3rd World Development Model in Indonesia: How to deal with the issues of decreasing public finance and overcoming the demands for public participation in Industrial Revolution 4.0 era?

This work consists of discussions as well as practical examples about potentials and challenges for regional managers in Indonesia en-routing to the 3 rd World Development Model. The model emerged as a critique to the old schemes of government collaborations and partnerships in which the participation of the end-users is not proportionally given. This work aims to understand the relationships among actors, the divisions of their roles, the pattern of participation as well as the advantages of “end-users” participation in the development project. This concept is a Constructive Model of Collaborative, a meeting point between Participatory and Collaborative Governance concept. This study is conducted through post-positivistic approach and qualitative methods by using cases and theoretical studies. Furthermore, through this article, the authors focused on the two major issues in the development nowadays. Firstly, the issue of decreasing public finance, particularly in the case of financial deficit in national health insurance program known as JKN-KIS. Secondly, the issue of public participation in regional and urban development planning through case of Bandar Kayangan City Development Project in North Lombok, West Nusa Tenggara. Hence, this work drives a finding which offers solutions for the challenges on how to run the development project without depending on State or Local Budget at the same time to leverage the public supports and participation in government’s development agenda. Finally, it is concluded that there are needs to understand the tendencies of conflicting visions and goals, power or influence asymmetric and resources imbalance among the involved actors in the new model of collaborative governance.