Gd. Permata Kuningan Lt.10,
Jl. Kuningan Mulia, Kav. 9C,
Jakarta Selatan, 12980.
Telp.: (62-21) 8378 0642/53
Fax.: (62-21) 8378 0643
KPPOD dalam Berita
As a regional city located far from Jakarta, the capital city of West Kalimantan, Pontianak, does not make headlines very often and people mostly consider the city as one of the most disadvantaged in the country.
But on Tuesday, Pontianak proved the stereotype wrong and won the title as the country’s best regional governance reformer.
In the 2016 Regional Economic Governance survey conducted by the Regional Autonomy Watch (KPPOD), a majority of the respondents, which comprise mostly businesspeople, favored Pontianak as it provided good infrastructure and stability along with ease in business permit issuance.
“The (Pontianak) administration creates synergy with its citizens in road development. It provides the building materials such as cement, while the citizens provide the manpower and other materials,” KPPOD researcher Boedi Rheza said in Jakarta on Tuesday.
Regarding stability, 92.5 percent of the respondents said Pontianak had been thoroughly safe in 2016 and only 2.5 percent of them perceived the city as “prone to social conflict.”
It does not charge building permit fees for businesses whose labor forces comprise up to 60 percent local manpower. It has also developed a one stop integrated service that allows businesspeople to process company-registration certificates and business permits in a day, faster than the central government’s standard of three days.
“Pontianak has followed the central government’s instruction and their implementation is really good,” Institute for Development of Economics and Finance (INDEF) economist Bhima Yudhistira Adhinegara said.
At the opposite end North Sumatra’s capital Medan is at the bottom of the list because of a lack of business development programs. Seventy five percent of respondents said it had an inefficient business permit issuance system, with a lack of integrity in its bureaucracy.
The survey also found that major cities in eastern Indonesia have shown rapid progress in regional economic governance, with six cities in eastern Indonesia placing in the top 10 best administered list, using prime regional economic governance standards.
The cities are Gorontalo city, Gorontalo, in second position; Palu, Central Sulawesi (fifth); Makassar, South Sulawesi (sixth); Kendari, Southeast Sulawesi (eighth); Manado, North Sulawesi (ninth); and Ambon, Maluku, in 10th spot.
According to the survey, they have advanced in their economic governance by simplifying business permits, promoting transparency, bridging the gap between government and business with efficient interaction and maintaining social stability.
The survey of 32 cities across Indonesia last year measured 10 variables including business permit issuance, development programs for the private sector, government-business interaction, labor issues, infrastructure development and transaction costs.
“The regional administrations in eastern Indonesia managed to catch up by reforming their governance, which is less costly compared to structural reform including infrastructure upgrades,” Boedi said.
Several cities in eastern Indonesia, he added, had been successful in their reforms despite limited budgets citing Palu, which levies low administrative fees and regional taxes.
Makassar has been innovative in its interaction with business people by providing a communication forum. The city has also launched smart city and tourism apps. “The business forum provides feedback for the administration,” Boedi explained.
Meanwhile, Gorontalo and Manado have put a lot of effort into developing small and medium enterprises (SMEs). Gorontalo has created subdistrict based economic zones where SMEs in each subdistrict are selected to develop one main product.
Manado administration has created an SME center, dubbed the “Window on Indonesia.” Working with airline giant Lion Group, the center is aimed at selling locally made crafts to tourists.
--- (Source The Jakarta Post – Wednesday, Jan 1 2017) ---
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