DiA: Jurnal Administrasi Publik, 2023 Dec Vol. 21 No.

2, e-ISSN: 2615-7268

REFORM OF PUBLIC SERVICE BUREAUCRACY LICENSING IN THE

ADMINISTRATION OF LOCAL GOVERNMENTS IN REALIZING
GOOD GOVERNANCE

Asma’ur Rohman
Faculty of Social and Political Sciences,
University of 17 Agustus 1945 Surabaya
[email protected];

Ida Aju Brahmasari

Faculty of Social and Political Sciences,
University of 17 Agustus 1945 Surabaya,
[email protected];

Agus Sukristyanto
Faculty of Social and Political Sciences,
University of 17 Agustus 1945 Surabaya,
[email protected];

ABSTRACT
This study aims to describe and analyze: (1) Bureaucratic reform of investment
licensing services in Sidoarjo (2) Quality of investment licensing in Sidoarjo (3)
Increasing the value of investment realization in Sidoarjo (4) Supporting and
inhibiting factors in carrying out investment licensing reform in Sidoarjo. The
research uses a qualitative descriptive method with sources derived from
informants and documents. Data collection techniques were carried out through
interviews, observation, and documentation. Data analysis used interactive model
data analysis by collecting, reducing, presenting, and drawing conclusions. The
results of the study show that: (1) Bureaucratic Reform of Licensing Services at
DPMPTSP Sidoarjo is carried out by making improvements to the institutional
and human resource aspects. (2) By reforming the bureaucracy for licensing
services at DPMPTSP Sidoarjo, the quality of investment licensing services
provided will increase (3) By reforming the bureaucracy for investment licensing
services at DPMPTSP Sidoarjo it will also have an impact on increasing the
amount of realized investment value. (4) While the supporting factors include the
delegation of authority from the central government and the commitment and
political will of the regional leadership of the Sidoarjo district, while the inhibiting
factor in implementing this bureaucratic reform is the lack of overall delegation.
The authority to issue SKPD sector permits is related to DPMPTSP and there is
still a lack of cooperation between district and city regional governments and
provincial governments. This study also provides recommendations regarding the
need for increased authority in providing services and harmonious cooperation
between district and city and provincial governments in creating a conducive
investment climate.

Keywords: Bureaucratic Reform, Public Service, Investment Licensing.

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A. PRELIMINARY
Basically every human being needs service even extreme can be said, that
service cannot be separated from human life. Every time the community will
always demand quality public services from the bureaucrats, although the
demands are often not in accordance with what is expected, because empirically
the public services that occur so far still display the characteristics of complicated,
slow, expensive, bureaucratic and tiring.
This still often happens because it is still positioned as a party that is
"serving" and not what is "served". Therefore, it is very necessary fundamental
changes in the field of public services by returning and positioning the "service"
and are served on the actual proportion. Services that should be aimed at the
general public sometimes be reversed to become community services to the state,
despite the interests of the people who discussed it. In the sense that the
bureaucrats should ideally provide the best service to the community.
In the era of reform, communication and globalization there were
competition in various fields to become increasingly fierce and one of the efforts
to win the competition was to further improve the quality of services to the
community.
The provision of public services to the community is a manifestation of the
function of the state apparatus as a servant of the community and state servants so
that the implementation continues to be improved in accordance with the desired
development goals. Decentralization and regional autonomy are intended so that
the function of the state can be carried out more effectively and more efficiently.
This is in line with the view of Suryono (2006: 104) which says that bureaucratic
organizations that are able to provide public services effectively and efficiently to
the community and one of them if the organizational structure is more
decentralized and not centralized. Because decentralization is expected to be more
easily anticipated the needs and interests needed by the community, so that the
bureaucracy can quickly provide servicesas expected by the community.
With regional autonomy the role of bureaucracy as a state government
official is expected to work professionally and public service management (public
service) can be implemented effectively, efficiently and accountably. The local
government is expected to be able to build, improve and utilize conducive
institutions (bureaucracy), so that they can design standard public services that
are easy, cheap and fast (Djamaludinin Widodo, 2006: 92).
The condition of the bureaucracy can be seen from the service performance
provided to the community, because the quality of service is a benchmark in
concluding whether the performance of the bureaucracy is good or bad. Because
talking about the quality of service is inseparable from three things, namely how
the procedures and conditions are, secondly about how much it costs and the third
is how long the arrangement is. This is a service concept that is effective,
efficiency and accountability of public services.
Based on the results of a survey from the University of Gajah Mada
Yogyakarta, that the reality public service is not as desired by the community even
very far from expectations. In general, the quality of public services (public

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services) in our country still does not provide satisfaction for the community as
users of physical and non-physical services (in the form of services). Lutfi's view
(2008) that the survey conducted by UGM in 2002, that public services still have
weaknesses in terms of efficiency, effectiveness, responsiveness, equality of
treatment and bureaucracy are still far from the expectations of the community.
Muhammad (2004) states that public services have weaknesses, among others,
lack of responsive, less informative, less accessible, lack of coordination,
bureaucratic and lack of listening to complaints/ suggestions/aspirations of the
community and inefficient.
The context of bureaucratic relations with the community in the
implementation of public services has been heard for a long time, but until now
there has not been manysignificant changes. In fact, the hope of the public that the
change of regime will bring improvement to the implementation of public
services has never been realized. The government has experienced a change for
several times, but the behavior of bureaucracy, especially in public services, has
not yet changed much.
Paradigm from time to time continues to experience evolutionary
development ranging from the classical theory of Weberian to the New Public
Service theory which was presented by Denhart and Denhart. The birth of New
Public Management (NPM) is a desire to eliminate inefficient service monopoly,
carried out by government agencies and officials (Thoha: 2008), in addition to the
conditions of bureaucratic structure that is too large, ineffective and declining
service performance and lack of attention Against the development of employees
and lack of community satisfaction with the performance of traditional
bureaucratic-bureaucratic government employees ignoring citizens, keeping
innovation and serving themselves (Denhart and Denhart in Dunn, 2000: 33)
Old Public Administration (OPA) is seen as ineffective to improve the
performance of bureaucracy in providing services to the community, so that with a
variety of reasons are very oxeye, rigid and highly relying on the process than the
results, besides that the traditional model (parabaian) which views that, the
performance of traditional media bureaucracy is reduced and replaced by the New
Public Management (NPM) model with varied Lebal, starting from
Managerlakesin, New Public Management, Market Based Public Administration,
Entrepreneurial, Government and Governance - with the birth of the New Public
Management It is expected to be able to improve service bureaucratic
performance.
Facing the complexity of service performance, so the differences from the
three models (paradigm), above do not need to be intensified, but to be completed
with one another, complementing each other to synergize in order to achieve the
performance ofa better and quality licensing public service organization.
In public services, Lutfi (2008) gave a comment in his book entitled
"Paradigm of Public Service Policy" that the case in Bulukumba about health
services, then in Bojong Bogor about waste management. Both cases reflect a
form of poor service(Lutfi, 2008: 16).
Our bureaucracy is still impressed very procedural, slow, less productive,
high costs and neglecting public interests, even government interference

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(bureaucracy) is too broad in the sector of public life and will result that
bureaucratic services are increasingly complex (over administration) and the
possibility of public activities will also high cost mainly in the economic activity
sector.
Some of the above phenomena give the impression that shows that
bureaucratic orientation in the sense that many tables that are passed for services
are efficiency in public activities. Conditions like this are still symptomatic in
many government bureaucratic service sectors (Sinambela: 2008). This is what
should not be left because it will increase the distrust of the community to the
government and will impact the reduction in investment.
As a consequence, local governments are required to be better able to
provide more quality, efficient, effective and responsible services. Building a
"trust" (trust) of the community for public services carried out by the government
is a continuous activity with the hope and demands of the whole community and
residents regarding improving public services.
Quality public services can only be achieved if there is a serious business
from the service component by providing effective and efficient services, namely
services that are right on target in accordance with the needs of the community.
For this reason, speaking in the context of modern countries, public services
(public services) have become increasingly important institutions and professions
and are no longer a part - time activity, without legal umbrellas, adequate salaries
and social security, as happened in many developing countries in the past (LPPM.
Unmuh Ponorogo: 2010). As a public service institution guarantees the
sustainability of state administration (public) involving the development of service
policies and management of resources originating from and for the public interest.
Certainly as a profession, that public services are based on the principles of
professionalism and ethics, such as, accountability, effectiveness, efficiency,
integrity, neutrality and justice for all service recipients, so strong gusts of
globalization, democratization and decentralization brings opportunities as well as
challenges for public services.
Actually efforts to improve public services (public services) have long been
implemented by the government, with the Instruksi Presiden Republik Indonesia
Nomor 5 Tahun 1984, concerning Guidelines for Simplifying and Control of
Licensing in the Business Sector then continued with the Surat Keputusan Menteri
Negara Reformasi Administrasi Nomor 81 Tahun 1993 concerning Management
of Public Services Guidance. Then the Instruksi Presiden Republik Indonesia
Nomor 1 Tahun 1995, concerning Improvement and Improving the Quality of
Pemirntah Apparatus Services to the Community.
Various policies have been adopted as an effort to improve the quality of
public services, but the performance of public services mandated by the
government bureaucracy until now has not been able to achieve a ranking of
"Excellent Service". This can be seen from the many complaints (complaints) of
service users, both directly and through the media to processes, products, systems,
costs, time and quality standardsand service performance that are still far from the
wishes and expectations of the community (customers). The reality in the field
efforts to improve public services carried out by the government bureaucracy are

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still limited to the level of policy and have not been able to touch aspects of
implementation and implementation in the field. Likewise, what happened to the
Madiun Regency Government still seems to be many obstacles and obstacles,
among others: (1) Management of licensing still seems expensive. (2) Very slow
in service. (3) Sometimes in less sympathetic service. (4) Over lapping is still in
service. (5) There are still obstacles and obstacles in service because the customer
(customer/community) does not understand the procedures in the bureaucracy. (6)
Therehas been no systematic and planned effort from the government to improve
the quality of public services. (7) The preparation of minimum service standard is
considered to have direct benefits to efforts to improve the quality of public
services. (8) Still not maximum integrated service, one-stop service and one-door
service. (9) There is no clear track record of the quality of public services that
have been carried out to provide evidence as well as a source of initial data and as
a reference to see the level of success and failure of public services. (10) There is
no identification of the causes of success and failure to improve the quality of
public services. (11) Professional personnel (staff/employees) have not been
fulfilled. (12) Lack of professional staff (staff) in the IT field.
For this reason, if the Sidoarjo Regency Government wants to improve the
quality of public services in the sense of "Bureaucratic Reform Paradigm of New
Public Service Management", the government must take several steps
systematically and continuously and sustainably continuously, so that the quality
of public services will be born as it coveted by the community.
In the Baseline Survey Research in Public Services: 2007 and Muhammad:
2003, (in the LPPM Unmuh Ponorogo: 2010 study) said that efforts to improve
public services at the level of implementation in the field still have many
weaknesses including: (1) less responsive, (2) lacking Informative, (3) less
accessible, (4) lack of coordination, (5) bureaucrats do not want to hear
complaints/ suggestions/ aspirations ofthe community.
Based on the background of the problems that have been raised above,
the formulation of the research problem can be stated as follows: what is the
Bureaucratic Reform Process of Public Licensing Services from institutional
aspects and aspects of human resources? What supporting factors and obstacles
are faced in the reform of the Public Service Bureaucracy for Licensing? What is
the description of the implementation of bureaucratic reform and the quality of
licensing public service performance after carrying out bureaucracy reforms?

B. LITERATURE REVIEW
Public services in the study of state administration are important studies. In
addition to the study of policies (policy), in this case the experts (experts)
group the shift in the orientation of the study of public administration to 3 (three)
parts, among others: (a) Classical Public Administration or Old Public
Administration (B) NewPublic Management (NPM) and (c) Governance.
In the study group, this public administration theory, each has implications
for the development of public services. Changes in orientation that color the
emergence of thoughts that produce new theories are as/a synthesis, because this
is no longer relevant to answer the challenges of environmental development. The

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birth of a new theory begins with criticism and lawsuit against public services to
be adjusted to new values. As the reform agenda, namely the demands of change
and renewal in the governance sector includes the arrangement of the structure of
the state government, the decentralization of government and the field of state
finance management (Suryadi, 2009).
The theory of governance is the latest study in the literature of public
administration and public management, along with the rise of the government
system renewal movement as an effort to solve various public problems that have
not been able to resolve New Public Management (NPM). In other words, that
governance complements the lack of the new public management paradigm which
is considered less effective and no longer has the support of various parties, as a
paradigm of government management, so that its birth is a new offer in the
framework of building civil society (developed society/ city/ civil society) . In
addition, changes in organizational culture must get serious attention so that the
state government can be developed towards "good governance".
According to Escap documents (in Suryadi, 2009) it is said that "good
governance" has 8 characteristics, among others: (1) Special-sipative (2) Rule
of Law (3) Transparent (4) Responsive (5) Consensus oriented (6) equality in
defending weak effective and efficient (8) accounts. Accountability is a central
focus accompanied by transparency and implementing a rule of law.
The theory of governance has been a concern among administrative experts
since the 1970s, and this is in response to the occurrence of the "Governability
Crisis". In the governance theory that explains the macro processes of change in
government, that the crisis is caused by the strong "state hegemony", which is
marked by the dominance of the country's influence on all aspects of life,
including public services that are increasingly complex. Finally the country is
trapped in a dilemma situation, becoming too big for small matters, and becomes
too small for big matters. It turns out that the root of the problem is still following
the government model with its trademark characteristics, among others: (1)
vertical structure (2) thick bureaucracy and intervention. The traditional model
government, like this, was unable to adapt itself to the economic, social, and
cultural/ cultural environment that was experiencing rapid changes (Kazanaigil,
1998, as quoted by Abdul Wahab, 1996: 1).
Governance is a terminology used to replace the term "government",
showing the use of political authority, economy in administration in managing
state problems. This illustrates the changes in the government service provider to
the facilities, and changes in ownership of the state belonging to the people
(Sedarmayanti, 2002). Governance can be used in several contexts, such as
"Corporate Governance, Local Governance, National Governance, International
Governance, Global Governance, Shared Governance, Participatory Governance
(Sedarmayanti, 2003).
Institutions from governance include three domains, namely state (state or
government), private sector (private sector or business world), and society
(society), which interact with each other and carry out their respective functions.
Government institutions function to create a conducive political and legal
environment, as well as the implementation of policy, then the private sector

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(private) creates jobs and income, while the community plays a positive role in
socioeconomic and political interactions including inviting groups in society to
participate in economic, social activities and politics (Sedarmayanti, 2003).
The Concept of Bureaucratic Reform
Basically "reform" is a process of systematic, integrated and concentrated
efforts aimed at realizing good governance, a system that allows the mechanism
for the administration of effective and efficient state governance by maintaining
constructive synergy between the government, the private sector and the
community (Sudarmayanti, 2002).
According to Adi Purwanto (2020) Bureaucratic reform, there are 8 (eight)
areas of change including: 1. Human Resources; 2. Mental Apparatus; 3.
Supervision; 4. Accountability; 5. Institutional; 6. Management; 7. Statutory
regulations; 8. Public Services.
According to Gerald Caiden the understanding of "reform" in Sumartono
(2009) is an effort to reform or bureaucratic reform to be a very important
discourse since the 1998 reform was rolled out. This is very natural for the
demand for realizing "good governance". Throughout the previous government
the bureaucracy was political and was not based on "the spirit of serving" but
asked to be served. That is why bureaucratic reform must be realized in the
framework of the government to serve the community as a realization of
community service and the nation.
As stated by Sedarmayanti (2009) that the concept of reform is a systematic,
integrated and comprehensive process aimed at realizing good governance. Good
Governance (good governance), a system that enables an effective and efficient
administration mechanism of governance by maintaining constructive synergy
between the government, the private sector and the community.
Then Ambar Wedaningrum (in Widodo, 2009) argues that basically the
reason for reforming is in the framework of (1) realizing a new approach to
carrying out a better public service function towards managerial rather than just
administrative (2) in response to the scale of handling and Coverage of
Government Duties (3) Changes in theory and economic problems and (4)
Changes in the role of the private sector in the implementation of public services
(Hughes in Dunn, 2000).
These four reasons are actually very consistent with two important issues in
governance -oriented public administration, namely the linkages of bureaucratic
and democratic issues. Government bureaucracy can be considered an efficient
organization without leaving public life. In addition, the relationship between the
existence of bureaucracy and the emergence of democratization which has
implications for the following things:
First, hold a partnership between the government, the private sector and the
community, second, the public administration system can be designed more
flexible, by practicing organization's innovations. Third, the role of political actors
and community control is greater and opens strict supervisory opportunities.
Fourth, the public administration system can be more participatory. Fifth, the
competency of the authorities must be longer for the public interest.

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According to (Rhoards, 1995) in Agus et al (2009) said that there were 3

(three) government functions namely, allocation, distribution and stabilization.
The allocation function is to have a very close relationship with the
provision and service of public goods whose designation is communal and cannot
be owned individually. Then the distribution function is the meaning of
proportional remains a concern in order to encourage the achievement of optimal
growth. The function of stability has a close relationship with the function of
regulating macroeconomic variables with the target to achieve the economy
rationally.
According to Ambar Dalam (Agus, 2009) also said that the role of the
country there are 3 (three) namely (1) Minimum role, the government is tasked
with providing pure public goods, for example, defense, security, law and
legislation, Macroeconomic management, improvement of welfare, equity and
public health system. In the middle role, the government is tasked with
overcoming market failures, ensuring the implementation of basic education,
basic health and social security. While the maximum role or as the perpetrators of
activities, the government is tasked with directly managing public service
institutions (Ambar in Mahmudi, 2007).
In connection with this, Sedarmayati (2009) in his book entitled "Reform of
Public Administration, Bureaucratic Reform and Future Leadership" Give
comments that "Reform" means "a change" without damaging or changing by
maintaining. So the reform process is the process of adjusting to the demands of
change and the development of the times. Reformation in the field of public
administration, especiallyin the field of institutional administration of government
in Indonesia, is expected to be a restructuring, revitalization and re-
functionalization.
With the reform of the administration of state government is expected to
change which leads to these three dimensions. Institutional Reformation
Government administration is carried out to form a government organization that
can truly meet the demands of the needs of the community, among others (1)
faster service (2) cheaper (cheaper) (3) better (better) (4) newer (newer) (5)
simpler (more simple) (6) higher quality (more qualities).
Changes or institutional arrangement which is often called "Reinvention",
namely the basic transformation of government systems and government
organizations to improve effectiveness, efficiency, ability to adapt and innovate.
Reinventions can be achieved by changing goals, incentives, accountability,
structure of power and accountability. So reinvention to replace the bureaucratic
system with the "entrepreneurial" system, creating organizations and systems for
governance both central and regional which always conducts innovations and
improve/improve their quality. As a result "Reinvention" is not only to improve
existing effectiveness, but also creates institutions that can improve effectiveness
when the environment changes.
Some of the definitions and definitions of bureaucratic reform put
forward by the experts above, it can be concluded that bureaucratic reform is a
change towards a better planned manner with certain methods and approaches to
create an organization that is able to achieve the goals of its organizations more

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effectively and efficiently. Meanwhile, the aspects of bureaucratic reform used in

this study are the reform aspects put forward by Zauhar (in Widodo) namely,
institutional aspects and aspects of human resources.
The Concept of Licensing Public Services
Licensing services in the era of contents are not only a necessity,
expectation and demands of the public, but also a promise, commitment and
mission of the current government, so that it must be held successfully and
quality. To clarify this, several concepts about "licensing services" need to be
stated, among others:
1. Sjachran is wet saying that it seems to be the same as what applies in the
Netherlands, as stated by Van Der Pot "Hef is Uiterst Moelijk Voor Begsif
Vergunning Een Definite Te Vinden" (very difficult to make a definition to
declare "licensing").
2. Utrecht says verguning (licensing) as follows: When the rules maker does not
generally prohibit an act, but it still allows it as long as it is held in a specified
basis for each concrete thing, then the state administrative acts that allow the
act to be a permit (licensing/vergunning). So "Vergunning" is an agreement of
the satisfaction based on a law or government regulation for certain
circumstances to deviate from the provisions of the prohibition of legislation,
can also be interpreted as a dispensation or release / release of a prohibition.
3. Prof. Dr. Bagir Manan said that licensing is an agreement from the authorities
based on laws and regulations to allow certain actions or actions that are
generally prohibited (in Sutedi: 2011).
Licensing services in the perspective of welfare state (Welfare State) is an
ideal licensing service (public) basically must be able to provide services that are
fast, cheap, fair, legal, open and can be accounted for in accordance with the
development of community dynamics (Sutedi in Mahmudi, 2007)
The Concept of Public Service Reform
The poor perception of the public about the services of government agencies
is a challenge that must be faced and at the same time searched for "way out" in
the process of government bureaucratic reform. Some impressions (images) that
have been successfully found have given a general picture that public services to
the community are still included in the "low" category (not yet fulfilling
expectations), so gradually but must be reformed (improved/ repaired).
The services provided by the government are still impressed by
bureaucratic, less transparent, too long (long, even complicated because the
mechanism of work is too hierarchical with the central role of the leadership.
Besides that, it is not efficient and effective in the service and is often confused by
several conditions that are so diverse or less relevant by providing services to be
obtained. The services provided are less supported by competent and professional
officials, so that it greatly affects the performance of services to the public as a
whole. Because of this, various concrete steps have been implemented by several
government agencies to link the performance of the service, competence of the
authorities, responsibility, is a positive step to improve services to the community.
Even in some types of public services, there are still practices of corruption,
collusion and nepotism. Then on the other hand the service user community also

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does not have SP Efficient to prioritize the more entitled and not fully want to
carry out all their obligations correctly, but some people are taking shortcuts to
obtain service facilities that only benefit themselves and harm others. For this
reason, efforts to eradicate corruption, collusion and nepotism (KKN)
indiscriminately (without guesses) are being carried out by the government in the
hope of the realization of a commitment to jointly eliminate bad habits that result
in people's misery.
Various criticisms and public complaints need to get serious attention and
handling, so that constructive criticism has a positive impact and improvement of
publicservices to the community as a whole.
In connection with this, the concept of good governance has a very broad
meaning and is often understood differently depending on the context. As in the
context of eradicating KKN, Good Governance is often interpreted as a
government that is clean of KKN practices. Some good governance circles are
interpreted as a concrete translation of democracy by releasing the existence of
"civic culture" as a support for the continuity of democracy itself. But in general
Good Governance is defined as good government management, Koirudin (2005:
160) in coal (Journal of Administrative and Policy Analysis).
In essence, good governance has long been a dream of many people,
although their understanding of good governance is different and in essence that
with good governance will have a quality and better government. Automatic
public servants will be better and acts of corruption will be lower, then the
government's concern for the community is hope. This is in accordance with the
definition of public services put forward by Subarsono (2005) in the Journal of
Analysis, said that public services are a series of activities carried out by public
bureaucracy to meet the needs of the user.
Coal in the journal analysis said that there is no comprehensive and
systematic national strategy, how to realize good governance in Indonesia. That is,
phenomena like this show that there is no comprehensive strategy in developing
good governance in Indonesia, both at the center and in the regions.
Ulbert Silalahi research results (in Widodo, 2006) "Public Services"
Conditions Before the Reformation was obtained data, that the level of
satisfaction of the state apparatus services provided to the public showed an
average percentage of 33.7% including the low category. The form of public
service is a "sense of service" of the attitudes of state apparatus services in various
forms, among others, apathetic, being cold, too tight in procedures, and often the
people. Then in 2002 the results of research from Agus Dwiyanto and his friends
in his book entitled "Reform of Public Bureaucracy in Indonesia, that the
performance of government bureaucratic services during the reform period,
although it has been running for several years not experienced many significant
changes. Even empirically in the current reform era, it appears that the rampant
KKN (Corruption, Collusion and Nepotism) is among the bureaucrats. This shows
us that the "focus of interest" of the apparatus has not been oriented towards its
main task, namely "public service". The state apparatus is still influenced by a
system of government that is oriented towards power/ authority or can be called
prioritizing "political authority" rather than "political committee", one of which is

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"customers oriented" or "customer perspective" or service oriented towards the

interests and needs of the community.
Therefore, changes must be made from a "government" government that
focuses on "authority" towards governance that focuses on collaboration or
compatibility among the public (government/ bureaucracy), private (private) and
community (community), Utomo (2003) in the Journal of Coal Analysis.
From here was born a fundamental question that is "Why Reform Public
Services" which is a strategic point to develop a better bureaucratic government
(good governance)? Why not/ not other aspects of government activities? Isn't
there still many other problems faced by the government which is also very urgent
to be handled? These questions are very important to be answered so that the
choice of building service delivery practices through "Reform of Public Services"
is truly believed to be able to bring the Indonesian government to the practice of
"good governance".

C. METHODS
Research Design
The research design is a framework that in depth performs the procedures
needed to obtain/ obtain information to answer the problems formulated by the
researcher and provide information needed for decision making (Malhotra, 1996).
In this study using a qualitative research approach, this approach is considered
relevant and able to express and describe and understand the meaning (meaning)
which is the formulation of the problem and research objectives.
With qualitative research researchers want to describe a data or symptoms
that are natural or naturalistic. Strauss and Corbin (1997) argue that qualitative
research is more appropriate to be used to reveal something that is behind the
phenomenon. Qualitative research as a research method is able to encourage the
perspective researchers he used to chronologically reveal social processes, assess
and provide in -depth explanation of the causality relationship between these
events through intense self -involvement in a culture or situation and interact
directly with the object under study (Weinreich, 1999: 24).
Qualitative Framework, so this research has an analytical descriptive
approach, aims to describe the activities of a group of people, an object, a set of
conditions, a system of thought or an event. The descriptive approach aims to
make description, picture or painting systematically, factual and accurately
regarding the facts, traits, and relationships between phenomena that are
investigated (Nazir, 1988: 63), relating to the reform of public service bureaucracy
in public management paradigm.
Research Sites
In opinion (Noor, 1994: 44) that the location of the study is the area or
place where the researcher conducts research activities. Furthermore Sugiono
(2007: 257), that the place where the researcher determines the location to conduct
research where objects and subjects who have certain quality and characters
determined by the researcher to be studied are then drawn conclusions.
Based on this, the researcher chose the research location at the Office of
Investment and One Stop Integrated Services Office at the Sidoarjo Regency

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DPMPTSP Office.
Data Collection Technique
The data collection method is very closely related to the research problem to
be solved, so one way to collect data is to use the observation method. In the
Chinese proverb says "I see I know" by seeing we can know clearly, can describe
a picture and can capture a scene that is difficult to understand if you only hear
information. To find out a lot about field information, researchers make
observations. Observation or observation is one of the main methods in collecting
data that can be done by researchers.
From the statement above, the instrument in this study was the researcher
himself. The techniques that must be used for data collection are:
1. Participant observation: Observation is the basis of all science, scientists can
only work based on data, namely the facts about the world of reality
obtained through observation (Nasution, 1988) in Sugiono (2005: 64).
Furthermore Marshall (1995) in Sugiono (2005: 64) states that "Through
observation, researchers study the behavior and meaning contained in the
behavior".
2. In -depth interview (in depth interview): data collection through interviews.
Esterberg (2002) defines that interviews are conducted with officials,
entrepreneurs and people (someone) who can add data to complete research,
especially those who are the behavior of public service assignments.
3. Documentation (documentation): documentation is very important in
qualitative research, as said Bogdan in Sugiono (2005: 82) that in most
qualitative research a collection of documents a person is generally used for the
narrative of the first person produced by someone who explains his personal
activities, experience and belief. Data collection techniques using documents as
data sources can be divided into personal documents and official documents. In
this case the researcher only uses official documents in the form of official
records sourced from the Sidoarjo Regency Government.
Data Analysis Technique
Data analysis techniques in qualitative research or often called "naturalistic"
according to Bogdan and Biklen (1982: 29) in Moleong (1988: 7) are seeking and
systematic regulating interview transcripts, field notes and other materials found
in government territory Sidoarjo Regency.
In addition to the data analysis, researchers use qualitative analysis as stated
by Miles and Huberman (1992: 19-20), namely through the process of data
collection stages, data presentation (data display), data reduction (data reduction),
and then withdrawing data/ verification. Data that has been collected in various
ways (observation, interviews, and the essence of documents and which are
usually "processed" roughly before being ready to use (through recording, typing,
editing, or writing), but qualitative analysis still uses words that are used usually
arranged into expanded text.
Qualitative analysis in this study is describing the structure of authority,
procedures used as well as the attitudes and behaviors of birorkasi used in
providing services. The purpose of this qualitative analysis is to describe the
existing situation and to solve the problem then draw a conclusion to the Sidoarjo

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Regency Government.
Data Source
The data sources in this study are:
1. People (key informants), namely the bureaucratic apparatus contained in the
Regional Government of East Java Province. Both the officials and to the staff,
who are used to provide information about the situation and conditions of the
research background. Information is determined "purposive" in the initial
stages and in its development "Snow Ball Sampling" until complete data and
information are obtained and show the levels of boredom. While the number
of informs also cannot be determined.
2. Events or situations that occur, appropriate and relevant to the focus of
research, namely "Bureaucratic Reform of Public Services with Newpublic
Service Management".
3. Documents, namely various documents that have relevance to the focus of
research (notes and mechanisms of the IT system).
Source Person
The resource persons in this qualitative research are speakers, namely
people who can provide information in the form of problems, events, people and
situations that have correlations with research on "Bureaucratic Reform of Public
Services Paradigm in New Public Service Management" in the Regional
Government "Because of limited time, funds and energy.
Data Validity
The validity of qualitative research data includes credibility testing (internal
validity), transferability (external validity), dependability (reliability), and confirm
ability.

D. EXPLANATION
Provision of Services Using Standard Operating Procedures
Licensing is one important aspect in public services as well as licensing
related to business activities. The licensing process, especially business licensing,
will directly affect the wishes and decisions of prospective entrepreneurs and
investors to invest their capital. And vice versa, if the licensing process is
inefficient, convoluted, and not transparent both in terms of time, cost, and
procedure will have an impact on the decline in people's desire to take care of
business licensing, and they are looking for other investment places whose
processes are clearer and transparent. This, of course, will have an impact on
the availability of employment and other employment problems.
By implementing a public service scheme through this one-door service, the
service problems that have been a scourge of a service performance provided by
the government can be overcome. The problems that always arise include:
transparency problems both transparency related to costs, time, and procedures
based on the results ofresearch in the field it can be concluded that investment
licensing services through PTSP mechanisms in Sidoarjo DPMPTSP have
implemented services in accordance with the standard of quality service. This is
proven that in carrying out the service mechanism related to the investment
licensing, PTSP has made a standard operating procedure or SOP that has been

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approved by the Governor and the Head of the Sidoarjo DPMPTSP. This means
that related to procedures, time, costs, requirements for each type of licensing
have been arranged in the SOP in detail. Related to improving the quality of
public services, especially in investment services (in the financial economic
review report, the Ministry of Economic Affairs Coordinator. Vol 1 No. 3. March
2011) explained that the improvement of investment services in Indonesia has
been relatively showing progress compared to neighboring countries. In the Doing
Business Report in Indonesia in 2010 from the World Bank, it was explained that
several cities in Indonesia had excelled in terms of the low number of procedures
needed to obtain a building permit. The average city in Indonesia only requires 12
procedures, which means 6 procedures are less than the regional average in East
ASI and Pacific. Likewise, the transfer of HA Katas Property is also relatively fast
throughout Indonesia compared to many other countries. But for the process of
establishing an Indonesian business is still longer, which is 60 days than ASEAN
countries which are 50 days, except Cambodia, the Philippines, and Laos.
Indonesia is also higher in terms of several costs, namely for business
establishment, building permits, and property registration.
Based on the results of the research researchers conducted at the Sidoarjo
DPMPTSP Office that in order to realize quality services in the field of
investment, in 2011 and DPMPTSP had established an integrated one-door service
or PTSP in the field of investment based on legal provisions governing it. In a
narrow sense, integrated services can be interpreted as a government agency that
has all the authority needed to provide various permits, especially related to
investment. Meanwhile, the main objective of the implementation of this one-
door integrated service is to improve the quality of public services and provide
broader access to the public to obtain public services. The target to be achieved
from this one-door service is the realization of public services that are fast, cheap,
easy, transparent, certain and affordable which in turn will improve public rights
to public services, especially investment licensing services.
An overview of increasing investment realization
Licensing is an important aspect in public services as well as licensing
related to business activities. The licensing process, especially business licensing,
will directly affect the wishes and decisions of prospective entrepreneurs and
investors to invest their capital. And vice versa, if the licensing process is
inefficient, convoluted, and not transparent both in terms of time, cost and
procedure will have an impact on the decline Of course the next will have an
impact on the availability of employment and other employment problems.
The phenomenon in various regions shows that licensing affects the creation
of investment climate in a region, both national and regional scope. In Indonesia,
before the implementation of the principle of decentralization which is realized
through the provision of autonomy to the region, all matters related to licensing
policies are centralistic where the central government is an absolute decision
maker. Likewise in terms of determining the permit, all must go through the
approval of the central government. With the deregulation of business licensing
from the central government to regional government, it will be able to foster an
investment climate in the region, both in terms of time, cost transparency, to legal

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certainty in investing. Investment will also be a catalyst in optimizing local

resources in order to have a higher added value.
At present the application of licensing has been through one stop service. In
general, the application of one stop service has been proven to have had a positive
impact on the development of investment in the region. Easier, cheaper and faster
licensing fostering courage to entrepreneurship, as evidenced by the prominent
increase in non-facilities investment. The increase in investment as a result of the
application of OSS in the end brought a multiplier effect to increase employment
opportunities and increased regional income. Qualitatively, the application of OSS
by investors has been considered to be able to provide better licensing services,
namely transparent, fast and inexpensive. The next impact is the reduced illegal
levies, the creation of a better order, increasing the spirit of entrepreneurship,
increasing investor confidence and increasing the image of the local government
in the eyes of the community. However investor response to the application of
OSS is very positive for licensing reform as part of bureaucratic reform has a
strategic role in order to create a healthy business climate for regional economic
growth. Certain regional economic levels are correlated with regional
competitiveness, both at the regional and national levels.
With the implementation of this OSS service mechanism in the Sidoarjo
Sidoarjo DPMPTSP organization or not has a positive impact on increasing
investment in Sidoarjo DPMPTSP. This can be seen from the data that the
researcher has presented that in 2011 the performance of the Sidoarjo DPMPTSP
organization exceeds the planned target. In the study group, this public
administration theory, each has implications for the development of public
services. Changes in orientation that color the emergence of thoughts that produce
new theories are as/ a synthesis, because thesis is no longer relevant to answer the
challenges of environmental development. The birth of a new theory begins with
criticism and lawsuit against public services to be adjusted to new values. As the
reform agenda, namely the demands of change and renewal in the governance
sector includes the arrangement of the structure of the state government, the
decentralization of government and the field of state finance management
(Suryadi, 2009).
The theory of governance is the latest study in the literature of public
administration and public management, along with the rise of the government
system renewal movement as an effort to solve various public problems that have
not been able to resolve New Public Management (NPM). In other words, that
governance complements the lack of the new public management paradigm which
is considered less effective and no longer has the support of various parties, as a
paradigm of government management, so that its birth is a new offer in the
framework of building civil society (developed society/ city/ civil society) . In
addition, changes in organizational culture must get serious attention so that the
state government can be developed towards "good governance”.
Implication of Theory
The theory of governance has been a concern among administrative experts
since the 1970s, and this is in response to the occurrence of the "Governability
Crisis". In the governance theory that explains the macro processes of change in

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government, that the crisis is caused by the strong "state hegemony", which is
parked by the dominance of the country's influence on all aspects of life, including
public services that are increasingly complex. Finally the country is trapped in a
dilemma situation, becoming too big for small matters, and becomes too small for
big matters. It turns out that the root of the problem is still following the
government model with its trademark characteristics, among others: (1) vertical
structure (2) thick bureaucracy and intervention. The traditional model
government, like this, was unable to adapt itself to the economic, social, and
cultural/ cultural environment that was experiencing rapid changes (Kazanaigil,
1998, as quoted by Abdul Wahab, 1996: 1).

E. CLOSING
Conclusion
Based on the results of the above issuance related to the Bureaucratic
Reform of Investment Licensing Services in Sidoarjo DPMPTSP, there are several
things that can be concluded, including:
1. Related to bureaucratic reform in the institutional aspect
Based on the results of research and discussion it can be concluded that the
Sidoarjo DPMPTSP organization has reformed the structure and authority of
the organization. From the results of the analysis it can be seen that DPMPTSP
is streamlining and simplifying the structure becomes slimmer and effective.
With a more simple structure this is where the level of complexity,
formalization, and centralization that exist is sufficient to support the
implementation of management functions such as planning, organizing,
coordinating, and evaluating. Organizations that are not too large are also very
effective in carrying out activities in accordance with their main tasks and
functions in order to achieve the goals of this Sidoarjo DPMPTSP organization.
Meanwhile related to the reform of systems and procedures for investment
and investment licensing services where since a few years ago the Sidoarjo
DPMPTSP has implemented a service mechanism using the mechanism of one
door integrated service or PYSP. Although it is still in the process of
improving the system, but in its development it is quite a positive response
from related parties including other investors. Changes to the investment
licensing service system can also provide quality services because the system,
procedures, and other requirements have been regulated in the standard
operating procedures or SOPs that have applicable.
2. Related to bureaucratic reform in aspects of human resources
Meanwhile related to aspects of human resources, the Sidoarjo DPMPTSP
organization is better. This can be seen from the management mechanism and
human resource development of the apparatus that have been based on the
merit system. But this has only been applied to new employees who have been
appointed in the past 3 years such as the recruitment mechanism of placement
employees, and development that has been based on competencies and their
fields of assignment. Meanwhile, to be related to employees who have long
been assigned to this DPMPTSP or more than the last 3 years the placement of
positions and positions is more likely to be based on work experience in equal

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educational background.
Meanwhile, related to the attitudes and behavior of employees in working
and providing services at the Sidoarjo DPMPTSP, it can also be concluded
quite well. This can be seen from the hospitality and politeness of every
employee in welcoming the arrival of guests who deal to this office.
Meanwhile the attitudes and behavior of employees at work are also very
conducive where the interaction between employees and between employees
and their superiors has been very harmonious and professional. This condition
is certainly inseparable from the role of the leadership and the entire
organization in creating a working climate in a conducive organization so that
it is possible for every employee to work in accordance with their main tasks
and functions.
3. Related to service quality
As for the quality of services carried out by the Sidoarjo DPMPTSP where
to improve the quality of services, especially investment licensing services
which are the authority of DPMPTSP have been carried out by implementing
the One Door Integrated Service System also already has standard operating
procedures that have been set. With the implementation of this one-door
integrated service system, anything related to services, especially investment
license services, has been arranged in detail both related to the problem of
procedures, time, costs, requirements, and others related to services. Although
not yet optimal in the authority in providing technical licensing where the
authority in granting this technical permit is still in each related SKPD,
DPMPTSP is still trying to present a quality service related to the services
that are the authority. Aspects of human resources that have been prepared
with the competencies and required skills as well as systems and procedures
and facilities for suggestions and roles such as the use of IT in the service
process are also gradually fulfilled.
4. Related to an increase in investment value
From the Bureaucratic Reform of Licensing Services carried out by the
Sidoarjo DPMPTSP since 2015. Where related to structure. And reform of
investment licensing services and using PTSP and Spipise since 2011 have
indirectly have a positive effect on increasing the value and realization of
investment in Sidoarjo Regency. With the efforts of the local government to
always rise and then reorganize facilities and infrastructure and take strategic
steps through policies that facilitate investors in investing in Sidoarjo which
includes one of the policies to establish this one-door investment service. From
the existing data, it can be seen that there is a significant increase in the value
of investment realization in Sidoarjo proves that indirectly and the positive
impact of one of the service system improvement efforts through the reform of
licensing service and investment bureaucracy on the investment climate in
Sidoarjo.
5. Related to supporting factors
Related to the factors that support the Bureaucracy of Investment Licensing
Services in which there is a delegation of authority by the central government
to the Regional Government of the provision to carry out one-door integrated

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services. Then the second is the commitment and political will of the leader of
the provincial head to advance the investment climate in Sidoarjo Regency.
6. Related to inhibiting factors
Meanwhile, related to the factors that are inhibiting in carrying out the
reform of the licensing service bureaucracy, there is still the absence of
authority of authority from the SKPD/Technical Office related to sector
licensing or advanced investment. Then the second factor is the lack of
cooperation. Coordination and synergy between district and city government
and provinces
Sugession
Theoretical Recommendations from the results of research that has been
presented based on data and analysis using theory and concept, according to the
opinion of the researcher, several recommendations can be picked as follows:
The context of bureaucratic information, based on the theory put forward by
Zauhar (2007), that the institutional aspects and aspects of human resources are
very important to pay attention. The changes made in the institutional context,
namely related to the structure and authority must be adjusted to the goals and
organizations. This is important related to the choice of organizational form and
organizational size to be applied, approaches, and motives in making changes.
Furthermore, related to changes in the system and service procedures must pay
attention to service principles and standards so as to be able to create a quality
service system and procedure.
Then it is related to the second aspect in the bureaucratic reform, aspects of
human resources must also strive in terms of human resource management who
consider professional aspects and make merit systems so as to create competent
employees in understanding and carrying out their service tasks. While related to
changes in attitudes and behaviors in appropriate services must be supported by
conducive organizational climate conditions between members of the
organization.
Practical Recommendations (Practical Implications), recommendations
related to bureaucratic reform in the institutional aspect Meanwhile, related to
bureaucratic reform in Sidoarjo DPMPTSP, there are still things that need to be
refined such as the issue of delegation of authority in the management of sector or
technical licenses that are still in each SKPD related to investment: such as the
industrial, trade, tourism, tourism, plantation and others sectors. This is certainly
still an obstacle in the management of investment licensing. Therefore what can
be suggested is that in the future it is expected that the seriousness and good
intentions of the good leadership are the governor. The Head of DPMPTSP and
also SKPD-SKPD related to investment licensing to then delegate the authority to
arrange their respective sector licensing to the Sidoarjo DPMPTSP. This time this
must be outlined in the form of regulations that have been mutually agreed upon
through the Governor.
Recommendations related to bureaucratic reform in human resources, from
the data and research results that have been carried out mainly related to aspects
of human resources still need to be optimized. Although in the management of
human resource development in the Sidoarjo DPMPTSP has made changes, the

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changes are still not evenly distributed such as: related to the education and
training mechanism of employees who are still prioritized to new employees,
while old employees still have not received appropriate opportunities.
Development in terms of education and training for old employees is also an
important thing to improve skills, enthusiasm for working in achieving overall
organizational goals so that there is no implementation of competence,
enthusiasm, and loyalty between new employees and old employees.
Recommendations related to service quality, related to the services provided
mainly to improve the quality of investment licensing services, it is hoped that in
the future there will be plans to implement online service mechanisms using the
internet network. This mechanism is very important to consider because it will be
very helpful and facilitate the mechanism of service where prospective investors
no longer need to come to the DPMPTSP office to register directly. Even if
needed, it is only clarification or to follow up on registration. Then there is also a
need for additions to the facilities and infrastructure of servants such as the
number of computer facilities whose numbers are still inadequate when compared
tothe busy service, and also the absence of computers prepared to be accessed and
used by investors equipped with internet networks. This is very important
considering that in this licensing service process sometimes investors need other
information related to investment that feels not provided at this PTSP, then also
related to the problem of warehouse facilities which until now is still not
permanent placement. During this time DPMPTSP often experiences moving
buildings for various reasons so that this is very disturbing the mechanism of work
of the organization both in terms of archiving, time and energy.
Recommendations related to increasing investment value, while related to
increasing the value of investment that it is realized that the reform of the
Bureaucracy of Investment Licensing Services is not the only factor that affects
the merits of investment. Many factors such as natural resources, the availability
of facilities and infrastructure and infrastructure of the region, and also include
regional regulations that tend to rarely support the investment climate in the
regions. Therefore, this investment licensing bureaucracy reform is a small part of
the effort to increase the regional investment climate. The most important thing is
the issue of political will from leaders in the regions such as governors and
regents/mayors at the district and city level. Synchronization, coordination, and
cooperation between cities and provincial districts are what need to be carried
out and followed up through a joint agreement to advance the investment climate
in Sidoarjo Regency.
Recommendations related to supporting factors, the factors that have been
supporting in carrying out the reform of the investment licensing service
bureaucracy are the delegation factor of the authority and leadership of the
provincial regional head as far as possible must be increased. The authority given
by the central government is still not intact as the authority for PMAMASH is in
the central government. Meanwhile, the commitment and political will of the
provincial head leaders will be crucial to develop and the advancement of PTSP in
this DPMPTSP therefore in the future.

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Recommendations related to inhibiting factors, while related to the factors

that are still an obstacle in carrying out the reform of the investment licensing
service bureaucracy must be immediately coordinated and sought a solution. As
the issue of sector licensing authority that has not been delegated to DPMPTSP
then the problem of coordinating the synergy of programs and investment
activities between the district and city government and the province, this is
important to create an integrated one -door integrated service and support the
investment climate in Sidoarjo as a whole.

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