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Procedia Economics and Finance 23 (2015) 223 – 227

2nd GLOBAL CONFERENCE on BUSINESS, ECONOMICS, MANAGEMENT and

TOURISM, 30-31 October 2014, Prague, Czech Republic

Bureaucracy and Governance in Indonesia: Study on West Sulawesi

Province
Bakhtiar Hajara*
a
State University of Makassar, Jl. Pettarani, Gunung Sari, Makassar 90222, Indonesia

Abstract

There are many changes after the reformation era started in Indonesia in 1999. One of these developments is local government
empowerment to administrate several activities. West Sulawesi was launched as new a province to improve people service in
Sulawesi Island. An evaluation of the establishment in this region was needed after decades. Therefore, this study will explore
the practices conducted in West Sulawesi Province in Indonesia to realize clean government and good governance. The research
employed a qualitative approach. In-depth interviews and observations were performed for collecting data. Manual interviews
and observations served as instruments during data collection. This study shows that there are nine steps completed in
empowering administration. It started from paradigm shifting to encourage people to work in new conditions. In addition, when
paradigm is changed, it is easier to enhance the transformation and moving forward to create improvement. Finally, bureaucracy
movement shows an improvement in institutional capacity to encourage administrator in expanding service.
©
© 2014 The Authors.
2015 The Authors.Published
Publishedby
byElsevier
ElsevierB.V.
B.V.This is an open access article under the CC BY-NC-ND license
Selection and/ peer-review under responsibility of Academic World Research and Education Center.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Selection and/ peer-review under responsibility of Academic World Research and Education Center
Keywords: service, institutional capacity and government empowerment;

1. Introduction

The shifting paradigm as maintained by the local government (local autonomy) in Indonesia, from a centralized
pattern to a decentralized one, has brought about growing consequences on authority empowerment from the federal
government to the local government from one side, and the other, where the local government possesses major
authority to arrange and manage its own locality autonomously (Kigongo-Bukenya, 2011). Local autonomy based
on decentralization allows broader authority and opportunities to the local government to maintain governance
responsibly in creating peace for the area’s community. Broader authority requires optimal monitoring, so much so
that it can cause monetary losses to the country and displaces peace among the community (Giessen, Krott and
Möllmann, 2014).

* Bakhtiar Hajar. Tel.: 62-853-9781-5955

E-mail address: bakhtiar.sulbar@gmail.com

2212-5671 © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Selection and/ peer-review under responsibility of Academic World Research and Education Center
doi:10.1016/S2212-5671(15)00348-2
224 Bakhtiar Hajar / Procedia Economics and Finance 23 (2015) 223 – 227

Indeed, it is known that ever since local autonomy was exercised, there have been many changes. A concrete
example would be innovative programs that increased participation and even an increase in public service’s quality
of late, which are easier to obtain (Wright, 1986). Also, various new initiatives for the basic service channels,
increase of personnel’s capacity, employment of projects to eradicate poverty, enhancement of local economy,
moderating permits and other activities related to public service can be observed in the different provinces. There
are a few innovations known well for their ability to provide interesting lessons that can be used by other provinces
wanting to reform. According to Rauh, Kirchner & Kappe, (2011), bureaucratic reformation through reinventing
local government will only work if there are constant innovations and breakthroughs to improve performance and
network so that the changes can more quickly spread and obtain support. Bureaucratic reformation is executed in a
plan to create good governance (Quah, 2013). In other words, Bureaucratic Reformation is a strategic step to
develop the nation’s apparatus to be more productive and effective in supporting general work of the government
and for the national development.
The reality of today’s bureaucracy is one that emphasizes on authority but lack the support of professional
apparatus, suitably competent in their own fields of function. The employment system has yet to be based on the
merit system though the merit system has political consequences (Black, 2001). For instance, when the number and
qualification of PNS matches the vacancies available, a possible impact would be that there will be more PNS being
retired (James, 2006). This is what causes local government’s bureaucracy to suffer due to insufficient support from
its environment. Therefore, this research article would explore how clean government and good governance in West
South was conducted to enhance transformation process.

2. Literature Review

According to Arko-cobbah (2006) when a community’s development grows more complex, there is a need for a
rational institution or organization, namely bureaucracy. In this bureaucracy, a conduct that is not only productive
but also loyal to its leader and organization is structured. Impersonal conduct should be inspired. Family bonds,
social clusters and so on have no place in a bureaucracy department. Because of this, members of the organization
should be positioned based on their own abilities, which is developed and guided by clear and firm regulations in
carrying out their duties (Gamlath, 2013).
In its development, however, the old practice doctrine above faced several problems. For example, it was
convinced that bureaucracy is the utmost ideal organization whereas in reality, its development can change to
become very rigid, difficult and full of red tapes. Meanwhile, Budd, (2007) was convinced that there is only one
way of doing a task whereas in reality, with all the advancements of today, there are many other ways to best do a
task. An example would be technology and engineered inventions and knowledge. Similarly, Wilson tends to see the
public administration world as a non-political activity whereas in reality, it is indeed political (Wekke and Lubis,
2008).
Even so, from this OPA paradigm, we can learn that in order to develop the nation’s apparatus or reform its
bureaucracy, professionalism is required. Required are the principle practices of knowledge, impersonal relations,
firmly setting the rules and standards, neutral behaviour that encourages efficiency and productivity to achieve the
ultimate goal and mission of an organization (Prasad, 2008). Based on these, it is the author’s humble opinion that
stemming from this doctrine, principles and features of past paradigm will be better suited for reformation in the
field of politics, law and peace. For these fields, the government should not discriminate, and rules and procedures
must not be disregarded, also the government should be firm. In addition, the doctrine and principles of the past
paradigm are better suited as resource and academics for those elites in the government to reform the bureaucracy or
develop the apparatus of law and peace (Meier, O'Toole Jr., and Nicholson-Crotty, 2004).

3. Research Method

The study will be conducted in West Sulawesi Province - West Sulawesi Province Regional Inspectorate to be
exact. The selection of this location was based on several considerations. Firstly, West Sulawesi Province is the 33rd
province in Indonesia to be formed under the Law Number 26 Year 2004 – the outcome of the expansion of South
Sulawesi. Secondly, West Sulawesi Province is one of the provinces that signed a Memorandum of Understanding
(MoU) with the Ministry of Administrative Reform and Bureaucratic Reform. Thirdly, head of office including the
 Bakhtiar Hajar / Procedia Economics and Finance 23 (2015) 223 – 227 225

Chief Inspectorate of West Sulawesi Province have signed a Letter of Commitment to conduct reform within their
respective organizations (MacCarthaigh, 2012).
The study is considered as a type of qualitative descriptive research, which aims to understand the objective
condition related to certain situation, event, group or interaction, whereby the researcher serves as the key
instrument (Kwon, Nam, & Lackaff, 2011). The study is categorized as a qualitative descriptive research because
the researcher believes that the focus to be studied basically relates and orientates around the “process” where
individual and institutional interaction occur naturally, thus creating certain situations and events intended for
reformation (Harries, 2009). The study will be approached in the form of a case study, whereby it will be centered
on a certain unit of various phenomena that allows the study to be in depth (Kolding, & van Zwieten, 2011). This
approach is meant so that the study findings can provide a systematic, factual and accurate picture of the object
being studied.

4. Findings and Discussion

Bureaucratic reformation is meaningful as a major change in paradigm and conduct of the Indonesian
government. Besides that, bureaucratic reform is also meaningful as a big stake for Indonesian in welcoming the
challenges of the reformation era which transform Indonesia from centralisation to autonomy. Should it be well
performed, bureaucratic reform will accomplish its intended purpose, among which are to increase the quality of
service for the community, to increase the quality of policy making and enforcement and institutional programs. On
the other hand, should it fail, bureaucratic reform will only cause bureaucratic incompetence in facing the
exponential complexities of the local governance; antipathy, trauma, decline of the community’s confidence in the
government, and the threat of failing to achieve good governance, even preventing national development.
Bureaucratic reform is related to thousands of overlapping functions; governance functions that involve millions
of officers that need not be underestimated. Moreover, bureaucratic reform also calls for reorganization of the
bureaucracy process from the highest level to the lowest, performing innovation breakthroughs in phases, concrete,
realistic, diligently thinking out of the box, realizing paradigm shift, and enforcing business not as usual. In addition,
national bureaucratic reform needs to revise and develop all sorts of regulation, modernize various policies and
practices of the central and regional governments’ management, and adapting the government’s institutional
function and duties with the new role and paradigm. Such huge effort requires a grand design and road map for a
bureaucratic reform that follows dynamic changes of the government maintenance, so much so that it becomes a
living document.
Monitoring activities are also a part of or one of the tasks to be conducted in an institution; making it one of the
frameworks in ensuring that every problem and deviation related to national finance and performance achievement
are acted upon effectively and sufficiently. In order to create an optimal monitoring system, a structured and
integrated approach must be determined from the planning stage, execution, report and follow-up of monitoring by
all parties and units related such as the Inspectorate General, the work unit being monitored and the monitoring
information users.

5. Theoritical Implication

The word ‘administration’ is thought to be less aggressive, and so the word ‘management’, as used to transform
and reinvent business principles, is used in the public sector. This paradigm is known as the New Public
Management (NPM), which sees the past paradigm to be ineffective in overcoming issues and serving the public,
including developing the community. The concept and strategy of banishing bureaucracy from Reinventing
Government (Wekke and Hamid, 2013) states that reinventing is a fundamental transformation of the public sector’s
system and organization to create significant improvement in terms of effectiveness, efficiency, adaptability and
capacity to innovate. This transformation, basically, is how to develop a public sector that is a self-renewing system
using business principles and approach.
The old paradigm offers certain useful theory, concept and approach to understanding and developing alternative
solutions to problems faced by the public administration system (Dormer, 2011). This paradigm achieves its goal by
instilling good governance principles. It is considered to be an approach to public administration that encourages
226 Bakhtiar Hajar / Procedia Economics and Finance 23 (2015) 223 – 227

knowledge and experience, which is obtained from the business world and other disciplines to improve
effectiveness, efficiency and performance of the public service in modern bureaucracy. The recent paradigm
apparent in England, New Zealand, United States and Canada, all deem the term management in New Public
Management has a more aggressive meaning than the term administration (Salminen, and Ikola-Norrbacka, 2010).
This paradigm was based on marketing theories and business culture that was transformed and adapted into the
public sector. It existed not only due to the fiscal crisis of the 1980’s but also because there were complaints from
the community of how the public sector was too big, too wasteful, inefficient, declining in performance, lacking
attention on government officers’ development and satisfaction (Chisholm, & Napo, 1999).
Various latest doctrines such as mentioned above shows that the process of reforming a public sector
organization should be directed at six key dimensions (Dikopoulou, 2012), which are: First, in relation to
productivity – how the government obtain more income with lesser funds; Second, marketization - how the
government uses marketing-style incentives to eliminate pathological bureaucracy; Third, service orientation – how
the government can communicate better to the community so that its programs are more responsive of their needs;
Fourth, decentralization – how the government develop responsive and effective programs by transferring them to
lower level governments, or transferring institutional governance task to field managers who are directly involved
with the community, or giving them the opportunity to make adaptations to fulfil the community’s needs; Fifth,
policy – how the government improves the capacity of public policies; and Sixth, performance accountability – how
the government improves its ability to fulfil its promises (Halachmi, 2011).
With the conditions above, there is a need for a case study of auditor’s professionalism on auditor’s
responsibilities. A monitoring system is an important element of the government’s management in the plan to create
good governance (Bhuiyan, and Amagoh, 2011). The Inspectorate General, as the Government’s Internal
Monitoring Apparatus (APIP), and the execution of government’s monitoring function, should be able to
significantly respond to various issues and changes that occur, be it politics, economy or even social through a
program and activity devised for a comprehensive monitoring policy (Brown, Earle, and Gehlbach, 2009). Changes
that occur due to the dynamics of the community’s demands are reflected in various regulations and laws that
support the practice of good governance principles (Huque, 2011).

6. Conclusion

The community’s demands on the government to swiftly create good governance is a demand to maintain a
clean, effective, efficient and law-abiding government and to entrust the duty of developing activities through a
system of government institutional performance accountability. In this matter, the government’s internal monitoring
plays an important role in instilling confidence that its monitoring and accountability system have been conducted as
hoped. The government can, of course, benefit from a sufficient monitoring system that guarantees the goal
achievement and execution of activities effectively, efficiently and economically.
Monitoring activities are also a part of or one of the tasks that should be done by an institution, which is one of
the framework in ensuring that every problem and deviation that occur in relation to national finance and
performance achievement have been acted upon effectively and sufficiently. In order to create an optimal
monitoring system, a structured and integrated approach must be determined from the planning stage, execution,
report and follow-up of monitoring by all parties and units related, the work unit being monitored and the
monitoring information users. Factors that can either support or prevent the conduct of monitoring function are such
as the application of rules and laws, organization’s structure, employment of work conduct, application of rules of
conduct, enforcement of human resource and other resources.

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