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2014 International Institute of Administrative Science – Asian Group for Public Administration
(IIAS-AGPA) Conference
Sub theme 3: Opportunities, Challenges, Learnings and Innovations in Asian Public Service
Jakarta, 27-29 August 2014
Abstract: This research aims to describe bureaucratic reform strategies in local governments in
Indonesia. Since Indonesia faces challenges in Global Competitiveness Index (GCI) due to
inefficient government bureaucratic, bribery, corruption, poor ethics in national labor force and
inadequate infrastructure [1]; central government emphasizes to reform bureaucracy in both
central government and local government. Reform policies were executed by Ministry of
Apparatus Empowerment and Bureaucratic Reform (MAEBR) regulations about Bureaucratic
Reform Grand Design and Bureaucratic Reform Road Map. 10 local governments in provincial
and municipal levels were chosen as research locus. Using interview guide and documents
analysis, this research highlights challenges, innovations, and typologies of bureaucratic reform
in local governments. Paternalistic culture, unclear human resource planning, road map
operation difficulties, inefficient public service procedures, and overlapping policies are
identified as bureaucratic reform challenges. However, the challenges encourage local
governments to overcome problems through innovations in public service, public participation,
rewards system, restructuring organization and productivity measurements. Although some
local governments do innovations, others have different acts in reforming bureaucratic. This
research also reveals 4 typologies of bureaucratic reform in local government in Indonesia; 1)
Local governments that do innovations but they do not have any bureaucratic reform road map
as guidance; 2) Local governments that do innovations and they made bureaucratic reform road
map; 3) Local governments that do not do anything to overcome their problems and they do not
have bureaucratic reform road map; and 4) Local governments that do not do innovations but
the made the bureaucracy reform roadmap. Strong leadership, willingness to change, and
participation are identified as the main factors that dominantly influence bureaucratic reform in
local government.
1
Scwab, Klaus, Sala-i-Martín, Xavier and Brende, Børge. The Global Competitiveness Report 2013-2014 Full Data
Edition. Geneva : World Economic Forum, 2013. Page 35.
2
Noore Alam Siddique (2006). Public Management Reform in Malaysia : Recent Initiatives and Experiences in
International Journal of Public Sector Management Vol. 19 No. 4. Emerald Group Publishing Ltd. Page 339-358.
3
Henry Wai-Chung Yeung (2000) . State Intervention and Neoliberalsm in the Globalizing World Economy: Lessons
from Singapore’s Regionalization Programmme in Pacific Review. Page 62-133.
4
John P Burns (2007). Civil Service Reform in China in OECD Journal in Budgeting Vol .7 No. 1. Page 1-25.
begun in 1998, Indonesian government seemed to have unclear system and standard for
government reform since then. Therefore, bureaucratic reform policies was designed in 2008 to
enhance public service accountability, reduce corruption and increase competitiveness index.
Indonesian government has been applying centralized bureaucratic reform policies. Ministry of
Apparatus Empowerment and Bureaucratic Reform (MAEBR) has the authority to control and
evaluate the bureaucratic reform implementation in each local government program. Presidential
Regulation No. 81/ 2010 about 2010-2025 Bureaucratic Reform Grand Design and MAEBR
Regulation No. 20/ 2010 about 2010-2014 Bureaucratic Reform Road Map were legalized as
central regulation about mechanism of bureaucratic reform. Qualities in eight areas of
bureaucracy such as institutional approach, procedure, legislation, human resources, supervision
mechanism, accountability, public service and mind set are used as bases of bureaucratic reform
programs.
However, the centralized bureaucratic reform policies brought critics because it is unclear
whether the Indonesian Government can achieve stated goals because the reform road map is
designed without clear conceptual structures and causal linkages.5 Therefore, this paper aims at
identifying local government bureaucratic reform strategies, challenges, innovations, and
initiatives.
5
Jin-Wook Choi. (2009, October 22-24). What Holds Indonesia Back? Structural Roots of Corruption and Reform.
Paper presented at the 2009 Korean Association for Public Administration International. University of Incheon at
Songdo Campus, Korea.
6
Eleanor D. Glor (2006) A Gardener Innovator’s Guide to Innovating in Organizations. Ottawa: The Innovation
Journal. Retrieved from http://www.innovation.cc/books.htm.
7
Armenarkis, Harris & Field (1999). Handbook of Organizational Behaviour. New York : Marcel Dekker. Page. 58;
John Kotter (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review 73 (2). Page. 59-67;
Abramson & Lawrence (2001) The Challenge of Transforming Organizations: Lesson Learned about Revitalizing
Organizations. In Transforming Organizations, Lanham: Rowman & Littlefield. Page 1-10.
8
Sergio Fernandez & Hal. G. Rainey (2006) Managing Succesful Organizational Change in Public Sector in Public
Administration Review Ed. Maret-April 2006. Malden, MA: Wiley & Blackwell. Page. 168-176.
1. Ensure the need.
Organization need helps to convince all relevant actors. Ensuring the need is important to
define change direction as stated in vision and mision. Organizational change vision must
represent future target that is easily to be communicated and feasible to achieve. Vision need to
be stipulated to misions, spesific indicators and programs. Ensuring the need usually is identified
by questioning existing organizational problems.
Some studies in private institutions indicated that it would be easier for leaders who use
spesific vision to convince organizational members about the change project. Vision as identified
from organizational problems would rise awareness, hopes, relief organizational discomfort and
solutions of problems.9 Persuading organizational members can be materialized through oral or
written communication that open participation for all members in changing process.
2. Provide a plan
Clear vision and persuasion to all organizational members is not enough to make the
comprehensive organizational changes come true. As stated by Kotter (1995), ideas in the vision
must be transformed into strategies, actions plan, targets and targets achievment planning.
Reform strategies can be arranged in reform road map that gives directions how to achieve
targets or indicators, identify risks and obstacles. Planning bureaucraticreform road map requires
some aspects such as clear accountability standards, clear indicators, and interrelated programs.
9
Vries & Balazs (1999). Transforming the Mind-Set of The Organization in Administration Society 30 (6). Page. 75.
10
Arnold Judson (1991). Changing Behavior in Organizations: Minimizing Resistance to Change. Cambridge, MA:
Blackwell.
formed prior to gather the support of all members.11 Aucoin noted reform failure in Canada
happened because of lack of support from cabinet ministers. Not all of the actors were concerned
about the reform process. Thus, the coalition leaders change is needed as prerequisite for
bureaucratic reform.12
6. Provide Resources
Resource mapping helps to identify feasibility of all support and increase success posibility of
the programs. Resource mapping can be manifestated as strategic planning changes, training for
employees, build new systems and procedures, organizational restructuring and identify
innovations planned. Failure in resource mapping and resource provision leads to weak reform
implementation and interpersonal stress. Thus, mapping and provision of the necessary resources
based reform objectives is needed.
7. Institutionalize Change
Each organization member shall start new habits to be applied every day due to
implementing change programs. The habits can be formed from new policies and planned
innovations. Changes in personal habits of each member leads to institutional change. Employees
must learn and make the behavior into the spirit of reform that is institutionalized by leaders to
form a pattern of reform and replace the old work culture that is not effective. There are certain
evidence of creating in new habit in some cities and municipals in Indonesia. For instance,
Bandung City Mayor, Ridwan Kamil who implement new policy that mandates all civil servants
to use bycycle every friday to reduce traffic jam and weather pollution. Another new habit
dissemination can be seen at Banda Aceh City. Since 2012, the government of Banda Aceh City
has been applying electronic performance (e-performance) to measure all civil servants outputs
everyday. This application can only be entered by civil servant at the day they work, they can not
enter the application in another day. Thus, through the application, civil servants are forced to
result certain working outputs each day.
Habits can be created from trigger or problem that forces to change. The trigger creates
routine and routine leads to benefit or reward.13 In the context of organizational reform, reward
can be a better system and better public service. Thus, individual rewards is just as important as
the overall organizational benefit. New habit and behavior can be shaped by the changing
leadership structure, work procedures, human resource management, and activities. Innovations
developed by leaders can be disseminated through a pilot project, data collection for processes of
change and commitment to change members of the organization and involve the active
participation of employees in an employee.
11
Kotter, John (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review 73 (2). Page. 95
12
Pater Aucoin (1990). The New Public Management: Canada in Comparative Perspective. Montreal: Institute for
Research on Public Policy.
13
Charles Duhigg (2012). The Power of Habit : Why We Do What We Do and How to Change. London: Random
House Books. Page. 286.
8. Pursue Comprehensive Change
Implementing change project needs cooperations from all level of organizational actors.
Comprehensive systemic change starts from the smallest organizational unit subsystem.
Subsystem changes can be done with the smallest organization involved subsystems leaders or
officials who are in middle management.
Table 1
Aspects and Expected Outputs of Bureaucratic Reform Roadmap in Indonesia
Aspect Expected Outputs
Organization Proper organization function and right size structured organization.
Procedures Clear, effective and efficient work procedures according to the principles
of good governance.
Methodology
The object of this research is focused on bureaucratic reform strategies and the obstacles
in local governments. This study gathered information on matters related to the efforts of the
changes made in local governments. By employing grounded theory method, this study
describes the strategy of bureaucratic reform in Indonesian local governments context. Locus of
research including local governments in Indonesia that are determined based on the following
criteria:
1. Local governments that were chose as pilot projects for bureucracy reform
implementation;
2. Local governments which has started reform initiatives.
3. Local governments which has not been informed about bureaucracy reform road map
mechanism.
There are 10 areas that the object of research based on criterias mentioned above. Those
10 local governments are Yogyakarta Province, West Java Province, Banten Province, Banda
Aceh City, Cimahi City, Surabaya City, Denpasar City, Cirebon City, Sukabumi Municipal and
Gresik Municipal. Although the research was conducted using grounded research method, it is
needed to formulate aspects of research question in this study so that there are clear boundaries
and directions that could build the same understanding of the substance of this study.
Bureaucratic reform strategy in this study is defined as a actions of change that taken in
scope of local government bureaucracy. Aspects in this study refers to the aspects of change that
are based on two categories; Conceptual basis, and the policy basis. Conceptual basis refer to the
5 (five) strategies offered by Dwiyanto such as; 1) Strengthening legal basic, 2) Restructuring
bureaucracy, 3) Reforming human resources, 4) Reforming payroll system, 5) Increasing public
organization accountability.14 Policy basis in this study covers eight aspects of change as stated
in Regulation of MAEBR No. 20 of 2010 about Bureucratic Reform Road Map.
The basis mentioned above were used as tools to analyze primary and secondary data.
Primary data gathered from interviews and Focus Group Discussion (FGD), while secondary
data derived from official documents issued by the government, literature, journals, papers and
other articles.
Results
1. Bureaucracy Reform in West Java Province
Bureaucratic reform in West Java is focused in four aspects; 1) Enhancing public servic,
2) Enhancing nine government management, 3) Developing remuneration based on performance
system and 4) Arranging task force of change management. The program to materialize those
aspects are;
14
Agus Dwiyanto (2011). Mengembalikan Kepercayaan Publik Melalui Reformasi Birokrasi. Jakarta: Gramedia.
Page. 173.
Table 2
Bureaucratic Reform Programs in West Java Province
Aspect Programs
Organization Assesing local governments sectoral organizations, arranging public
service organization profile, and work load analysis.
Public Service Fixing performance target in public service, gathering ISO standards and
developing service standards.
Apparatus mind set Arranging Task Force of Change Management to plan, implement and
and culture set evaluate bureaucratic reform programs.
Source : Interview towards reform stakeholders of West Java Province in May 2013
Although all programs has written down in bureaucracy reform roadmap, unclear vision
is still an obstacle for the implementation. The urgent need of reform can not be identified in the
road map as well. Bureaucracy reform programs in West Java Province seemed just a list of
prerequisites of good governance but those programs did not make any significant change unless
enhaced apparatus remuneration.
Table 3
Bureaucratic Reform Programs in Yogyakarta Province
Aspect Programs and Innovations
Organization Restructuring organizations, function auditing, developing integrated
public license service and Rehabilitation Bureau for People with
Disabilities and Non-Structural Organization Evaluation.
Apparatus mind set Arranging and disseminating governor regulation about Satriya
and culture set Government Culture.
Table 4
Bureaucratic Reform Programs in Banten Province
Aspect Programs
Organization Restructuring organizations and arranging job and work load analysis.
Supervision Developing public service complain unit, enhancing internal audit, and
creating monitoring and evaluation team for corruption erradication.
Public Service Grading public service standards towards relevant organization providers,
developing citizen satisfactory survey and arranging Governor Regulation
about public service.
Apparatus mind set Arranging workshop about culture set and integrity mind set to enhance
and culture set performance motivation.
Source : Interview towards reform stakeholders of Banten Province in May 2013
Table 6
Bureaucratic Reform Programs in Surabaya City
Aspect Programs and Innovations
Organization Restructuring organizations, from 31 education units to 5 education units.
Procedures a. Developing e-musrenbang, an electronic application to check and
Aspect Programs and Innovations
verify city planning steps by all stakeholders.
b. Developing e-budgeting as checking tool for public budgeting that
can be accessed by all sectoral and supporting public organizations
in Surabaya.
c. Developing e-procurement
d. Developing e-performance
Human resources a. Developing online civil servant recruitment
b. Developing partnership with Airlangga University in assessing
competency of employees.
Public Service a. Online retribution and non-retribution license
b. Developing e-health
c. Developing e-education
d. Developing e-public service monitoring with 249 CCTV cameras
e. Gathering ISO certificates for public services
f. Developing Free Smoking and Free Drugs Community
g. Developing enterpreneurship training based on local resource
Table 7
Bureaucratic Reform Programs in Cimahi City
Aspect Programs
Procedures a. Enhancing scope of license service
b. Developing single window integrated public service
Public Service a. Short Message Service (SMS) for gathering complaints in public
service
b. Developing e-procurement
c. E-ID card
Aspect Programs
Table 8
Bureaucratic Reform Programs in Banda Aceh City
Aspect Programs
Organization Developing internal evaluation for job and work load analysis based on e-
performance result.
Human resources a. Developing e-performance that mandates all employees to enter
their daily output online.
b. Developing regulation to all departments to give chance to all
employees for training each year.
Supervision a. Developing e-procurement
Accountability a. Arranging training for transparent and measurable institutional
accountability report.
Public Service a. Developing complaint service unit
b. Developing Banda Aceh Cyber City by providing free internet
acces in public spaces.
Apparatus mind set Creating following habits:
and culture set a. Giving chances to many young employees to be instructors for
organizational training, it is expected to enhance their public
speaking and leading competency.
b. Giving chance to every employee to give speech or motivational
quotes in daily morning ceremony. Civil servants in local
government in Indonesia have to attend daily morning ceremony
and usually speech is given by structural officer or middle
management people, but in Banda Aceh City, every employee has
chance to give speech.
Source : Interview towards reform stakeholders of Banda Aceh in May 2013
9. Bureaucracy Reform in Gresik Municipal
Even though bureaucratic reform road map had not been developed in Gresik Municipal,
but recent initiatives in public service in Gresik have started. The government created Sunan Giri
Awards to enhance public service performance. The award was given by the regent for villages
that are best in public service. The indicators of the awards are simple such as availability of
SOP and good public service facilities. The winner of the award gets cow to be bred, if the
winner sells the cow, the award will be cancelled.
There are two another innovations of the government. In municipal level, public service
is opened longer than usual from eight hours to 12 hours. The government applied conpetency
test for structural officers to improve the performance.
Table 9
Bureaucratic Reform Programs in Sukabumi Municipal
Aspect Programs
Procedures Arranging and disseminating SOP to all stakeholders
Human resources a. Developing transparent recruitment
b. Developing career pattern
c. Developing competency standards
Supervision a. Developing wealth reports of state officials in partnership with
KPK.
b. Developing gratification complaint unit.
c.
Public Service a. Gathering ISO certificates
b. Enhancing public satisfactory survey.
Source : Interview towards reform stakeholders of Sukabumi Municipal in May 2013
Conclusion
This research showed four Typologies of bureaucratic reform in local government in
Indonesia; 1) Local Governments that do innovations but they do not have any bureaucratic
reform road map as guidance such as Banda Aceh City, Surabaya City and Denpasar City; 2)
Local Governments that do innovations and they made bureaucratic reform road map such as
Yogyakarta Province, Gresik Municipal and Cimahi City; 3) Local Governments that do not do
anything to Overcome Reviews their problems and they do not have bureaucratic reform road
map such as Cirebon City; and 4) the Local Governments that do not do the innovations but
made the bureaucracy reform roadmap, such as Sukabumi Municipal, Banten Province and West
Java Province. Strong leadership, willingness to change, and participation are identified as the
main factors that influence dominantly bureaucratic reform in local government.
It can be concluded that even though most of the respondents provided bureaucratic
reform road map, significant changes can not be identified. Centralized and formalistic
bureaucratic reform that require reform documents can be conterproductive to the substantive of
bureaucratic reform. The conterproductive results can be seens from following aspects;
a. High cost bureaucracy because of remuneration system that has unclear measurement for
performance.
b. Too many rules and regulations lead to innefective law order, innefficient public service
procedures, and roadmap operation difficulties.
c. Political bureaucracy
d. Lowering trust between local and central governments as roadmap is an mandatory.
However in other locus such as Surabaya City, Banda Aceh City, Denpasar City and
Banda Aceh City who have no guide or roadmap have resulted significant changes. It is needed
to underline some significance factor such as ensuring the need of reform that was identified
from anxiety of things that are not right in the bureaucracy and interpersonal stress from leaders
or initiators. This study showed urgent focuses of most local governments needs of reform such
as human resource and public service.
References
Armenarkis, Harris & Field (1999). Handbook of Organizational Behaviour. New York : Marcel
Dekker. Page. 58; John Kotter (1995). Leading Change: Why Transformation Efforts
Fail. Harvard Business Review 73 (2). Page. 59-67; Abramson & Lawrence (2001) The
Challenge of Transforming Organizations: Lesson Learned about Revitalizing
Organizations in Transforming Organizations, Lanham: Rowman & Littlefield.
Aucoin, Pater (1990). The New Public Management: Canada in Comparative Perspective.
Montreal: Institute for Research on Public Policy.
Burnsl, John P (2007). Civil Service Reform in China in OECD Journal in Budgeting Vol .7 No.
1.
Choi, Jin-Wook. (2009, October 22-24). What Holds Indonesia Back? Structural Roots of
Corruption and Reform. Paper presented at the 2009 Korean Association for Public
Administration International. University of Incheon at Songdo Campus, Korea.
Duhigg, Charles (2012). The Power of Habit : Why We Do What We Do and How to Change.
London: Random House Books.
Fernandez & Rainey (2006) Managing Succesful Organizational Change in Public Sector in
Public Administration Review Ed. Maret-April 2006. Malden, MA: Wiley & Blackwell.
Glor, Eleanor D. (2006) A Gardener Innovator’s Guide to Innovating in Organizations. Ottawa:
The Innovation Journal. Retrieved from http://www.innovation.cc/books.htm.
Kotter, John (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business
Review 73 (2).
Scwab, Klaus, Sala-i-Martín, Xavier and Brende, Børge. The Global Competitiveness Report
2013-2014 Full Data Edition. Geneva : World Economic Forum, 2013.
Siddique, Noore Alam (2006). Public Management Reform in Malaysia : Recent Initiatives and
Experiences in International Journal of Public Sector Management Vol. 19 No. 4. Emerald
Group Publishing Ltd.
Vries & Balazs (1999). Transforming the Mind-Set of The Organization in Administration
Society 30 (6).
Yeung, Henry Wai-Chung (2000) . State Intervention and Neoliberalsm in the Globalizing World
Economy: Lessons from Singapore’s Regionalization Programmme in Pacific Review.