INTRODUCTION
The implementation of the local autonomy policy makes local governments to have greater discretionary power to determine a policy in accordance with their own needs, potentials, and characteristics. The Act Number 32 of 2014 on Local Government provides flexibilities for local governments both at province and municipality level to regulate and to administer their policies to suit them with their local context (Marbun, 2005:170).
However, there are not many local governments (pemda) that are capable to take this opportunity to create an innovations leading to the democratization of the local
development. In the midst of this anomaly, a small number of local governments attempt to demonstrate an innovative breakthrough focusing on bureaucratic reform and prosperity level improvement (Holidin, 2007).
The mainstreaming bureaucratic reform in local governments is directed to support the manifestation of good governance defined by three competing powers to be taken into consideration, i.e. the interaction among the government, civil society, and private sectors (UNDP in Farazmand, 2004). However, the globalization era also influences the implementation of the governance, not only at the national and subnational level, but also at local level, that involves also the fourth actor, namely
Sound Governance Analysis in the Innovation of Traditional Market Revitalization and Street Vendors Management
DEFNY HOLIDIN AND RILYAN SHELA HANDINI
Department of Administrative Sciences, Faculty of Social and Political Sciences, Universitas Indonesia, Indonesia [email protected]
Abstract. Departed from the innovative programs during the period of Joko Widodo in Surakarta that are still made as the model of the local public service reform, this article aims to discover and analyze the innovations of the Municipal Government of Surakarta (as known as Solo), the revitalization of the traditional market and the management of the street vendors, under the leadership of Joko Widodo (known also as Jokowi) as the mayor (2005 – 2012) by using to Sound Governance Model.
The research uses positivist approach through several data collection techniques, such as, in-depth interview with the program performing actors in the local government and the beneficiary actors; observation; and literature review. The data was collected throughout 2012 – 2013 after Joko Widodo is no longer the incumbent Mayor, in order that the information of the innovations sustainability can be noticed. The outcome was analyzed as univariate and descriptively towards the dimensions of Sound Governance Model. The study suggests that there is a novel approach in running the innovative program of the traditional market revitalization and the street vendors management through an adaptive environmental development without discarding the orientation toward society-empowerment in Surakarta. Even so, the manifestation of the sound governance has not been related to the refinement of the positive impact for the stakeholders like traders, due to lack grounded from their substantive needs, poor performance management, and also the lacking stakeholder engagement in the program monitoring and evaluation.
In contrast to previous existing reports, this research also suggests that the coherence between leadership and administrative capacity is inevitable for the sustainability of the innovation practices.
Keywords: administrative reform, innovation, local government, public service, sound governance
Abstrak. Berangkat dari program inovasi semasa kepemimpinan Joko Widodo di Surakarta yang tetap dijadikan model bagi reformasi pelayanan bagi masyarakat daerah, artikel ini bertujuan mengungkap dan menganalisis program-program inovasi Pemerintahan Kota Surakarta, revitalisasi pasar tradisional dan penataan pedagang kaki lima (PKL), semasa kepemimpinan Joko Widodo sebagai walikota (2005 – 2012) menurut Model Sound Governance. Dengan pendekatan positivist melalui teknik pengumpulan data berupa wawancara mendalam terhadap para aktor di pemerintahan kota yang menjalankan program dan aktor penerima manfaat, observasi, dan studi kepustakaan, data dikumpulkan pada kurun waktu 2012 – 2013 setelah Joko Widodo tidak menjadi walikota agar informasi keberlanjutan program inovasi tampak. Hasilnya dianalisis secara univariat secara deskriptif terhadap dimensi-dimensi Sound Governance. Hasil kajian menunjukkan terdapat kebaruan pendekatan dalam pelaksanaan program inovasi revitalisasi pasar tradisional dan penataan PKL melalui daya adaptif terhadap perkembangan lingkungan tanpa meninggalkan orientasi pada pemberdayaan masyarakat di Kota Surakarta. Pun demikian, manifestasi sound governance tersebut belum bertalian dengan peningkatan dampak positif bagi para pemangku kepentingan, seperti pedagang, karena tidak beranjak dari kebutuhan riil mereka dan kekeliruan pengelolaan kinerja, juga miskin pelibatan dalam monitoring dan evaluasi program. Berbeda dengan kajian dan pemberitaan secara umum, telaah ini juga menunjukkan bahwa koherensi antara kepemimpinan dan kapasitas administrasi menjadi tak terelakkan bagi keberlangsungan praktik inovasi.
Kata kunci: inovasi, pelayanan publik, pemerintah daerah, reformasi administrasi, sound governance
the international actor. This condition has made good governance not function properly (Muluk, 2010).
The Municipal Government of Surakarta is one of the distinguished local governments renown as the city with the best practice system of government in Indonesia (Vivanews, 08/12/2011) and also agreed as the Eco-Cultural City of Solo, moreover it becomes the development operating reference until 2015 (Sobandi, 2013). Surakarta also has another excellence remark as the second best city in terms of the spatial planning, especially after its success in moving the street vendors from green areas through peaceful relocation (TEMPO, 06/11/2007). Its crime and confusing urban planning were the two main phenomena occurred during the period prior to 2005, therefore it needed an innovative breakthrough, considered as capable in offering solutions for both problems. The Medium Term Development Plan (RPJMD 2005-2009) followed by RPJMD 2010-2015 accommodated those concerns. The local government’s option under the leadership of Mayor Joko Widodo fell on the public-entrepreneurship-based labor intensive program, i.e. the traditional market revitalization and the street vendor management.
The traditional market also contributes to Local Generated Revenue (PAD), that is why its existence deserves attention as a form of service provided by the Municipal Government of Surakarta. The improvement of PAD attained from the traditional market can be shown in Table 1. Related to that matter, at the substantive level, the traditional market contributes to the employment and also sustains societal economy development particularly for those at the lower-middle class, mainly because of its leverage for the tourism sector (Aliyah, Daryanto, and Rahayu, 2007).
In non-economic context, the traditional market preserves the history of the Surakartans’ economic growth as well as its history as a trade city, due to its strategic location: at the crossings, connecting cities in Java Island. In addition, Surakarta has several trading centers, increasingly developing when it became the
Capital of Surakarta Sultanate. Hence, this encourages the local government to set a vision as formulated in Local Regulation Number 10 of 2001 stating “The realization of Solo as the City of Culture based on the potentials of trade, education, tourism, and sports”. No wonder, the traditional market in Surakarta becomes the icon of that city (Pikiran Rakyat, 24/03/2014). The traditional market revitalization program is also related to the effort of transforming the negative paradigm about the traditional market condition by constructing an exquisite and appealing market building, without transforming it into a modern market, by maintaining its traditional market characteristics.
Besides the traditional market, the existence of the street vendors also preserves prospective potentials for Surakarta. Not only contributing to the PAD, the street vendors also play a role in the informal sector employment, particularly after the crisis of 1998. After that crisis, the number of the street vendors was getting too large that they deployed the green areas and public facilities. This situation came out as the background for the local government to assign the policy of the street vendor management. Considered as the following factor and the satellite of traditional market management, the street vendors management is in one package with the traditional market revitalization since the existence of the street vendors itself is signified as the logical consequence of the lack of the traditional market management.
Both programs are parts of the local government efforts in creating the brand image in order to attract the international interest to visit Surakarta. For the long-term goals, such efforts can stimulate the local economy and pave the way for more investment increase (Aliyah, Daryanto, and Rahayu, 2007). Those attempts are conducted together with the implementation of the international activities to introduce the culture and the circumstances of Surakarta.
Nurbarani (2009) noted that the breakthrough in bureaucracy reform in Surakarta focused on the head of local government as initiator through programs for improving the bureaucratic performance, maximizing the function of the existing structure by optimizing the local government resources.
The demand-driven or participatory policy and open budgeting approach in the decision-making supported the head of local government ability to make the crucial programs whose impacts can be felt immediately by the society. Such characteristics are different from most practices employed in the other countries, for example, the local governments in China, in its two major cities, Shanghai and Beijing, which would later be made as Surakarta’s cooperation-partner or sister-city (Pemkot Surakarta, 2013). They did not demonstrate the leadership role of the local government head in the increase of the bureaucracy performance (Tan, 2010). In the variables of the leadership level, there existed the strong influence and average influence towards innovations. The characteristic of the organizational structure did not have strong relation with innovation. In addition, the obtained result also Tabel 1. The Revenue Growth of Traditional
Market Levy in Surakarta, 2006-2012 No. Year Realization (IDR)
1 2006 7.8 billion
2 2007 9.9 billion
3 2008 10.2 billion
4 2009 11.7 billion
5 2010 12.5 billion
6 2011 12.4 billion
7 2012 11.7 billion
Source : Agency of Market Management of Surakarta (DPP), 2012
showed that the autonomy had a minor relevance to the adopted innovation. The public demand had a strong relevance with innovation, while the external pressure had an average relevance to innovation. The competition between the local government and the public demand indicated that there is a sufficient and strong affiliation in the adoption of innovation.
There is ultimately a complex situation that caused a variety of relations between leadership and organizational capacity in general. In the execution of the governance, particularly in the districts, required to have a high performance with complex problems, innovative breakthrough was inevitable. In this situation, Farazmand (2004) appropriately suggested the sound governance as the new model of governance in the 21st century, full with its complexities of the public sector dimensions, by paying attention at the among-actors cooperation (including the partnership with the international actors), the international benchmark, and the reformist innovative changes to make it sound, clearly felt by the society.
Compared to the institutional change that is actually significant for the administrative and governance development, behavioral aspect is also considered significant in the public organization management nowadays, particularly in the efforts of filling the gap on the institutional management, frequently occurred in the developed and developing countries; a matter that also indicates a shift in the basis of the bureaucratic reform from the institutional field to the behavioral and soft- competence fields.
The key of the sound governance is the innovation of administration and policy. Policy innovation is necessary in sound governance to sustain the creation of the approach novelty and practical form in governance;
the government adaptability towards the environmental changes caused by the globalization; and the utility of the approach changes and the practical form for the society;
and the immediate use, felt by the people (Farazmand, 2004). Sound governance reflects the governing and administrative functions with the organizational and managerial performance that is clear, competent, anticipatory, responsive, accountable, transparent, and corrective and also strategically oriented to both the long and short terms (Domai, 2011).
Sound governance refers to a governance system that is not only apparently democratic and harmless in economics/ financial, constitution, organization, administration, managerial, and ethics, but also apparently international in terms of its mutual interaction with other nation-states, their governments through the autonomous and independent methods. Although working parallel with various theories explaining the good governance, it is obvious that good governance is necessary but not required to realize sound governance. A strong orientation to innovate, multilateral interaction, and deliberative decision-making towards the public expediency have become the strong features of the sound governance, therefore, in its practice, the reform in this framework becomes reflexive towards various power-collaboration
between stakeholders, so that governance is more defined as the result of negotiated reform (Hamudy, 2010).
Sound governance contains several components or dimensions. As the elements of a dynamic system, the components of these elements interact dynamically each other, and all of them form a unity that consider diversity, complexity, and internal intensity, as well as follow up/face the challenges, restrictions, and external opportunities.
Sound governance has some dimensions that construct it, including (a) process; (b) sector; (c) constitution; (d) organization and institution; (e) policy; (f) international or globalization; (g) management and performance; (h) accountability and transparency; (i) cognition and value;
and (j) structure. Each dimension works contiguously and has sound leadership and dynamic participation from interactions of the elements or components that have been described previously, granting quality to the governance system beyond expectation.
Even though working at the local scale, the local government should not be indifferent to the global development that triggers the changes, at the same time it must generate ideas from the international environment as the benchmark in implementing the duties of the government. The process, expectantly constructed to make the government’s performance sounder, is the alteration of interaction between the government and the society that should be more open through communication, including the initial process of negotiating, problem-solving, up to formulating and operating the administrative decision and the public policy (GIZ, 2011). In the administration itself, each sector holds and handles specific affairs and is responsible of its own duties, yet keeps interacting, cooperating, and coordinating with each other. There is also information sharing and exchange among sectors (Farazmand, 2004:16). The structure, with formal framework on the shared affairs, is grouped and coordinated (Robbins & Coulter, 2007) to be solid, informed, legitimate, competent, and adaptive to the environment and stakeholders. Law enforcement and constitution are required in the governance system in order to grant power to overcome the ever-changing environmental problems.
Innovations made in the administrative action are performed through institutionalization; hence they have legal force, followed by the forming of organization and performance agreement to ensure the target achievement.
To deal with these changes, the management is built and developed to achieve the optimal performance for later translated into institutional and legitimacy system (Farazmand,2004). In this context, the maintenance of the normative values—the values of disapproval against corruption, integrity, responsibility, tolerance, and equality before the law for all members of society—finds the relevance to be presented in an innovative bureaucratic reform.
Many of the programs implemented by the government of Surakarta become a model of innovation, as a breakthrough of governance process, uncommonly conducted amongst local government, praised not only by domestic researchers (Nurbarani, 2009; Prihantika
and Hardjosukarto, 2011; Aliyah, Daryanto, and Rahayu, 2007; UNfGI, 2012) but also foreign observers (BBC, 04/08/2011; Majeed, 2012). However, observing the innovation characteristic and the prominent local leadership, this paper critically analyzes the innovation practices in the traditional market revitalization and the street vendor management in Surakarta during the leadership of Joko Widodo in period 2005-2012.
RESEARCH METHODS
This research uses the nomothetic-positivist approach with deductive logic. This research aims to generate descriptive analysis conducted in a certain period (cross sectional) during the second semester of 2012 and the first semester of 2013. The primary research data were collected through in-depth interviews with the Head of the Agency of Market Management of Surakarta, NGOs activists, community leaders (market and street vendor associations), and academics; while the observations were conducted by observing directly the condition of the traditional market and the street vendors in Surakarta. Besides the literature study, the secondary data were obtained by analyzing the documents of the local government and analyzing the content of mass media. The numerous studies, conducted by other parties interested in observing the local governance innovations and the leadership of Joko Widodo, made the analysis of the main topic easier to do based on the secondary data. The outcome of other previous existing researches on similar case became the material to study through triangulation on the data obtained from in-depth interviews—that data were then cross-matched based on the information from the interviewees. The synchronization of the information content was made based on a certain category through coding method which was later tested in the field observation. The analysis is precisely performed according to the main dimensions of sound governance model.
RESULT AND DISCUSSION
The first dimension is the Dimension of Process. It is understood that the traditional market and the street vendors management implemented in the previous local government—led by Mayor Slamet Riyanto—was filled by a number of characteristics. First, the inconsistency of the implementation process, signified by unclear agenda, hence, it is just logical that outcomes and the impacts of this program were questioned. Second, the first characteristic becomes more problematic when the communication process was done through horizontal and intensive approach, or in terms of the Head of Gudang Kalimas Community, “never sits with the vendors”
(Solopos, 26/05/2004).Both characteristics actually cannot be separated from the technocratic approach that runs a program with the ability of experts but is still poor of consultation and socialization with the stakeholders.
Third, the maintenance of the business growth does not
come as the consideration in the local government’s plan and it is also lack of maintenance, for example, in terms of location accessibility, mobility of market customers, etc.
It is clearly obvious if we study the stagnant cash flow and contribution of the market sector to the Locally Generated Revenue until 2004. With the minimal maintenance of the locations previously occupied by the street vendors, the buyers still could do transaction with the street vendors at the earlier place; therefore, the market produced low demand and the impact of this program was minimal too.
Fourth, the local government still had not finished with their own business; i.e. their internal administration in the implementation process of the programs, that led to the previous characteristics.
The local government under the leadership of Joko Widodo in his early period of governance in 2005 was actually oriented to the process with similar characteristics. The ultimatum on the Independence Day of the Republic of Indonesia in 2005 was later proven to be ineffective in relocating the street vendors.
However, Joko Widodo applied a learning process on the local government’s ineffectiveness during the period of Slamet Riyanto. The continuous study then underlies the antithetical prioritization of the previous government’s characteristics. There was a two-way horizontal communication in the form of dialogue, for example, by 54 times eating together with about 1.000 vendors and by utilizing the assistance of non-governmental organizations, such as, Kompip (Monitoring Consortium and Public Institution Empowerment) and YAPHI (Indonesian Legal Service Foundation), therefore it could trigger negotiation until the street vendors, through their established community, with the NGO, filed a petition that contained the claim of the prerequisite fulfillment so that the relocation could be complied, for example, the location of the customer’s accessibility over time mobility system, the supply of shelter and carts with appropriate local government standard. The existence of the special relation among the community activists, who are commonly called “volunteer” on a voluntary basis without a formal employment contract, helped this process since they had network with the other activists of the civil society organizations (Bulan, 2014). It is an antithesis on what Pohan (2001:1) observed as a common phenomenon that the civil society has little opportunity to organize outside the governmental grip. This deliberation process did not only simplify the implementation of the programs, but also uncovered the process to fit the needs of the parties affected by the programs.
Consistency was actualized by incorporating the mechanism of accountability based on the participation of the civil society. The involvement of the NGO was not only on the negotiation process but also until the relocation was completed. NGO also checked the market design designed by the government and recommended the parking locations in accordance with the market characteristics. This mechanism increased the supervisory function of the stakeholder on the workings of the local government.
The second dimension is the Dimension of Sector.
Sector is an area managed by organization. In this dimension, the complexity level of problems determines the function and role of the organization and it is reflected from the coordinated structure. While there are many governances encountering difficulties in the implementation of the development programs, the innovations in Surakarta during the leadership of Joko Widodo conducted synchronization among sectors handled by related agencies. The innovations consisting of the traditional market revitalization and the street vendors management had the similar sectors connectivity: spatial planning, public works, traffic and transportation. The sectors connectivity had implication to the more efficient budgeting of the program financing, an antithesis to the inefficiencies that were usually caused by the program duplication among various sectors.
In the implementation of the innovative programs, the synchronization among sectors was actualized through coordination and integration of inter-activities, inter- programs, as well as inter-Local Government Agencies (SKPD), in order to avoid budgeting duplication and authority overlap by unified budgeting. The budgeting management inter-SKPD followed the ongoing development priority. There were many SKPDs involved, for example, the Agency of Public Works made the market design and new location for the street vendors, then, was responsible for running the programs; Agency of Traffic and Transportation (LLAJ), was involved for traffic regulation and access towards the market; while the Agency of Spatial Planning was involved related to regulations of the market position, expansion of the parking area, etc. Similarly, the licensing reform became one of the crucial sectors of the reform by granting greater authority to local government, the Agency of Capital Investment and Integrated Services (BPMPT) than to the Agency of Trade and Industrial Affairs, and the Capital Investment Office in the implementation of the licensing service and capital investment in order to create more efficiency.
The Dimension of Constitution is the third dimension.
The implementation of both innovations did not encounter legal problems, commonly experienced by districts that are known as innovative and pro-reform, neither in the form of legal norms vacancy nor inter-regulations overlap.
The Acts Number 32 of 2004 on Local Government Affairs makes the local economy, particularly one related to the field of business and market sector, turns into the local government affairs. It does not matter for the local government to issue the Local Regulation Number 1 of 2010 on the Traditional Market Management and Protection—consisting of a clause not to ease the opening of malls and minimarkets around Surakarta, supported by the Local Regulation Number 5 of 2011 on the Management and Supervision of the Shopping Center and Department Store—and the Local Regulation Number 3 of 2008 on the Street Vendors Management.
The implementation of the regulations can be viewed from the licensing of the street vendors placement—
that the local government is not allowed to charge. The conferment of the Letter of Placement Right (SHP) for the street vendors placed in the traditional market stalls and the conferment of the Vendor Identification Card (KTPP) for street vendors placed in the shelters got the letters and cards for free. This had been confirmed by the vendors and the head of the street vendors community during the research that the street vendors were directly placed in the shelters and given KTPP, whereas the SHP was granted for free by the local government after four or five months as long as the retribution was paid. The traditional market revitalization program is based on the Local Regulation Number 1 of 2010 on the Traditional Market Management and Protection. This Local Regulation is also supported by the Local Regulation of Surakarta Number 1 of 2010 Chapter 25 stated that everyone or body who utilizes the stall should receive SHP from the Agency Head on behalf of the Mayor. The local government also established the Service Operational Standard on the SHP and KTPP installed in the sub-district office of the market so that every vendor gets the information about the procedure of SHP and KTTP Services.
The fourth dimension is the Dimension of Organization and Institution. The innovative programs on the traditional market revitalization and the street vendor management indicated that there is no new institutionalization made by the local government.
The existence of the traditional market and the street vendors had long been managed by a certain technical agency, therefore, when there was a change in terms of service, it was fully delegated and carried out by the Agency of Market Management (DPP). DPP has been long established as a working unit and it was a fraction of the Agency of Local Revenue i.e. since 1996, for the workload in managing the traditional market was almost impossibly carried by merely a division. The merging of the street vendor office that becomes one of the sectors in the Agency of Market Management (DPP) of Surakarta was actually not a part of the change but the consequence of the workload that was closely related, so that, the street vendor office is merged as a part of DPP.
The organizational structure of DPP is regulated in the Local Regulation Number 22 of 2008. In this case, the local government would rather maximize the function of the existing operational institution and organization to run the innovations, than increase the size of the government.
The Dimension of Policy as the fifth dimension—
in this case, the policy supporting the innovations, both the traditional market revitalization and the street vendors management—had not been completely able to accommodate people’s aspirations. This opinion was based on the existing refusal of the program implementation by several parties. The announcement of the relocation caused a similar reaction: the vendors’
refusal. This condition was adequate to be an evidence that the substance of the policy did not suit the vendors’
aspiration although in the means of normative ethics, the policy was potential to accommodate a greater public needs. The policy tended to orient to the government’s
(2012:16) noted that the tourism growth increased 90%
in six months followed by the construction of 13 hotels between 2010-2011 as the other beneficial evidence of the innovations.
Even though some progress have been achieved by Surakarta nowadays, these innovations are still run with inward-looking. The local government still struggles with domestic resources without a concrete cooperation with other areas, let alone international parties, except for the investors. In 2007—still in the period of Mayor Joko Widodo—Surakarta made a cooperation in various economic fields with Montana, Bulgaria, yet there had been no follow-up until now (Jakarta Post, 27/05/2013).
Even so, Surakarta has been set to be one of the districts to develop a sister city with Shanghai, Beijing, and Perth within the framework of National Urban Development Strategy and Policy (KSPPN) as a “Sustainable City 2050” (Municipal Givernment of Pemkot Surakarta, 2013) in the sectors that do not directly lead to the local economic growth.
The seventh dimension is the Dimension of Management and Performance. Every program typically needs a considerable budget; its efficiency is our challenge.
The efficiency is pursued by the local government with a large-scale program-setting method since the innovation, using the new managerial methods, entails the use of the expensive technology, facilities, and infrastructure, in addition to the behavioral changes. As recognized by the Head of Market Cleaning and Maintenance Office, the development of technology in terms of the implementation of innovations was still obstructed by limited budget.
In order to make an efficient use of the budget, Mayor Joko Widodo always urged his line of Local Government Agencies (SKPD) to develop programs and projects with low budget and prioritized the big projects with high budget and focused on the sustainable development. Such budgeting system was oriented more on the development and investment for the infrastructure; therefore, the impact and the result could be directly seen. This also encouraged Joko Widodo to work on the innovations through the construction of the traditional market and the street vendors management through relocation (Prihantika dan Hardjosukarto, 2011).
Apart from the budgeting aspect, the resource development of the local government officers became a particular matter. The development of the official resources only referred to the local government and the mayor’s decision related to the Organizational Structure and Working Procedure (SOTK) and the principal tasks and function of the market agency. The improvement of the officials’ ability also relied on the continuity of the educational level that did not merely give positive impact for the ability enhancement in a form of a more concrete technical skill needed in the field, in accordance with the context of the traditional market and the street vendor problems.
The actualization of the local government accountability was implemented through the Local Regulation Number 22 of 2008 on the Description of the Main Duties, Functions and the Working Procedure effort in managing the spatial planning of the city, and re-
activating the public space that had been utilized by the street vendors to earn a living, as well as the traditional market revitalization.
Even though there were many traditional market traders complaining, the implementation of the market revitalization did not completely meet the vendors’
aspiration. The revitalization through building the traditional market, particularly in terms of a two-storey design, did not give any benefit to the traders since the customers did not want to shop at the second floor, whereas the target of the market more focused on the stalls in the first floor, so that, the natural condition was not a balanced competition.
The local government actually has conducted a discussion of the Local development plans (musrenbang) to draft the policy. The implementation of the musrenbang includes an evaluation of the previous policy actualization. Musrenbang is actually a constitutional mandate; it becomes a good step to open the access for the society to learn every policy decided by the government.
Moreover, it shows that there has been an involvement of the society in the policy making. According to Hasrul Hanif from Gadjah Mada University (April 11, 20013), this was also associated with the characteristic of the Surakartans whose political participation in the social life was comparatively high.
Different formulation will make a different implementation. The implementation of the traditional market revitalization and the street vendor management was not completely accepted by the traders. A refusal was understandable since not all policies produced in the musrenbang accommodated people’s needs, for the scale of priority between the local government and the people was different.
The sixth dimension is the Dimension of Internationalization and Globalization. The innovations run by the local government, both, the traditional market revitalization and the street vendor management, were originated from the ideas of Mayor Joko Widodo who had learned similar development in the other countries, such as, Korea, Dubai, and Singapore. It was not just a comparative study that is commonly held by other governments, local governments, or the parliamentarians.
There was also an intention to internationalize Surakarta, which then becomes a foundation of the public sector innovation with economically direct counter-achievement.
The local government had pioneered the effort in creating the city branding as the MICE (Meeting, Incentive, Convention, Exhibition) center in order to pursue similar steps taken by Jakarta, Bali, and Yogyakarta. Through conferences and various cultural and art performance of Batik Surakarta Carnival (BSC), the revenue of Surakarta was expected to increase (Majeed, 2012:16). The urban planning and local trade turned into a sort of prerequisite as well as the progress leverage of the city internationalization. At this point, the innovations including the traditional market revitalization and the street vendor management found its relevance. Majeed
of the Agency of Market Management of Surakarta.
Seen from the annual performance goals that were in line with the arranged strategies, the Agency of Market Management of Surakarta had achieved the planned results. Reviewed from the absorbed fund based on the report of the accountability of the governmental performance (LAKIP) of Surakarta, it could reach above 75% on the average. Such condition indicated that the government had achieved its accountability based on the annual performance achievement.
Although the Report of the Accountability of the Governmental Performance (LAKIP) of DPP Surakarta always showed a high percentage of the target achievement, the externalization occurred in the field was not comparable to that percentage. In the activity of the business place management, particularly for the vendors, the government had set the outcome as the availability of the market stalls for the street vendors.
This was actually a goal of the output performance and not the outcome that should be measured, for example, the utility of the business place for increasing the vendors’
benefit. The goals of the local government performance had not reached the outcome stated in the document of the program, i.e. to improve the street vendors’ ability in working and contributing to the development of the local revenue. The problem was fundamental: the local government mistakenly stated their performance goals, therefore, the claim of success in the LAKIP (Report of the Accountability of the Governmental Performance) produced minimal impacts.
Observed more thoroughly from the aspect of impact, experienced by the market traders and the street vendors after the program implementation, there was still a problem encountered by the street vendors, especially, the income decrease since they lose their customers. There was a failure in the development of Panggungrejo Traditional Market as the location selected by the government for the street vendor relocation. After the revitalization, there was almost no customer and trader in that market. Some street vendors who got the placement license to trade in that market decided to move and prone to become street vendors again, though without any permission. The street vendors lost their market share when they occupied the new market; therefore, in order to maintain the business continuity, the traders decided to search for a new place.
This indicated that the existing constitution had not been able to overcome the problems especially from the side of public (the traders). The traditional market revitalization showed similar condition. It could not overcome the problems encountered by the traders. Even though the Local Regulation on the Traditional Market Protection had been established, there still existed the competition between the traders in the traditional market and in the modern store.
The eighth dimension is the Dimension of Accountability and Transparency. The transparency was mainly manifested in the budgeting use. There was a review conducted by the Local Houses of Representative (DPRD) related to the traditional market revitalization and street vendor management programs, as well as the
allocated budget. The information was then delivered by the DPRD and could be accessed by the people of Surakarta. The other transparency could be seen in the outdoors of the DPRD Office. At the wall of the waiting room, there was a whiteboard of 2 x 3 m, presenting the detailed information related to the cost of the development of Surakarta in the current fiscal year (Yunairi, 2011).
There was an information transparency between the government and the stakeholder. In running these innovations, the information exchange could be seen from the role of the Papatsuta Community in the revitalization process of the traditional market. As what the Head of the Financial Sector of DPPKA (The Agency of the Revenue, Financial Management, and Local Asset), Budi Murtono, conveyed that the revitalization was proposed, based on their study result, by Papatsuta Community who later became the mediator, accommodating and facilitating the traders and the government. According to the information above, it can be analyzed that there had been signs that the information exchange had occurred although it still needed improvement. In addition, there was a cooperation with private sectors because both of them need each other, i.e.: the government was obliged to improve the market facilities, whereas the private parties were involved in the implementation of the Corporate Social Responsibility (CSR) program.
For each governmental activity, there was a review by the external institutions. The innovations made by the government of Surakarta, either in the traditional market revitalization or the street vendor management, have been studied by other institutions, such as, the ministries and universities, as well as foreign institutions. However, these studies tend to be a form of research, studying the implementation of the innovations conducted by the local government. The evaluative review was only conducted by the local government itself. The evaluation of the policy implementation in the field was conducted over the demand of the people, assembled in the communities and local NGOs. The innovative program, whose initial implementation in 2006 spent IDR 5 billion, the fund from the Ministry of Cooperatives and SMEs, and IRD 200 million, an allocation from the Surakarta Local Budget (APBD), directed its vertical accountability to the central government.
It is not a coincidence that the innovative market revitalization and street vendors relocation programs were also associated with the licensing reform since licensing service has been a scourge of the public economic empowerment so far. Besides organizing the structure and authority of the licensing service from the associated agencies and offices to BPMPT (Investment Board and the Integrated Services), the accountability was actualized with the opening of the direct complaint channel to the head office and the mayor.
The ninth dimension is the Dimension of Cognition and Value. The local government in the period of Joko Widodo still relied on the structural-institutional approaches in changing the way of thinking and working culture. If the values of integrity had so far been obstructed by problems of financial sector, public services and punctuality of
mainly contributed by a change of the licensing service management, ranging from the liability of “smile and greet” service to the applicants, up to the cut of the bureaucratic lines of 30 types of licensing services, the product of whose was a faster official procedure up to 80- 90%—previously it is up to two month-licensing service, to a maximum of six working days of field review if necessary in average—than the previous procedure as long as the required documents were completed by the applicants.
The changes of values in the budgeting and licensing sector were used as a role model for imposing new values in local government bureaucracy as a whole, to create counter values against the old bureaucratic values that had been already rooted (UNfGI, 2012). Even so, the change of values in a good governance did not expectedly appear among the public in terms of program implementation related to innovation, marked by the numerous practices of illegal intermediaries/brokers. An observation affirms the UNfGI study (2012) that the paradigm of the public still had not changed.
The tenth dimension as the last dimension is the Dimension of Structure. According to the concept of sound governance, the operational organization of the innovations already have an informed structure, therefore, employees already understand the duties of each member of the organizational structure.
Based on the characteristics of the innovation, analyzed in this research, there was no distribution of authority, instead, a cut of bureaucratic lines in the decision making.
Initially, in the street vendor management through relocating to the traditional market, the office head had to make a proposal to the Mayor for later furthered to the Head of DPP; yet since the office was merged into a division in DPP, the decision-making could be made sooner, due to the bureaucratic cuts through currently established organizations. The local government put people in the government based on their potentials and who could meet the required criteria. Moreover, a competency enhancement was also conducted by a method of employees’ rotation.
Minimum structural changes were made in the implementation of these innovative programs; yet the optimization of the existing structural function was more emphasized, and the task distributed to the members of the organizational structure was adapted to the structure already formed. Examined from the reality in the field regarding the implementation of innovations, the Local Workings Unit structure had not adequately been sturdy to support the government in implementing innovation programs as a whole. The success of the programs tended to be a physical success in the form of the revitalization of the market building and the business location management for the street vendors.
An obvious structural change occurred, nevertheless, in the licensing service as an effect of the authority redistribution. This service was not directly related to the activities of the street vendors and market traders in the field but it was necessary for the validation of legal status and the business operation. All this time, one of the working time, the local government then targeted the
changes in the values of the budget mechanism, regular attendance, and training.
The formation of the new values to overcome the budget corruption was conducted through the budgeting control in the implementation of the large-scale programs, including innovative programs to revitalize the traditional market and relocate the street vendors. An effort to minimize the corruption was also done through a system, in this case, there was no financial transaction in the Agency of Local Revenue. The results of the collected market retribution and the charge of the land assets utilization for the street vendors were directly deposited on daily basis to the Local treasury. Negating direct contact between service users and service providers was a breakthrough for the actualization of transparency and accountability, and at the same time minimizing bureaucratic corruption.
By limited resources, the budget control in a large-scale program provided limits on the possibility of corruption in the small-scale program.
The value of integrity in working punctuality was made through improving employees’ discipline in the punctuality of working hour fulfillment. One of the efforts taken to discipline the employee was through finger-print attendance. It is the simplest way and has been widely applied in many places. In addition, the fulfillment of working hours is the most conventional method that is not always positively correlated with the performance achievements. However, this method became innovative since Mayor Joko Widodo implemented a specific frequency to directly check the conditions in the field in order to avoid manipulation. In addition, each Local Government Agencies (SKPD) had a performance target that could be used to compare between the accuracy of the working hour fulfillment and the performance goals.
Therefore, this was not merely about finger-print problem but the correlation between the duration of the work and the fulfillment of the performance targets.
The local government relied on the training process as a means of refreshing officers’ way of thinking and the way of behaving, in order to eventually trigger the change of values. The two month-process at the beginning of the official placement is applied to those who work in the licensing service, especially the front officials directly facing the people, to train the mode of practice in an integrated service system and how to act, handling the licensing applicants. The licensing sector is considered strategic because it is a prerequisite for residents who want to obtain the status of legal entity for the economic enterprises they run.
The change of the practice and attitude is not an easy thing, especially for the bureaucracy that already has chronic culture, something that is recognized by the mayor himself. The shortest effort was the placement of new workers in the licensing service who were the product of new recruitments; new employees from new recruitments were still considered not to have control over the cracks in the system of the organization, as well as have a weak interconnection with the old employees.
However, the chain of organizational changes was also
major obstacles of the economic activities of the public was on the licensing, the emergence of the epidemic street vendors was one of its immediate effects.
Local Government since 2005 had formed an Integrated Service Unit (UPT) which was later developed into an Integrated Licensing Service Office (KPPT) and eventually merged with the Capital Investment Office (KPM) and turned into the Agency of Capital Investment and Integrated Services (BPMPT). Not only the establishment of new institutions, but a significant authority was also delegated from the related agencies to the Head of BPPMT. The Local Regulation Number 14 of 2011 concerning the Amendment of Local Regulation Number 6 of 2008 concerning the Organization and Procedure of Municipal Working Unit, particularly regulated the authority for direct signing of the Head of BPMPT on eligible application of licensing
CONCLUSION
The innovative practices in the traditional market revitalization and street vendors management programs in Surakarta during the leadership of Joko Widodo were oriented to bureaucratic reform. The implementation of innovative programs was performed consistently, using a change of approach in the context of an egalitarian communication policy among parties in the governance, thus triggering transparency and participation. As a consequence, the market and spatial planning sectors became a breakthrough, overcoming the ego-sector tendency of local government’s inter-working units;
thus hindering the consequence of enlarging the size of the organization. In this position, the Local bureaucratic reform did not experience a bureaucratic pathology that has so far attacked other regions. In addition, there is a novelty of the approach in the implementation of the traditional market revitalization and street vendor management programs through an adaptive power over the environmental developments due to globalization without leaving the orientation to the community empowerment in Surakarta. However, even though the leadership of the local government head was notably phenomenal in the mass media study and report, the manifestation of sound governance model that had not been realized in its several dimensions indicated that coherence between the leader’s performance and the administrative organs was inevitable.
Although Joko Widodo had governed Surakarta for seven years, the administrative organs did not show their supportive power to achieve their performance; hence resulting in minimal development effect for stakeholders.
Moreover, the inevitable globalization, even for any local government, demands Surakarta to transform its orientation into more outward-looking toward possible cooperation both with domestic and foreign parties.
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