PUBLIC PRIVATE PARTNERSHIP : LESSON FROM LOCAL GOVERNMENT (CASE BANDUNG CITY GOVERNMENT WITH PT MARGATIRTAKENCANA IN DEVELOPING AND STRUCTURING CICADAS TRADITIONAL MARKET.

THE NEW PHENOMENA

OF PUBLIC

ADMINI$TRATION

IN

ASIAN

COUNTRIE$

A Proceeding Book

Third lnternational conference 0n public Organization

(rcoNp0)

organized by lnternational Public Organization Association (lpOA)

Bali on February 21st, 2013

THE

NEST

PHENOMENA

OF

PUBLIC

ADMINISTRATION

IN,A,SIAN

COUNTRIES

A

Proceeding

Book

By

International Public Organization

Association

For the

3rd International

Conference

on Public Organization

Editor:

Prof Dr. Sunhyuk Kim, Korea Universiry Prof _{Dr. Jin-wook} Choi, Korea Universiry Prof Dr. Christope Behrens, Center of Good Governance

Prol

Dr. Ahmed Murtadha, Universiti lJtara Malaysia

Prof, Dr. Arnporn Thmrolak, Thammasar University Prof, Dr. Darwin Manubag, Mindanau State Universiry

D r. Achmad Nurmandi, lJniversitas Muhammadiyah Yogyakarta

Dr. Dyah Mutiarin, lJniversitas Muhammadiyah Yogyakarta

Prof.

Dr.

Azhari Samudra, lJniversitas Ngurahrai, Bali Dr. Tirka, lJniversitas Ngurahrai

Prof. Dr. \Tirman Syafri, Institut Pemerintahan Dalam Negeri Dr. Abdullah Sumrahadi, lJniversitas Ngurahrai, Bali

Organized:

Univtrsitas Muhammadiyah Thamm6at Unlversiry Univqsit Uiara Malalsta Ktrea University

@@@ffiffiffi

'i€* Ngud Rai lligan lnsiitute olTecnology inslitut Pemerinhhan

w

oih€ luindarao Stde Dstam Neoeri

THE NEW PHENOMENA OF PUBLIC ADMINISTRATION IN ASIAN COUNTRIES

A Proceeding Book

By lnternationai Public Organization Association

For the 3rd lnternational Conference on Public Organization

Editor:

Prof Dr. Sunhyuk Kim, Korea University Prof Dr. Jin-wook Choi, Korea University

Prof Dr. Christope Behrens, Center of Good Governance Prof. Dr. Ahmed Murtadha, Universiti Utara Malaysia Prof. Dr. Amporn Tamrolak, Thammasat University Prof. Dr. Darwin Manubag, Mindanau State University

Dr. Achmad Nurmandi, Universitas Muhammadiyah Yogyakarta Dr. Dyah Mutiarin, Universitas Muhammadiyah Yogyakarta Prof. Dr. Azhari Samudra, Universitas Ngurahrai, Bali Dr. Tirka, Universitas Ngurahrai

Prof. Dr. Wrman Syafri, lnstitut Pemerintahan Dalam Negeri

Dr. Abdullah Sumrahadi, Universitas Ngurahrai, Bali

Cover & Layout: AksaraBumi Jogjakarta aksarabumi.jogja@gmail.com

Special Edition 150 exp, February 2013 Printed on Book Paper 200x280 mm ; 860 p.

ISBN:978-947124-6

Published by:

lnternational Public 0rganization Association

TABLE

OF CONTENTS

T-\BLE

OF

CONTENTS

-3

EDITORIAL

PREF'ACE, -1.1

PART

1

l

J

CORRUPTION PRACTICE,S

AMONG YOUNG

E,LE.CTIVE, PUBLIC OF'FICIALS

(SANGGUNIAN KABATAAN)

IN ILIGAN

CITY, SOUTHE,RN PHILIPPINE,S Dr. Sulpecia L. Ponce, DomshellJohn B. Cahiles, Mohammad

Naif

S. Pimping,

_lonathan A.jangao, Prof. Amabelle A. Embornas, Dr. MytmaJean A.

Mendoza

-15

GRAFT

AND

CORRUPTION PRACTICES AN,{ONG SELECTE,D PUBLIC OFFICIALS

iN

MINDANAO, SOUTI{ERN

PHILIPPINES

-\mer Husain L. Laut, Abdul Azis G. ltlariano, Fay Elaine B. Ontolan,

Dt.

Nimfa L.

Baracamonte, Prof. Christian T.N. Aguado, and Dr. Suipecia L.

Ponce -27

DE,CE,NTfuA.LIZATION, CORRUPTION,

AND

DE,MOCfu\CY ACC

OUNTABILITY

Nurliah

Nurdin

-39

CORRUPTION, PROBLEMS

AND

CFIALLENGE,S

IN

CRE,ATING

GOOD

GOVERNANCE,:

A

COMPARISON BET\TEE,N

\,{,{IAYSIA AND

INDONE,SIA Dr. Makmur, Dr. Muhadam

Labolo

-49

THICK INDIVIDUALITY WITHIN THIN

SENSE OF PUBLIC:

CONtrUSION

\TITHIN

THE, BATTLE,

AGAINST

CORRUPTION

Pur.wo Santoso

-74

CITIZEN

CONTROL BASED

ON

COMPE,TENCY

COLLABORATION ON

STRUCTURES

AND

CULTURES TONTARDS URBAN SPATIAL POLITICS

Dr.

Tti

Sulistyaningsih,

M.Si. -85

POLITICAL

NL{RKE,TING FOR

POLITICAL

LE,ADE,RS

IN

MAiIYSIA:

ANALYSIS FROM

THE

PERSPE,CTIVE OF IMAGE,

CONTRUCTION

AND

BODY LANGUAGE,

Assoc. Prof. Dr. Mohd Azizuddin Mohd

Sani -93

A Prcceeding Book By lntemational Pubic Organization Association For the 3rd lntemational Conference on Public 0rganization

8

OBSTACLE,S

TO

BUREAUCRATIC RE,FORM

IN

INDONESIA:

LE,SSON LE.ARNE,D

Untung

Subagio -115

9

ADMINISTRATI\B,

RE,F.ORM

IN

SOUTH I(ORE,A:

NE\7

PUBLIC

N,IANAGE,MENT

AND

THE,'ORTHODOX

PARADOX'

Professor Sunhyrrk Kirn, Professor Chonghee

FIan

-125

1I.) ITTPROVING STATE OWNED CORPORATION (SOC) PE,RFORN'L{NCE, TH RO U GH TR,\N S F O RIVI^*TI

ONAL

LE,AD ERSH I P

\uli

Tirtariandi El Anshori, SIP.,

M.AP

-137

11

QUICK

WINS AS

IMPROVING THE QUALITY

OF PUBLIC SE,RVICE,

TO

RE,ALIZE GOOD

PUBI;IC

GOVERNANCE (CASE, STUDY

PLBLIC

SE,RVICE,

AT KECAMATAN

(DISTRICT) AMPE,K

ANGKE,K,

REGENCY OF'AGAM, PROVINCE. OF SUMATE,RA BARAT) Tiahjo

Suprajogo

*146

12

E_PROCUREMENT AS

AN

INSTRUME,NT

ON E,NHANCING

TRUST TO\7ARDS

ACHIE,VING GOOD

GO\E,RNANCE,:

CASE STUDY AT

BANTUL YOGYAKARTA

Ardhi

Hetizharmas, Rizki Surya Putra, Anak Agung Gde Putu \X/ahyura -757

G OVE,RNIN G THROUGFI C OMPETITI ON : AI]TE,RNATIVE, APPROACH

TO

TRANSFORM BUREAUCRACY (A CASE, OF IMPLE,ME,NTATION OF PROGRAM PE,NDANAAN KOMPE,TI SI -iND E,KS PEMBAN

GUNAN

N,4,{NU SIA

IN

\XE,ST

JAVA PROVINCE,, IND ONE,SIA) Caroline Paskarina, S.IP.,

M.Si.

-170

THE, E,F'F'E,CTI\E,NESS

AND

TFIE, E,FFICIE,NCY OF

THE

USE OF

BIOMETRIC

SYSTEMS

IN

SUPPORTING

NATIONAL

DATABASE, BASE,D

ON

SINGLE,-KTP

NUMBE,R GFIE

IMPLEMENTATION

OF E,-I<TP

IN

BANDUNG)

Dt. Etin

Indmyani,

MT

-185

THE, PROF'E,SSIONAL BURE,AUCRACY

ON

PUBLIC

ADMiNISTRATION

AT

NE\7

DE,\T,LOPME,NT COUNTRIE,S

IN

ASIAN

Ady

Muzwardi

-203

DE,MOCRACY SOCIE,TAL PRE,SSURES,

AND

INDONE,SIAS WAR

ON

TE,RROR

Dr.

Ali Muhammad

-21.1

I NF ORN&\TI

ON

F'RE,E,D OM

IN

THE, C ONTE,MPORARY IND ONE,S IA:

POLITICAL

RE,GULATION

AND

ITS D\TJAMICS

TO\rARDS

THE, OPE,N

PUBLIC SPHE,RE

Abdullah Sumrahadi

-227

PHILIPPINE, E,LE,CTORAL

MODE,RNIZATION:

PRE,_

AND

POST_ ATTITUDE,S OF RE,GISTE,RED VOTE,RS OF

TIBANGA

AND

DE,L CARMEN,

ILIGAN

CITY,

NORTHE,RN

MINDANAO

TO\7ARD THE, AUTOIVI^*TE,D E,LECTION SYSTEM

Princess NIae S. Chua, Elaine M.

Baulete -239

T3

14

15

t6

The New Phenomena of Public Administration ln Asian Countries

:

'

\.\TION,\L

SOUTH KORE,A COMPE,TITIVE,NE,SS

AND

INDONESIA

AND

CORRUPTION:

A

COMPARISON OF

-lin-Ebok

Choi

-258

PART

2

:

THE COLLABORATION

IN

MANAGE,ME,NT

ADMINISTfu\TION

OF TFIE E,LDE,RLY SCHOOLS

IN

PUBLIC SERVICE,:

A

CROSS CASE, ANALYSIS

Pir-akorn $Thangmahaporn -271

:1

E,NSURING 3ES

AND

RE,SPONSIVE,NE,SS

IN

THE

DELI\E,RY

OF

EDUCATIONAL

SE,RVICES

IN

THE AUTONOMOUS

RE,GION

IN

MUSLIM

\{INDANAO

(ARMI\O

IN

THE

PHILIPPINE,S

Dr. Sapia Moalam Abdulrachman, Dr. Badnya P.

Makol

-289

f

.)

_{THE, DEVELOPME,NT OF'TEACHE,R}

AND

EDUCATIONAL

_PERSONNEL

PROMOTIONAL

ASSE,SSME,NT FRAME,WORK

IN THAILAND

Dt. Ampotn

Tamrongiak -306

-:

THE, D\'I.{AMICS OF' LOCAL

AUTONOMY IMPLEMENTATION

IN

iNDONE,SIA: THE, SHIFT FROM

DE,CENTRALIZATION TO

AS\.METRIC DE,CE,NTRALIZATION

Fnezca RaraJuta, ChristophelAndre

Hadi

-323

]+

\NALYZING

TFIE, PE,RF'ORN,,{,{NCE, OF'DE,CE,NTRALIZATION

IN

THE

CASE

OF JAMKE,SMAS

AAMINAN

KESEI

IATAN MASYARAKAT-HEALTH

INSUR,\NCE SCHE,ME, FOR PEOPLE,)

AND JAMKESDA

OAMINAN

I{ESEHATAN MASYARAK.{T

DAERAFT_HE,ALTH

INSUR,\NCE

SCHEI,{E, F'OR

LOCAL

PE,OPLE,).

Hevi l(urnia

Flardini

-330

]5

ORGANIZATIONAL

CULTURE

AND

LE,VEL OF _{JOB PERFORMANCE} EF'F'E,CTI\ENESS

AMONG

THE ILIGAN

CITY

PHILIPPINE

N,\TIONALPOLICE

ENP)

PE,RSONNE,L

l{s.

Flazel D.,Jovita, Prof. Girlie B.

Miguel

-342

PART

3

]6

KEBUILDING

NATION

THROUGFI

APPLICATION ORGANIZATION

BASIC VALUES STUDY PHENOME,NON

IN

TRIBUNGAN \rIRO\TONGSO

_JE,MBER Putri Robiatul Adawiyah S.Sos.,

I\{.Si

_-357

:-

FINDING

PUBLIC SERVICE, AS

A CALLING: INTRODUCING

\7Oil<PLACE

SPIzuTUALITY AS A WORK

ETHIC

iN

INDONESIAN

BUREAUCRACY

-\rio \Ticaksono -365

]B

PUBLIC SE,RVICE, POLICY

MAKING

USING

ISIZEN

METHOD

CONIBiNATION

32

.').1

A Proceeding Book By lntemalional Public &ganization Associailon Forthe 3d lntemalional Conference on Public Oganization

29

PLBLIC ADMINISTRATION:

HISTORY

AND

FUTURE, TRAJECTORY RE,FORM

Dr. Asep Nurjaman,

M.Si

-390

30

INfPLEME,NTATION ELECTRONIC IDE,NTIF'ICATION

POPUL,T|ION

CARD

(E_ID) ON

DEPARTE,ME,N OF POPULATION

AND CIVII,

RE,GYSTRA'TION (DPCR)

IN

PAMEKASAN REGE,NCY E,ASTJAVA PROVINCE

Dra. Gatiningsih, MT, Luciana \Wulandari,

S.STp -398

31

A,4,\KING PE,RFORI\,4,{NCE,_BASE,D BUDGE,TING WORKS

IN

SOME,

LOCAL

GOVE,RNMENTS OF' INDONE,SIA

Dyah Mutiarin, Achmad

Nurmandi

-409

POLICE

COMMUNITY

SERVICE: THE, CASE, OF

KIBI-A\f4N,

DAVAO DE,L SUR Velouna R. Perez, fuchard B.

Dumasig -428

ANALYSIS OF E,MPO\TERMENT OF RURAL

ECONOMIC INSTITUTIONS

AND

ITS EFFECTS

ON

RURAL

COMMUNITIES

E,CONOMIC PERFORMANCE

Muhammad

Basri

-442

34

STK/\*TEGIC

PI-ANNING

ON

POLLUTE,D RIVER RE,SOLUTION PROBLE,M

AT

CIh,L\HI

MUNICIPALITY

AyLrning Budiati, SIP,

MPPM

-455

35

APPLICATION

Otr ISO 9001-2000IN PUBLIC SERVICE: TO\7ARDS BETTER PERFORMANCE? (A CASE STUDY FROM

CITY

OF

BANDUNG)

Mudiyati Rahmatunnisa, Asep C.

Cahyadi -460

PART

4

36

INfPACTS OF GOVE,RNMENT STRATEGIES ON TFIE, E,NVIRONME,NTAL

IL{NAGEMENT

OF' MT.

GABUNAN

!7ATE,RSFIE,D, NORTFIE,RN

MINDANAq

PHILIPPINE,S

gsgilia _{B. Tangian,}

Ph.D.

-473

3-

SOLID WASTE, CHARACTE,RIZATION

AND

CORRELATION BE,TWE,EN THE,

LE\E,L

OF AWARE,NE,SS OF'MSU_IIT CONSTITUENTS

AND

THE,IR

PL\CTICES

IN HANDLING

SOLID STASTES

)tana Pra 1r{. Sison, Dr. Alita T.

Roxas

-485

38

GRL\TE,R

PROGRAM: ITS IMPACT

TO

TFIE, SOCIO_E,CONOMIC

AND

E \-\_I

RO\

} IE,NTAL DEVE,LOPME,NT O F

LINAMON,

IANAO

DEL

N O RTE,,

\ORTHE,fu\I MINDANAO

Flaine

\I.

Baulete, Sapia

Abdulrachman -495

The New phenomena of public Administration ln Asian Courrtries

STR\TEGIC

PLBIIC

CHOICE, OF STASTE _{MANAGEME,NT PUBLIC SE,RVICES}

h'

DISTRICT C^\TCHMENT AREA (CASE _{STUDY DISTRICT TAPOS,}

DEPOK.

rrEsT_l-{\-!

Flrrrenrine Ratih _{S,'ulandari -527}

LOC{T M\ERN]\fE,NT

ECOLOGICAL

COMMITME,NT

IN

_PUBLIC

POLICY

PROCESSWITHIN THE,

OUTONOMY

ERA

Q11*tiene _{A. Kambo, Sukri}

Tamma -532

PTRT

5

"'':

E.R\DICATING CHILD

I.ABOR:

A

CHALLE,NGE,

To

THE,

PHILIPPINE

BLRLdUCRACY

Darid N. Almarez: DM, traisah R. pandita,Jan Lianne M.

Ozanga

_54g

13

}fL\DANAO,S

CHILD

_LABORERS:

A

PROPOSE,D

INTER\ENTIoN

_PROGRAM

DESIGN

FOR THE, COMMUNITY, GO'S

AND

NGO,S

Prof. Alma G. Maranda,

ph.D

*564

.Ii,J

DECENTRAI-IZATION

_POLICY

AND

GooD

GOVERNANCE: _GE,NDE,R

PERSPECTIVE

\ur

Azizah -574

J:

REVIE,WING THE, IMPLE,MENTATION _{OF THE, AF'F-IRMATIVE}

POLICY

Ria

Angin

-585

.ff

LL\DERSHIP AND

_{MANAGE,MENT OF}

NGO

SE,CTOR ACTIVITIE,S

TO

ENSURE !7OME,N E,MPO\IERME,NT

\fohammad _{Zulfrquar Hossain, Dr, A}

K

M

+-

-\TTITUDE

OF FIOUSEHOLD HEADS

IN

BARANAGY

VILLA

_\E,RDE,,

ILIGAN

CITY TOSTARDS TFIE PASSING OF'

PHiLIPPINE

REPRODUCTIVE.

H;ALTH

BILL

2011 VIS_A-VIS

THE

ROMAN

CATHOLIC

CHURCH

INTE,R\ENTiON

Elaine M. Baulere, Lordlyn B. Saligumb

a

-607

+8

SITUATING

_{INDIGE,NOUS CONFLICT}

RESOLUTION

INTO

PHILIPPINE

GO\'ERNANCE, AS ME,ANS OF RE,SOLVING

FAMILY

FEUDS

AMONG

MUSLIM

FILIPINOS

David N. Almarez,

DN{

-618

+9

DE,SCRIBING

THE ORGANIZATIONAL

_CULTURE

OF-ILIGAN

INSTITUTE

OF

TECHNOLOGY

_{OF THE,}

MINDANAO

_{STATE, UNIVE,RSITY, trLIGAN}

CITY

Ms. Eucil Pabatang-Hussien, prof. _{Gfulie B.}

Miguel

-632

'J

REALIZING

PUBLIC POLICY BASE,D

oN

HUMAN

RIGHTS

IN

THE

ER,{

oF

AUTONOMY

Nanik Prasetyoningsih, S.H.,

M.H.

-649

56

A Proceeding Book By lntemational Public Organization Association For the 3rd lntemational Conference on Public Organization

51

STRE,NGTHE,NING

THE

NATIONAL AND

POLITICAL

UNITY

(KE,SBANGPOL)

F'UNCTIONS

IN

ADDRE,SSING PROBLE,MS POSE,D BY NGOS

IN

INDONE,SIA Andi

Ali

Akbat

Vela

-657

52

GENDE,R

MAINSTREAMING

IN

LOCAL GO\E,RNANCE:

FOCUS

ON THE

crrrEs

IN

NORTHERN

MINDANAO

(2004 2010)

Dr. FliltonJ. Aguja,

Prof.

DarwinJ. Manubag, Prof. Elaine M.

Baulete -667

PART

6

53

THE

ROLE Otr THE, MIDDLE,

CIISS iN

PUBLIC SECTOR:

IN

THE, CASE, OF

DE,VE,LOPING COUNTRIE,S Tulus \Warsito

-683

54

TIIE,

UNDERSTANDING

OF

GRO\rTH

Otr

LOCAL

NODE, AT

DE\IELOPMENT

AXE,S AS BASE, OF'DE,VE,LOPME,NT

OF'NEW

STRATEGY OF

LOCAL

DE,VE,LOPME,NT

Eko Budi Santoso,

Dt.

Hetu Purboyo, Dr. Dewi

Sawitri *693

55

PUBLIC PARTICIPATION

IN

TFIE,IMPLEME,NTATION

OF'F'ORE,ST FIRE,

CONTROL

POLICY

AND

IAND

INI

RIAU PROVINCE

By : Dr. Febri Yuliani,

M.Si

-707

THtr, NE.E,D FOR NE,\7 PUBLIC N,f,{NAGE.ME,NT (I'JPM

IN

TFIE,

AUTONOL,{OUS RE,GION

IN

MUSLIM

MINDANAO:

ISSUES

AND

CHALLENGE,S

Dr. Macapado A. Muslim, Dr. Sapia Moalam Abduh'achman -71'7

LOCAL

GOVERNME,NT ROLE

IN

THE

DE,VE,LOPME,NT OF INDUSTRY

CLUSTE,R BASE,D TOURISNT

Dr. Ika

Sartika -729

LOCAL E,AR]\f,\RKING TAX

IN

INDONE,SIA:

PROSPECT

AND

POTtr,NTIAT

PROBLE,MS

Achmad

Lut6

-741

ASSE,SSING

AN INSTITUTIONAL

DISASTE,R RISK

REDUCTION

&

44,{NAGE,ME,NT PROGRAM: BASIS F'OR

PILOTING IN

A

T\?FIOON

SE,NDONG -DE,VASTATE,D

CITY

IN

SOUTHE,RN PHiLIPPINE,S Dr. Cesar T.

Miguel

-753

NATUR,\L

DISASTERS

AND

VULNE,RABLE,

COMMUNITIES

IN THE

P} IILIPPINE,S:

A

CASE STUDY

ON

THE, IMPLE,ME,NTATION OF DRRM OF

2O1O

IN ILIGAN

CITY

X{arilou F. Siton

Nanaman -763

PARTNERSHIP BASE,D

LOCAL

GOVE,RNANCE,:

AN

ARERNATIVE,

APPROACFI

IN

STRENGTFIE,NING

LOCAL

GOVE,RNANCE

IN

DE,VE,LOPING

COUNTRIES

Xlohammed Asadwzzaman

-773

57

5B 59

6L)

62

63

The New Phenomena of Public Adminishation ln Asian Countries

THE

EFFORT

TO

INCREASE, RE,GIONAL RE,VENUE

THROUGH

VE,HICLE

LICENSE,

TAX

USING

THE

MODELING

OF SYSTEM

D}NAMICS IN

_TAKARTA

Dr. Azhari

Azn

Samuden

-787

_i

RE,GIONAL AUTONOA4Y

AND

RE,GIONAL

INCOME

PROBLEM:

A CRITICAL

NOTE,

I

lWade Sumada

-803

THE

U N CO N STITU TI O N A L OF'

VILIAGE

GO\E,RNME,NT

Hanif

Nurcholis, Ace Sriati Rachman _-B0B

TFI E, IMPLE,ME,NTATION _{OF ALC} OFI OL'S BEVE,fuA.GE I NDUSTRY P

OLICY

CASE STUDY

IN

KARANGASE,M RE,GE,NCY

BALI,

INDONESIA

Ni

Putu Tirka \X/idanti,

I

Made

Mudia

_-817

CAPACITY

BUILDING

OF

NAGARI

GOVERNMENT AS

A

UNITY

OF

.\UTONOMOUS

SOCIE,T\'IN

MINANGKABAU,

\TEST SUMATE,RA (STUDY

ON

};AGARI

KOTO TINGGI, AGAM

REGE.NC\)

Ismail

Nurdin

-823

:LBLIC

PRIVATE PARTNE,RSHIP: LESSON FROM

LOCAL

GOVERNME,NT

CASE,

BANDUNG

CITY

GOVERI{MENT

\rITH

PT. MARGATIRTAKE,NCANA

I\

DE\E,LOPING AND

STRUCTURING CICADAS

TR-{DITIONAL MARIGT)

EgnasSukma F,. Tomi Setiawan,

Sintaningrum

-832

POLITICAL

INVOLUTION

NE\r

ARE,A OF DISTRICT,

ETFINICITY

AND

RELIGION:

TFIE CASE, OF.NORTFI X,LALUKII Zulv

Qodir

_-847

:,i

"o

67 "o

PUBLIC

PRIVATE PARTNERSHIP:

LESSON

FROM

LOCAL

GOVERNMENT

(CASE BANDUNG

CITY

GOVERNMENT

WITH

PT.

MARGATIRTAKENCANA

IN DEVELOPING

AND

STRUCTURIMG

crcADAS

TRADTTTONAL

MARKET)

EgnasSukma F, TomiSctiawan, and

Sintaningrum

I-,e ct u r e r a t P u b li c A d m i n i s tra ti o n D ep artm e n

t

U n i ue rsi ta s P a dj a dj ara n

Abstract

The change in the paradigm

of

governance currently demanded the government to pro\-:;i r

better service to the society.The provision

of

dris service is faced with the limited abrl:,; -r

governments, limitation of financial resources in the form of and human resources manager:-dr!:

. Solution to resolve this issue is byinvolving the role

of

stakeholders, for example

thr:,:::

Public Private Partnership _ePP). Local governments who have opted to apply the concer: : :

PPP is the Bandung City Government, one

of

the sectors of application are traditional rru:.,*l

sectors.This research was conducted on a Public Private Partnership between Banduns

---Government and PT MargaTirtal{encana in the deveioping and Structuring Cicadas Tradrn::;l"

Market. PPP is done by the Build Operate Ttansfer scheme for dre ground floor and abor-e,

:":j

Build Transfer Operate for semi basement floor with Z}.year concession period cofiurrercr.{ from Match 2"'1,2006. Method in this srudy hasused a qualitative approach. The techruquc - :

retrieval

of

informet

b)'-.^tt.

of purposive and snowballtechnique. Research result

indrc:*

dris partnership not benefiting each other. This occurs because of a problem in the implemental:,:

of

the partnership itself, for example, delays in der,'elopment. Mechanism

of

communice:"c catried out to gain legitimacy ftom the ttader was not getting results. The absence

of

tech::car-standard and standard

of

service from the Government, coupled with the abiliq'

of

pri;::

parties that are not derived from the retail business. For the government, the benefits are *-=i

the government assets by PT. MTI( and infrastructure improvements, but in terms

oi

ser-;:.:e

to the merchant could not be said to be optimal. On the other hand the advantage privare pr::l-J:

that profit is still not reached.

Key'word:

P u b li c p ri ua t e p a rt n e rs h ip, i nfra$ru ctu re i mp ra u e m e n t s

The New phenomena of public Administration ln Asian Counbies

A.

INTRODUCTION

Good

Governance makes pattefns

of

governance more open

now

The

government has

demanded to provide optimal service delivety to the public. However, amid claims the govemment lras its limitations,

for

example

in

the

form

of

limited

financialresources, human resources

rrlanagement and adminisftation. One way is a Public Private Partnership

epp),

which is the

pro'"-ision

of

capital investment by the private sector in pubiic services.

Local governments can also use this approach as an _{attempt to improve pubiic services, one}

of

which is Bandung City Govetnment. Bandung City

Govern*.ni

through the perusahaan

Daerah PasarBermartabatpD. Pasar) is implementrng the PPP in the traditionalmarket services

sector' This was done because

of

the limitations

of

PDPasar

in

technical management and

human resou-tce availability.

taditionai

_{Market in Bandung, in terms}

of

_{infrasftucture, as many}

as 21

of

the 38 markets are in decent condition.

'

_{Public Private Partnetship}

in

_{the management}

of

the market aimed

to

rcirtayzation

of

government services _{thtough improved infrasttucture and market operations traditionally} cooperated' This patnership manifested by fixed asset ( _{the market ) lent to third party bot}

.tiil

legally is

its

assets PD. Pasar. Thete are nine markets

of

38 markets under

pD.

pasar that coopetated with thfud parties. One

of

which is Cicadas Traditional Market. Cicadas Traditional Market is the third latgest market and it potential for development.

PPP

in

management

of

Cicadas _{Traditional Market do with PT. MargaTirtaKencana with}

the agteement number 511.2

/

055-HUK/2006. F'orm

of

this

.oop"r"rtn

is

Build

operate

Tlansfer

@or)

_{and Build Transfer}

opetate

(BTo)

fot

_{semi-basement}

floor

as traditional markets' This agreement has a term

of

20 years

of

cooperation.

In

this partnership, Bandung City Govetnmentincludes caprtalamounting to Rp. 72.7 i1.21g.000,00, _{which consists of, (1) the}

land

Market

Cicadas

of

Rp.

62.465.000.000.-and

(2) Building

Market

Cicadas

oi

np.

10'286'219'000.-. Meanwhile,

in

the framewotk

of

the construction market

of

Cicadas pT. MargaTiltal(encanagives Rp. 1 3 2. 5 B 9.67 4.3 60.

After almost six years

of

apartnership between the PD. Pasar with pT. MargaTirtal{.encana

in

management

of

Cicadas Ttaditional _{Market, there is indication}

not

_{benefiIing each othe.}

Benefit

of

assets and an increase in the coverage

of

services for the Government and the

proiit

1o

$e

prir'zte companies has yet to be optimized. PD. Pasar gain confidence crisis fr.om traders

in Cicadas _{Traditional Market.}

It

_{is also manifested in the}

r"j".tion of

_the

plan that the plan will

be implemented with the private sector. \X4rile the private sector has not received adequate profit from this partnetship because conditions

of

Cicadas

taditional

Market were only filted 55%

and tends to slack.

Generally, the City Government in this PD. Pasar as the leading sector has a weak bargaining

position in negotiations with private parties because PD. Pasar do.s not yet have

a

clearconcept

about the partnership as an

effort

to

tevttaltze

the

uaditional market.

pD.

pasar

is

_highly dependent on _{the design offered by private parties. According}

to

_{PD. pasar}

itself

fiom

nine

markets that management has cooperated

with

a

third

party, the one that vote is going well

Cicadas _{Traditional Market including one market that has yet to run optimally in}

the management

thtough _{this pattnership. Consequently, when design applied private have not}

been successfll, partnership in Cicadas _{Ttaditional Market this both parties have not murually beneficial}

and has

not able

to

rcaltze purpose.

Partnetship

of

management Cicadas Ttaditional Market requires a mechanism for reaching coflsensus' That usefirl

for

_{realizing the mutually beneficial partnerships and at the same time}

traders are receiving the impact

of

the partnership .urr

r.."irr".

The impact

of

partnerships for

traders Cicadas can be assessed _{positively and negatively, positively aisessed}

t".uor.

_market

A Proceeding Book By lntemational Public Organization Association For the 3rd International Conference on Public Organization

tevitahzatton is not only limited to changing the infrastructure but also to managed the market profesionally. While negative assessed relate to the uncertainty

of

the post revitalization such as

the location and the high prices

of

stalls in the new place.

The partnership uses a communicative mechanism as a tool

to

achieve conselrsus, but irr practice is merely a formality. For example, a

Tipar:jt

meeting on October 1, 2007, which is

planncd as

a

meeting betr.veen

PT

N{argaTirtal(encana, Bandung

City

Government, and rePresentatir''es

of

traders. in its implementation, traders refusing to attend because

of

a sudden

invitation and rated only a formality. The emergence

of

the rejection

of

the old rnarket tradet reflects that the partnersh4) does not have the legitimacy

of

those affected. Corrsequently, based

on the data in 2010,

taditional

Markets in BTM built 1830 units by the number

of

stalls. Only about 1000 units uscd to sell, rvhile the rest are not used because traders sti.ll refuse to move and

sutvive in temporary shelter market.

There are indications

of

injustice in this partnership. Based on the agreement in coopcration, determination

of

sale price conducted by private parties with the agreement

with

the tradcr.

In

fact, the determination

of

the sale price has not been carded out based on the consensus

of

ftaders.

In

other words, drete is an imbalance as the traders who use market infrastruchrre and the pdvate sector in determining the selling price so the private sector is still disadvantaged and

traders have a hard time paying privately. The determination

of

the sale price by pdvate parties

rvas Rp 9 million per square meter for a kiosk, Rp 7 million per square meter

fot

a table, and Rp

6 square million per meter to the stall. \7hi1e traders only undertakes the pal-ment kiosk for Rp

1 million per square meter, desk for Rp 3 million per square meter, and the stall for Rp 2 million

per square meter. As a result, about 570

of

the 964 tradets remained rn sheltcrs and temporary matkets in the area around Santo Yusuf hospital for failing to hire a high enough prices.

Based

on

thc above background the authors are interested

in

doing research on public, pdvate partnerships

in

the arrangement and construction

of

Cicadas Traditional Market

of

Bandung Ciry

B.

LITERATURE REVIEW

The new approach as a solution to the provision

of

public services is to involve stakeholders in the implementation

of

good governance, namel1. the government, prir.'ate, and socieryThe Public-Private Partnership @ublic-Pdvate partnetship) realizes one

of

them, this pattnership is

a way

to

collabotate on these roles. Public Private Partnership is the pdvatc sector provides

:

significant capital iffrestment in the management

of

large-scale infrastructure provision (Soesrl .

2000:7 -7).

Public Private Pattnetship's chaLactettzed are

the distribution

of

the invcstmelrr. .-1

i-responsibility and reward between

the

government and private sector partners.

\(/in

'-r,.

partneffihip, the advantages possessed by the gor.elnment and the private sector can be combrne: l{oles and responsibilities

of

the partnership may vary,

it

could be the role

of

governmenr

n

-':-r

that private ot vice versa the roie

of

the pdvate more that the government in a form

of

par-rn-r-

:-:

Flowevet, the

role

of

a strong and effectrve government

still

needed

in

policl,making.

l-L.

government continues to be the parry responsible and accountable to eflsure the qualin-oi

:

-:,:

seLvices.

PPPsprovidebene1itsinthefotmofefficienc1,andeffectir''encssirrt1reprol.isroil

public services. Florvevet, on the other hand, the role

of

private sector

in

fundirrg :::-.

=.-::.,::

facilities sen'iccs does not remove the responsibility

of

the Gorrernment to for mu1.::. ::

-

J

"'

that guarantee standard setvice and costs remain affordable

fot

all users c.,f :h=

.=:

.-,

-'.:.,,

government sets the basic rules

for

determining the PPP model

il

accc,,:i-..:r:r-:--

-.

:

The New phenomena of public Administration ln Asian Countries

of

the society- _{Government control is reduced in some t1,pes}

of

_{PPP, but}

in

factthe government

still plays an important role

in

ensuring the quality

of

services _{provided by the priyate sector.} (Paskarina, 2007:5)

Traditionally, public services including infiastructure services

in

it

planned, operated and

maintained

b)'

th.

Gor''ernment.

This

perception

is

driven

by the

.on."pt

that

economic infrastrucrure is a public good (public goods). Berween public _{goods and pri"'ate goods was}

rnised items (quasi), which are a mixrure

of

public goods (quasi pubiic) and a mlrrure

of

private goods (quasi _{ptivate). Mlxed goods are goods that have two characteristics at once thatare the}

exception and the use

of

_{that competition. When a person consumes more mean others}

will

consume small amounts.

Casanova _{(2011) describes the essential guide to measure the success}

of

_{the partnership}

include: (1) Equiry.

A

project

in

Public Prir,'ate _{Partnership should be fair, which means those}

who use and get benefit from the use

of

the infiastructur have to pay the cost

of

both operations

and maintenance in accordance with the use. (2) Effectiveness. Effectiveness refers to financial

matters, oversight

of

income, quality

of

service and maintenance to ensure that the infrastructure and public services ate the best provided

within

a period

of

partnership. Government as the leading sector in public sector _{infrastructure development needs to be prJactive to the needs}

of

the society. (3) Efficiency' PPP

in

the provision and maintenance proved to be more efficient. The private sector has a good capability in adapting technology, so rhe efficiency

of

the service

can be achier.'ed.

And

(fl

Exportability. Exportability refers

to

the dsk allocation shift

fiom

government

to

the pdvate sector. The government does

not

have

to

bear the loss

for

giving guarantees

to

the private sector. However, the private sector provided a teasonabl"

ftofit,

transparent and flexible customized financing mechanisms and the associated risks botne.

C.

METHODOLOGY

The method

in

this research is _{descriptive research method. Descriptir.e qualitative research}

method, which is the tesearch, is designed to present an _{in-depth description und complete, so}

that the information submitted appear lir,'e presence and actors - actors hur-" u place to play their

IOIC.

D.

ANALYSIS

Cicadas _{Traditional Matket is one}

of

_{a sizable marker and potential to be developed, the}

potential

associated wrth the traditional market as one

of

the dlir.'ing force

of

the economy. Cicadas mar.ket

was built

in1977,

initially this market located

at

Cikutra street, Village Cikutra, and District CibeunyinglCdui. Over time, the existence

of

a market increasingly

""t"nd,

to

IbrahimAdjie

Street. Cicadas market is the third largest market in the city with

ui

urru

of

19,220 m2.

In

2004 the number

of

traders selling as many as 964 traders, and the number

of

places

selling teached 1086 units. The presence

of

Cicadas Market enlivened by the many street vendors

who sell around the market atea andthe Cicadas. In the same year, the number

oi

street vendors

in the area reached 365 units Cicadas tent.

Based on interviews with one representative Market Traders Association Cicadas, the market

physical condition in the same year vile and dirry

If

a ni^ry day, the market becomes muddy and

uncomfortable

for

shopping. The same thing is desclibed by the head

of

the Cicadas Market existing market conditions were so rickety slums and interfere with the beauty

of

the city itself The physical condition

of

the market the less wolthy and unable to accoffmodate more number

A Proceeding Book By lntemational PuHic Oganization Association For the 3rd lntemational Conference on Public Organization

of

traders this can impede the achievement

of

the market potential. Therefore, it

will

cause less

impact to both merchants and consumers that come to Cicadas Market.

The market potential

of

Cicadas as a traditional market may not be eliminated simply becau,.e

not all communities have considerable buying power to shop in modern market

^t

any time.

Ii

the Cicadas Market conditions leave granted, it

will

have an impact on the economic growth

of

Bandung because it rvill increase the number

of

unemployment and declining purchasing porrrer

of

the middle class down.

Cicadas Traditional Market was supposed

to

be done by the Bandung City Goverlunenl

Bandung

Ciq'

Government

that is

responsible

for

the

management

of

Cicadas Market is

DinasPengelolaanPasar that has been changed

to

Petusahaan Daerah PasarBermartabat (PD.

Pasar) in 2008. Amid the demands

of

the matket management imptovements, PD. matkets are

experiencing problems

of

incompetence

in

managing

the

technical and human fesourc-availability.

This

was confirmed

by a

statement

from

the

head

of

the

Sub fields

of

asse:

management PD. Pasar, mentioning that the human resources

of

PD. Pasat are still limiteii-officials

of

the PD. Markets most still comes

ftom

civil servants and there aren't people *'hc

really ate experts in the management

of

the market.

In addition to the limitations

of

human resources and the paradigm change, in the year pncr to the performance

of

the parurership in the market this Market Management Agency

of

Cicadas

has a dilemmatic position. As it is written in the document, Management Matket Evaluation

of

Bandung Municipality Government is

in

a position

of

dilemma.

On the one hand, the Crr';

Government to revitalize traditional markets exists because as many as 36 traditional markeLs i-c.

the city

of

Bandung is a potential source

of

revenue. Howevef, on the othet hand, the Citl'does

not have funds to rcvitahze the market. Budgets

of

Provincial STestJava and Bandung Municrpalu.

Government never make a special post for sttucturing the market, so that the Governmentaluai

'

involves developers

to

rcvttahze the market. Budget provided by the government onll- mir.-;

rehabilitation costs, the ptor.-ision

of

land, public and social facilities, such as roads, toilet*

r:

latrines, drainage, health facilities, and others.

In

the 2005 budget, which was about to achier-:

revenue targets Market Management Department

City

of

Bandung

is

Rp 4,557,750,[it 'r.'. ,

Target

revenue comes

from

levies matket,

otdet

bath-laundty facilities-toilet

_${Cr-' SuratPemakaianTempatBerjualan (I-etter

of

Usage Selling Points), and the contribution

oi

--:-.

private market. Budget expenditules o\r'n Market Management Department

in

2005

rer.t:":

more than Rp 5 billion (Evaluation

of

Market Management Bandung, 2007).

To overcome the limitations

of

a budget

in

the financing

of

management the

mark;t

-Citl' Qot'.tnment

was supposed

to

be looking

for

a non-conventional funding sourci ;"i ir: alternative

of

financing management

of

the market. This lack

of

funding was one

of

the

::r"-:'i

of

Bandung City Government to consider the entry

of

private patties to invest. Good : i:llasr

betrveen the government and the private sector would provide a way out in the problen:.

-:

-,ryr

of

funds management and development because

of

the potential private market 1e

6;;- 6t

limited amount

of

money the government

is

enofmous. Sirrrilady, the managemenr

-:

:r:

Cicadas that transfer and operate to private parties.Here is a di.scussion

of

partnersl::.

'-

:r

market based on the theory

of

Cicadas Casanova:

Equity

After this partnership runs for approximately six years

of

implementation j

oni

i : _{- -: -} . 'rs - r

in

other words the implementation details

of

the agreement, several problerrl.

h=:::: -lr*.r

problems are related

to

the implementation

of

the partnership

with

the

u:.'*:-: -

rr(-,I

cooperation agLeement,

fot

example related to the delay in construction.

The New phenomena of public Administration ln Asian Countries

The reason

fot

the delayed development is that inventory

of

the number

of

traders and street vendots ate always changing. The delay _{in this development to be one}

of

_{the backgrounds}

doing addendum to the cooperation agreement _{between the City Government and pT. MTK.}

At

first agreed development time held

for

12 months

fiom

the issuance

of

Building permit

(IjtnMendfuikanBangunan)

,

after the amendment

of

the agreed _{construction time is 21 months}

from the publication

of

the IMB.

Delal's in consffuction

of

the fact not to violate the agreement but the effect on the comfort

of

traders who rvere on tempofary shelters became one

of

the reasons

of

the appearance

of

no legidmacy

from

tradets against cooperation

of

Cicadas market.

The

mechanism

to

get the legitrmacy

of

any ffaders yet to get results. Consequently, PT.

MTK

harmed and the Cicadas are

still

relatively quiet.

During the

six years

of

new business space

is

filled totaled

55oh,

ot

approximately 1006 business space occupied from 1830 business space.

Related

with

the mechanism

to

genefate consefrsus, one

of

the mechanisms used

in

the Partnership

of

_{Deveioping and Structuring Cicadas Market to gain legitimacy from}

the trader is

communicative mechanism. However, the mechanism

of

communicative also has not been able

to generate legitimacy

fiom

the affected parties.

Failure

of

communicative mechanism in Cicadas Market happens because previously there have been indications

of

distrust from ttaders against the Government. pikiran _{Rakyai Nervs}

Paper, _{June 30, 2005 mentions}

the

_{P3CB statement complained about}

the

_attitude

of

the

developers, PT.

MTK,

which is considered to have

u.t.d

too moch with making TppS (Shelters

While Tladers)

in

_{Cikutra Stteet, projective measurements and initial impleJentation}

of

_the

E'nvironmental Impact Analysis. Traders also claimed to be surprised by thJpresence

of

circular letter in

April

2005 from Bandung City Government signed by the Head Office

of

the market

(DinasPengelolaanPasar). _{The circular said, the ftaders must submit a letter use place} Selling

(SuratPemakaianTempatBeriualan) which still applies to the head

of

the market, because

of

the

tevitaltzatton

will

be implemented in mid-2005. This _{strengthens rhe government,s distrust}

of

ttaders, as there are indications

of

weakness in the concerll

of

goo'"rJrnent to the interests

of

the ftaders in the Cicadas.

One representative trader

e3CB)

_{that still} survives in the temporary shelters tells about hG

attitude toward the government that local government reneged on promises

to

the ex-traders Cicadas'

At

fust municipal government ptomised 700 merchant are _{priority to} occupy the new

buildings

of

Cicadas and

to

accotdance

the

selling price

the

commercial space

with

their

capabiJities, _{but now the city government hands}

off.

_{Even the promised .omp-.nrntion to} the

trader r.vas not cleal.

Communicatir''e mechanisms will be bogged dorvn

if

the acceptance

of

a person's empirical

statement is followed by a doubting petson's sincerity. Resulted in an imbalun..

of

the trader as

the parry that uses the infrastructute

of

the market and private parties especially in the fixing

of

the selling price so that the private companies are s

:ll

_{disadvantag.d and rraders had trouble} paying.

The impact

of

partnerships

for

traders Cicadas can be assessed _{positively and negatively,}

positiveiy assessed because _{market rcvitaltzaion is not only limited to chunging the infrastructure}

but also to managed the _{market professionally. While negative assessed relate to the uncertainty}

of

the post revitalization such as the location and the high prices

of

stalls in the new place.

Effotts

to overcome the negative impact

of

the traders actually been written

in

the points in the agreement

of

cooperation between the Bandung municipal government and the pT lv{TK. Clause states that Selling Price

of

Bussiness space

fot

trud.rr-r"t

by both parties by agreement

with

_{the trader and known by the fust parry}

in

_{this case the Market Munuig.m"nt Department} City

of

Bandung. (Document Collaboration Agreement, 2006). _{Other items that The marketing}

A Proceeding Book By lntemational Public Oganizauon Association For the 3rd lntemational Conference on Public organization

of

business space terms to traders, the second party shall prioritize the oid merchant and Cicadas

Market Street vendors located around the Market Cicadas, also street vendors in Ibrahim Adjie

Street, CikuuaStreet and A. Yani Sueet to traditional matkets basement or elsewhere agreed by the first party and second

partf

_{@ocuments Cooperation Agreement,} 2006)

Both point agreemeflt was an

effort

to minimize the negative impact

of

the mefchant, so

that

it

c fi

^ttaLtn legitimacy

from

the merchant.

A

conflict

of

interest between the two sides

including the affected group is reasonableness. Flowel'et, the most important is the response

of

the existence

of

the conflict. Therefore, it can achieve the legitimacy, which resulted in consensus

and

in

the end the mission

of

the partnership, ate achieved

with

the acceptance

of

the parties

affected by the partnetshrp. Effectiveness

The

purpose

of

the implementation Public Private Partnership

in

the

sffucfuring and

development Cicadas Market the revitalization by improving market building and improvement services

to

the traders and buyers. These goals implied a goal

fot

the Government. For the private market to revitalize the purpose implied cicadas ate making a profrt through the sale

of

space cofirmerce and management

of

the market.

Based

on

rhe results

of

interviews

with

the head

of

product development and Market Investment

of

PD. Pasarcriteria

of

good set'"'ices market management is stakeholders wiii gain

an advantage, the buyer

will

acquire ease and comfort in getting the clean and healthyitem, and

to

obtain security guafantees. Traders

g ln

a better inftastructute sefl'ices,

find

comfort and security, an increasing numbet

of

buyers and increased income.

Judging

from

these criteria, improved market management services

in

partnership with Market Cicadas noryet arc realized. First to stakeholders in this PD. Markets and PT. NfTK, as

previously described benefits thtough private sectof contribution has been delayed. PT.

MTK

is

still disadvantaged as the market relatively quiet. Second

to

buyers, based on obsetvations

of

buyers cror.vded at 03.00 a.m. to 06.00, however the buyers just crowded in the parking Cicadas

N{arket are not in the market.

Third

to ffaders, services infiastructure is indeed better so more

leisure and securiq'is assured, but an increasing number

of

buyets as .'vell as increased income

has yet to be achieved in a significant wa1'. Flere is a table

of

estimated tevenue traders accordinl

to the

tlpe

of

business space:

Table 1.

Estimated average income in the Market Tradet Cicadas

/

day

Kiosk 2x3m 75.000-120.000

Kiosk 2x2,5m (r0.000-100.000

Kiosk 2x2m 55.000 95.000 NIid Kiosk,5x1,5m 50.000-85.000 Table 1.5x1m 30.000-50.000 (Soutcc:'l'hc rcseatchcr, 2012 based on field interviews)

Based on the observations, the merchants who were at the center

of

the market te flJ

i,

-'':

quiet. This is because buyers are only crowded at certain hours and anr- piace

outsidt

-:

--:.

market. Slack buyers caused also

by

the presence

of

traders

in

so anr-bur-er conc-::---::a- -temporary shelter GPPS) are divided. Pro{it for the private sector iras not r-et

been:::::.''.

i

-' told by the N{anager Director

of

PT.

MTK

that market conditions *'ere rel:dr-ei-,'

:':--r

l:,,

concentration

of

traders rn the market

is

sti1l divided befween Cicadas and

T?l:

-:-.:'-:

The New phenomena of public Administration ln Asian Countries

affecting the

ptofit

PT.

MTK.

Currently 55oh

of

new business space is filled. pT.

MTK

always

coordinates with PD. Market

in

order to get a solution. However, until now there has been no action, only from the PT.

MTK

willingness to adjust to the traders.

Here is the calculation

of

income estimation calculations PT.

MTK

based commercial space

that has been filled in Market Cicadas:

Table2.

Estimated Revenue PT. MTK on Market cicadas February 200g-Febru ary 20L2

'SrPffi, ,i, ,

(*"y

';,

t,C;"d

An, fl

#,

;;J

Kiosk 2x3m 680 198 35.000 9.979.200.000

Kiosk 2x2,5m 500 221 30.000 9.547.000.000

Kiosk 2x2m 300 265 25.000 9.540.000.000

N{idKiosk 1,5x1,5m 200 180 20.000 5.184.000.000

Table1,5x1m 150 142 10.000 2.044.000.000 Sum 1 830 1006 _{36.294.200.000}

(Source: The rcscarcher, 2012 based on thc simulation ficld)

For the private sector, in partnership profits means income from operations, in acldition to benefits,

the

experience

in

partnership

with

the _{government. Partnership seen as a r.Llble} production _{economically and technically. Then the private sector must generate revenues}

to cover expenses plus a reasonable profit.

In

otder

to

_{benefit all parties, this partnership government should have the standard}

of

operation

of

a partnership. The existences

of

standards in partnership are used to ensure that the infrastructure and public services are provided

is

the Lest

in

one period partnership. In

addition to technical and service standards can be a means

of

_{communication and surveillance,}

ptivate parties

wiil

be _{mote confident in work due to knorv what must be achieved in each job.}

Based

on

the observation, the lack

of

technical standards and service standards

of

the

Govetnment

to

its

partnership

in

the market cicadas cause lack

of

technical guidance for

implementation and service. Head

of

Product l)evelopment and Investment pD. pasartell _the absence

of

_{technical standards and setvice standards}

for

_markets

cooperation.

_Technical

standards and service standards derived from local regulation should ,hup.

th.

form

of

decision-making dilector

of

PD. Pasar. PD. Pasar only has a standard

of

service thar is managed by the

PD. Pasar _{itself. As} for _{the market cooperation, they just keep an eye on how the private market}

to manage the market.

The lack

of

technical standards 1ed

to

the Bandung Ciry Government

in

this case pD.

Markets as a leading sector has a weak bargaining position

in

negotiations with pdvare parties,

because

it

only depends

on

the design offered by prirrut" parties. Depending

on

the design

conditions are _{offered private parties exacerbated when plivate parties did}

,roi.o*e

_from

the

retail business.

Like the

PT.

MTK

as inr.'estors elect

of

the partnership arrangement and

construction _{markets Cicadas are}

not from

_{the retail busrness,}

but

_comes

from

_{real estate}

business. As told by Traditional Market Manager PT.

MTK

that PT.

MTK

is a company engaged

in

the Iield

of

construction

with

a core business rn the field

of

residential construction. The cooperation agreement has been arranged on the implementatron

of

an increase

in

the ability

of

both parties to conduct the management

of

_{the market.The cooperation clause states that} Establish a Standatd Opetating Procedure (SOP) Management

of

semi-basement

floor

of

a

traditional matket with _{teference to the Standard Operatrng Procedure (SOP), which is determined}

by the Second Party (PT

MTI9,

among others, attend trairung programs, seminars,

laining

A Proceeding Book By lntemational Public Oganization Association For the 3rd lntemational Conference on Public Organization

telated to the management

of

matket

/

buildrrg _{@ocuments Cooperation, 2006).}

In

_{fact after}

running six-;rs21 partnership has never held _{training program, seminar or training related to the} management

of

market

/

building both conducred by PT. N{TK and government.

Core business which is not in accordance with the needs

of

and there are notsize programs to increase the abiJiq'

of

managing the market certainly

will

affect the ability

of

the partner in the der.'eloping markets. Nlarket design making

it

felt

quite complicared aspect

of

the fires,

including aspects

of

the 1a;'e111

of

the booth, the

comfort

aspects

of

consumer, aspects

of

hlgiene, and so on are therefore required special skills

from

the private companies that

will

establish a partnership with the Government

of

(?ermatasari,2011). Efficiency

Traditional markets in Bandung last few years started to decline. In terms

of

infrastructure

as many as 21

of

the 38 traditional markets

in

Bandung City

in

decent condition.PD. Pasar as

the responsible party faced with human resources and capabilities in PD. Pasar. In addition, based

on the evaluation

of

the management

of

document market, _{West Java} province and Bandung

city nevet made a special post for structuring the market. The budget provided by the Governrnent

are only mild rehabilitation costs, the provision

of

land, public and social facilities, such as roads,

means a small

room

or a

sanrtary factJtq, drainage, health facilities, and others. Therefore, Bandung City Government involves developers to do revitalization the market in hopes

of

costs

and human resources required more efficient, as well as the strucfudng and development

of

Cicadas Market.

Efficiency can be vierved

flom

the perspective

of

service providets

in

this PD. Pasar and

PT

I\ITK

and service user perspective

in

this trader. For government partnership sfteamlines

the process

of

rcvttaitzation

of

uaditional markets because the City Government does not need

to budget resources, only assets transferred and managed to the private sector to organize and

build. Besides saving budget tesources, Bandung City Government can reduce the risk but still be able to improve service ler.els and increase fevenue. As

for

the prir,ate sector, efficiencv can

be viewed in terms

of

input consisung

of

capitai der.'elopment and licensing.

In

terms

of

efficiency

of

use

of

resoutces was a constraint is related

to

the construction

permit as told by the Manager

Directot

of

PT.

MTK

that there are rules

to

the contrart'.For

example, on the one hand, there are the inr,'estment regulations but on the other hand, there are

rules about the deliverl'

of

public

facilities and special facilities such as this market

to

rh-government. The process

of

petmitting also takes a long time. In the meantime, the Investme:::

Board and the Integrated Permit Bandung (BadanPenanaman Modal danljinTerpadu Kc,:: Bandung) Bandung argues that permit capital inr.esting in Bandung is not something that

su:::,

alone, but are part

of

one and the othet's permission. This is the one that directly or indut:

-alfect the

activiq-of

a business from the private sector.

This is contrary to the agreement where the Government should provide a smooth

pernurui:

associated

with

the implementation

of

the cooperation.

The

Government is responsible r,,: creating a climate that is conducive to stimulating the role

of

the private sectof in the pro\ Lr:

-:

of

setvices.

In this partnership PD. Markets gain efficiency in terms

of

human resources, it is assr,cur.:

with

a lack

of

human resources owned by PD. Market, as

told

by Head

of

manageme::: P^

Pasar, Pd. Pasar is still limited, yet there are people who are really expert in the flizn?pe:r:..- . r

the market. Thetefore, human fesource capabilities

of

the private sector became or-ir

,:

--:,.

important factots for the pdvate partner. As it is written in the law

of

Bandung

\o.

r-,:

-

,

*

_{: :}

the implementation

of

the Coopetauon tender pfocess or the selection

of

inr-estors

sir

,._

j

:r,

,

840

,i d

I I

ti

l

The New Phenomena of public Administration ln Asian Counfries

the ability to suit the needs because the market is an asset will remain the property

of

Bandung City Government.

On this partnership, PT,

MTK

has background a service

of

real estate is not

fiom

the retail

business. As a result, ptoblems arise in the market one related case Cicadas socializing with the

trader.

Fot

example,

in

case

of

tefusal

of

traders, PT.

MTK

less able

to

communicate

tleir

intention

in

building the market, so that there was a problem.

In

the case

of

for

example,

tripartite after running six yeats PT.

MTK

has lowered the selling price

of

the space effort but

tradets'refusal up to now

stil

high. Now, commercial space _{that contains only about 55%. This}

can lead

to

a partnership that is not _{mutually beneficial. Thetefore, that required the cotrect}

assessment completely scrupulous

in

choosing paftners

of

cooperation by

PD

market. That partnership can be

of

munral benefit to both parties.

In

addition efficiency is due

to

the existence

of

the technology can be utilizsd to he$

manage market electronically. The management

of

information technology-based markets can

leahze automation services

in

managing the market.

To

facilitate moaitoring activities more quickly and accurately (Prasetyo, 2011).

In

this partnetship, there

is

no

significant use

of

different technologies. Changing the

traditional matket building

into

a modetn, market-adaptingtechnology, which is, appted for

example PT.

MTK

escalator usage (a ladder rurining)

in

the market building,

with

automatic parking. Moteover, there is no adapting in the management

of

technology markets

of

Cicadas.

Then the theory

of

the private sector has better capability

in

adapting technology, so that efficiency can be achieved in the service has yet to be realtzed in this partnetship.

Exportability

The process

of

structuring and construction Cicadas market begin since 2006. Efforts to find investors who are willing and able to be done openly. Bandung City Government with the

approval

of

Parliament decides PT.

MTK

as a company that is viable

in

the structuring and

execution

of

market development Cicadas. Partnership as a joint

effot

carried out with the aim

to revitalize Market Cicadas and ptovide better service to both traders and buyers.

One

qf

the important contents

of

_{the agreement regarding the rights and obligations that} will pottray the allocation

of

risk. Based on the allocation

of

risk is known that the goverriment together with the private do placement traders on each floor

of

the building after construction.

Nevertheless, in reality it has not happened as told by

taditional

Market Manager PT.

MTK

that

PT.

MTK

feel the government gets out

of

hand, as in the case

of

refusal

of

traders. PT.

MTK

tequires cooperation to move the traders, as traders remained under the auspices

of

PD. M"yb"

if

the government

firm,

traders want

to

hear. PT.

MTK

and PD. Pasarcontinue

to

perform coordination,

but

no real action. PT.

MTK

did

not

want chaos relocation, as often happens,

however PT.

MTK

just want a real acion

fiom

the govefnment.

In

a partnership, the roles and responsibiJities may vary indeed, the government's role was

more

or

vice vetsa.

In

partnetship, Cicadas Market

is

the private sector

to

get more roles.

Howevet, the role

of

a strong and effective government

still

needed

in

policymaking. The govetnment continues to be the party respolrsible and accountable to ensure the quality

of

public

setvices.

For example in the case

of

o1d merchant's refusal to feturn to the market

of

Cicadas. Despite the rejection and the risk

of

void space effort is the risk

of

PT.

MTK

however takes the role

of

PD. matkets as ovetshadowing the party trader. The vacuum commercial space is one

of

the

risks with a bigimpact on the marketin this paftnership. Therefore, itis necessary the government's

A Proceeding Book By Intemational Public Oganization Assmiation For the 3rd Intemational Conference on Public Gganization

Both parties must be mutually beneficial and obtain guarantees comparable to w-hat is gir-en. So

that both parties are able ro achieve their goals ([.{arrawipran1,2012).

One

of

the Govetnment's authorities

in

this partnership

is to

conduct surveillance and

evaluation

in

the course

of

the partnership. The mechanism

of

supervision and evaluation are

agteed through

drect

superr,'ision and

written

through periodic reports.

The

content

of

a

cooperation agreement cleadl' gives the mandate

to

the Government

to

conduct surveillance.

According

to

_{Paskarina Q007) Government} control,

it

wanes

in

partnership,

but

in

fact, the

Government stiil plays an important role in ensuring the quality

of

service provided by private

parties. Therefore, responsibility and accountability remain in the hands

of

the Governmenr.

In

fact up to now has not been optimal supervision. As told by the Division

of

Investment Cooperation and oversight mechanisms consisting

of

dirsgl supervision and or,,ersight through

wriften reports. Until recendy

on\'

done indirect supervision over the market's head, a wriften

report

of

PT.

MTK

has never existed. Accordingly,

taditional

Market Manager PT. CSE said

that the position

of

PT.

MTK

and PD. A,{arkets are parallel, so there is no obligation for the pT.

MTK

to report the PT.

MTK

did the PD. Market. City Government

itself

has handed over all processes on PT.

MTK.

For the direct supetvision

of

the market, we have head

of

market ftom

PDPasat.

Supervision is less than optimal

in

partnership Cicadas market

this

directly affects the

handling

of

the issues actually faced by the pdvate sector as

it

has been told before. As a result.

the two sides were not able to provide solutions to all the problems that adse, particularly related

to the movement

of

traders

of

_{temporary shelter GPPS).}

Supervision also needs

to

be done

in

terms

of

the

frnancial

of

private sector

in

the

management

of

markets. In partnership in the market

of

Cicadas, financial problems became a

problem, as

it

has been tecounted earlier losses

that

continually

make

frnancial PT.

tdTK

deteriorated.

If

this situation happens repeatedly can cause the PT. A'ITK cafinot continue this

partnership in accordance with dre partnership. Therefore, the frnancialsupervision is considered

important in the implementation

of

this partnership.

The lack

of

financial supen ision can be a risk

for

the government itself.

If

PD. Pasar

dri

not know the financial conditron

of

PT.

MTK,

then wiren there are problems

of

PD. Pasar c::: participate to find solutions so that the partnetship can continue to run according to the nme

PT.

MTK

_{itself, rvorsening the financial impact on the demand for the extension}

of

_the

conrr.:

period. As told

b)'th.

Manager Dilector

of

PT. A,{TK that the losses incurred due to tire li:-,.

number

of

traders and business space paid in installments according

to

abiJity merchants. C

the othet hand the costs

of

building operational not stop. This could be a problem, PT.

\{

_-

i

also had asked

for

a contract extension, so that the material can be replaced issued.

T:-partnership has been running 6 yeats but PT.

MTK

is still losing money.

If

this corrtri--'-:: happen there can be, tension between the parties that partner because most likely the gor-e

r:r:,::

will teject the application because

it

did not conform ro the agreemenr.

Traditional market assets held by the gor.'ernment can be classified

into

a mrx

of

p-.f-goods (quasi public), meaning items

will

not be depleted w-hen consumed by 2 consunc:. r

-consumers

who

do

not

pay can s ;ll be sepatated

from

the paying customers. Consur::.:s ,

traditional markets are traders r.vho use the asset.

Public

Private Partnership conducted Cicadas

market

in

terms

of

marke

r

:::-,':::

managementcan

not

satisfl'

tradet.'fhis

is because although the infrastrucrure urar,:..:::-::_:

achieved,

but

traders

still

refuse occupy business space. I{ejectron arises becrr:s-

:--.:- ,.

:

agreementtheselLingpriceandtheabiJiryof

thePT.MTK.Asaresult.apronr::.--:

-:.-.,'

sector is not yet optimal. I-Iere is an over-u'iew

of

the results

of

tllrs srud:-:

.

Lack of Technical Standards and Services

.

_{Limited private}

sector is not from retail

Revenues increased

Need to

government interference in the rules and

regulations regarding the implementation of

the partnership and

the partners in

accordance with the

Partnership not yet mutually beneficial

d

The New phenomena of public Adminishation ln Asian Countries

RESEARCH SCHEME

.

Failure

Mechanisms Communicative

with merchants

.

Lack of

Legitimacy

of

traders

I

Business Space in

Market Cicadas filled only 55%

o

Private and trader have low-income

o

Service to the public

/

consumers reached

Commercial space

fully

Mutually beneficial partnership

*

d

Need trader involvement in the

business market management and

government interference in the regulation about merchants

Service to the public

/

consumers within the

scope of his efforts

has not materialized.

q

A Proceeding Book By lnternational Public Oganizabn Association For the 3rd lntemational Conference on public Oganization

A

partnetship is defined as a relationship (a partnership) as a parrfler. This parrnership is

established as a _ioint intention to achieve a set goal. However, perhaps not the same pufpose,

but each party believes _{that through this partnership goal}

will

_{be achieved. The basic principle}

of

the partnership is a "win and win" and not "win and loss". From the sense it can be said that

in any partnership no one has felt would be harmed while others

wili

benefit. So even with the partnership in the structuring and development

of

cicadas this market, Bandung City Goverrulent

is

the party that gar''e the task

to

the PT.

MTK.

The parties

in

the implementation

of

this cooperation joint with the objective

of

structuling and the development

of

malket cicadas. The purpose is not the same, _{local government to provide services to the community and PT.}

MTK

to generate profit.

Partnership

in

the structuring and development

of

Cicadas Market

within

a period

of

slx

Years as seen from infrastructure improvements Bandung City more benefited than PT. L{TK.

While for PT.

MTK

has not been beneficial because as

of

the momenr

of

this research in the

revenue generated from the sale

of

the space effort has not been able to cover the total cost.

As a _{public policy, Public Private Partnership has a purpose}

for

_{the public welfare. public}

private partnership

is

the tradets and the

private.

In

terms

of

service

to

taders

through partnetship, PD. Pasar was not able to make it happen optimally. The rejection

of

the old market

trader Cicadas is one indication

of

PD. Pasar has not been able to bring services to the community

in accordance with the scope

of

its business.

Provision

of

services

in

the sector market through the Public Private Partnership is an

alternative solution

for

infiastructure market that has

not

been handled by the government. Private capital and its resoufces

will

be able

to

cover the Limitations

of

government, without

taking over the responsibility

of

the government. To ensure the interests

of

the parties invoh.,ed

in the partnerships and the public interest (public) protected from detrimental ro one party and

the other

partyt

favor, the task

of

the _{Government through its policies and authorities that are}

able to be the distance between the business entities (prir.'ate), consumers and the Government's own political authority.

E.

CONCLUSIONS

AND

SUGGESTIONS

Conclusions

Public Pdvate Partnership betr.veen the Bandung City Government and PT MargaTirtal{enc-an.:

in

the Structuring and development cicadas Markets are not mu