The RED Program at a Glance
The Regional Economic Development Program (RED) is a cooperation between the Indonesian National Planning and Development Agency (BAPPENAS) and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) or German Technical Cooperation. The program supports the formulation and implementation of a national strategy for Local and Regional Economic Development (LRED).

Together with public and private stakeholders, RED aims at increasing regional economic competitiveness, based on the specific conditions and requirements of selected regions across Indonesia. At present, the program is implemented in two pilot regions: Solo Raya in Central Java and SINGBEBAS in West Kalimantan.

RED uses an integrated approach with advisory services and capacity development in the following fields:
1. LRED Strategizing
2. Inter-District Cooperation
3. Business-Enabling Environment
4. SME Promotion

Bringing Competitiveness to the Regions
Starting in 2004, first experiences with the RED approach have been gained in the pilot region of Solo Raya in Central Java. In the six districts and one municipal city that form the region, selected instruments have been tested and continue to be refined according to the specific local context. The umbrella for these interventions is provided by a regional strategy that spells out a common vision and action plan (Component 1 of the RED Program).

Since 2008, the RED program has also started to work in the region of SINGBEBAS in West Kalimantan. This second pilot region was selected in a transparent public tender process in cooperation with BAPPENAS and the Indonesian Chamber of Commerce (KADIN). The aim is to apply a tailor-made approach in a region that is economically less developed region than Central Java (Component 2 of the RED Program).

Finally, the experiences gained in these two program regions will be fed to decision-makers at the provincial and national level for policy formulation. This provides the basis for the replication of best practices in other regions in Indonesia (Component 3 of the RED Program).

Future Prospects
RED is paving the way for public and private actors to join forces towards realizing a common vision for their region. Sustainable solutions are necessary to ensure that the processes initiated by the program are continued even after its completion.

The establishment of a local expert pool and the institutionalization of a national LRED Facility are important steps to systematically spread the program approach to interested regions across the country. By involving all relevant stakeholders and accounting for their specific needs and demands, RED sets out to foster regional economic growth with a long-term perspective.