Irman Gusman Encourages Padang Panjang to Capitalize on the Strength of the Diaspora for Regional Development

04 September 2026 oleh admin

Padang Panjang, dpd.go.id - Indonesian Senator for West Sumatra, Irman Gusman, encouraged the Padang Panjang City Government to shift its development paradigm by not only relying on the Regional Budget, but also leveraging the strength of migrant networks and the diaspora.

This was conveyed by the former Speaker of the DPD RI for two terms in a discussion with Padang Panjang City Government staff at the Pendopo of the Mayor's Official Residence on Thursday (3/9/2026).

The interactive and constructive discussion was attended by the Deputy Mayor of Padang Panjang, Alek Saputra, Acting Regional Secretary, Head of Bappeda, assistants, and heads of departments within the Padang Panjang City Government. Irman then said that Padang Panjang has a large social capital and network of migrants and can be capitalized into investment strength, knowledge, business networks, and regional development.

"Our mindset must change. We shouldn't just ask how much money can be spent through the regional budget, but also how much capital and resources we can manage to create added value," said the Chairman of the Supervisory Board of the DPP IKM.

Furthermore, the national figure born in Padang Panjang then gave the example of China and India, which were able to utilize the power of the diaspora as an important part of economic development.

According to him, West Sumatra, with its tradition of migration, should be able to develop a similar model in keeping with the region's character. "The diaspora shouldn't just be a source of pride, but should be capitalized on as a force for regional development," Irman emphasized.

Meanwhile, Deputy Mayor Padang Panjang Alex Saputra acknowledged that the region's fiscal space is still limited. For information, the APBD before the amendment was recorded at around IDR 514.42 billion, with PAD of IDR 136.79 billion and transfer income of IDR 377.63 billion.

"Around 73 percent of regional revenue still comes from transfers. Therefore, fiscal policy must take into account regional characteristics and the fiscal capacity of local governments," said Hendri.

This condition means that the city government still has to allocate a large portion to routine and mandatory spending. In response, Irman assessed that fiscal limitations are actually a reason for regions to be more innovative in mobilizing resources outside the regional budget.

Regional governments, Irman continued, must act as drivers that bringing together regional assets, the business world, universities, communities, and migrant networks.

"The strength of a region is not only determined by the size of its regional budget, but also by the extent of the resources it can collect, manage, and convert into community welfare," concluded the chairman of the Expert Council for MSME Economics of the Central Executive Board of Muhammadiyah.