Bappenas currently is preparing the National Development Plan RPJM 2010-2014. Bappenas, through the Directorate of Urban and Rural Development, has been working closely with the GTZ RED Programme to develop a national strategy for local and regional economic development (LRED) as an input for the RPJM.

As preparatory work for the national LRED strategy Bappenas conducted a comprehensive evaluation of previous LRED activities as well as a comparative study trip to Germany and China in order to learn from overseas experiences how national LRED Strategies are developed and implemented.

The evaluation of the GTZ RED Project in Solo Raya aimed at reviewing the LRED approach in Solo Raya and to clarify on the LRED indicators. Furthermore, Bappenas evaluated the Bappenas PEL Project in seven locations across Indonesia (West Nusa Tenggara, Maluku, Central Java, Lampung, West Kalimantan, Papua and South Sulawesi) to obtain best practices as well as obstacles and challenges towards the LRED approach for local government.

Overseas experience how national LRED strategies are developed and what different roles national, provincial and local level are having for LRED implementation were gathered during a comparative study trip to  Germany and China. The team consisted of representatives from three directorates within BAPPENAS, representatives from other line ministries, KADIN, BAPPEDA of West Kalimantan and Central Java. Germany was visited on June 30 – July 06, 2009 and the comparison in China was done between July 26-31, 2009. 

The lessons learnt from the trip as well as recommendations for the national LRED strategy were discussed at Bappenas on August 21, 2009. The findings and recommendations will be part of the input on local and regional economic development for the RPJM 2010-2014.