Kendari - Minister of Home Affairs Muhammad Tito Karnavian emphasized that collaboration between regional governments and the Indonesian Chamber of Commerce and Industry (Kadin) must begin immediately in order to accelerate regional economic development. According to him, neither the central nor regional government budgets alone are sufficient to achieve significant development progress without active involvement from the business sector.

The Minister explained that the State Budget (APBN) and Regional Budgets (APBD) serve only as catalysts for economic growth. Therefore, the role of the private sector must be strengthened to ensure faster and more sustainable development.

"Never dream that a region or a country can make a leap forward and bring prosperity to its people solely through the APBN or APBD," he asserted while opening the 2025 Provincial Leadership Meeting of Kadin Southeast Sulawesi (Sultra) at the Phinisi I Ballroom, Claro Hotel, Kendari City, on Wednesday (August 27, 2025).

He elaborated that total government spending from the APBN and APBD combined is approximately IDR 4,000 trillion. This amount is significantly smaller compared to Indonesia's Gross Domestic Product (GDP), which exceeds IDR 22,000 trillion. "So who owns the remaining IDR 20,000 trillion? The private sector. That’s why, for a country to progress, the private sector must thrive," he explained.

The Minister highlighted that Southeast Sulawesi still suffers from weak fiscal capacity. He pointed out that around 65 percent of the region's revenue comes from central government transfers, while its locally generated revenue (PAD) accounts for only about 35 percent. This condition makes it difficult for the region to develop if it relies solely on the APBD.

"Don’t expect to transform your region, reduce poverty, decrease stunting, and lower unemployment rates with this kind of fiscal performance," he warned.

For that reason, the Minister stressed the importance of creating a healthy and collaborative business climate. He sees Kadin as a strategic partner that can bridge cooperation between the government and the business community.

"The gateway is already there, and in my opinion, that’s Kadin—because Kadin is solid, it’s an established and long-standing association, and there’s no need to create a new one," he stated.

The Minister also acknowledged that not all regional leaders have business backgrounds or the acumen to identify the economic potential in their areas. Therefore, he encouraged them to open channels for dialogue with Kadin to formulate concrete strategies.

"I hope governors, including my colleague Mr. Andi, will invite Mr. Anton and his Kadin group, and that we listen more than we speak. Let's hear what the economic potentials of Southeast Sulawesi are and what policies or incentives you (Kadin Southeast Sulawesi) need," he added.

Finally, the Minister underscored the importance of concrete actions resulting from this collaboration. He urged that cooperation between regional governments and the business sector especially Kadin must be realized in practice.

"Let’s work together to support the collaboration between regional governments and the business sector, particularly Kadin, to truly drive progress in Southeast Sulawesi," he concluded.

For your information, the event was attended by the Chairman of Kadin Indonesia, Anindya Novyan Bakrie; Governor of Southeast Sulawesi, Andi Sumangerukka; Chairman of Kadin Southeast Sulawesi, Anton Timbang; Mayor of Kendari, Siska Karina Imran; and other officials from both Kadin Indonesia and Kadin Southeast Sulawesi.