Assessment of Regional Bureaucratic Capacity for Inclusive Economic Development Policy Implementation

Abstract

This study evaluates the capacity of regional bureaucracy in implementing inclusive economic development policies in Indonesia. Using an evaluative-qualitative approach, the research explores four fundamental dimensions of bureaucratic capacity: institutional, human resources, operational-procedural, and relational-coordinative. Case studies were conducted across three regions representing different socio-economic and administrative typologies, allowing for comparative insights into the strengths and weaknesses of bureaucratic performance. The findings reveal significant disparities between the required bureaucratic capacity for inclusive policy implementation and the actual conditions encountered in practice. Among the four dimensions, relational-coordinative capacity emerges as the most decisive factor influencing the effectiveness of inclusive economic development initiatives. This dimension is closely tied to the ability of bureaucratic actors to engage in adaptive leadership, foster inter-organizational collaboration, and build trust with stakeholders. Furthermore, the study highlights how institutional rigidity, limited human resource competencies, and procedural constraints often hinder the realization of inclusive objectives. To address these challenges, the research recommends institutional reforms that prioritize the enhancement of collaborative capacity, encourage decentralized and context-sensitive decision-making, and promote inclusive economic literacy within bureaucratic structures. By strengthening these aspects, regional bureaucracies will be better equipped to design and implement policies that foster equitable growth and social inclusion. Overall, the study contributes to the literature on bureaucratic capacity by elucidating the interconnections among different capacity dimensions and by demonstrating their collective significance in advancing inclusive economic development. These insights provide both theoretical implications for understanding bureaucratic governance and practical guidance for policymakers seeking to strengthen institutional readiness in diverse regional contexts