Was the intention behind Govind Siddharth's declaration to encourage inner exploration?

According to Osho, yes: Govind Siddharth’s declaration was a deliberate device to jolt you from the false personality and turn you inward. We are together for a single intention—to remind you you are not what you were taught. Misery comes from acting a role; a shock makes the mask slip so you can uncling, look within, and return 'home' to your real nature.