PWYP Indonesia, in collaboration with the Directorate General of Regional Development, Ministry of Home Affairs of the Republic of Indonesia, followed up the preparation of Technical Guidelines for Strategic Planning for Regional Government for Energy and Mineral Resources (ESDM) through expert review discussions to deepen the methodology applied to the draft guidelines. This expert review discussion was conducted offline and online via Zoom (03/05). Present in this discussion Dr. Suharno, S.E, M.Si, Senior Lecturer and development economist at the Faculty of Economics and Business, Jenderal Sudirman University. Several representatives of Ministries and Institutions, Regional Governments include the Directorate of Energy, Mineral Resources and Mining, the Ministry of National Development Planning/Bappenas, and the Department of Energy and Mineral Resources and Development Planning Agency Sub-National Level (Bappeda) of Central Java Province. In addition, representatives of civil society organizations were attended by PATTIRO and the Center for Economic Law and Mining (Pushep).

Akbar Ali and Sarah Ningtyas, Experts in preparing technical guidelines, explained that preparing this guide had passed technical consultations with the National Energy Council (DEN) regarding data and calculation methods and tools that DEN had owned, then further discussed internally with the Directorate General of Development, the Directorate General of Regional Development, Ministry of Home Affairs of the Republic of Indonesia, also PWYP Indonesia. This expert review discussion was conducted to gather input related to the guiding methodology and conduct an applicable simulation for local governments. It is hoped that this guide can be used to synchronize national development targets such as targets for reducing poverty, reducing unemployment, and economic growth with regional planning and development targets.

Methodologically, the experts used two quantitative analyses. The first quantitative analysis explains the magnitude of the contribution to achieving economic targets on the Gross Regional Domestic Product (GRDP) of the Energy and Mineral sector. Then, the second quantitative analysis aims to explain how the allocation of funds and the realization of investments in the Energy and Mineral Resources sector in achieving energy targets by sector in each region. During the discussion, the expert said that at this stage of the analysis, there were still several obstacles, such as the lack of supporting data and regulations related to regional authority in the Energy and Mineral Resources sector, which the central government had not fully discussed after the Coal and Mineral Law no. 3 of 2020 is enacted, which withdraws some of the authority of local governments to the center.

The quantitative analysis in this guide has considered the classical assumptions in the feasibility of the model, such as the normality test, heterogeneity test, multicollinearity test, and autocorrelation test. The quantitative analysis stages are the data collection stage, the data input stage, and the data processing stage. In the Processing stage, the multiple/simple regression analysis stage is carried out to continue with the target achievement analysis. The calculation simulation was also demonstrated by experts to the discussion participants using the E-Views application.

Based on the expert’s perspective, the draft guide received input from Dr. Suharno, S.E, M.Si, that from a theoretical point of view, the guidelines designed have included steps to be applied in regional piloting. The thing that is of concern is the need for a theoretical study and caution in using the disclaimer of the variables listed. Meanwhile, it is still possible that simple regression analysis can be used to analyze specific indicators as long as the assumptions are met in terms of methods. Other inputs were also conveyed by the Head of the Central Java Province Energy and Mineral Resource Office, Dr. Ir. Sujarwanto Dwiatmoko, MSi, this guide is expected to open up opportunities for regional authorities to withdraw from the central government and form more innovative programs.

Maryati Abdullah, as Senior Advisor of PWYP Indonesia, summarized all the inputs given by practitioners and academics. In addition, Maryati described two things that need to be strengthened in the technical guidelines for preparing this strategic plan, including conceptual theory and justification for calculations based on econometric model considerations for each region.

In general, this guide still needs to add some further analysis and complete some supporting data such as specific data related to the conditions of each region, so that the programs that the regions will innovate into the strategic plan document can support the achievement of regional and national development indicator targets and can realize sectoral contributions.

Author: Chitra Regina Apris & Meliana Lumbantoruan