Optimizing Decentralization to Achieve a Balance Between Central and Regional Governments for Equitable Development

Abstract

Decentralization, a fundamental pillar in modern governance, transcends a mere division of power to serve as a crucial strategy for fostering equitable development across all regions. This article discusses the optimization of decentralization, focusing on creating a dynamic balance between central and regional governments. The finding of this study show that the central government is directed to concentrate on strategic national policies and basic service standards, while regional governments are granted broad autonomy to plan and implement programs according to local needs, thereby encouraging innovation and rapid response. This optimization necessitates strengthening regional fiscal capacity and human resources (HR), including the development of locally generated revenue (PAD) and the improvement of HR quality through leadership and management training. Furthermore, transparent accountability and oversight mechanisms, supported by active community and legislative participation, are essential to prevent corruption. Finally, the article emphasizes the importance of multi-stakeholder collaboration—involving the community, private sector, academia, and local communities—to create an inclusive and sustainable development ecosystem. This study recomend that the right implementing decentralization will be a primary catalyst in order to realize fair and equitably prosperous Indonesia.