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CHAPTER 5

CONCLUSION AND RECOMMENDATION

5.1. Conclusion

This research reveals that the perception from Tax Agency is the main perception that
is applied in the outdoor advertisement management since the Tax Agency is the main
stakeholder which has wide authority on the management and it can override other
stakeholders’ recommendation on the arrangement of the advertisements. Since Tax
Agency perceives that there’s no problem in the outdoor advertisement management
in Yogyakarta, there will be no significant improvement in the city image of
Yogyakarta or it may gets worse.

IBIY (Advertisement Agency) as the external stakeholder actually has interests on the
good city image because a better advertisement arrangement can strengthen the
advertisement itself. But as an advertisement agency whose main job is to display as
many advertisements as possible, IBIY feels that the space for the advertisement must
be flexible and not rigidly refer to the Masterplan.

The barriers to Joined Up Government mechanism in Outdoor Advertisement

Management in Yogyakarta are:

The first is related to the departmental approach which related to the incentive and
reward structure, where Tax Agency is the only party that organize the flow of the
money. From the registration process, tax estimation, until the process of license
issuance, there is no process outside tax agency involving budget.

The second is the absence of a support culture for collaborative activity, non-
recognition of other stakeholders’ perspective, and marginalisation of joined up
approaches champions. Each stakeholder holds their own perspectives and do not
consider the other stakeholders’ perspectives. The tax agency with the ambition to
meet the target, and on the other side, Spatial Planning agency holds the masterplan to
control the city image.

The third is lack of means to recognise shared responsibilities and outcomes and lack
of shared performance indicators are also barriers to joined-up government. Each

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stakeholder has its own perception on Outdoor Advertisement Management in

Yogyakarta. BAPPEDA as the coordinator for the Development Planning seems
powerless to control the balance of Yogyakarta city image and revenue generation
from Advertisement Tax. This difference on stakeholder perception is a high potential
conflict resource.

The fourth is misleading evaluation. Partial evaluation by tax agency on the revenue
gained from advertisement tax gives incomplete picture of the real problem and it
may miss more important issues such as city image. The role and responsibility of
Tax Agency extend beyond its capacity on evaluating city image. The management of
Outdoor Advertisement in Yogyakarta is run mainly by the Tax Agency from the very
beginning of the process until the monitoring and evaluation of the regulation.

The last barrier is the domination of tax agency is mainly caused by the regulation
that allows Tax Agency to play the dominant role. The policy in the Local
Government sees the advertisement as a tax object only, and not from the perspective
of city image. The existing institutional arrangements in the managing of outdoor
advertisement has made the role of Tax Agencies very dominant and focused only on
the revenue generation.

This research has mapped the stakeholders’ perception on the outdoor advertisement
management and found that the dominant stakeholder focused mainly on the
intensification of local revenue through advertisement tax. From the data collected, it
is also proven that the revenue that is generated from advertisement only contributes
around 1% of total Local Income. And the city image and urban heritage are more
valuable since the one of the city vision Yogyakarta as quality education city, cultural
based tourism, and service centre with environmentally sound. And the cultural based
tourism has a meaning of preserving the Javanese culture including historical heritage
building that makes up the city character.

Indonesian decentralisation policy does not only offer great opportunities for
municipalities to improve their local revenue collection through various sources –
including from outdoor advertisement tax– but also attaches great challenges. The
case study shows how stakeholders perceive current outdoor advertisement practice in

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Yogyakarta within various perspectives. On the one hand, proponents who are in
favour of optimising local revenue from this sector argue that there will be no
significant improvement will be made on the city image. On the other hand, the
opponents consider that in order to maintain the good image of Yogyakarta as a city
of cultural values, a better advertisement arrangement should be put as priority.

As one of the main proponents, Tax Agency that possesses a wide authority upon
advertisement arrangement considers no obstacles should be in place in terms of
violation of master plan implementation because all relevant stakeholders have been
involved during the formulation of Outdoor Advertisement Management Master Plan.
The dominant role of this body is mainly caused by excessive authority given by the
local ordinance accordingly. The policy only sees advertisement as a tax object
without considering that disruptive outdoor ads might reduce the quality of the city
image. As a result, it will influence public perception on city image and might also
decrease the number of tourists.

Reflecting Yogyakarta’s case with the international experiences, no significant effort

has been adopted by municipal government to balance city image preservation
program and improving local tax through outdoor advertisement intensification.
Establishing an autonomous body that acts as a joined-up government could be one
of the most possible options

5.2. Recommendation

Since the insufficient research procedure and this research doesn’t intend to propose
recommendations. Nevertheless, there are some suggestions to be considered;

For Local Government;

Joined Up Government Approach should be implemented to deal with the issue of

outdoor advertisement because this issue is a complex issue involving Image of the
City, Tourism, and revenue generation. It can be reached by creating a joined-up
secretary for the outdoor advertisement management under the coordination of higher
degree official such as Assistant Secretary on Development. With distribution of
function (regulatory, permit issuing, tax receiving, and supervision), each interest will

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not be dominant. The Masterplan of outdoor advertisement should be consulted to all

stakeholders, and all feedback must be carefully considered.

The different perception on advertisement permit application usually emerges on the

location which is not mentioned in the masterplan. To avoid that, the Local
Government should extend the masterplan area from 50 road sections to all road
sections or districts in Yogyakarta.

For further research;

This research is an exploratory research and as an entry point on the outdoor

advertisement management. Researcher proposes for further research, to explore the
public perception on the outdoor advertisement or institutional framework on the
outdoor advertisement management.

Outdoor Advertisement Management in Yogyakarta