Meaning Policy Innovation in The Era of Regional Autonomy

Abstract

This study aims to highlight the significance of policy innovation in the era of regional autonomy. Utilizing a literature-based approach, the findings underscore several key conclusions. First, innovation in the implementation of regional autonomy, as mandated by the 1945 Constitution, is constitutionally and legally oriented toward accelerating the achievement of community welfare. Innovations in improving public services and empowering community participation can enhance regional competitiveness while upholding the principles of democracy, equity, privilege, uniqueness, and the diversity of regional potentials within the framework of the Unitary State of the Republic of Indonesia. Second, innovation plays a crucial role in accelerating regional development and fostering local independence, including in newly established autonomous regions. By embracing innovation, local governments can creatively explore and manage regional potentials to maximize their use for both local development and business growth. Third, innovation reduces reliance on central government transfers. Financial transfers from the central government should not serve as the primary source of funding for local governments, as innovation enables regions to become more financially self-reliant.