- Email: [email protected]
Bureaucracy and Governance in Indonesia: Study on West Sulawesi Province
Available online at www.sciencedirect.com
ScienceDirect 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. © The Authors. Authors.Published Publishedby byElsevier ElsevierB.V. B.V. © 2014 2015 The 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. 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: [email protected]
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
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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. References Arko-cobbah, A. (2006). Civil society and good governance: challenges for public libraries in South Africa. Library Review. 55 (6), 349-362. Bhuiyan, S. H; and Amagoh, F. (2011). Public sector reform in Kazakhstan: issues and Perspectives. International Journal of Public Sector Management. 24 (3), 227-249. Black, A. (2001). The Victorian Information Society: Surveillance, Bureaucracy, and Public Librarianship in 19th-Century Britain. The Information Society: An International Journal. 17 (1), 63 80. Brown, J. D; Earle, J. S; and Gehlbach, S. (2009). Helping Hand or Grabbing Hand? State Bureaucracy and Privatization Effectiveness. The American Political Science Review. 103 (2) May, 264-283.
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Budd, L. (2007). Post-bureaucracy and reanimating public governance A discourse and practice of continuity?, International Journal of Public Sector Management. 20 (6), 531-547. Chisholm, L. & Napo, V. (1999). State and bureaucracy: symbolic access?. Agenda: Empowering women for gender equity. 15 (41), 32-37. Dikopoulou, A. (2012). The contribution of records management to good governance. The TQM Journal. 24 (2), 123-141. Dormer, R. (2011). Child Welfare's Iron Cage: Managing Performance in New Zealand's Child Welfare Agency. International Journal of Public Administration. 34 (14), 905-917. Gamlath, S. (2013). The governance dimension of human development. Humanomics. 29 (4), 240 259. Giessen, G; Krott, M; Möllmann, T. (2014). Increasing representation of states by utilitarian as compared to environmental bureaucracies in international forest and forest–environmental policy negotiations. Forest Policy and Economics. 38. 97–104 Halachmi, A. (2011). Imagined promises versus real challenges to public performance management. International Journal of Productivity and Performance Management. 60 (1), 24-40. Harries, S. (2009). Managing records, making knowledge and good governance. Records Management Journal. 19 (1), 16-25. Huque, A. S. (2011). Accountability and governance: strengthening extra-bureaucratic mechanisms in Bangladesh. International Journal of Productivity and Performance Management. 60 (1), 59-74. James, W. (2006). A processual view of institutional change of the budget processwithin an Australian government-owned electricity corporation. International Journal of Public Sector Management. 19 (1), 5-39. Kigongo-Bukenya, I. M. N. (2011). Enhancing democracy and good governance A curriculum proposal for information/knowledge management professionals (IKMPs) in the SCECSAL region. Library Review. 60 (5), 362-369. Kolding, J. & van Zwieten, P. A. M. (2011). The Tragedy of Our Legacy: How do Global Management Discourses Affect Small Scale Fisheries in the South?. Forum for Development Studies. 38 (3), 267-297. Kwon, K. H; Nam, Y; & Lackaff, D. (2011). Wireless Protesters Move Around: Informational and Coordinative Use of Information and Communication Technologies for Protest Politics. Journal of Information Technology & Politics. 8 (4), 383-398. MacCarthaigh, M. (2012). Politics, Policy Preferences and the Evolution of Irish Bureaucracy: A Framework for Analysis. Irish Political Studies. 27 (1), 23-47. Meier, K. J; O'Toole Jr., L. J; and Nicholson-Crotty, S. (2004). Multilevel Governance and Organizational Performance: Investigating the Political-Bureaucratic Labyrinth. Journal of Policy Analysis and Management. 23 (1 ) Winter, 31-47. Prasad, B. C. (2008). Institutions, good governance and economic growth in the Pacific Island countries. International Journal of Social Economics. 35 (12), 904-918. Quah, J. S. T. (2013). Ensuring good governance in Singapore Is this experience transferable to other Asian countries?. International Journal of Public Sector Management. 26 (5), 401-420. Rauh, C; Kirchner, A; & Kappe, R. (2011). Political Parties and Higher Education Spending: Who Favours Redistribution?, West European Politics. 34:6, 1185-1206, Salminen, A; and Ikola-Norrbacka, R. (2010). Trust, good governance and unethical actions in Finnish public administration. International Journal of Public Sector Management. 23 (7), 647-668. Wekke, I. S. & Hamid, S. (2013). Technology on language teaching and learning: a research on Indonesian pesantren. Procedia - Social and Behavioral Sciences, 83, 585–589. Wekke, I. S. & Lubis, M. A. (2008). A Multicultural approach in Arabic language teaching: creating equality at Indonesian pesantren classroom life, Sosiohumanika, 1 (2), 295-310. Wright, J. W. (1986). Initiating high risk projects in bureaucracies. Project Appraisal. 1 (3), 160-168.
ScienceDirect 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. © The Authors. Authors.Published Publishedby byElsevier ElsevierB.V. B.V. © 2014 2015 The 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. 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: [email protected]
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. References Arko-cobbah, A. (2006). Civil society and good governance: challenges for public libraries in South Africa. Library Review. 55 (6), 349-362. Bhuiyan, S. H; and Amagoh, F. (2011). Public sector reform in Kazakhstan: issues and Perspectives. International Journal of Public Sector Management. 24 (3), 227-249. Black, A. (2001). The Victorian Information Society: Surveillance, Bureaucracy, and Public Librarianship in 19th-Century Britain. The Information Society: An International Journal. 17 (1), 63 80. Brown, J. D; Earle, J. S; and Gehlbach, S. (2009). Helping Hand or Grabbing Hand? State Bureaucracy and Privatization Effectiveness. The American Political Science Review. 103 (2) May, 264-283.
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