration between government, private sector, academia, and society to develop sustainable waste solutions. In the economic sector, APEKSI urges greater involvement of micro, small, and medium enterprises (MSMEs) in national programs, particularly the Free Nutritious Meal initiative, to ensure local economic value creation, job generation, and improved resilience.The organization calls for stronger inter-city collaboration and enhanced legal protection for municipal governments to ensure policy stability and safeguard decision-makers.
Another key initiative highlighted is the "Youth City Changers (YCC)" program, which provides a platform for young people to contribute ideas and solutions to urban challenges.He said the success of the event reflects Medan's capability to host major national-scale events and strengthens its position as a center for administration, economy, and investment.
He expressed hope that the conference outcomes would not remain as documents but translate into tangible impacts on urban development across Indonesia."Every city should bring home experiences, innovations, and inspirations that can be implemented locally. With strong collaboration, we can build a more advanced and sovereign Indonesia," he said.
The conclusion of the 18th APEKSI Rakernas 2026 in Medan is expected to further strengthen synergy between central and local governments. Through these ten strategic recommendations, national policies are expected to become more focused on strengthening regional capacity to ensure more equitable and sustainable development across Indonesia. (IDCN)REPORTER: Teguh Panjaitan | EDITOR: Fik Sagala
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