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LOCAL GOVERNMENT ADMINISTRATIVE CAPACITY TO IMPLEMENT LAND BANKING IN BANDUNG CITY

Sintaningrum, Santi Permasih

Faculty of Political and Social Sciences University of Padjadjaran Indonesia

Tel: +62-8122011423 E-mail: sintaher@yahoo.com

Abstract

The imbalance of owning, controlling, and utilizing land in Indonesia has been increasing year by year. Few rich people in Indonesia have numerous land whereas almost all poor people only have the slightest of land. Only 0,2% of the national population controls 57% national assets with the 87% concentration within land form. The head of BPN mentioned the gini land coefficient as a

measurement of the imbalance of the land ownership has attained 0,536. It has “exceeded” 0,5

from the social conflict in the rural regional (Winoto Joyo, 2010:4). The concept of land banking is the solution to overcome the limitation of land in urban region, to avoid the conflict of land provisions, and to minimalize speculator and land price with proposing aspect of equity for diminishing the gap of land controlling. This article describe the strenght of local government, including the availability of law and government administrative capacity for implementing land banking in Bandung City.

Key words: land policy, land banking, administrative capacity

INTRODUCTION

The imbalance of owning, controlling, and utilizing land in Indonesia has been increasing year by year. Few rich people in Indonesia have numerous land whereas almost all poor people only have the slightest of land. Only 0,2% of the national population controls 57% national assets with the 87% concentration within land form. The head of BPN mentioned the gini land coefficient as a measurement of the imbalance of the land ownership has attained 0,536. It has “exceeded” 0,5 from the social conflict in the rural regional (Winoto Joyo, 2010:4). By The Constitution- Undang-Undang Dasar 45 The state has mandate to manage agrarian sector, including land use, land ownership, and land controlled to achieve welfare society. One of the wealth controlled by the state is the land, that set

by Law Undang-Undang No. 5 of 1960 on Law of Agrarian Principles (UUPA). UUPA is also the basis for the division of land affairs between the central government and local governments to provide flexibility for local governments to carry out development in accordance with regional needs. It set by Law No. 23 Year 2014 on Local Government. According to these regulations, the municipality has all the authorities in land affairs, except the authority in matters of land acquisition for public interest, it is set by Law No. 2 of 2012 on Land Procurement for Development to Public Interest.

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and high population density (14613.94 person / m2) with 2.458.503 people. Meanwhile, in 2031 the population projections around 4.1 million with 17.000 Ha green spaces. Besides that, percentage of land assests sertification by Bandung city government in 2014 amount 13% or 1.483.373 m2 from 11.410.559 m2 (100%) total Bandung city government land assets. It risky to arouse land ownership conflict with public (individuals or legal entities) which occupy the land for a long time. Because when the land is needed for development by government, each sides can’t prove the land ownership legalization.

With the land market that control the urban development and disguised the land social value, it would be hard to realize the development plan. Therefore, as well as central government, Bandung city government has to anticipate the impact of population growth and uncontrolled development by implementing Land banking.

Based on consideration of efficiency, effectiveness, geographical conditions, human resources and various other conditions, then the land acquisition can be delegated to local governments in accordance with the Presidential Decree Number 40 Year 2014 on Amandement of Presedential Decree Nomor 71 year 2012 on Arrangement of Land Procurement for Development to Public Interest. Above the considerations with all the problems of development and management of government land today, then it is important for local government has fully authority for manage land affairs.

The ideal conditions of development could be realized if the local government has a spatial planning agencies for control the direction of urban development and maintain the development priorities for the public interest. Land banking which would be implemented by the central government, could be a solution to solve the problems of urban spatial planning in local governments. But before implementing the Land banking, Bandung city government must have the administrative capacity to make sure that land banking can be implemented effectively and efficiently. It based on Ali Farazmand’s statement (2009: 1016) that

“nothing gets done without administrative capacity”. In line with the statement, Christine Whitehead in Harold B. Dunkerley (1983: 128) contend that administrative capacity is one of the success factors to overcoming the lack of local government ability for land acquisition and development.

For more discussed about the administrative capacity, the author used the administrative capacity theory from Ecorys (2011) that contain three elements, that is structures, human resources and system. Each element contain some aspects. Structures contain legislation, management and cooperation, human resources contain competences, staffing and resource, and system contain information and communication technologies (ICT), management information systems (MIS), finance, monitoring and evaluation. By each aspects, the discussion for each elements would be directed to achieve the aim of this study, to indentify the administrative capacity readiness of Bandung city government for land banking implementation.

I. METHOD

This study uses descriptive qualitative research, with data collection through observation, interviews, study documents and audiovisual material. Technique of determining the informant used purposive technique with the number of informants were 9 people. The data analysis technique used data collection, data reduction, data display and conclusion. To ensure the validity of the data, author uses the triangulation of sources.

II.RESULTS AND DISCUSSION

1. Structure Element

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governs the preparation of the based area on local government affairs. The affair made up of local government compulsory and optional affairs that set in Law No. 23 Year 2014 on Pemerintahan Daerah. It shows that the establishment of a regional organizations should not be separated from the guidance of local government affairs and institutional forms.

In essence, the municipal organizations only consists of the Regional Secretariat, Legislative Secretariat, Department, Regional Technical Institution, District and Sub-District. However, in practice there are matters that can not be grouped in clumps of government affairs has been set. Therefore, beyond the amount of their organization established by Government Regulation No. 41 of 2007, local governments can establish another institution or a set of regional work units/Satuan Kerja Perangkat Daerah (SKPD) as a Regional Public Service Board/Badan Layanan Umum Daerah (BLUD).

In addition to institutional considerations, to establish a new regional organizations have to according to legislative mechanisms in Bandung city government. As The Minister of Home Affairs Decree Nomor 56 Year 2010 on the Amandement Minister of Home Affairs Decree Nomor 57 year 2007 on Technical Guidelines for for Local Government Institution Arrangement. In line with this, the formation of the Land banking as a new institution to be incorporated into the Local Legislation Program (Program Legislasi Daerah/Prolegda) to establish regulations for the Land Banking, both changes in existing legislation or create new legislation. Regarding Prolegda mechanism that set in the Amandement Minister of Home Affairs Decree Nomor 1 Year 2014 on Policy Formulation for Regional Government. The Regulation determined that a proposed regulation must first be proposed by the proponent SKPD into Prolegda for lawmaking in the next year. Then, in accordance with the needs of business submitted by proponent SKPD, the legislative process followed in the decision-making process in order of priority Prolegda. In this study, the following is a description of the legislation aspect for land banking implementation:

a. The early stage associated with the changes in local regulations that applied. At this stage, the government separate the functions of land management in proponent SKPD. Perda can be changed by the SKPD that apply to renew the structure (refer to Prolegda’s priority). Wherea sto update the work procedures, need to change Perwal (not referring to the Prolegda’s priority).

b. Advanced stages related to the manufacture of new local regulations (Perda). At this stage, Bandung city government has set the institutional form of the Land banking. The institutional regulations regarding the establishment of the Land banking (as the department, the local technical institution or other institution). While if the Land banking set as BLUD, then there are two stages of legislation that must be passed again in accordance with the form BLUD:

 Land banking as BLUD SKPD, the establishment of the Land banking begins with the formation of SKPD (through legislation) that is then set as the CO-BLUD.

 Land banking as BLUD Work Unit, the establishment of the Land banking begins with the formation or separation work unit manager of the soil (through Perwal) which is then set as the BLUD.

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Based on consideration of the affairs and functions of the Land banking, so this study described it in terms of the Land banking BLUD Work Unit which is a form of the development of the asset management function of government land from DPKAD. As BLUD, Land Banking can implement the banking business while provide the land affair services. It has sameness with the Land Banking in China, on the journal by Li Tian and Wenjun Ma (2009), said that China change danwei into Land Banking to clarify the position of government as land authorized. But in Bandung, the changed cannot direct into Bank form, because that excluded in the exist regulatory about banking. So it formed into BLUD Work Unit.

After determine the organization’s form, BLUD Land banking will be filled by government employees that will be discussed at the human resource element. In order to ensure the establishment and operations BLUD Land banking in accordance with the needs and statute, the central government from the beginning has been provide direction through the substantive, technical and administrative requirements.

The whole process of the Land banking establishment is coordinated by the Legal and Human Rights/Bagian Hukum dan HAM, then submitted to the Mayor through the Regional Secretary/Sekretaris Daerah. The observations by the Land banking feasibility assessment team also delivered the results of its assessment to the Mayor. So many parties involved in the implementation of the Land banking, in addition to the involvement of local government agencies, Bandung city government also need to conduct cooperation with other parties. The cooperation is carried out by the government with central agencies, academic, even the Land banking in other countries to increase scientific capacity for the implementation of the Land banking.

a. Voluntary cooperation could be established with Makasar city government to transferred the experience of land distribution mechanism in land banking concept.

b. Third party cooperation could be established with private sector and local government bank to increase land value by land utilization and

CSR management for public interest development.

c. Cooperation with another country institution could be astablished with Korea Land and Housing Corporation to join with sharing knowledge program

d. Cooperation with academician could be established with Padjadjaran University to discuss the legal aspect by the expert from faculty of law.

Related to the cooperation concept for Land Banking, Bandung city government already has the expert team since February 26th 2015.

2. Human Resource Element

Human resource element inside the structure of Bandung city government shall have competence in accordance with the needs of the position. Therefore, a standard of competence required to support the application of the merit system in public servant management. But until now, by 2015 the government of Bandung do not yet have the required competency standards for structural positions. The standard of competence which have been prepared as Perwal still shaped design and only intended to be officials for echelon II. Meanwhile, the following description of the competence that must be owned by the Land banking management officer duties:

a. Land administration and land affairs department information system

 Capable of performing arrangements of government land

 Capable of carrying out registration of rights

 Capable to manage the land information system which integrated with the KKP

b. Land management department

 Capable to plan the consolidation in accordance with the RPJMD’s priority

 Regulate land use

 Regulate land use for specific area c. Land acquisition department

- Land acquisition for public division

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 Capable to carry out the development plan for the public interest

- Land acquisition for the project division

 Capable to carry out the acquisition procedure

 Capable to carry out development plans for special interests

Considered the needs of human resources to fill the formation based on competency, some strategic position filled with the experienced staff. Finance department filled with accounting staff from DPKAD, meanwhile the land administration affair and land administration system filled with the staff with technological background which amount to 67 person in Bandung. For land management department, it need the past master of development, especially the planner which exist in Bappeda and for land acquisition department, filled with experienced staff from securing and handling conflict section of DPKAD.

Chart 1 Amount of PNS in Bandung City (2008-2014)

Source: Statistics of PNS in Bandung City (2014: 3)

Afterwards, considered the PNS availability, with the decrease in amount of PNS 3,9% each year (2011-2014) or 20.931 people, so Land Banking need the new staff to complete the other position. To get the new staff for Land Banking, needed recruitment, even it for PNS or PPPK.

To get the right man for the right positions, completeness of competency standards can help

the staffing process for Land banking. Civil servants who have the competence as required, may fill the vacancy on the Land banking. But before that, firstly relevant officials who will formulate the implementation plan for the Land banking need to receive education and training related to the general concept of the Land banking so they can illustrate the application in Bandung.

In addition to the readiness of the government to set standards of competence, to be able to fill the staffing in Land banking also needs assessment process which the results could be a reference for putting the right man in the right position. The placement based on the assessment results from the assessor using Assessment Center. The method can be used to improve the quality and loyalty of employees because of the quality of the public servant management by BKD Bandung also improved.

3. System Element

System elements has two aspects that can be researched, the first is information and communication technologies (ICT) and management information systems (MIS) aspect and the second is the finance and also monitoring and evaluation aspect. The application of ICT in Bandung refers to Instruksi Presiden Republik Indonesia No. 3 of 2003 on Kebijakan dan Strategi Nasional Pengembangan E-Government.

Then, the implementation of management information systems for government resources carried out by the Financial and Development Supervisory Agency/Badan Pengawasan Keuangan dan Pembangunan (BPKP) through the Regional Management Information System/Sistem Informasi Manajemen Daerah (SIMDA). In addition, Bandung city government also utilize technology to improve internal performance through Bandung Integrated Resources Management System (BIRMS) with the 9 subsystems, that are Electronic Revenue, Electronic City Planning, Electronic Budgeting, Electronic Project Planning, Electronic Procurement, Electronic Contract, Electronic Progress, Electronic Project Performace, Electronic Asset. BIRMS is a very broad scope

21.000 21.500 22.000 22.500 23.000 23.500 24.000 24.500 25.000

2008 2009 2010 2011 2012 2013 2014

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application, from the planning process to the financial management process. Thus, it can help the monitoring process for conformity the financial management with the development plans.

Through BIRMS, the alignment of government's financial activities and the development program can be monitored, because the data updates in real-time allows each SKPD to report the financial and activities statements immediately. However, BIRMS not the only one application for local government resource management, as it has been described that SIMDA which is a product of the BPKP. Data base through the provision of financial, assets and staffing, expected SIMDA can be a reference material in decision making. In Bandung city government, SIMDA managed by DPKAD with the special section that manage SIMDA Bandung and apart from SIMDA DPKAD. However, in practice there are still many lack of SIMDA, such as financial SIMDA that can not be integrated with other systems, neither outside SIMDA applications nor fellow SIMDA applications and it result differen t statement of property and financial performance.

The external auditor, BPK RI found the difference between the value of land assets and the real assets. Some area that was transferred as capital shares to PD Pasar Bermartabat, still recorded as the assets of local government.

Table 1 Land Assets That Recorded as Local Government Assets After Transferred as Capital Shares to PD Pasat Bermartabat

Origin

Ownership Value (Rp) Existance

Education

Department 10.303.772.150 Ujung Berung

Market

Health Department 1.659.218.920

Human Settlements and Spatial Planning Department

2.005.282.400 Balubur Market

Source: Book II LHP LKPD BPK RI (2014: 46)

Table 1 shows incoherence between the finance and assets recorded by SIMDA, but it’s not the only DPKADs responsibilities. To overcoming this mistakes, needed more effort to manage and control the assets record by each

SKPD, certainly by integrated SIMDA. Technology is not just enough for the management of government resources, as a source of land for the Land banking not only comes from the land of government assets, but also wastelands, erfpacht and absentee land. In addition, through the Land banking, Bandung city government also could be able to buy civil’s land in accordance with the needs of the development plan.

Currently, BPN RI has have an application called Land Office Computerization (LOC) / Komputerisasi Kantor Pertanahan (KKP), but because of the information limited access, so the data is not included in the public information. The existence of the KKP may become opportunities and obstacles for the Land banking implementation, as there in provided complete data on land ownership but access is limited, so that the necessary approval of BPN RI beforehand. Seeing the urgency of BIRMS, SIMDA and KKP, would be better if it can be synergism, especially for the implementation of the Land banking. As the initiator, Bandung city government should take the initiative to hold cooperation with these two institutions (BPKP and BPN RI) to integrate all required data in BIRMS.

Then, the budget related to the formation of the Land banking, the administrative require that local governments through DPKAD to make a prognosis and business projections. Referring to the government's budget performance in 2014, then the budget should come from the next financial year in order to avoid obstacles ratification of budget changes. That caused by alteration of SILPA and expenditure for strategic policies.

Especially in prognosis, the government must take into account the budget required for the financing of the Land banking.

Table 2 Calculation Guide for Prognosis

No. Components

A. Biaya Operasional

1. Biaya Pelayanan a. Biaya Pegawai b. Biaya Bahan

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No. Components

e. Biaya Barang dan jasa f. Biaya Pelayanan Lain-Lain 2. Biaya Umum dan Administrasi

a. Biaya Pegawai

b. Biaya Administrasi Kantor c. Biaya Pemeliharaan d. Biaya Promosi

e. Biaya Umum dan Administrasi Lain-Lain B. Biaya Non Operasional

a. Biaya Bunga

b. Biaya Administrasi Bank

c. BiayaKerugian penjualan aset tetap d. Biaya kerugian penurunan nilai e. Biaya Non Operasional Lain-Lain

C. Pendapatan

a. Jasa Layanan b. Hibah

c. Hasil Kerja Sama d. APBD

e. APBN

f. Pendapatan lain-lain (penjualan dan pemanfaatan kekayaan, jasa giro, bunga, selisih nilai tukar, komisi dan investasi)

Source: Compiled from various sources (2015)

The prognosis components help DPKAD to mapped the budget necessary, then it included in the future APBD. Post-establishment of the Land banking, the initial reception can be derived from land lease receivables and buildings, special funds of CSR, grants are not tied, and the transfer of assets related DPKAD lease funding and management of land assets.

Management of Land Banking can not be separated with monitoring and evaluation. For monitoring and evaluation (financial and non-financial), Land Banking has internal and external auditor. Monitoring by internal auditor done for evaluation by Director of Land Banking. Besides that, the performance report routinely reported to the mayor by the director of Land Banking (quarter, semester and annual report). Meanwhile, the external auditor can conduct surveillance and give advice at once, for the Land Banking, then submit the annual report to the Major.

Associated with the technologies usage for local government, SIMDA is an obligation, but coupled with BIRMS, expected to facilitate the better monitoring and evaluation for Land banking and Bandung city government

performance report (financial and non-financial). The following are some advantages of use BIRMS:

1. BIRMS can facilitate real time data updated, not only for internal or external auditor, but also for another SKPD to integrated as Bandung city government report.

2. Non-financial evaluation can be measured through strategic planning and RBA achievement via Electronic Project Performance in BIRMS. This process use data from Electronic Projet Planning and realization of performance from Electronic Progress.

3. BIRMS can ease of recording for routine financial report, that consist balance, operational reports, cash flow statements and notesof the financial statements. Even more, for financial statements that need the achievement of the performance report that can be found in Electronic Project Performance BIRMS.

Actually, each elements of administrative capacity from Bandung city government could be filled. Because normatively, each element has his own legal framework to be based of the activities. But to implement the plan, need political will from the leader (Bandung city’s Major) and the head of DPKAD.

III. CONCLUSION

Based on the discussion of the administrative capacity of Bandung city government, it can be concluded that the Bandung city government has the administrative capacity to implement the Land banking. But for the institutional forms have to adjusted to the central government policies. While in this study, Land Banking depicted in the BLUD form, it caused the flexibility of BLUD that can be able for banking business practice and public services at once. This sudy shows that structures, human resource and systems element of Bandung city government support the implementation of Land Banking.

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1. Bandung City Government should conduct education and training programs related to the concept of the Land banking and an overview of its implementation in Bandung, especially for institutions associated with planning the implementation of the Land banking. 2. In order to strengthen the management

aspects, the government of Bandung need to analyze the most appropriate institutional forms for the Land banking and the release of land asset management authority of DPKAD Bandung.

3. Bandung City Government should immediately set the standard of competence for all structural position, especially for the Land banking through the development of an assessment center. 4. Bandung city government should

synergizing BIRMS with SIMDA, as well as equal employment opportunities KKP data usage of the application by BPN RI to support the data needs of the Land banking.

5. Bandung City government must budgeted the Land bankingimplementation on the next fiscal year APBD.

6. Bandung City Government should conduct an analysis of the potential conflict of interest in land affairs.

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