At the 2025 SMV Business Forum, Bappenas Supports National–Regional Financing Synergy to Accelerate Sustainable Regional Development

The Ministry of National Development Planning/Bappenas is committed to strengthening collaboration between national and regional development financing to achieve inclusive and sustainable growth towards the Golden Indonesia 2045 vision. “We are gathered here with one shared purpose: to ensure that Indonesia’s development moves faster, becomes more evenly distributed, and has a greater impact on society,” said Deputy Minister for National Development Planning/Vice Minister of Bappenas, Febrian Alphyanto Ruddyard, at the Special Mission Vehicle (SMV) Business Forum 2025: Unlocking Regional Potential: SMVs as Catalysts for Inclusive and Sustainable Growth in Jakarta, Tuesday (25/11).

The forum serves as a strategic platform bringing together the central government, regional governments, SMVs, state-owned enterprises, the private sector, and development partners to harmonise planning, project preparation, and financing execution at the regional level. Deputy Minister Febrian also emphasised that development financing needs have increased significantly amid limited fiscal space in both the national and regional budgets (APBN and APBD). For this reason, Indonesia requires a more creative, integrated, and collaborative financing architecture. In this context, SMVs are expected to play a strategic role in bridging development needs with diverse funding sources. 

“I firmly believe that SMVs can only reach their full potential if all financing interventions are aligned with the RPJMN’s direction and each region’s competitive advantages, ensuring that every rupiah we utilise truly delivers tangible benefits for the whole population,” stressed Deputy Minister Febrian.

Meanwhile, the western and eastern regions of Indonesia continue to face development disparities, reflected in indicators such as unemployment, poverty, the Gini ratio, and the Human Development Index. Regional fiscal independence also faces challenges due to the dominance of routine spending and the limited use of available financing instruments. SMV assistance in project preparation is needed to ensure that regional development can be carried out in a targeted and timely manner. 

“Integrating SMVs into national and regional financing is key to ensuring that regions not only have projects, but also have access to financing, fiscal capacity, and the institutional capability to execute them,” explained Deputy Minister Febrian.

The 2025–2029 National Medium-Term Development Plan (RPJMN) positions island-based regional transformation as a crucial strategy to accelerate inclusive growth. Deputy Minister Febrian emphasised that funding synergy, financing innovation, and strengthened regional capacity must serve as the foundation for accelerating economic transformation towards the Golden Indonesia 2045 vision. “Our challenges are great, but our opportunities are far greater. With strong collaboration, the courage to innovate, and a firm commitment to strengthening our regions, I am truly confident that our development will become increasingly inclusive, equitable, and genuinely felt by the people,” concluded Deputy Minister Febrian.