Inclusive Leadership and Bureaucratic Reform for Local Government Resilience: A Study of Women’s Economic Empowerment and MSMEs in Special Region of Yogyakarta

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Nurliah Nurdin
Retnayu Prasetyanti
Rindri Andewi Gati
Risky Yustiani Posumah
Suci Nur Oktavia

Abstract

The goal of Indonesia's decentralised governance reforms was to make local communities more resilient and inclusive by making leadership more democratic and changing the way the government works. However, even after more than 20 years of restructuring, many local governments continue to struggle with adapting and incorporating women, particularly when it comes to supporting women-run micro, small, and medium-sized enterprises (MSMEs). This study analyzes the interplay between inclusive leadership and bureaucratic reform in influencing the resilience of local governance in the Special Region of Yogyakarta (DIY), a province recognized for its political stability within an asymmetric decentralization framework. This research is using qualitative-descriptive method that combines document analysis, policy review, and secondary data triangulation. Our studies shows that Yogyakarta's stability has helped keep the government running smoothly, but it has also caused bureaucratic inertia that makes it harder to be more open and innovative. While the region's government talks a lot about participatory decision-making, openness, and accessibility that are mostly just words and not real policies.  From the findings, we suggests a framework that connects the inclusive leadership and resilient governance. It emphasises the need for gender-responsive policy co-creation, inclusive budgeting, and participatory mechanisms. It is to give women-owned MSMEs more power.  It also requiring "Inclusivity Impact Assessments," setting up a Resilient Support Unit, and making shared decision-making structures a part of the bureaucracy. The overall findings contribute to the discourse on how making governance more inclusive can help transform political stability into genuine adaptive resilience.
Keywords: Inclusive leadership, bureaucratic reform, resilient governance, women’s empowerment, MSMEs, Yogyakarta, Indonesia.
 

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