APEKSI Komwil I Convenes in Banda Aceh, Championing Disaster and Fiscal Resilience for Indonesian Cities Ahead of 2026 National Working Meeting
The Regional Commission I (Komwil I) of the Association of Indonesian Municipal Governments (APEKSI) recently concluded its working meeting in Banda Aceh, producing a comprehensive set of recommendations with a paramount focus on fortifying cities against both natural disasters and fiscal vulnerabilities. These crucial proposals are slated for deliberation at the national working meeting (Rakernas) of APEKSI in Medan in June 2026, setting a clear agenda for urban development and sustainability across the archipelago. The meeting underscored a pressing need for a proactive and integrated approach to urban governance, acknowledging the multifaceted challenges faced by cities, particularly in Indonesia’s geographically diverse and disaster-prone landscape.
Rico Tri Putra Bayu Waas, the Mayor of Medan and concurrently the Chairman of Komwil I APEKSI, articulated the profound significance of resilient cities, emphasizing the dual pillars of disaster preparedness and fiscal stability. "Our discussions this time centered on the concept of resilient cities. We specifically highlighted that resilience encompasses both disaster preparedness and fiscal robustness. These are two equally critical aspects that demand our immediate and sustained attention," Waas stated during a post-meeting press conference in Banda Aceh. His remarks resonated with the collective experience of member cities, many of which grapple with the immediate and long-term consequences of natural calamities, coupled with the ongoing challenge of achieving financial self-sufficiency. The discussions in Banda Aceh, a city with its own profound history of resilience in the face of devastating natural disaster, served as a poignant backdrop for these vital deliberations.
Mayor Waas further elaborated that Komwil I APEKSI meticulously formulated a total of 24 recommendations to be presented at the 2026 Rakernas. Among these, the issues of disaster and fiscal resilience emerged as the undeniable top priorities. He underscored the imperative of elevating these concerns to the central government level, arguing that cities, especially those serving as provincial capitals, are indispensable engines of economic activity. The intricate interconnectedness of urban centers means that a localized crisis can swiftly cascade into broader regional and even national economic instability. "For instance, if a disaster strikes a single city, its repercussions can extend to affect all surrounding cities and regions, ultimately paralyzing the economy. Therefore, addressing these issues is of utmost importance and demands serious attention," Waas cautioned, painting a vivid picture of the potential domino effect of urban vulnerabilities. This perspective aligns with global understanding that urban areas are economic hubs, and their stability is paramount for national development.
The focus on disaster resilience is particularly pertinent for Indonesia, a nation situated squarely on the Pacific Ring of Fire, making it highly susceptible to earthquakes, volcanic eruptions, and tsunamis. Beyond these seismic and volcanic threats, the country also faces recurrent floods, landslides, and forest fires, exacerbated by climate change and rapid urbanization. The 2004 Indian Ocean Tsunami, which devastated Banda Aceh and other coastal areas, serves as a stark reminder of the catastrophic potential of natural hazards. According to data from the National Disaster Management Agency (BNPB), Indonesia experiences thousands of disasters annually, leading to significant loss of life, displacement, and billions of Rupiah in economic damages. The World Bank estimates that economic losses from natural disasters in Indonesia average 0.3% of GDP annually, with some events causing much higher spikes. Therefore, recommendations from APEKSI Komwil I advocate for enhanced early warning systems, robust infrastructure development designed to withstand specific hazards, comprehensive urban planning that integrates disaster risk reduction, and continuous public education and drills to foster a culture of preparedness. The goal is not merely to react to disasters but to proactively build communities that can absorb, adapt to, and recover from shocks effectively.
In parallel, the emphasis on fiscal resilience addresses a fundamental aspect of local autonomy and sustainable urban development. Many Indonesian municipalities remain heavily reliant on transfers from the central government, limiting their capacity to independently fund essential public services and development initiatives. Increasing local revenue, known as Pendapatan Asli Daerah (PAD), is crucial for empowering cities to chart their own developmental course. Mayor Waas highlighted the importance of sharing innovative strategies to boost PAD. He cited the example of Malang City, which has effectively managed its trade system, demonstrating how optimized local economic activities can translate into higher revenues. Another innovative approach mentioned was Medan City’s implementation of a "split payment" system for restaurant taxes, utilizing QRIS technology. This system automatically divides tax payments directly between the regional treasury and the private sector, streamlining collection and improving transparency and efficiency.
These examples underscore the potential for digital transformation and creative policy-making to revolutionize local government finance. According to the Ministry of Finance, the average contribution of PAD to total local government revenue in Indonesia remains relatively low, often below 30%, indicating a significant dependency on central government allocations. Enhancing fiscal resilience through diverse revenue streams, efficient tax collection mechanisms, and prudent financial management can unlock greater investment in infrastructure, public services, and social programs, thereby reducing reliance on central government handouts and fostering greater local self-sufficiency. The implications are profound: financially robust cities are better positioned to respond to local needs, stimulate local economies, and ultimately contribute more significantly to national development goals. The recommendations aim to foster a spirit of entrepreneurship within local administrations, encouraging them to identify and capitalize on unique local economic potentials while ensuring fairness and transparency in revenue generation.
Beyond the critical dual focus on disaster and fiscal resilience, the Komwil I APEKSI recommendations encompass a broad spectrum of urban development priorities, reflecting the holistic nature of municipal governance. These additional proposals, also destined for the 2026 Rakernas, address systemic improvements, economic empowerment, social welfare, environmental sustainability, and administrative efficiency.
Among the key recommendations are calls for the refinement and optimization of national digital platforms critical for local governance. Specifically, APEKSI urges improvements to the Online Single Submission (OSS) system, which streamlines business licensing, and the Regional Development Information System (SIPD), vital for planning and budgeting. Enhanced functionality and interoperability of these systems are seen as crucial for improving the ease of doing business, reducing bureaucratic hurdles, and ensuring more transparent and effective public administration at the local level. The efficiency of these digital tools directly impacts local economies by facilitating investment and ensuring that development plans are data-driven and responsive to community needs.
Economic development remains a cornerstone, with recommendations emphasizing the strengthening of local economies and services, alongside robust central government support to facilitate Micro, Small, and Medium Enterprises (UMKM). UMKM are the backbone of Indonesia’s economy, contributing significantly to GDP and employment. Local governments play a pivotal role in nurturing these enterprises through business incubators, access to finance, market linkages, and simplified regulations. APEKSI’s call for central support highlights the need for a coordinated national strategy to empower UMKM, recognizing their potential to drive inclusive economic growth and reduce poverty.
Social protection and health services also feature prominently. Recommendations aim to strengthen the social safety net and improve the quality and accessibility of healthcare for urban populations. This includes advocating for adequate funding, human resources, and infrastructure for public health facilities, as well as ensuring that vulnerable groups receive necessary social assistance. The COVID-19 pandemic underscored the critical importance of robust local health systems and social support mechanisms, reinforcing the urgency of these recommendations.
Infrastructure development, a perennial challenge in a rapidly urbanizing nation, is another key area. APEKSI Komwil I pushes for the acceleration of infrastructure projects, recognizing that modern and efficient infrastructure – including transportation, sanitation, and digital connectivity – is foundational for economic growth, quality of life, and overall urban competitiveness. This often involves complex financing models and coordination between central and local governments, making APEKSI’s advocacy essential.
Environmental sustainability is addressed through recommendations on conservation areas and environmental management. With rapid urbanization often leading to ecological degradation, cities are urged to prioritize green infrastructure, waste management, pollution control, and the protection of biodiversity. These measures are vital for mitigating the impacts of climate change, preserving natural resources, and enhancing the liveability of urban environments.
From a governance perspective, APEKSI seeks to resolve ambiguities and overlaps in authority between central and regional governments. This is a recurring issue in Indonesia’s decentralized administrative structure, often leading to inefficiencies and disputes. Clarifying these mandates is essential for effective policy implementation and service delivery. Furthermore, strengthening human resources (SDM) and bureaucracy within local governments is recommended, focusing on capacity building, professional development, and ethical governance to ensure that public services are delivered efficiently and transparently.
Finally, several specific fiscal policy recommendations aim to improve local government finances. APEKSI proposes that the salaries for Government Employees with Work Agreements (PPPK) be paid through the State Budget (APBN), rather than relying solely on local budgets. This would alleviate a significant financial burden on municipalities, freeing up funds for other essential services. Additionally, there are innovative proposals regarding the collection of Road Lighting Tax (PPJ) and Motor Vehicle Transfer Fee (BBNKB). APEKSI suggests that PPJ collection adopt a model similar to the "opsen" system used for motor vehicle taxes, where a portion is directly allocated to the local government. Similarly, it is proposed that a share of BBNKB revenue be channeled directly to regencies/cities, mirroring the opsen model. These fiscal adjustments aim to provide more predictable and substantial revenue streams for local governments, enhancing their financial autonomy and capacity to invest in local development.
The APEKSI Komwil I meeting in Banda Aceh represents a significant step in the ongoing dialogue between Indonesian municipal governments and the central administration. By identifying and prioritizing key challenges and formulating concrete recommendations, APEKSI acts as a powerful collective voice for urban centers. The meticulous preparation of these 24 recommendations, particularly the emphasis on disaster and fiscal resilience, reflects a maturing understanding of the complex interdependencies that shape urban futures. As these proposals advance to the 2026 Rakernas in Medan, they will serve as a critical blueprint for policy reforms aimed at building stronger, more sustainable, and more equitable cities across Indonesia. The successful implementation of these recommendations will require sustained political will, robust inter-governmental collaboration, and innovative local leadership, ultimately paving the way for a more resilient and prosperous urban Indonesia.
