In Search of Innovative

Local Administration:Indonesian Local Government in Transition

Presented in “The Indonesia-Japan Local Administration Seminar”, held by National Institute of Public Administration (NIPA), Republic of Indonesia,

Ministry of Internal Affairs and Communication of Japan, (MIC), and Japan Council of Local Authorities for International Relations (CLAIR), Singapore

JAKARTA, September 7-8, 2015

Dr. Tri Widodo W. Utomo, MADeputy Chairman for Innovation of Public Administration, NIPA

www.inovasi.lan.go.id

Evolution of LG in Indonesia

The Evolution of LG in Indonesia1

The Problems Remain2

2014: Good Start to Innovate LGs3

How to Innovate LGs?4

LG’s Innovation in Global Contest5

Village Innovation Model6

The Evolution of LG in Indonesia

Law No. 1/1945

Law No. 22/1948

Law No. 1/1957

Law No. 18/1965

Law No. 5/1974

Law No. 22/1999

Law No. 32/2004

Law No. 23/2014

70-year pursuit of Good & Competent Local Government

The Problems Remain …

� Lack of fruitful coordination among LGs and across level of

government;

� Fiscal dependency to CG’s transfer;

� Relatively low quality of public services (HDI, ease of doing

business, weak infrastructure, incidence of poverty, etc.);

� Corruptive mentality of local elites;

� Slow pace of change & reform.

The Problems Remain …

Year HDI GCI Rank EDBPoverty (No

& percent)Gini Ratio

2009 71,76 55 57.76 32,53 (14.15) 0.37

2010 72,27 54 58.47 31.02 (13.33) 0.38

2011 72,77 44 58.76 29,98 (12.36) 0.41

2012 73,29 46 58.10 28,59 (11.66) 0.41

2013 73.81 50 59.15 28,55 (11.47) 0.413

HDI: Human Development Index

GCI: Global Competitiveness Index

EDB: Ease of Doing Business

2014: Good Start to Innovate LGs

� ”LGs are expected to innovate on all forms of government management” (Law No. 23/2014 art. 386);

� Innovation as key determinant to foster competitiveness of LGs.

“If you always do what you always did, you will always get what you always got”

“Insanity is doing the same thing over and over again but expecting different result”

How to Innovate LGs?POLICY LEVEL STRATEGY

Stipulating new Government Regulation demanding for innovation among regions and institutions

CULTURAL STRATEGY

Conducting yearly competition and exhibition of

innovation

TECHNICAL STRATEGY

Building willingness and ability to innovate through training and advocacy; managing

innovation laboratory; creating champions of innovation in provincial level

LG’s Innovation in Global Contest

No Innovation LG

1

Health-care service: providing assistance from traditional medical resources for mother-giving-birth (in cooperation with formal medical resources)

Aceh Singkil District, Aceh Province

2 The distribution of teachers proportionally Luwu Utara District, South Sulawesi Province

3 Integrated Licensing ServicesBarru District, South Sulawesi Province

4 Civil Registration ServicesSurakarta City, Central Java Province

5 UPIK (Complaint and Information Services Unit)Yogyakarta City, Special Region of Yogyakarta

Village Innovation Model

Cultural &

Tourism village

Law alert village

Smart & Skilled village

Healthy village

Children friendly village

Env’tfriendly village

Entre-preunervillage

Concluding Remarks

� Under Law No. 32/2014, Local Governments will be encouraged not only to be more democratic, but also more innovative � “New Species of LGU”

� Innovation will promote “developmental regime” in local level as well as high-performing organization;

� “Willingness to innovate” and “ability to innovate” among LG officials is relatively weak, so that capacity building programs are substantially required;

� The success in the transition period will determine the future success of LG in Indonesia.

References

Utomo, Tri Widodo, 2014, “Public Service Innovation: International Experiences Based on UNPSA”, Public Administration Innovation Series No. 11, Jakarta: National Institute of Public Administration.

Utomo, Tri Widodo, 2015, “Innovation and Public Sector Performance in Indonesia”, The

International Workshop on Democracy and Innovation for Good Governance, conducted by National Institute of Public Administration (NIPA) and Ministry of Foreign Affairs, Jakarta, June 9.

Utomo, Tri Widodo, 2015, “Customized Public Service (CPS): Indonesian Experience on Innovating Public Sector”, The Korea-Indonesia Workshop on New Paradigm of

Government Services, held by National Institute of Public Administration (NIPA) and Korean Embassy, Jakarta, August 24.

Thank YouArigatou gozaimashita, yorosiku onegaishimasu …

Dr. Tri Widodo W. Utomo, MADeputy Chairman for Innovation of Public Administration, NIPA

www.inovasi.lan.go.id