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Red Tape Perception in Palembang's One Stop Shop (OSS) PDF
Red Tape Perception in Palembang's One Stop Shop (OSS) PDF
One innovation in public service is One Stop Service (OSS) which has objective to reduce the
red tape in public services. OSS also comes with their rules and regulation that can potentially
support red tape. Policymakers and managers often enact rules and procedures to improve
performance. Unfortunately, the extent to which those rules are useful for achieving an
organisation’s goal is sometimes questioned. Different stakeholders may have different
appraisal about the red tape. This research is trying to find the perception of red tape saw both
by citizens as service users and OSS internal employees as service providers in Palembang
City, Indonesia. Naturally, when people talk about OSS, they imagine comfortable and
convenient public service centres. But this notion may contradict in reality, as red tape is
inevitable especially for governments.
The theory on red tape and literature related to the OSS is used for this research particularly
that help to measure the extent of burdensome, unnecessary, infectivity of rules and procedures
applying in the organisation. The data mainly collected through questionnaires and also
complemented with the interview with OSS manager(s) and OSS customer. The finding reveals
the level of red tape within OSS in Palembang City and gives a better understanding about red
tape in OSS. Moreover, this result provides benefits for the improvement of public delivery
services, particularly in OSS.
The result shows there is a difference in the extent of red tape perceived between internal and
external stakeholders. The external tends to be higher than the internal. The cause of high red
tape from customers` perspective mainly comes from the delay, corruptive behaviour,
transparency (in cost and time). Those factors are assumed to be connected to each other. The
result also shows that two other assumed factors namely rule`s objective understanding and
employee’s competence seem to have less influence on red tape perception in Palembang OSS.
This research is expected to help understand the red tape phenomena in the given public service
centre. Besides that, the number of studies that reveal red tape perception among different
stakeholders for a particular set of rules may be insufficient too. Thus, this research tries to
contribute to existing knowledge about perceived red tape by different stakeholders in low-red-
tape-intended public organizations.
Keywords: red tape, One Stop Shop (OSS), employee`s perception, customer perception.
By time,
Indeed, mankind is in loss,
Except for those who have believed and done righteous deeds and advised each other to truth
and advised each other to patience.
(Al-`Asr: 1-3)
I would first like to thank my thesis Supervisor, Dr. Alex Ingrams of the Tilburg Law School /
Tilburg Institute of Government at Tilburg University for the valuable feedback and advises.
I would also like to thank the all OSS employees especially to the Head of OSS for his help to
encourage his employees to take the survey and for all people in Palembang who were available
for the survey.
I would also like to acknowledge Dr. Wesley Kaufmann of the Tilburg Law School / Tilburg
Institute of Government at Tilburg University as the second reader of this thesis.
Finally, I must express my very profound gratitude to my parents, my wife (Nova Isriani, SE)
and my children (Fardhan and Firdhi) for providing me with unfailing support and continuous
encouragement throughout my years of study and through the process of researching and
writing this thesis. This accomplishment would not have been possible without them. Thank
you.
Rudiantoro S. Daud
ABSTRACT............................................................................................................................................ 2
ACKNOWLEDGEMENTS .................................................................................................................... 3
TABLE OF CONTENTS ........................................................................................................................ 4
TABLES AND FIGURES ...................................................................................................................... 6
INTRODUCTION .................................................................................................................................. 7
1.1. Background ............................................................................................................................. 7
1.2. Problem question and Research Objectives ............................................................................ 9
a. Research question ................................................................................................................... 9
b. Research objectives/purposes ............................................................................................... 11
1.3. The Research Benefits .......................................................................................................... 11
a. For Academic ............................................................................................................................ 12
b. For Society ................................................................................................................................ 12
CHAPTER II......................................................................................................................................... 13
THEORETICAL FRAMEWORK ........................................................................................................ 13
2.1. Red Tape .................................................................................................................................... 13
a. Definition .................................................................................................................................. 13
b. Red tape as Perception: ............................................................................................................. 16
2.2. One Stop Shop ........................................................................................................................... 18
a. The ideal purpose of one stop shop ........................................................................................... 19
b. OSS in Palembang City............................................................................................................. 21
2.3. Red Tape Perception in OSS ...................................................................................................... 24
a. Public perception of red tape in OSS ........................................................................................ 24
b. Internal perception of red tape in OSS ...................................................................................... 26
c. The factors that influence red tape perception .......................................................................... 28
CHAPTER III ....................................................................................................................................... 32
RESEARCH METHODOLOGY .......................................................................................................... 32
3.1. Method of the research............................................................................................................... 32
3.2. Data Collection .......................................................................................................................... 33
3.3. Population and Sampling ........................................................................................................... 33
3.4. Data Analysis Methods ......................................................................................................... 35
3.5. How to measure red tape............................................................................................................ 35
INTRODUCTION
1.1.Background
Implementation of the One Stop Integrated Services (OSS) Shop in Indonesia provides a
perfect example of the changing paradigm across the globe where governments are
transitioning from rulers to services providers. Changes in government orientation to public
services bring a positive impact amidst the various complaints that often occur in the
community. It is understandable that the negative impression of bureaucracy is so inherent in
a long and tedious process that is even scary or irritating to some societies (Rainey: 2003;
Wilson 1989 in Brewer et al.: 2009). Brewer said that red tape has probably become the most
pervasive and damaging of all bureaucratic maladies (Brewer et al.: 2009). He argues that red
tape can cause public organizations to be more arthritic and self-serving, less able to achieve
their core goals, less responsive to political authorities and service users (Brewer et al.: 2009).
Communities will perceive them as long-winded, having long processes and vague in time and
cost (see Kaufman: 1977 and Bozeman: 1993). This also applies to the private sector which
wants get licensing. The number of conditions that would be needed to be met in various
agencies would be a burden of its own inhibiting investment or new business (see Login report
on OSS). As suggested by Bozeman et.al (1992: p.290) the term red tape emerged from the
image of “a slow bureaucracy inundated with minute rules and regulations”.
Issues relating to various barriers to licensing such as long and complicated processes, non-
transparent in procedures can lead to an attempt to speed up the process or be treated more
favorably by officials by providing tribute. Red tape and corruption in public organizations do
have a strong correlation (Fazekas: 2017, Walker and Brewer: 2008). Red tape and corruption
also seem to be linked similarly to the "egg or chicken?" question. However, the which comes
first debate does not seem to be very important as both are undesirable for society. Guriev
(2003: pp 489) claimed that corruption and red tape cannot be treated independently. Tedious
and long-standing procedures may prompt officers to ask for illegal payments to speed up the
process. In other hand, a corruptive mentality of public apparatus makes them publish lengthy
and difficult procedures to facilitate the receiving of money (for personal gain) (see Guriev:
2003). Rohwer (2009) argues that “payments or returns are needed or demanded to make
things more swiftly, smoothly or more favourably through the state or government
bureaucracies”.
One of the efforts to facilitate service improvement for the community is through the
establishment of one-stop integrated services, a practice widespread throughout the world. This
effort also applies to Indonesia which is still struggling to improve the quality of services to
communities. To improve licensing and non-licensing services throughout Indonesia, the
Government of Indonesia has issued a policy for the establishment of an integrated service
center. The latest Presidential Regulation No.97 of 2014 states that the implementation of one-
stop integrated services is intended to bring closer and improve services for the community,
and to shorten the service process to realize a service that is fast, easy, cheap, transparent,
certain and affordable. In addition, in the presidential decree, it is stated that integrated service
is carried out by unifying the process of managing services both licensing and non-licensing.
With the issuance of the regulation, every province, municipality, and the city must establish a
one-stop integrated service office.
b. Research objectives/purposes
1. To describe customer`s perception about red tape in OSS of Palembang City.
The citizens are probably the party to be directly impacted by the rules application.
The provided services are aimed to meet their needs. That is why customer orientation
policy is crucial to OSS due to its performance assessment. The OSS customer
perspective about the extent of rules that must be complied to can influence the success
of OSS. This research aims to see the level of OSS customer satisfaction regarding the
rule constraints with the OSS office. A description of the red tape will be given through
the customers’ subjective assessments of burdensome, the necessity and the
effectiveness of rules and procedures they must comply with.
2. To describe OSS employees’ red tape perception regarding rules, procedures, and
requirements applying to their customers.
To complement the customer’s perception about red tape, OSS internal employees
were asked for their opinion about same rules and procedures of service application
processes. The employees were also asked about their perception regarding to those
rule constraints. The aim of this was to increase understanding about how employees
perceived the existing rules and procedures. It is useful to know whether the internal
red tape perception is coherent with the public’s.
3. To provide an overview of the cause of red tape in respect to improve service in OSS.
There are presumably factors that influence the public`s red tape perception in OSS.
This research tries to uncover these factors to provide explanation about the cause of
the red tape. It is expected that this effort will give better understanding about how far
red tape perceptions, especially in OSS, are affected by certain conditions. The ultimate
goal is to help set better rules and procedures within OSS based on perception and
improve services to the community.
THEORETICAL FRAMEWORK
OSS can also be used to fix the quality of services provision mainly for receiving licenses and
permits. The shift in paradigm of government towards services provider has pushed the
government to change orientation to its customer`s satisfaction. Governments are imposed by
the fact that private often serve better, thus government can learn from private and also perhaps
compete to provide excellent services for public. Thus, OSS often comes with their improved
Besides the two aforementioned reasons, the establishment of OSS is also related to an effort
of curbing the corruptive behavior of officers. As some scholars have argued, red tape and
corruption is most likely connected. Too many constraints and complex procedures can
encourage people to give a bribe to ‘grease the wheel’ of their application. People or businesses
tend to spend extra money to have their application processed or completed faster. Businesses
also use the rules constraints as an entry barrier for competitors by colluding with authorities.
People who cannot afford to pay bribes resentfully obey the rules, delays and other vexing
processes. Officers can extort the money by increasing red tape in their organization or
unlawfully offering their skills or connection with incremental charges. The existence of OSS
is believed to suppress those corruptive behavior, establish fairness for all citizens and remove
the negative image of services owned by governments. Thus, OSS must have transparent, fair
and inclusive process and procedures. To ensure the process is as expected, the mechanisms
themselves are embodied with some rules and regulations to limit the discretion, something
that potentially brings its own red tape, something this research enquires.
The delay and long process also can inhibit investments and influence economics. Private
commonly are required to acquire licenses and permits before they run a business. Excessive
rules can constrain new companies when entering a new market if they know the compliance
cost. OSS can facilitate the business to comply with the regulation and receive the necessary
licenses and permits in an easy way. By making the process easier, it would make more
conducive environment to start the business without excessive regulations.
One important thing to consider for any public institution is how to balance between citizens’
demands and internal processes. As it purpose is to ease service delivery, it is crucial to
understand what people expect from the OSS establishment. Citizens’ experience with OSS is
likely to influence the government’s image. If people do not feel satisfied with OSS, they tend
to hold a negative feeling towards the government as a whole. “The citizen and customer
experience are influenced by the interactions and experiences that they have…” (PWC: 2012).
It is self-evident that customer oriented is essential for governments to ensure that the aim of
OSS is relevant with what people expect. Thus, OSS design must be based on the core
principles as shown by PWC (2012) as follows:
1. Listen to your customers
It is essential to understand the customer`s expectation and need in the way services are
delivered according to them. PWC argues that private sector has better understanding
about customers than public organizations. Thus, citizen-centric is important key to
OSS model for success.
2. Break down the silos
PWC refers to more connectedness among different agencies by breaking down
hierarchical structures rather abandoning them altogether.
3. Enable a multi-channel service experience
This notion refers to providing a multi-channel of communication and delivery methods.
Therefore, the citizen can access the service anytime, anyplace and by any means public
prefers.
4. Continuously improve through customer feedback
Customer`s voice is essential to improve the quality of service and also to adjust the
process therefore that would give positive impact on customer`s experience. “Customer
The OSS policy in this country started in 2007 by enactment of Indonesia Law number 25 of
2007 about investment. Based on this law, the services are provided for permits and licenses
for running the business. Thus, OSS has not included the services such as tax, civil
documentation, among others yet. According to this Law, OSS aims to help investors in
receiving simple and easy services, fiscal facility and information related to investment. OSS
is defined as activity providing permits and non-permits from an authorized delegated
institution whose authority to conduct the activity - ranging from application registration to
document issuance- in one place. The OSS itself uses the concept of One Door integrated Shop
The purpose of OSS as stated in Presidential Regulation No. 97 of 2014 about OSS is: (1) to
give legal certainty and protection to public; (2) to shorten service delivery process; (3) to embody
fast, easy, cheap, transparent, certain, and affordable service process, and (4) to provide closer and
wider services to public. This Regulation obviously want that each level of government reduces
the red tape as generally inhibits the investors and public in doing their business.
The Palembang OSS was first formed in 2008, led by an echelon 3 with name One Door Integrated
Service Office (KPPT). In 2016, Central government enacted new Government Regulation (PP)
number 18 of 2016 about local government body structure which stipulated that OSS inherent to
local government`s investment agency. Thus, City Palembang then formed local legislation number
6 of 2016 that merged the One Door Integrated Service Centre (KPPT) with Investment Board
which is now called DPM-PTSP and it became one among 28 other departments within Palembang
City Organization. By integrating OSS with the Investment Body, Central Government aims to
improve the quality of delivery service citizens (Article 39 PP 18 of 2016). The Central Investment
Coordination Board (BKPM) said that the merger of One Stop Service with Investment agency in
local government is expected to at least fasten the process, and give more legal certainty as
preferred by investors (Tamba Hutapea: 2014: http://nasional.kontan.co.id/news/bkpmd-dan-
pelayanan-satu-pintu-bakal-menyatu).
According to City Legislation number 6 of 2016, the Palembang OSS has main task to conduct the
technical policy formulation, facilitation, coordination, monitoring and evaluation of investment
and permit services using integrated, synchronized, simple, transparent and legal certain method.
To comply, the OSS has several functions stipulated by Palembang Mayor`s Decree number 60 of
2016 about Establishment and Structures of Palembang Government Organization as follows:
- Formulation of technical policy;
- Policy Implementation within its main task and authority
- Conducting general government duties and services.
- Conducting administration according to authority
- Other task given by City Mayor according to its authority
The Palembang OSS is led by an echelon II chief with one secretary and six division managers.
The division consist of The Investment Climate Development and Planning Division, The
Investment Promotion, The Investment Information and Monitoring, The License and Non-licenses
Services for Economy and Public Welfare Investment, The License and Non-licenses Services for
Development and Environment, The Complaint and Report Division. There are also a technical
and a functional unit to help to assess and verify the submitted documents. Each of division
supervises two-unit sections. The complete structure of Palembang OSS can be seen on picture
below:
The City OSS structure describes the kind of services that currently, focusing on the permits and
licenses related to investment and development. The structure exerts the scope of services provided
by OSS is aligned with underline the organization’s legal base namely Law Number of Law
number 25 of 2007 about investment. Even though the OSS in the future can possibly extend
the range of services not only for investment and development-related permits but also kind of
services related people daily activities such as civil documentation, passports, and others. One
condition that should be considered is about the jurisdiction of authority owned by different
government institutions as stipulated by Indonesian Laws. For example, Law number 23 of
2014 about Local Government divides what kind of authorities are obligated to central,
provincial and city/municipality with autonomy principle. Every level of government has
authorities even though upper government can transfer their power through deconcentrating
and delegating task. For example, the citizen electronic-ID card is currently becoming national
policy held by central government although its implementation involves local governments.
Based on recapitulation from delegation decree of City Mayor, currently Palembang OSS
provide 159 business licenses in 38 license groups as shown in Table2 below:
Table2. The kind of license and permit services in Palembang OSS
Based on the interview, the chief of Palembang OSS is currently trying to establish the Mall of
Public Services. He expects that this center will be opened to public next year. This mall
typically is a center that provides multiple public service provisions nationwide by putting
disparate multi-level of authority into one single building or one roof. The Chief said that with
The Public Service Mall, the government can cover wider and more comprehensive public
needs and not only business-related licence services. He said that although government still
cannot integrate all public services provisions, at least people do not need to attend different
places or be bothered with understanding which authorities deal with which jobs. The Mall is
expected to provide various services such as e-KTP (national electronic ID card), birth
certificates, notary, and immigration office for passports, Land Certificate and Registry
(National Land Body), Water-Gas-Electricity registry, legal and notary registry, so forth
besides existing business licenses provided by Palembang OSS. He suggested that this way
will significantly help citizens meet their needs, reduce the complexity of bureaucracy and
eventually positively impact government performance in reducing rules burden.
RESEARCH METHODOLOGY
Population of
Percentage of
No Categories OSS Sample
total sample
employees
I Position in OSS:
- Echelon II (Chief) 1 1 2.22
- Echelon III (Upper manager and Secretary) 7 3 6.67
- Echelon IV (lower manager) 15 10 22.22
- Back office staff 42 19 42.22
- Front office staff 12 12 26.67
- Not mention - 1 0.00
II Age Category:
- 18 - 30 years old - 7 15.22
- 31 - 40 years old - 32 69.57
- 41 - 50 years old - 6 13.04
- 51 - 60 years old - 1 2.17
- Others - 0 0.00
III Gender:
- Male 47 24 53.33
- Female 30 21 46.67
- Not mention 0 1 0.00
IV Education:
- Elementary/Junior High School 0 0 0.00
- Senior High School 4 0 0.00
- First degree 51 29 64.44
- Master degree 20 14 31.11
- Doctoral degree 2 2 4.44
- Not mention 0 1 0.00
Total sample 77 46 100.00
Source: Palembang OSS, 2018.
The number of respondents from Palembang OSS employees who gave their answer is 46
persons that ranging from managers, to the frontline staff. This number is over the target. The
writer used a personal approach using the head and one manager of OSS to distribute the survey
through their internal WhatsApp group. This method is considered easier and could reach all
the employees as all were members of the internal social media group. The result was 46 out
of 77 employees giving their answers equating to about 59.74% sample from OSS internal
population. Besides the questionnaire, the chief of OSS and one manager were interviewed to
follow up their answers.
For OSS services users, it is quite difficult to retrieve exact data on them because there is no
fixed number that shows the number of Palembang OSS service users. Thus, I used
accidental/haphazard sampling. Accidental sampling is a sampling technique that choses any
respondents accidently met in the location. For this research, the external respondents were
chosen from OSS customers met in OSS office just after they had submitted or receive a service
from frontlines.
The total sample number from external respondent is 101 people. The detail of external
respondents can be seen in table 4 below:
Percentage of
No Categories Sample
Total sample
I Age Category:
- Under 21 3 2.97
- 21 - 30 years old 40 39.60
- 31 - 40 years old 36 35.64
- 41 - 50 years old 14 13.86
- 51 - 60 years old 6 5.94
- Over 60 years old 2 1.98
II Gender:
- Male 51 50.50
- Female 50 49.50
III Job:
- Entrepreneur 24 23.76
- Private company employee 30 29.70
- Civil servant/Police/Military 11 10.89
- Housewife 6 5.94
- Student 7 6.93
- Not working 10 9.90
- Others 13 12.87
IV Education:
- Elementary/Junior High School 0 0.00
- Senior High School 32 31.68
- First degree 61 60.40
- Master degree 8 7.92
- Doctoral degree 0 0.00
Total sample 101 100.00
Min: 1.00 Max: 5.00 Mean: 2.95 Standard Deviation: 0.69 Variance: 0.48 n: 101,
Some reasons were provided by respondents who felt burdened by rules and requirements while
applying. 34 out 101 respondents provided reasons behind rule burden perception. Based on
similarity, those answers in general can be grouped as follows:
- Long bureaucratic process and unresponsive officers (7)
- Supporting documents from other government offices as a requirement (17)
- Confusing and complicated requirements (5)
- Conventional and manual process (4)
- Lack of transparency (1)
It is assumed that the “extensiveness” feeling may come from the number of requirements
consumers must provide when submitting the application. Even though Palembang OSS uses
one door integrated service concept, in reality, the high burden is potentially created through
many supporting documents as a precondition for submitting application. The obligated
documents ironically mean consumers still have to attend several offices which contradicts the
concept of integration and one place service delivery. This implies more effort and spent time
The situation above may also lead to differences in calculating the time needed to receive a
particular permit from OSS. The consumers tend to calculate delay starting from the moment
they begin to collect the documents while OSS prefer to start the processing time from the
moment an application is submitted with the complete documents until the issuance of permit.
Hence, even though OSS claims it provides fast process, its consumers still perceived the
process inside OSS as same with others agency. OSS should try to simplify the whole process
not only procedures for applying inside the OSS but also the requirements needed. The use of
e-government perhaps can be a solution to integrate the data among different government
offices and ensure easy access for OSS consumers (Wimmer: 2002; Welch and Pandey: 2006;
PWC: 2012).
The rule`s necessity perception:
The second red tape TIRT assessment is the rule`s necessity. Borry (2016: p.577) said that “a
rule that is red tape must be burdensome in compliance while also being useless or
unnecessary”. The necessity perception from OSS consumers is shown in table 7.
There is an answer variation about the rules necessity perception gathered from the survey. The
answers show a balanced spread across necessary and unnecessary. The most frequent answer
is unnecessary with 40.59% from a sample of 101. In contrast, 33.66% and 15.84% of
respondents felt that all rules are necessary and very unnecessary, respectively. The result
shows that the rules necessity perceived by OSS consumers is relatively high.
For checking robustness of necessity perception answers, the respondents were asked they’re
opinions about the complexity of rules, procedures, and requirements in Palembang OSS. There
is a possibility that people did not fully understand what rules necessity meant. The respondents
may have guessed that necessary would be related to rule benefits to them. It was assumed that
Palembang citizens were more familiar with the term of complexity (rumit/berbelit) which
means some extent of pointless steps. Rules are unnecessary when they are pointless or useless.
In fact, the services delivery process and decision making still can be performed properly and
fast without them. Unnecessary rules cause the process to become excessive and complicated.
Figure 8. The respondent’s response about the rules complexity in Palembang OSS
.
Figure 8 shows that when people were asked about their perception on the rules complexity,
they valued it as somewhat complicated. 39 out of 101 (38.61%) respondents perceived the
rules and procedures as complicated and not simple. The majority of respondents (47 or 46.53%)
perceived the rule`s complexity on an average level which means no significant differences
with regular government offices.
The rule`s effectiveness perception:
Table 9. The OSS customers’ perception about rule`s effectiveness
Min: 1.00 Max: 5.00 Mean: 3.15 Standard Deviation: 1.16 Variance: 1.33 n: 101
Burdensome:
The burdensome refers to the rules and procedures that seem to be excessive and constraining.
Most employees tended to see that the rules and procedure as no burden to the customers. The
effect of burden is probably not felt by them as they are not the party who bear the rule burden,
they just follow the existing ones and pass the rules to the customers (Bozeman: 1993).
Table 10. The OSS employees’ perception about rule`s burden
From table above, we can see that 33 employees or 71.74% of total OSS internal respondents
believe that the rules and procedures OSS has do not have burdensome effect to the customers.
In conclusion, OSS employee perception about rules’ burdensome effect for its consumers is
low.
From table above, almost all employees believe that procedures and requirements are needed
to complete the process. 58.70% or 46 employees perceived that all requirements and
procedures apply are very necessary for service delivery, followed by 17 respondents or 36.96%
who think the rules are necessary. There are insignificantly 2 employees who are against the
common answers. There is possibly a related argument about why OSS employees tend to
answer that rules are necessary. The accountability and safeguarding reasons are assumed to
make the necessity perception of applied rules. They need to follow the standard operational
procedures and check the supporting documents before making an approval or decision on the
application (Kaufman: 2015, Bozeman: 1993). Based on an interview with one of managers,
all necessary procedures and supporting documents have been thoroughly examined before
they are put into the rules. The goal is to make sure they provide an accurate assessment of the
applicant file and to avoid mistakes in case something undesired happens whilst issuing the
permit. They do not want to be blamed for future problems, such as abuse of permits. With
respect to the red tape aspect, the Head of OSS said that they have done their best to reduce the
requirements to be not to burden the society, thus the supporting documents requested and the
procedure carried out are felt necessary before deciding whether the permit is given or not.
Overall, we can conclude that internal perception about the necessity of rules, procedures, and
requirements for service delivery in Palembang OSS is high. This means they perceived low
red tape based on the rules necessity applying in OSS.
The effectiveness
The effectiveness relates to how OSS employees see the accomplishment of the organization
goal to improve and ease the service delivery and to provide attractive environment, as
preferred by the public with rules and procedures existing in their office.
Table 12. The OSS employees’ perception about rule`s effectiveness
The responses show that most employees believe that the established rules and procedures for
their clients are already effective to achieve their organization goals. 29 or 63.04% employees
see they have effective rules and procedures while 12 or 26.09% think the rules are very
effective to accomplish the organization`s goals. There only one employee who thinks the rules
they have are ineffective.
80 71,74
57,43
60
40
%
22,77 customers
20 15,22 17,82 employees
10,87
0,99 0 2,17 0,99 Linear (customers)
0
Linear (employees)
The comparison in red tape perception can be also seen from the rules necessity perception in
Figure 14 below. The same tendency also occurs where OSS customers perceived lower rule`s
necessity than OSS employees. The percentage of OSS customers who feel the rules are
unnecessary is 40.59%, compare with 2.17% of employee`s perception. There is a strong
tendency that OSS employee would feel the rules are becoming more necessary as shown in
the graph. For customers, the necessity tendency slightly increases but is still lower than OSS
employees. This result also shows that there is a difference in perception about the rule`s
necessity between OSS customers and employees. The customers have lower necessity
perception than employees which implies they have high red tape perception.
Figure 14. Comparison necessity perception between OSS customers and employees
80
58,7
60
40,59
40 33,66 36,96 customer
%
employee
20 15,84
6,93 Linear (customer)
2,972,17 2,17 0
0 Linear (employee)
70 63,04
60
50
40,59
40
31,68 customer
%
30 26,09
employee
20 Linear (customer)
11,88 13,86
8,7
10 Linear (employee)
1,98 2,17 0
0
The TIRT results confirms that higher red tape perception occurs among customers rather than
OSS employees. These results support the hypothesis that states OSS Employees have lower
red tape perception than their customers. The result also fits with the stakeholder red tape
concept from Bozeman (1993: p.291) which means rules, procedures that remain in force but
serve no objective value by a given stakeholder group.
To test the hypothesis on the influence of position and role in organization to the red tape
perception, the three item red tape answers above are contrasted with position of each
respondent in OSS using cross tabulation. One respondent did not provide his/her position
therefore he/she is excluded from cross tabulation even though he/she answered the three-item
red tape. There are five different categories of OSS employees spanning from the echelon II
as the highest position within OSS to ordinary staff (non-echelon). The staff were also divided
into two categories namely back-office staff who process the documents and do not have
contact with OSS consumers and front-liner who are directly in touch and communicate with
OSS consumers.
From Table 16, each position group in OSS has same opinion about the burdensome level of
red tape with little variation between answers. The majority of each group thinks that the rules,
procedures, and requirements do not create a burdening effect on consumers. Yet, the extent of
not burdensome slightly varies among each group. 90% of lower managers and the OSS chief
perceived a moderate not burdensome level of red tape, while 67% of upper management
thought not burdensome and the remaining (33%) that rule burden is somewhat in the middle
between burden and nor burdensome. The rule burden perception is also not so prominent
between back office and frontline staff with 68% and 67% for not burdensome respectively. In
fact, 33% of frontline staff surprisingly think the rules, procedures, requirements they have are
very not burdensome. This finding is in contrast to hypothesis 4 that initially suggested
frontline staff would perceive higher red tape than back-officer and managers do. With very a
little and insignificant difference, the lower the job position of OSS employees, the lower the
burdensome effect perception. Overall, based on answers given by respondents, there is the
same tendency to perceive low burden effect of rules and procedures apply for internal
Palembang OSS.
Table 17. The distribution of necessity perception among different position in Palembang OSS
.
Regarding rules necessity, the majority from all position groups also perceived that all rules,
procedures, and requirements applying to the public were important and required for the public
service delivery conducted in Palembang OSS (see Table 17 above). The majority of
respondents from each employee group assessed the rules, procedures, and requirements as
very necessary and almost all the remaining answered that rules are rather necessary. There is
a slight rising pattern for ‘very necessary’ dominantly given by higher positions with 70% from
lower management, 67% from upper management and from Chief of OSS compared with 53%
and 58% from back office and front office staff respectively. Thus, the tendency is that the
Based on the result in the above paragraph, the hierarchical positions and roles more or less
seem play a role in influencing the necessity perception rather than the burdensome effect
perceived by OSS employees. In stakeholders’ red tape perception, the burden effect can be
passed through to customers while the OSS still need a system or mechanism that guards the
process of service delivery. Internally, OSS employees most likely try to understand existing
rules, procedures, and requirements in the context of organizational purposes and roles first
rather than customers’ views. Walker and Brewer (2008) suggest that the different hierarchical
positions and roles can result in different interpretation on organizational purposes, functions,
and roles. Thus, in the context of rule necessity, all OSS employees tend to feel that existing
rules are necessary for organizational goal but the higher positions would assess a higher
necessity than lower ones. Both Chief and a manager of Palembang OSS said that they need
all applying rules to ensure the process is safe and correct. When they are asked about the effect
of rule burden for citizen, the OSS Chief replied: “We have set the rules and procedures as
minimum as possible to reduce the burden effect felt by customers. We do not put them if we
do not need those requirements”. The manager also exerted:”… All requirements and
conditions apply indeed are very necessary to ensure we make right decision to reject or
approve the applicant. We assess the propriety of applicant based on supporting documents he
submit and some certain permits need field checking to ensure the correctness of given
documents. If something is wrong in the future, we have already followed the standard
procedures, I hope people would understand about this because I think our rules are not so
excessive because we know we have to provide simple process…”
The third is the distribution of rules effectiveness perception among different groups of
employees as shown in Table18 below. In general, the result exhibits that there are no
perception differences about rules effectiveness among groups. This means that the hierarchical
positions and roles do not have a significant effect in influencing the effectiveness perception
on organizational goals contexts. Hence, this result also indicates that the third hypothesis is
not proved for Palembang OSS's internal perception.
As shown previously, most of OSS employee groups perceived high effective for rules in
accomplishing the organization goals. Only one respondent namely echelon II manager
answered OSS have ineffective rules relating to its goal to cut red tape in service delivery.
Respondents primarily perceived effective for the rules they have, with 29 answers. Most
respondents for each employee group chose effective. For example, 60% echelon IV perceived
effective, 30% is very effective, and only 10% chose middle answer. The same pattern also
applies to back office and frontline staff with a sheer different in number (see Table 18)
To conclude, there are two general things that can be summarized from the survey results as
explained above. First, based on the survey, the internal perception of red tape is generally low.
The result indicates that all three items of red tape asked to OSS employees received positive
assessments such as not burdensome, necessary and effective for organization. Almost all
internal respondents believe that the rules, procedures, requirements applying in OSS do not
have a burden effect on the OSS customers. Internally, it means that one of the red tape
perception indicators is low. Their perception about low red tape is most likely because they
do not bear the requirement burden set in their organization. They only follow the rules that
already exist and pass the compliance burden onto clients. The second item of red tape which
is necessity also shows low red tape. Most employees felt that all rules for service delivery in
OSS are needed for the application processes (58.70% necessary and 36.96% very necessary).
Besides that, regarding to the effectiveness perception, OSS employees perceived that all rules
are effective for accomplishing simple and short service delivery (63.04% effective, 26.09%
very effective, and 8.70% average). Second, different hierarchical positions do not significantly
influence the red tape perception among OSS internal employees. The result also shows that
there are no significant differences between frontline staff and managers. All three item red
tape results show that there is insignificant variance between given answers regarding position
and role of employees. A little variation does not mean that there is a large difference in the
burdensome, unnecessity, and ineffectiveness perception. Thus, the third and fourth hypotheses
that suggest a different perception of red tape among internal OSS due to position and role
discrepancy seems unproved at Palembang OSS.
Figure 19. The Palembang OSS customer`s perception Figure 20. The customer`s perception about the
about the excessiveness and constraints of rule and excessiveness and constraints of rule and procedure (red
procedure (red tape) in government sector tape) in Palembang OSS
The charts above show that there is a similar pattern regarding customer’s perception of red
tape both in general government offices and in Palembang OSS itself. This could mean two
things. First, the red tape perception on public domain had influenced the red tape perception
in Palembang OSS. Second, the OSS still cannot reduce the red tape as intended by its goals.
The second is perhaps more reliable as OSS has its own rules and delays in services provision
(LOGIN Asia, pp.16). Besides that, the second meaning is more align with the results of the
TIRT measurement in the previous section. The same pattern possibly arises because they
expected that OSS should provide a simpler and better service mechanism than regular
government agencies. But in reality, they found the red tape difference is not so significant.
Thus, I prefer to say Palembang OSS still cannot reduce red tape as its goal intend. This
argument does not imply the high red tape perception in public domain has (or has no) positive
correlation to high tape in OSS, but rather consumer`s experience lead to red tape perception
in OSS.
Since the public perception of red tape in government agencies is inherently higher than private
as supported in some literatures, the establishment of OSS does not automatically decrease
public opinion of red tape. This research offered some presumably salient factors that may have
significance to the perception. The factors were asked to the external respondents
accompanying the questions on red tape perception in OSS. This was expected to give an
explanation about which factors determine the perceived red tape among OSS service users.
Those determining factors are time-delay, transparency, rules objectivity understanding,
corruption behavior, and staff competence.
Many of respondents assessed the time needed to issue certain permits or licenses is fairly long
compared to what is expected from OSS. Even though they have already completed all
requirements, they still must wait at least formally 14 days to get their application done. Table
18 shows the processed time is on average speed (66.34%), while 18.81% respondents still felt
the time was long and 3.94% very long. The respondents who felt OSS provides fast decisions
is only 10.89%, this assessment is far from what was expected from OSS. One OSS customers
told her experience that OSS often issued the permit after the promised deadline, and she even
had to wait for over one month for the decision without notice or good explanation from OSS
officers. At worst, she also has ever asked to resubmit her application because the whereabouts
of her previous documents were unknown to the OSS. Based on the interview with the OSS
manager, the customers felt delays when they have to wait for the final decision exceeding was
what officially set. She admitted that many permits and licenses are issued after the deadline
which is a maximum of 14 days. She said that in principle people do not mind waiting within
the officially set standard time. But when the deadline is exceeded, and they still have to wait
again, customers show their objection and complain. She explained, delays are usually caused
bad coordination between technical departments and field inspection hold-ups. The technical
and field review results scan be uncertain and inhibits OSS decision making on a customer’s
application. Trying to solve this problem, OSS Chief said that he wants to cut this procedures
by bringing technical staff, located in different departments, into OSS. Besides that, he will
also replace the manual system with an integrated online system and digital signature. Overall,
delay time has a significant influence on red tape perception. The more delays customers
endure, the higher red tape perceived by OSS customers. In conclusion, it seems that the delay
and TIRT perception is in line which means delays can lead to high red tape perception in
Palembang OSS (H5).
Transparency:
There were two kinds of transparency asked from OSS customers namely: time transparency
and cost transparency. Time transparency refers to providing sufficient information to OSS
customer about time needed to receive their required permits. By providing time transparency,
customers know how long they must wait until everything is completed. The cost transparency
relates to providing sufficient information about official retribution customers must pay for
each application.
Most OSS customers (38.61%) think that the time transparency about how long the process
takes is average. Nevertheless, if we compare the number of people who answered transparent
and very transparent (21.78%) with the number of people who answered otherwise (39.60%),
the time transparency in Palembang OSS is still needing improvement. The number of people
who think OSS is not transparent enough is somewhat aligned with the delay felt by
respondents as shown in Table 22. People probably feel a lack of transparency when they have
to wait longer for the final decision than what was announced.
Regarding cost transparency, 47.52% of respondents felt OSS is not transparent compare with
26.73% that it is transparent (20.79% transparent + 5.94% very transparent). This tendency
based on mean value (3.32) shows that people perceived that Palembang OSS is still not
transparent in cost. The cost transparency perception is closely related to the corruptive
perception as shown in next paragraph. They must potentially still provide extra money to what
was officially stated in OSS office.
Overall, the transparency has an effect on red tape perception to OSS customers by indirectly
influencing the delay and corruption factors. Time transparency is closely related to the delay
while cost transparency tends to influence corruption perception. There are still some people
that perceived Palembang OSS as not transparent enough because there is a difference between
what they officially set and what happens is reality. When people think cost and time is not
transparent, it probably means they perceived higher red tape than otherwise. This finding
supports the sixth hypothesis that states transparency can lower the red tape perception in OSS.
However, this research does not determine the extent of influence of transparency on red tape
perception in OSS. Perhaps future research is needed to reveal the correlation between
transparency and perceived red tape.
Customer understanding about rule`s objectivity:
Another factor that potentially influences red tape perception is the extent of rules
understanding. Based on the survey, there is a significant number of respondents of respondent
who said they understood the rules, procedures, and requirements. 44.55% respondents
understand the rules’ objectives while 1.98 % respondents have excellent understanding about
the rules. The remaining results are 30.69% average, 18.81% not understand, and 3.96% very
not understanding.
Table 23. The OSS customers’ understanding about rule`s objectivity
More than half (53.47%) of the respondents felt that the rules, procedures, and requirements
applying in Palembang OSS make them assume that the bribes are necessary to fasten the
permit process. This indicates that there is still red tape perception in Palembang OSS due to
burden effect of red tape. This perception, of course, does not imply they gave the bribery to
OSS employees. Thus, I asked respondents another question whether they have an actual
experience giving illegally extra money to smooth the process.
The result (Figure 25) shows that one a third respondent (35 out 101) gave extra money during
application submission to officers. This result supports the poor opinion of cost transparency
in Palembang OSS. People gave money because they felt the procedures were unnecessary and
were taking too long. From 34.65% who answered ‘YES’, another followed up question was
asked - whether the bribes actually helped reduce the rule`s barrier. The response shows that
33 out 35 (94.29%) felt the process in OSS become smoother after they paid the bribe to the
officers (see Figure 26).
Figure 26. The respondent’s response to the question: does your application process become smoother after pay grease
money?
Do the OSS customers still want to pay bribes? Based on the interview with one OSS customer,
who still had to visit related technical departments although the documents were submitted
through OSS. The one weakness of Palembang OSS is the clients` documents are passed
through to relevant department for examination and field checking. This procedure opened the
opportunity for those technical staff to extract money. The customer wanted to ensure her
documents are processed smoothly by technical staff from other departments. She said that
officers often contacted her to come to certain offices outside of OSS and there she would give
a bribe whether asked or not. She felt that if she didn’t give the bribe, her application would be
The rule probably is not red tape but unskilled and incompetent employees make the process
slower or far from its intended goal. The basic assumption is a lack of competent officers leads
to higher red tape. To test this assumption, the customers were asked to give their opinions
about the competence and skill of OSS employees. Almost half of respondent (48.51%)
assessed that OSS employees have average skill, while 30 respondents (29.70%) answered
good and 9 persons (8.91) felt excellent. There was only 13 customers who though that OSS
employees had poor skills and were incompetence. Even though the OSS customers were
generally satisfied with officers` competence, it does not necessarily lower the perception. One
customers said that the different interpretation about the requirements among frontline staff
5.1. Conclusion
As already mentioned in previous chapters the red tape perception is important for OSS in
achieving its goal. In general, the OSS is established to solve the problems occurring in public
services provision by governments. OSS is expected to minimize the red tape by providing fast,
easy and cheap public service delivery. Somehow, what is perceived is low red tape by officers
yet the same does not apply to the public. This is based on the results of the survey conducted.
Based on the results there is a difference in the extent of red tape perceived between internal
and external stakeholders. The external tends to be higher than the internal. The red tape
perception comes from the burdensome, necessity, and effectiveness of rules, procedures, and
requirements. This finding is aligned with the theory of stakeholder red tape, that red tape
perceived by someone is a safeguard for another. Different stakeholders can have different
perceptions about red tape.
The OSS customers tend to view relatively high red tape in Palembang OSS. From 101 OSS
customers who took the survey, most respondents thought that red tape was high in in
Palembang OSS, although it is not extremely high. The use of TIRT revealed the extent of red
tape perception according to rules` burden, necessity, and effectiveness. Many respondents felt
the burdensome effects due to requirement excessiveness. Although Palembang OSS use one
door integrated services, in reality customers must still attend different offices to complete all
supporting documents before their applications are processed. Another red tape measurement
is the necessity of rules, procedures, requirements apply in OSS. Most OSS customers believed
that many of the requirements and procedures in fact are not necessary and should ended. Thus,
the process will become simpler and faster. Most OSS customers also have a relatively negative
perception about the rules effectiveness. Even though some respondents felt affected while
other felt averagely affected, however an unaffected perception was higher than affected. This
finding supports the first hypothesis about high red tape perception from external OSS. This
finding also fits with Wahid (2012: p.2):”in the context of Indonesia, the OSS has not yet really
been able to provide effective online services. The citizens may get information, downloadable
forms, and trace the status of an application from a website, but they cannot send the
application online. In order to do so they have to visit the OSS physically to hand in
applications and to make payments”.
In contrast, most of the internal respondents, OSS employees (46 out of 77 employees took the
survey), have low red tape perception based on TIRT measurements. Most employees believe
that the rules applying to customers are not burdensome. They also think that all procedures
and requirements are needed to process and decide applications outcomes correctly with 58.70%
answering necessary and 36.96% very necessary. Regarding the effectiveness perception, OSS
employees perceived all rules as effective for accomplishing simple and short service delivery
times (63.04% effective, 26.09% very effective, and 8.70% average). Since almost all
employees have low perception about red tape in their organization (only one employee has
relatively high red tape perception), it can also be concluded that the different positions and
This chapter aims to state some limitation that potentially influenced the result. The first
limitation of this research is about the appropriateness of methodology for interpreting the
survey results. The distribution of the answers of each question was used to interpret the
result. This can lead to the mistakes in drawing the correlation between the research
question and the conclusion. I suggest further research uses a better methodology to gain
better conclusion in the future.
Another limitation is the potential tendency of OSS customers to choose average / middle
answer from the survey question given to them. From the survey result, it can be seen that
there are a significant number of questions where average is dominant, compared to other
answers provided. Possibly, respondent felt confused by the question or felt reluctant to
give an objective answer, although it was stated in beginning of the survey that their
answers would be kept confidential. Another factor respondents may not have been sure so
that they arbitrarily chose the middle answers.
There is also the possibility that OSS employees wanted to give good impression about
their office. They may have given answers that reflect well on their performance. I used the
internal OSS chat group to spread the survey link to make my research easier. But
consequently, another issue arose: the head of OSS may have asked the managers to make
a condition to all employees to provide positive answers.
The number of people I interview was probably too small compared with the number of
survey respondents. For the internal perception, I have interviewed the chief of OSS and
one upper manager to check further the results of the survey. I also conducted an interview
with one OSS customers related to her experiences dealing with Palembang OSS.
Based on the limitation mentioned above, I suggest a more comprehensive and better
designed survey and methodology to obtain more reliable conclusion in a future research.
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Beberapa berkas persyaratan harus diurus di instansi lain yg memakan waktu cukup lama
Ribet
Q11 - With all those rules and requlations, did you feel it would be necessary
or helpful to give extra money to the OSS employees?
Q12A - If yes, do you feel your document was processed faster or smoother
after you expensed that money?
Q15 - What do you think about the extent of complexity of rules, procedures,
and requirements in Palembang OSS?
Q17 - What do you think about the information provided in Palembang OSS?
Q23 - Job?
I am kindly asking your time and willing to participate in this survey. The purpose of this
survey is to gather your perception of red tape based on your experience and assessment in
delivering the service in your office.
For your convenience and interest, your answers and identity will be kept confidential,
anonymous, and will not be published or shared to any parties including to your institution.
Any personal data will be used only for data analysis.
This survey consists of 11 questions and will take about 2-3 minutes.
We provide rewards for lucky participants, if you are interested to the prize, please indicate
by providing your email or contact number.
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Q1 - How long have you been working in Palembang OSS?
Q9 - Sex?
Q11 - Education?