Sigi, Central Sulawesi, 24 October 2025 – The Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), once again demonstrated its academic contribution in developing institutional innovation for regional development. Through the Universitas Indonesia Patriot Expedition, a research team led by Prof. Dr. Teguh Kurniawan, M.Sc., Professor at FIA UI, introduced a new theoretical model called the Integrated Institutional Economic Development Model (IIEDM).

The IIEDM model was developed as the result of collaborative research in the Palolo Transmigration Area, Sigi Regency, Central Sulawesi, with the aim of designing an economic institutional framework capable of strengthening the local economy in a sustainable manner. This innovation represents a tangible contribution of FIA UI in advancing administrative science that is not only academically relevant but also applicable in practice.

“We want to build a model that is not only academically relevant but also applicable in the field. IIEDM offers a multidisciplinary approach to understanding and strengthening regional economic governance based on institutional collaboration,” explained Prof. Teguh.

Conceptually, New Institutional Economics (NIE) serves as the main foundation, emphasizing the importance of formal and informal institutions as the “rules of the game” that regulate economic behavior in society, with the aim of reducing uncertainty and transaction costs. The next layer, Social Capital, highlights the importance of social networks, trust, and shared norms that enable cross-actor collaboration.

Economic Resource Development (ERD) strengthens the model by emphasizing development based on local potential and community participation as the main drivers of regional growth, while Local Economic Development (LED) places collaboration among government, the private sector, and society as the key engine of regional economic development.

These four theories are then integrated into a layered structure as illustrated in the IIEDM pyramid (Kurniawan et al., 2025). The foundational layer focuses on NIE, coordinated by Yohani Ebiantari (FIA UI) to strengthen political, regulatory, and institutional governance aspects. The social layer is led by Ega Wahyudi (FMIPA UI) together with Yohani through the strengthening of social capital (SC) using nine indicators of participation and trust.

At the level of regional development, Raynilda Siringoringo (FT UI) and Ega Wahyudi lead the ERD dimension, which includes infrastructure, agricultural economy, and environmental aspects. At the top of the pyramid, Imam Fajri (FASILKOM UI) leads the LED dimension, focusing on technological development and the macroeconomy as drivers of innovation and regional competitiveness.

“The IIEDM approach emphasizes continuity between institutional governance, social strength, local potential, and technological innovation. This is a collaborative model that can be applied not only in transmigration areas, but also in other rural regions in Indonesia,” added Prof. Teguh Kurniawan as the team leader.

Through the implementation of the IIEDM model, the UI Patriot team hopes to make a tangible contribution to the design of regional development policies that are efficient, inclusive, and sustainable, while also strengthening the integration between scientific knowledge and development practice in the field.

To learn more about the activities and research findings of the Universitas Indonesia Patriot Expedition Team, follow further updates through the team’s social media: @palolo_ui
#ekspedisipatriot #transpatriot #patriotberkaryabangsaberjayamerdeka #ekspedisipatriotui #membangunbangsa #sigi #palolo

Universitas Indonesia – Innovation, Collaboration, and Service for the Nation.