Activity-based Management: Answering the Issues in Collaborative Government Application in a One-stop Licensing Service Office in Indonesia

Moni Wehelmina Muskanan, Markus Bunga, Christien C. Foenay and Herly M. Oematan

This research aims to analyze the implementation of collaborative government/ the whole of government (WoG) concept to solve a wicked problem in a one-stop licensing service (OSLS) at the provincial level of East Nusa Tenggara (ENT) and propose a better technical approach to collaborative government by applying the concept of activity-based management (ABM) in issuing business licenses. This qualitative research was conducted by applying focus group discussion (FGD) and in-depth interviews for data collection regarding the existing procedures. The research went through three steps of analysis: firstly, comparing the whole of government concept that should be applied to public services with the content of all relevant central and local government rules that have been issued; secondly, assessing the existing procedures based on the concept of WoG and the rules issued; and thirdly, justifying a technical recommendation for the WoG managerial approach by applying the activity-based management concept in operational management to respond to the accountability and performance measurement challenging issues in WoG application. It is found that the ENT OSLS office has not totally reformed its operational management according to the WoG concept, which should have been run in 2006, when the Indonesian government started to reform its public licensing services. This stems from inconsistency in applying the concept of WoG into relevant local government rules, which leads to inadequate capacity building and poor local government institutional framework of ENT OSLS. The condition also has a negative impact on OSLS management performance relating to the issue of business licenses, taking longer than they should, because the process of issuing the license is also dependent on other technical institutions beyond the control of the OSLS office, which is not integrated in OSLS operational management. It is suggested that to increase the performance of local government (OSLS office) in public services, and especially to support social and economic development at the local level, it is necessary to review all relevant local government rules that can strengthen OSLS capacity. This, in turn, can help to effectively apply the activity-based management (ABM) approach as a better way to measure accountability and performance, which are the challenging issues in WoG application.

Volume 11 | 05-Special Issue

Pages: 721-736