Jatmiko Nugroho 2014 PhD Research Proposal V3

Jatmiko Wahyu Nugroho – Dissertation Proposal - 2014

EFFECTIVENESS OF E-GOVERNMENT IMPLEMENTATION FOR REGIONAL COMPETITIVENES IN

DEVELOPING COUNTRIES: CASE STUDY OF INDONESIA

Abstract

E-government has become an important vehicle in the public service system in many modern countries.

Implementation of e-government gives a great hope to bring government closer to communities, creates

a potential solution to economic and social development for developing countries. When developed

countries have used e-government in an effective way, implementation of e- government in developing

countries still requires a process until it reaches the expected level. Awareness on how importance of e-

government has grown significantly in developing countries, along with increasing technology and ICT

convergence development. But creating effectiveness of e-government implementation is a challenge for

developing countries. Effectiveness itself means doing observations on outcomes, quality of the

implemented system, capable of producing a desired result. Today, e-government has highlighted

multifarious benefits to citizens, businesses and governments. The impact of new technologies in the

government sector has not only helped in improving service delivery, increasing democratization, and

helped in reducing corruption but also an increasing national competitiveness. For developing country such

as Indonesia, The potential benefits of e- government are not easily manifested due to its high

implementation failures. These failures come from inappropriate assumptions used to conceptualize its

nature and carry out it as a social-technical entity. This study will use cultural aspect and learning and

collaborative issues and measures how important that variables related to e-government implementation

effectiveness and competitiveness. To reach best understanding this research will use mixed methods for

collecting data with semi structured interviews to explore in-depth all the factors and interaction of all

stakeholders.

Keywords: E-government, e-government implementation, cultural aspect, learning and collaborative, effectiveness,

competitiveness, developing countries, Indonesia

INTRODUCTION Backgrounds

Electronic government has shown encouraging results in developed countries in the context of delivering

electronic information and services to all the stakeholders involved. In developing countries, it is a

promising technological innovation to improve government performance and efficiency. The potential

benefits of e-government in developing countries includes increased transparency, reduced corruption,

greater convenience, efficiency, revenue growth, and cost reduction. E-government initiatives in

developing countries provide resources and tools that serve individuals and communities by delivering

access and empowerment in areas such as local economic development, cultural affairs, civic activism,

education, community-based health, and environmental initiatives.

However, despite the many potential benefits that e-government initiatives promise, developing nations

are still faced with various issues regarding the full implementation of e-government services and their

use by the citizens. Some challenges of e-government systems include providing satisfactory access to the


e-services application and the prerequisite technologies, ensuring privacy and security, dealing with the

changing technologies, and quantifying the customer satisfaction of the government’s provision.

The potential for e-government in developing countries, however, remains largely unexploited, even

though ICT is believed to offer considerable potential for the sustainable development of e-government.

Different human, organizational and technological factors, issues and problems pertain in these countries,

requiring focused studies and appropriate approaches. Full implementation in this topic closed connection

with effectiveness terms. Effectiveness itself is - considered to be a measure of - the ‘quality’ of the

outcomes being achieved by the system.

Pudjianto (2009) states that approximately 60 percent of e-government implementation fail or cannot reach expected outcomes. Heeks (2003) observed and analyzed more than 40 e-government projects in developing countries and found that around 35 percent of these projects were totally failing, while 50 percent partially failed, and there is only 15 percent were successful. This figure gives an indication that the failure rate in developing countries is high and become more risky compared to developed countries The failure of a vast majority of e-government projects in developing countries raises important and

serious questions about the justify ability of the huge investments in financial and human resources made

in these projects. How can these projects be made more successful and sustainable over relatively long

periods of time? Creating suitable ICT infrastructure, coordination among supporting institutions for

service delivery, and sustained leadership are also very important (Kumar R, 2007).

Most e-government projects in developing countries often fail because of their complexity and the

inherent political process, policy, human resources and digital divides. From user-centric perspective,

many people living as disadvantaged communities in developing countries still live under low

socioeconomic conditions with poor per-capita income, education, infrastructure, and access to

telecommunication services. Due to long distances and lack of knowledge about the government

programs, people in rural communities tend to fall behind in accessing government services, and this need

special concern.

E-government implementation relates not only to the provision of public services (e-administration), but

also directly to questions of democracy, because it makes new participation forms possible. This can

include new information, consultation, or communication possibilities, for example, in regard to proposed

legislation or in development planning processes.

As described by Line (2005) that outlined of Jain (2004), the challenges facing e-government can be

formulated in the following way: On one hand, IT is a tool for reforming public bureaucracy. On the Other

hand, e-government failure is a consequence of dysfunctional bureaucratic practice.

Through this view, these two challenges are interrelated. New bureaucratic regulations might actually be

tailored to support IT-based changes. Thus, if IT changes are legitimized within an economic logic

consequential in its nature, we have to focus on the relations between economics, IT and bureaucracy.

The tensions and resistance arising out of such an alliance cannot be explained by referring to bureaucratic

rigidity, but might be viewed as conflicts of interest with regard to politics and power.

So, before explores the e-government further it is significant to see with leadership practices among

stakeholder in developing countries, that shown of administrative and bureaucratic management in the


public sector. Research of Schuppan (2009) describes about neo patrimonial administrative culture, a

typical administrative practice in Africa –and can be found in several countries in South East Asia-, under

this system, personalized power structures based upon of patron–client relationships exist. Positions in

the state apparatus are not filled based upon performance, but on mutual relationships between patrons

and clients (Haynes, 1996). Rent-seeking behavior is also common among bureaucratic elites (Elsenhans,

1987), which, in view of widespread traditional ethnic ties and tribal loyalties, is seen as a firm component

of African culture (Haynes, 1996). Indonesian Scholar describes the situation above with KKN (Corruption,

Collusion and Nepotism) behavior.

In Indonesia the problems of Corruption, Collusion and Nepotism practices have been the cause of the

weak competitiveness. The real form of the behavior above is bribes practice, Kumorotomo (2008)

describes the bribes in Indonesia already has such a deep cultural roots. In Indonesia, very much

vocabulary related to bribes, but that seems most to have cultural roots is a term: upeti (tribute), derived

from the Sanskrit word “utpatti” which roughly means proof of loyalty. According to history, upeti is a

form of offerings from Duke or little Kings to the conquering King.

In the bureaucratic culture of Indonesia when most governments still use of kingdom Government, which

is then utilized by the Netherlands colonizers, the tribute is one form of the sign of loyalty that can be

understood as symbiotic mutualism. The Duke gave offerings to the conquering King, in return, the King

of conquerors gave protection to small kingdoms ruled by the Duke.

Power system which took this hierarchy turns out to be experiencing patterns of adaptation in the modern

bureaucratic system in Indonesia. The practice was extremely powerful under the new order era (1966-

1998). The governmental system was centralistic, monolithic and all powers were in the hands of

President Suharto. Overall, it led to a closed non-participatory government (bureaucratic polity). Public

decision making processes remained a privilege of the elite. This in turn weakened actors ' positions both

for those in government and the civil society. In the end, the system assumed too much power. It

effectively turned into an authoritarian and repressive government (Pramusinto, 2006).

Until 1998, Indonesia experienced a transition to democracy, known as the reformation era. Concurrent

reform movement executed by the new Government, including bureaucracy reform. The bureaucracy

reform is becoming an important keyword in the Indonesia governance. It emerged as a response to the

massive of Corruption, Collusion and Nepotism practices on governance. Reform has become major

demands in 1998, and keep on fighting up to now.

E-government implementation was done as one of the efforts of the bureaucratic reform acceleration

program in Indonesia. E-government will improve efficiency and effectiveness of Government

implementation through the application of electronic systems in government institutions, improve the

quality of public services online (Lubis, 2013) and with that implementation will accelerate the eradication

of KKN (Corruption, Collusion and Nepotism in accordance with Presidential Decree No. 5 of 2004

(Komara, 2008)


In Indonesia, e-government is needed for following reasons: to support the government’s change to

democratic governance; to support the application of authority balances between central and local

government; to facilitate communication between central and local governments; to gain openness; and

Transformation towards an information society era (Djoko 2004, Dahlan 2011)..

This way must be taken to answer the question of how making government "work better" as pointed out

by B. Guy Peters in Yong (2005) “… government is to be able to overcome the discontent and distrust of its

citizens, it must fi and ways to become more efficient,…. become more responsive to the public and to be

more transparent in the way in which it makes decisions and effective in the processes of making and

implementing policy”.

The use of technology by government to enhance access to and delivery of public services to benefit

citizens, business partners and employees has been labeled “Electronic Government”, or e-government

for short. It can be said that e-government creates a new paradigm of public service. The traditional

administrative focus of governments has gradually shifted to become customer-focused, serving citizens

and business partners directly by providing integrated and seamless services, information and

transactions. Indeed, e-Government has the potential to profoundly transform citizens’ perceptions of

civil and political interactions with their governments (Yong, 2005)

Therefore, to envisage an e - government comprehensively, it is necessary to include the concept of “e-

administration” which implies the application of electronic media for the management of the internal

public organization. Within the administrative perspective, e-government acts as a catalyst or a “guiding

vision” to transform governments. Efforts to use new technologies to transform public organizations can

cover changes at multiple levels through re-engineering and re-newing organizational structure, business

processes, network and scope.

Although there are many different views on the concept of e-government, the implementation of ICTs by

the public sector will almost consistently affect: public service delivery, organizational settings and the

social/political system. First, service enhancement initiatives will improve reliability and accessibility.

Second, ICTs can be used with organizational transformation to generate phenomenal gains in

organizational efficiency and effectiveness. Third, increased interactions between government and

citizens encourage citizens to be more participative. This in turn allows governments to be more

responsive. The ultimate goal of e-Government is to continuously improve the interactions of the

government, business and citizens, so as to stimulate political, economic and social progress of the society.

According to Indrajit (2006), the benefits of the e-Government implementation of the country, are:

Improve the quality of government services to their stakeholders;

Improve transparency, control, and accountability;

Reduce significantly the total cost of administration, relationships, and interactions;

Provide an opportunity for the government to obtain new sources of revenue;

Creating an environment that can quickly and accurately answer various existing problems;

Empowering communities and other parties as the government's partner in the process of public

policy-making.

But, in practice e-government implementation in Indonesia has several issues (Satriya, 2002; Lubis, 2013,

Setiyadi, 2001), especially in feasibility assessment and calculation level of government investment return,


that has still become an obstacle in establishing an electronic government. Other issues are: less of

government officials who understand correctly what is e-government, less of government agencies that

conduct cost benefit analysis when they wanted to build e-government, and has not developed a

comprehensive method of measurement to determine the economic benefits of an e-government

services. In Practice, most of the existing implementation of electronic government Indonesia at this time

was focused on providing websites and information service only.

Setiyadi, (2007) had concluded that not optimal of e -government implementation in Indonesia due to

some constraints such as: no strong national leadership in telematics policy that can be used as a model

for government and public official’s goal setting or telematics development strategy. Not yet policy

available at every level of government as operational guidance, and lack of adequate development budget

to be allocated in telematics sector.

Recent research conducted by University of Indonesia faculty member related to implementation of e-

government was shown that many public organizations in Indonesia did not perceive the benefits of e-

Government as expected, as experienced by the government of Riau province, where in 2012 it was still

in their category. The research was integrated several inhibiting factors that are presumed to be the

potential barriers to the adoption and development of e-government in Riau province, which are

leadership, IT infrastructure, information management, human resources and organizational culture.

Where the leadership factor contributing most to the obstacles of e-Government in Riau province

government (Hidayanto, 2014)

The finding was consistent with the finding of (E. Prasojo, 2004) in (W. Kumorotomo, 2008) that 80% of

the e-Government failures were due to the non-IT related factors and only 20% were actually caused by

the IT related factors (Hidayanto, 2014).

The understanding of non-It related factors is becoming important. Cultural aspect is thought to be a

powerful variable effectiveness of e-government implementation. Implementation of effective e-

government is a variable to be measured in public service goals. E-government is about transforming

government processes for the sake of citizen and business (Satyanarayana).

The similar statement was said by Pardo (2005) e-government is not putting a few computers or build a

website for access to information, but it is transforming activities of the fundamental relationship

between government and the public.

The fundamental relationship between Government and public this is a staple of the principles of e-

government. Government should always be asking continuously about three basic questions here. What

functions are the responsibility of our Government agencies? Can we hold responsible for changes to the

functioning of our institutions, when there are new advances in technology that we apply? Whether the

application of new technologies in our institutions have reflected the needs and priorities of the public,

or even damaging public confidence?

Despite facing many challenges and lengthy process, the implementation of e-government still held by

the Indonesian government to improve region competitiveness. Several initiatives have been developed

by the government of Indonesia and information has been used for the promotion of investment in some

developed countries.


Previous study of Dahlan also indicated that the current contents of e-government in Indonesia are mostly

high political and economic orientation services (Dahlan 2009). It showed that some institutions of the

central government of Indonesia have made great efforts to implement the program of e-government to

support good governance and to maximize the participation of Indonesian citizens in the political and

economic orientations of government processes (Dahlan, 2011)

The use of e-government and using it effectively is very important to do, seeing some facts related to

decrease of nation's competitiveness. Facts, from World E-Government Development Ranking, has

released Indonesia e-government ranking and shown decreased from the years of 2004 to 2012. From

ranks 85 in 2004, 96 in 2005, and 106 in 2008 and ranks 109 in 2012. Those are indicated significant room

for improvement.

Moreover, Global Competitiveness Report 2012-2013 reported that Indonesia also decreased in

competitiveness level by look of national productivity factors. If in years before Indonesia in ranks of 46,

in years of 2012-2013 Indonesia in position 50 of 144 countries. “Indonesia drops four places in this year’s

edition, but maintains its score and remains in the top 50 of the GCI. The country remains one of the best

performers within the developing Asia region, behind Malaysia, China, and Thailand yet ahead of the

Philippines, Vietnam, and all South Asian nations. The country’s performance varies considerably across

the different pillars.” The report also states that “Some of the biggest shortcomings are found in the

“basic” areas of competitiveness. The institutional framework (72nd) is undermined by concerns about

corruption and bribery, unethical behavior within the private sector, and the cost to business of crime and

violence. “

Although, many numbers show that Indonesia –representation of developing countries- need progressive

improvement. E-government implementation in Indonesia keeps on going. Number of go.id domains (The

government of Indonesia domain name) registered in 2012 was 2,986 and in the year of 2013 increased

become 3,208. Until March 2014 number of go.id domains was amounted to 3,274. Those numbers

Indicates government of Indonesia in all levels has the same concern to creating better governance-ship

to compete with other countries.

Key ICT legislation that have been introduced are the blue print on Indonesia Telecommunication Sector

Policy 1999 and Telecommunication’s Law no. 36 of 1999, which became effective in 2000. Both are aimed

to liberalize the telecommunication sector as a prerequisite for advanced ICT development.

The efforts of e -government development are marked by release of Republic of Indonesia President,

Instruction No. 6 of 2001 for development and utilization of ICT in Indonesia, and the Presidential

Instruction No. 3 of 2003 on the development of national policies and strategies of e-government. Based

on e -government policies above, implementation of e-government in Indonesia indicates some efforts to

support electronic governance to improving services effectively and efficiently.

Cooperation is also carried out by the state that excel in e-government implementation. In early of July

2013, the Ministry of Administrative Reform and Bureaucratic Reform (PANRB) signed an agreement of

cooperation for e-government support for bureaucratic reform in Indonesia with the South Korean

government. Under this MoU, Indonesia and Korea agreed to collaborate on public administration to

create a more transparent and accountable government. Followed by this, Ministry of Communication


and Information Technology (KOMINFO) announced a partnership focusing on ICT development in e-

governance.

To achieve e-government implementation effectiveness that contributes to regional competitiveness,

South Korea indicates that the implementation of e -Government requires of significance travel time

(Song, Hee Joon, 2006). However, numbers of success key are noteworthy: strong leadership, adequate

infrastructure support, financial priority and human resource capacity building, systematic strategic plan

implementation, evaluation simultaneously that directed at measurable performance assessment, and

also readiness people and embrace of pro – reform values.

Integration of institutional and administrative synchronization is a major achievement of e-government

implementation level. Organizational restructuring will need to enrich the functionality and

interoperability of service management, into a strategic step towards that direction. Because of its

strategic, maturation strategic plan and its implementation of cross-department on a systematic

roadmap, but still realistic, is the main prerequisite irreplaceable existence.

Good achievement, demonstrated by the local government of Yogyakarta, although known as the "state

of Java" area with strong cultural values. Through clear leadership (mayor, local parliament), wise budget,

specific technical expertise, technology literacy, information technology education and training, daily

supervision of the e-government implementation. Implementation of e-government that is carried out by

the local government has to function well and provide results on: Improved quality of services delivered

by the government, such as transparency in licensing and budgeting as well as the city’s procurement

system; significant reduction in the total administrative and operations costs of the government;

Increased transparency, control and accountability in the government’s organization;and Improved

investment appeal of the city (Delgose, 2011).

E-government is expected to be an important tool for the process of transformation in the face of change.

Indonesia's rich culture can make it as capital to build positive fundamental change according to the spirit

of reformation era. Culture matters, this magic word refers to the quality of a nation, not just asserted by

many experts, but the real proof of that has been achieved in South Korea, Malysia and Vietnam. For

example, in the 1990 South Korea and Ghana are exactly the same in all, but 10 years later South Korea

leapt 30 fold of Ghana (Kompas Editorial, may 1, 2010 in Tjahjono, 2011).

Significance of Research

E-government in Indonesia is still developing, especially in some central and regional/local government

offices. The activities are not only to cover of communication but for administrative and public service

Area as well. Now, the State Minister of Communication and Information is formally in charge of e-

government development in Indonesia. The government will act as primary coordinator that enables

people want things to materialize, it means the government will create a conducive environment in order

to create an environment of governance as the people aspired.

E-government implementation become an important vehicle of the efforts of the bureaucratic reform

acceleration program in Indonesia. E-government will improve efficiency and effectiveness of

Government implementation through the application of electronic systems in government institutions,


improve the quality of public services online, accelerating the eradication of Corruption, Collusion and

Nepotism as the demands of the reformation era in Indonesia.

Hence, some strategies are being developed for better application of e-government in future. It is mean

that we need to understand several issues like cultural aspect including society’s basic values, social

politics and legal environment: Legislature, Executive, and Judiciary. Learning and collaborative issues that

connected with implementation effectiveness for regional competitiveness

Research Aims

This research aims at exploring the effectiveness of e-government for regional Competitiveness in

developing countries, especially in Indonesia. This research will specifically look at:

Research Questions:

What is e-government implementation in Indonesia already effective in support good governance, specifically in term of bureaucratic reform?

What kind of effectiveness may be introduced to enhance the functioning of Indonesia e-government implementation to regional competitiveness?

What is cultural aspect that related to e-government implementation effectiveness?

What are learning and collaborative issues connected to e-government implementation effectiveness and regional competitiveness?

Concept Picture

E-GOVERNMENT

IMPLEMENTATION

REGIONAL

COMPETITIVENESS EFFECTIVENESS

Cultural Aspect: - Society’s Basic Values

- Socio Politics and legal environment: Legislature, Executive, Judiciary

Learning & Collaborative Issues

Perceived e-government performance in Bureaucracy

reform: Service quality, Transparency, Cost-

efficiency, Revenue, Responsiveness, Public

empowerment

Make the work more effective

Online services

Ease of access to data and information

Reducing the costs associated with a third party (the procurement of goods, auctions, communications, etc.)

Reduce administrative costs (paper, letter, pen, etc.)

The accuracy of the data and information

The website can be used as an effective communication medium


Outcomes The desired outcomes of this research are the following:

To increase the overall body of knowledge on this important and crucial subject for further academic

e-government research.

To obtain valuable e-government understanding and practice in order to enable more effective

implementation of e-government in developing countries, especially Indonesia on e-government

policies, supporting bureaucratic reform and good governance.

To use the results of this study to assist public tasks in carrying out e-government policy for regional

competitiveness.

To improve knowledge and skills in research methods and complete the qualification for doctorate

research.


RESEARCH METHODOLOGY This research will follow a realistic approach, to reach a better understanding possibly this research will use mixed methods for collecting data, i.e. quantitative and qualitative method. This study will conduct to analyze the inhibiting factors of e-government in Indonesia. The target of the population is Indonesia government employees. This research proposes the use of two forms of instrumentation, thereby improving the meaning of results and conclusions for a valuable contribution to the existing knowledge base. With this, the research Proposes to develop and implement both a survey questionnaire and semi-structured interview with samples of government figures or key people. The survey questionnaire is to be developed to encompass (tentatively) open and closed questions, distributed to a sample of several government employees working directly with the e-government system. Additionally, a smaller sample of officers working with the local government authority is to be interviewed through a semi-structured questionnaire, consisting of open questions targeted at the managerial Perspective of potential and development. Data Collection and Analysis The instruments are to be used to gather data through the aforementioned convenience sampling and inclusion criteria (with willingness assessed through contacting the government offices) until the target Sample quantity is reached. The primary means of surveys is to be emailed or interview is over the telephone or direct visit. Interviews are to be recorded, with all participants informed of the confidential and the voluntary nature of the study. Once the target quantity has been reached, the instrumentation is to be compiled and analyzed; here, the totals are to be deduced, averages and comparative statistics calculated where applicable, and qualitative results presented in terms of implications and theoretical relationships applicable. The data are to be presented in terms of qualitative and quantitative results (amid the general qualitative focus of the research), presented both in discussion and through graphs visually depicting the data. Limitations Place of this research is country of Indonesia or government of Indonesia facilities that relevance with this research. The main limitations of the research are accessible to government figures, key people, relevant data, and the constraints of the project; ideally, the researcher would have access to every government employee having knowledge of the e-government systems, development, implementation, cultural aspect of implementation, learning and collaborative actions and the effects of its system, and would be able to further observe and analyze the entirety of the existing system and code. While the researcher is limited by time, resources, accessibility, and perspective, the outlined methodology is presented as an ideal approach to examining available resources while contributing to the existing knowledge base.


LITERATURE STUDIES

A. E-Government

The World Bank, (2012) define e-government as; the use by government agencies of information

technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability

to transform relations with citizens, businesses, and other arms of government. These technologies

can serve a variety of different ends: better delivery of government services to citizens, improved

interactions with business and industry, citizen empowerment through access to information, or more

efficient government management. The resulting benefits can be less corruption, increased

transparency, greater convenience, revenue growth, and/or cost reductions.

Public Sector need innovation in the technology era, as Ndou (2004) argue that, the public sector has

begun to recognize the potential opportunities offered by ICT and e-business models to fit with the

citizens’ demands, to offer better services to citizens and to increase efficiency by streamlining

internal processes. Tapscott and Caston (1993) argue that ICT causes a “paradigm shift” introducing

“The age of network intelligence”, reinventing businesses, governments and individuals. Paradigm

shifts prevail in the public sector too. The traditional bureaucratic paradigm, characterized by internal

productive efficiency, functional rationality, departmentalization, hierarchical control and rule-based

management (Kaufman, 1977), is being replaced by competitive, knowledge based economy

requirements, such as: flexibility, network organization, vertical/horizontal integration, innovative

entrepreneurship, organizational learning, speed up in service delivery, and a customer driven

strategy.

The General e - government is basically the use of Information Communications Technology (ICT) and

its application by the relevant government body for the provision of information and public services

to the people. In simple terms, e-government is the use of technology to enhance the access to and

delivery of government services to benefit citizens, business partners and employees. It is the use of

Information Technology to support government operations, engage citizens, and provide public

services in a more efficient and transparent manner.

The aim of e-government, therefore, is to provide efficient dissemination and management of

information to the citizen; better service delivery to citizens; and empowerment of the people

through access to information and participation in public and policy decision-making.

E-government is a form of e-business in governance and refers to the processes and structures needed

to deliver electronic services to the public (citizens and businesses), collaborate with business partners

and to conduct electronic transactions within an organizational entity.

Ndou (2004) explained interrelationships of e-government target, encompasses four main groups:

citizens, businesses, governments (other governments and public agencies) and employees. The

electronic transactions and interactions between government and each group constitute the e-

government web of relationships and the respective four main blocks of e-government, that are: 1.

Government to Citizens (G2C), 2. Government to Business (G2B), 3. Government to Government

(G2G), 4. Government to Employees (G2E).


A.1. Advantages of e-government implementation

E-government offers a variety of possibilities for more efficient and effective administration and

may also yield concrete development impacts. The use of IT is determined by the interests in

power and takes place in the context of pre-modern or authoritarian administrative cultures and

state structures.

Therefore the IT also has an effect as an “attractor” on decision-makers (Van de Donk & Snellen,

1998) so that e-government potentials are also implemented in new service structures. Solutions

are possible because technology enables them. E-government can promote decentralization

through the use of new forms of networked collaboration between different bureaucracies and

authorities, a concept which is closely compatible with the goals of contemporary development

policy.

A.2. E-government Implementation

Firstly, we need to know about Implementation. Implementation is actions are performed by

individuals or offices groups or private, government directed to the achievement of the purposes

that have been outlined in policy decisions" (Wahab, 2001).

The actions are implemented to achieve the goals that outlined in the policy decision. Action is

undertaken by individual, private or government officer. Dunn called implementation more

specific, in his book entitled 'Analysis of Public Policy, he termed by “Policy implementation”. He

said the Policy Implementation is handling the implementation of policy actions in a certain time

period (Dunn, 2000).

The implementation of e-government has several stages (M. Alshehri, S. Drew, 2010) as obtained

from the existing literature. It includes research done by Gartner Research (2000), United Nations

(2001), Layne and Lee (2001) and World Bank (2002). Furthermore, there are several challenges

and barriers that can delay progress of e-government implementation (M. Alshehri, S. Drew, 2010,

Ntulo G, Otike J, 2013): Technical barrier (ICT Infrastructure, Privacy, and security), Organizational

barrier (Top management support, Resistance to change to electronic ways, Collaboration, Lack

of Qualified Personnel and Training), Social barrier (Digital Divide, Culture), and Financial barrier

(High Cost).

Ndou (2002) identified multi-dimensionality and complexity of e-government initiatives implies

the existence of a wide variety of challenges and barriers to its implementation and management.

The main challenges of implementation in developing countries are: 1. ICT infrastructure (e

readiness, computer literacy, and telecommunication equipment), 2. Policy issues (legislation), 3.

Human capital development and lifelong learning (skills, capabilities, education, learning), 4.

Change management (culture, resistance to change), 5. Partnership and collaboration

(Public/private partnership, community and network creation), 6. Strategy (vision, mission), 7.

Leadership role (motivate, involve, influence, support).

Quinta (2013) states despite mentioning benefits of e-government, the implementation of e-

government initiatives in Sub-Saharan African countries have in most cases been failures. As

reported by Heeks (2003), 35% of e-government projects in developing countries are total


failures, 50% are partial failures, while the remaining 15% are successes. The results show that

ICT infrastructure, human resources, legal framework, Internet access, the digital divide, and

connectivity are among the most common themes on the challenges to the successful

implementation of e-government initiatives in Sub-Saharan African countries. These themes are

further grouped into six different aspects abbreviated as IF-POSH (Infrastructural, financial,

political, organizational, socioeconomic and human), (Quinta, 2013).

Implementation of e-government in developing countries doesn't run effectively, as Kifle (2009)

realized that ICT diffusion in Brunei is much more than just technological adoption and adaptation.

There are many soft issues, particularly one that deals with the human side of technological

implementation. His paper shows that poor identification of a champion in e-government resulted

in inertia in initiating the e-government, compartmentalization among the government agencies,

duplication of projects, poor change management strategy, lack of incentives to take risks, and

the emergence of rank and file rather than top-down innovation approach.

B. Effectiveness

Effectiveness is a measure of ‘quality’ of the outcomes being achieved by the system, and efficiency

is a measure of the work-rate of a process by which system inputs are turned into system outputs

(Carmichael, 2007). Effectiveness can really only be defined through the application of some

qualitative ‘fitness-for-purpose’ criteria – and that together with some key efficiency measures,

these indicators can be used as proxies for the measurement of quality.

Wikipedia (2014) the free encyclopedia, wrote that effectiveness is the capability of producing a

desired result. When something is deemed effective, it means it has an intended or expected

outcome, or produces a deep, vivid impression. The origin of the word "effective" stems from the

Latin word effectīvus, which means creative, productive or effective. It surfaced in Middle English

Between 1300-1400 A.D. In management, effectiveness relates to getting the right things done.

Peter Drucker reminds us that “effectiveness can and must be learned.” In human–computer

interaction, effectiveness is defined as “the accuracy and completeness of users’ tasks while using

a system”

Handayaningrat (1982) states, effectiveness is the measure in the sense of achieving the goals or

objectives that have been defined previously. If goals or objectives have been achieved as planned

earlier, that is effective. So, if the goal or objective was not completed within the allocated time,

then it does not work effectively.

The definition explains, that understanding of effectiveness is results of activity or desired action,

with the other words success of achieving the target. Furthermore, the effectiveness can be

described as a work performed by a person to produce something in order to achieve organizational

goals.

B.1. Factors supporting of effectiveness

Any organization or institution increases their activities to the achievement of goals. The institute

will be achieved when all activities are effective. Realizing, effective action can be implemented if

it is supported by the effectiveness of the supporting factors. Factors supporting of effectiveness,


namely: Organizational Characteristics, Environment - The state of the environment, perceptual

stability, Level of Rationality-, Workers and Employees.

B.2. E-government effectiveness

Australia as leading country in e-government implementation (Guo, X. & Lu, J. 2005), already has policy to measure Efficiency and Effectiveness of E-Government. Through The Australian National Audit Office (ANAO, 2004), has undertaken a performance audit across agencies and released The Australian Government’s Better Services, Better Government strategy, which outlined the broad directions and priorities for the future of e-government in Australia, and sought to maintain the momentum of agencies’ actions under the Government’s earlier policy Government Online. One of the key objectives of the Better Services, Better Government strategy is for agencies to achieve greater efficiency in providing services and a return on their investments in Internet-based service delivery. It also stated that investing in e-government should deliver tangible returns, whether they take the form of cost reductions, increased efficiency and productivity, or improved services to business and the broader community. In determining how selected agencies were measuring the efficiency and effectiveness of their online service delivery, ANAO assessed whether agencies identified and tracked the costs and assessed the benefits of developing and maintaining the services and websites, and monitoring and evaluating performance. Agencies could use a broad range of possible methods to collect information that allowed them to measure the effectiveness of their websites and online services. These included, but were not limited to, the collection and analysis of web traffic patterns, site visitor behavior and site performance data; assessments of accessibility, usability and information accuracy; staff and client surveys that assessed satisfaction, usefulness and adequacy of information; and measures of timeliness.

B.3. Analytic to ensure effectiveness

Taylor (2010) describes that analytic efficiency requires agencies to integrate data sources and to turn data into information that can be used to make improvements. Most agencies have multiple data sources developed independently and stored in different, disconnected technology implementations. Many data sources are “owned” by a specific group in one agency yet critical to other agencies and other groups within the same agency. Data is created and updated solely in support of a particular operational system or process. The governance of this data, as well as critical definitions and completeness criteria, are managed at a very low level if at all. Yet most agencies need to report on this data to demonstrate accountability and compliance. This means that manual reporting and consolidation processes are widespread, creating unnecessary costs and delays. The first step is to integrate multiple data sources to eliminate the costs and inefficiencies of wading through data from multiple data sources. Integrating data across the agency will position it for future analytic work while at the same time reducing costs and improving the efficiency with which reports can be produced. Accountability and compliance costs can thus be reduced, often significantly. Most agencies will also find that there are specific operational tasks that require data from multiple sources and that are incurring additional costs as a result. Finding the decisions where many manual steps are required to process data and where costs are high is critical.


C. Cultural Aspect

The culture is not an easy concept to define. In addition, there is no generally accepted definition of

national culture. The concept of culture adopted is based on works of Dutch anthropologist Geert

Hofstede, who defines culture as “a system of collectively held values”. The following authors

identified cultural values as one of the influential factors for adoption –and implementation- of ICT:

Bagchi, Cerveny, Hart & Peterson (2003), Johns, Smith & Strand (2003), Maitland & Bauer (2001) and

Sørnes, Stephens, Sætre, & Browning (2004). Others also recognize the role culture could have in

adopting ICT (Kovačić, 2005).

As Ndou (2012) explained, referring to DeLisi (1990) identifies culture as the primary driver of strategic

organizational change. Being aware of an organization’s culture is already a big step towards a higher

capacity to change. Hierarchy is the most traditional cultural values of a government bureaucracy, in

many ways its defining feature. In particular, intranets and the sharing of information throughout

organizations can challenge hierarchies and can only really benefit an organization that develops a

more networked approach; ICT is distinguished by its network character.

In relation between cultural analysis and e-government, Jackson and Wong (2014) describes an

important point raised in their study is that the culture at the subgroup level can have a powerful

effect on e-government uptake. Their analysis reinforces this point by applying cultural theory to

understand how and why different social relations construct cultural values over the duration of e-

government adoption, and how these values can enable and/or constrain the uptake of e-

government. The study found that although a number of cultural constraints—namely stifling control

and power among senior managers, fatalistic tendencies of users and egotistical behavior of

vendors—inhibited the uptake of e-government during its early years. Over time, these constraints

largely diminished, facilitating an environment conducive to e-government.

Literature on the impact of cultural differences on Information Systems (IS) development and the use

of information demonstrates that understanding national culture is an important factor for success of

Information Systems development in the global environment (Kang, K. & Arujo, J., 2005). In line with

competitiveness and effectiveness, cultural aspect is also becoming affective factors in website design

and implementation (Kang, K. & Underwood, J. 2005). Cultural factors in information systems are

likely to impact on the effectiveness through user interface design (Kang, K. & Corbitt, B., 2002; Kang,

K. 2003), significant issues in e-business solution (Kang, K. 2007).

On the other views, cultural aspect in organizational level become one of important issues related to

Successful of e-government implementation. Cultural aspect also talks about social politics and legal

environment: legislature, executive, judiciary in the context of e-government implementation. Many

local governments have implemented e-government voluntarily or mandatorily to improve their

organizational performance in serving the citizens but have failed to sustain the initiatives. Some e-

local government projects have successfully achieved their goals in providing better services to the

citizens for years but failed to sustain them over the long term such as the case of Tamil Nadu in India

and South Sulawesi local government in Indonesia (Nurdin, 2011).


Employee resistance to change is still the biggest barrier to successful change. Employees fear changes

in general and ICT applications, in particular as they believe that ICT would replace them and so cause

job losses. Moreover, it is very difficult in a short time to turn off traditional methods of working and

learn new ones. Addressing resistance successfully means ensuring the existence of incentives for

employees to learn and change and the establishment of well-structured plan that embrace employee

participation throughout all stages of a change process.

C.1. Indonesia and Culture

As an official explanation on portal national (2014), The Republic of Indonesia (RI), or, more familiarly

known as Indonesia, is a country in Southeast Asia that is located on the equator and situated between

the Asian and Australian continents and between the Pacific and Indian Oceans. As it lies between

two continents and two oceans, Indonesia is also called "Nusantara" (an archipelago in between).

Consisting of 17,508 islands, Indonesia is the largest archipelago country in the world.

The name Indonesia, meaning Indian Islands, was coined by an Englishman, J. R. Logan, in Malaya in

1850. Derived from the Greek, Indos (India) and nesos (island), it has parallels in Melanesia, "black

islands"; Micronesia, "small islands"; and Polynesia, "many islands." A German geographer, Adolf

Bastian, used it in the title of his book, Indonesien, in 1884, and in 1928 nationalists adopted it as the

name of their hoped-for nation.

With a population of 222 million people in 2006, Indonesia is the fourth most populous country in the

world and the country with the largest Muslim population in the world, although it is officially not an

Islamic state. The Indonesian government type is a republic, where the House of Representatives and

the president are directly elected. The capital city of Indonesia is Jakarta. Indonesia shares borders

with Malaysia on Borneo Island, with Papua New Guinea on Papua Island, and with East Timor on

Timor Island. Other neighboring countries include Singapore, the Philippines, Australia, and the union

territory of the Andaman and Nicobar Islands in India.

The history of Indonesia has been influenced by other nations. The Indonesian archipelago has

become an important trading area at least since the 7th century, when the Kingdom of Sriwijaya

established religion and trade relations with China and India. Hindu and Buddhist Kingdoms have

developed in the early AD centuries, followed by the traders who brought Islam, and also came in

various European countries who fought with one another to monopolize the spice trade in the

Moluccas during the era of ocean exploration. After about 350 years of Dutch rule, Indonesia declared

its independence at the end of World War II. Subsequently, Indonesia faced challenges from natural

disasters, corruption, separatism, and the process of democratization and the period of rapid

economic change.

Stretching from Sabang to Merauke, Indonesia consists of various ethnic, linguistic and religious

diversities. The Javanese are the largest ethnic group and, politically, the most dominant. Indonesia's

national motto, "Bhinneka Tunggal Ika" ("Unity in Diversity"), means a diversity that builds the

country. Besides having a large population and densely-populated regions, Indonesia possesses a

natural area that supports the second highest level of biodiversity in the world.


Most islands are multiethnic, with large and small groups forming geographical enclaves. Towns

within such enclaves include the dominant ethnic group and some members of immigrant groups.

Large cities may consist of many ethnic groups; some cities have a dominant majority. Regions, such

as West Sumatra, or South Sulawesi, have developed over centuries through the interaction of

geography (such as rivers, ports, plains, and mountains), historical interaction of peoples, and

political-administrative policies. Some, such as North Sumatra, South Sulawesi, and East Java are

ethnically mixed to varying degrees; others, such as West Sumatra, Bali, and Aceh are more

homogeneous.

Some regions, such as South Sumatra, South Kalimantan, and South Sulawesi, share a long-term

Malayo-Muslim coastal influence that gives them similar cultural features, from arts and dress to

political and class stratification to religion. Upland or upriver peoples in these regions have different

social, cultural, and religious orientations, but may feel themselves or be perforce a part of that

region. Many such regions have become government provinces, as are the latter three above. Others,

such as Bali, have not.

Indonesia's size and ethnic diversity have made national identity problematic and debated. Identity is

defined at many levels: by Indonesian citizenship; by recognition of the flag, national anthem, and

certain other songs; by recognition of national holidays; and by education about Indonesia's history

and the Five Principles on which the nation is based. Much of this is installed through the schools and

the media, both of which have been closely regulated by the government during most of the year of

independence. The nation's history has been focused upon resistance to colonialism and communism

by national heroes and leaders who are enshrined in street names. Glories of past civilizations are

recognized, though archaeological remains are mainly of Javanese principalities.

Social Stratification

To understand culture and dynamic relationship among Indonesian, we need to look with social

stratification. Aristocratic states and hierarchically-ordered chiefdoms were features of many

Indonesian societies for the past millennium. Societies without such political systems existed, though

most had the principle of hierarchy. Hindu states that later turned to Islam had aristocracies, at the

top and peasants and slaves at the bottom of society. Princes in their capitals concentrated secular

and spiritual power and conducted rites for their principalities, and they warred for subjects, booty

and land, and control of the sea trade. The Dutch East India Company became a warring state with its

own forts, military, and navy, and it allied with and fought indigenous states. The Netherlands Indies

government succeeded the company, and the Dutch ruled some areas directly and other areas

indirectly via native princes. In some areas they augmented the power of indigenous princes and

widened the gap between aristocrats and peasants. In Java, the Dutch augmented the pomp of princes

while limiting their authority responsibility; and in other areas, such as East Sumatra, the Dutch

created principalities and princely lines for their own economic and political benefit.

In general, princes ruled over areas of their own ethnic group, though some areas were multiethnic

in character, particularly larger ones in Java or the port principalities in Sumatra and Kalimantan. In

the latter, Malay princes ruled over areas consisting of a variety of ethnic groups. Stratified kingdoms


and chiefdoms were entrenched in much of Java, the Western Lesser Sundas and parts of the Eastern

Lesser Sundas, South Sulawesi, and parts of Maluku, parts of Kalimantan, and the east and southeast

coast of Sumatra.

Members of ruling classes gained wealth and the children of native rulers were educated in schools

that brought them in contact with their peers from other parts of the archipelago.

Not all Indonesian societies were as socially stratified as that of Java. Minangkabau society was

influenced by royal political patterns, but evolved into a more egalitarian political system in its West

Sumatran homeland. The Batak of North Sumatra developed an egalitarian political order and ethos

combining fierce clan loyalty with individuality. Upland or upriver peoples in Sulawesi and Kalimantan

also developed a more egalitarian social orders, though they could be linked to the outside world

through tribute to coastal princes.

In Java in particular, classes were separated by the use of different language levels, titles, and

marriage rules. Aristocratic court culture became a paragon of refined social behavior in contrast to

the rough or crude behavior of the peasants or non-Javanese. Indirection in communication and self-

control in public behavior became hallmarks of the refined person, notions that spread widely in

society.

In the late nineteenth and early twentieth centuries a more complex society developed in Java and

some other parts of the Indies, which created a greater demand for trained people in government

and commerce than the aristocratic classes could provide, and education was somewhat more widely

provided. A class of urbanized government officials and professionals developed that often imitated

the styles of the earlier aristocracy. Within two decades after independence, all principalities except

the sultanates of Yogyakarta and Surakarta were eliminated throughout the republic. Nevertheless,

behaviors and thought patterns instilled through generations of indigenous princely rule—deference

to authority, paternalism, unaccountability of leaders, super naturalistic power, ostentatious displays

of wealth, rule by individuals and by force rather than by law—continue to exert their influence in

Indonesian society.

The interaction of ordinary people with government officials involves deference (and often payments)

upward and paternalism downward. Officials, most of whom are poorly paid, control access to things

as lucrative as a large construction contract or as modest as a permit to reside in a neighborhood, all

of which can cost the suppliant special fees. International surveys have rated Indonesia among the

most corrupt nations in the world. Much of it involves sharing the wealth between private persons

and officials, and Indonesians note that bribes have become institutionalized. Both the police and the

judiciary are weak and subject to the same pressures. The unbridled manipulation of contracts and

monopolies by Suharto family members was a major precipitant of unrest among students and others

that brought about the president's fall.

Indonesia is facing a long process of shifting to right track on history of governance. Came into being

in 1945, after a long period of Dutch colonial rule and Japanese wartime occupation, Indonesia's

founding fathers established a central form of government (or unitary state), in order to unify the

people of many ethnic, religious and cultural backgrounds spread across thousands of islands.


Five years after independence, Indonesia followed a system of federal government under the 'United

Republic of Indonesia' for seven months (29 December 1949- 17 August 1950), however, it then

returned to the 'Unitary State of the Republic of Indonesia', based on the 1945 constitution. Until the

end of the New Order era (1966-1998), Indonesian governments have faced pressure from the

provincial regions for a less centralized system of government. The concept of regional autonomy has

now been offered as a way of decentralizing power.

The Indonesian experience shows that the governmental system of the last 32 years of the new order

regime gave birth to an imbalance of political power a far cry from cherished democratic values. The

governmental system was centralistic, monolithic and all powers were in the hands of President

Soeharto. Overall, it led to a closed non participatory government (bureaucratic polity). Public

decision making processes remained a privilege of the elite. This in turn weakened actors’ positions

both for those in government and the civil society. In the end, the system assumed too much power.

It effectively turned into an authoritarian and repressive government (Pramusinto, 2006).

C.2 Indonesia Culture and Bureaucracy

At the time of kingdoms in Indonesia, generally have the same bureaucratic system which is feudal

bureaucratic. Among the holders of power and authority is seen as a real entity. Therefore, the

bureaucracy is considered to be centered on the holder of the power, and bureaucratic structure

hanging in the form of "vertical networks" of mutually competing purchasers to obtain a personal

protection of holders of power. It has a close relationship with the advent of patrimonial, namely the

existence of ties on the personal relationship of loyalty system hierarchy and authoritarian

In the 16th century, the Portuguese in 1511 came to Indonesia, then followed by the VOC Netherlands

in 1596 to Banten. Relationship of kingdoms in Indonesia by the Netherlands in the beginning have

equal status. But, in the 18th century, position shift occurs of the kingdoms were under Netherlands

colonial ruler.

As a result of the shift of power, there was the traditional bureaucratic apparatus position became

the colonial agent of the Netherlands, who is working to exploit the people. Enter at the beginning of

independence, the bureaucracy has become a political tool and an object.

At Sukarno Government (old order) in an era of parliamentary democracy in the 1950s, the party

system using multiparty. Political party (political party) comes across as a central actor in the political

system in Indonesia. So the bureaucracy became objects of the fight for the interests and influence of

a Political Party. However, the old order is still inherited from colonial era bureaucracy.

During the reign of the new order, the bureaucracy is really perfect to become a political tool of

President Suharto. Similar to the Netherlands colonial regime in manipulating system, the traditional

bureaucratic officials or “the pangreh Praja” is integrated into the structure of colonialism. New order

manipulates a corps of civil servants to integrate as the State political machine corporate-

authoritarian of the regime.


The action was initiated through the institutionalization of the Corps of Government Employees

Affairs in early New Order, and the following enhanced with KORPRI (Indonesian Civil Servants Corps)

through Presidential Decree No.. 82/1972. Through that way, massive bureaucracy mobilized for

political gain regime, including as a supporter of political power "Trojan horse" (Golkar) as well as an

actual constituent base in every general election (election) whose only purpose is to perpetuate the

regime status quo.

No wonder, after the new order fall in 1998, growing demands from the public for enforcement of

political neutralization of bureaucracy. The problem is, the various steps of bureaucratic reform post-

new order hampered real politics factor. It seems that the bureaucracy remains too difficult to break

away from the shackles of practical politics.

It seems the bureaucracy remains also hard to escape from the fetters of practical politics. Enter the

reform era, there is a push to establish a new democratic and modern bureaucracy. Modern

bureaucracy is "imported” foreign cultural elements, so the process of adjusting to the nature

conditions of our society that is deeply rooted in traditional and multicultural have strong difficulties.

In addition, the application of modern bureaucracy dealing with society's unpreparedness for not

getting the political education of a good government bureaucracy.

The mixture between the traditional bureaucratic cultures that is still attached to the culture of

modern bureaucracy called "mixture of giddy". Terms such as efficiency, effectiveness, productivity,

and modern, which is a term of modern bureaucracy, not yet correct operation in our society. On the

other hand, modern bureaucracy is demanded of modern society,

The socio-political system that operates in Indonesia is not a democratic system, but rather a system

of power by an oligarchy of high officials who could determine the fate of a subordinate (elite

capture). Then, the socioeconomic system which is also underway is a full system to be collusion-

nepotism by utilizing the money (money-talk) and corruption (money-politics)

Other statement come from Djumiarti, who says that Indonesia bureaucracy is signified by the

coexistence between Weberian bureaucracy which originates from the west and the traditional

bureaucracy which has its roots in the social-cultural aspects of the place (Djumiarti, 2013).

Further, Moelyarto in Djumiarti (2013) says weberian bureaucratic values based on the principles of

efficiency, rationality, calculability, certainty rooted in intellectual culture can push the onset of

various administrative reforms in the bureaucracy.

The bureaucracy has become part of the management of the State. However, since the proclamation

of independence the influential bureaucracy that impact extremely is the practice of the bureaucracy

during the new order -strongly colored by the political power of the regime in power at that time-,

namely the military.


At that time the civil bureaucracy was undergoing the process of militarization, ranging from the

structure up to its culture. In short mental quality of intellectual who woke up in a bureaucratic

apparatus on the new order is far from what has been described by Weber as a modern bureaucracy.

No professionalism and rationality, even face the bureaucracy was a feudal and irrational.

Understand the bureaucracy that happened in Indonesia is very important. Normatively, all elements

of the bureaucracy like the structure, culture, systems, values, work procedures and humane

relationship has a relationship with national development goals. Bureaucracy also becomes a strategic

tool in the development of human resources. The bureaucracy has its roots from the social cultural

environment, which inevitably will be coloring the culture of bureaucracy.

The influence of local culture in Indonesia's bureaucracy is more or less influenced by the nature of

the national leadership that is experiencing a process of socialization to the Javanese culture, so that

its bureaucracy reflect the Javanese style of leadership.

Javanese cultural values such as pillars and principles of harmony, patient, and famous terms “ojo

nggege mongso, ing ngarso sung tuladha, ing madya mangun karsa and tut wuri handayani” very

coloring bureaucratic cultures in Indonesia.

Client-patron relationship coloring the relationship between Government and society, the principle

of mono-loyalties which reflect the relationship “kawulo gusti” (people-ruler), the emphasis on

aspects of rituals which embodies state theatrical posture, more than substantial aspects, all of which

attest to the influence of Javanese culture in bureaucracy. More than that, Javanese cultural values

had been indirectly accepted through a process of acculturation, and socialized to non-Java

bureaucrats.

But keep in mind that at a glance culture are detrimental to the process of structural transformation,

but can actually be converted to positive cultural resources for organizing the Government.

Paternalism principles, for example, can be a powerful source for mass mobilization. Shame culture

may be transformed into an effective control environment and remain relevant to the basic system

of supervision of the public. (Moeljarto, 1996: 7; in Djumiarti, 2013)

On the other point of view, Sutherland, h. (1979) described the “upeti” or tribute system that has

lasted for centuries it remained a pattern of transfer power between people and the ruler when the

bureaucrats in Indonesia have had to work with a modern administrative system. Patron-client

pattern where tribute was the exchange of power is considered to be a reasonable standard among

the bureaucrats or modern civil servant apparatus in Indonesia.

According Dwiyanto (2001): "The low performance of public bureaucracy very influenced by the

culture of paternalism that is still very strong, which tends to push for more bureaucratic power rather

than service-oriented, placing himself as the ruler and treat service users as service objects that need

help. In addition, also due to the poor performance of the power - sharing system that tends to

converge on the leader. A hierarchical, bureaucratic structure that encourages the concentration of


power and authority at the bureaucracy tops so officials are directly related to the service users often

do not have sufficient authority to respond to the evolving dynamics in the provision of services ".

Setiono (2000: 100) argues that there are some difficulties associated with the culture and traditions

that exist in the performance of the (Indonesia) bureaucracy. The mentality is the employee's mental

state, (mind, spiritual, soul), character, nature or method of thinking that owned the apparatus that

affect work patterns through its relationship with the environment in which he worked. The action

pattern, the mindset of officials in carrying out work in the place where he works, to encourage

bureaucrats to work optimally.

C.3 Bureaucracy and competitiveness

The discourse about the level of country competitiveness currently constitutes an actual issue along

with the era of globalization. In fact, public service nowadays is inseparable from the phenomenon of

globalization anyway.

In many developing countries, such as Malaysia or India have adopted a different approach to a

modern public service management, as "the New paradigm of Public Service ', the citizens ' charter,

e-government, e-procurement, (Government of Malaysia, 1996).

The Era of globalization has become a new challenge for the bureaucracy in many countries to be able

to compete with other countries in order to remain capable of delivering good service on the

prospective investors. Even the investment climate in the country, will depend largely on the

performance of bureaucracy service. The current bureaucracy in each country is required to be able

to provide performance services that can interest among investors to infuse capital. Regulations

relating to the creation of political stabilization, economic policy and taxation of interest, as well as

the efficiency of the bureaucracy in the provision of services to investors, are some of the policies that

have been pursued by many countries to attract investors to a country (Cullen & Chushman, 2000).

Bureaucratic Government thus holds a very important role in order to improve the competitiveness

of a nation in the eyes of investors. An efficient bureaucracy in administering the service will bring

consequences also on the efficiency of economic costs that must be incurred by the existence of an

investment activity in a country.

Low competitiveness in Indonesia due to Bureaucratic said Irman Gusman (Chairman of the Regional

Representative Council (DPD). Weak policy bureaucracy and rampant corruption remain a major

cause of the low competitiveness of Indonesia compared to other countries. The results of the survey

on global competitiveness World Economic Forum (World Economic Forum/WEF) 2004-2005, showed

the highest ranking occupying the inefficient bureaucracy 23%, followed by a factor of policy

instability 20%, corruption 17%, poor infrastructure 13%, and tax 7%. The ability of Indonesia's

economic competitiveness remains low, even when compared to some countries in ASEAN. Ranking

the competitiveness of Indonesia's lower compared to Singapore, Malaysia, Brunei Darussalam, and

Thailand. In 2011, according to the World Economic Forum competitiveness rankings, Indonesia

ranked 46 of 142 countries, Singapore ranked 2, Malaysia ranked 21st, 28th in the standings, Brunei

Darussalam and Thailand ranked 39th. (Kompas, 2012)


D. Learning and Collaborative Issues

D.1. Learning issues

Ndou (2012) describes, a major challenge of an e-government initiative is the lack of ICT skills in the public sector. This is a particular problem in developing countries, where the chronic lack of qualified Staff and inadequate human resources, training have been a problem for years. The availability of appropriate skills is central to successful e-government implementation. E-government requires hybrid human capacities: technological, commercial and management. Technical skills for installation, maintenance, designing and implementation of ICT infrastructure, as well as skills for using and managing online processes, functions and customers, are necessary. To address human capital development issues, knowledge management initiatives are required focusing on staff training, seminars, workshops in order to create the basic skills for e-government handling. However, the human capability development doesn’t end up with the acquisition and achievement of basic initial skills. Instead, lifelong learning is an essential prerequisite as the rate of change increases and new technologies, practices and competitive models emerge. The full economic benefits of IT depend on a process of social experimentation and learning, which is still at an early stage (Freeman and Soete, 1994; Ndou, 2012). Invest in human development becomes a crucial factor. The success of e-initiatives depends largely on human skills and capabilities. Accordingly, education and training initiatives must be considered as priority actions. Staff need to be trained to handle new processes and activities; they have to be given incentives (not necessarily monetary) to prevent the brain drain of skilled people; and they need to feel part of the organization by engaging in the decision making process. Some basic training needs necessary to be provided to community members, in general, in order for them to be able to use new facilities for accessing electronic information and services. E-government integrates government and effective learning through e-learning drives this process (Braim, 2004). In the public sector, learning through collaborative e-learning can be used for various purposes: 1) to share best practices between government agencies; 2) to train civil servants on specific competencies and teamwork required in their jobs, for example: building awareness of sustainable development issues among local government officials; 3) to develop training for small and medium-size enterprises (SMEs) on how to engage in G2B services; etc. As a result, a real-life e-government training program will be used to validate the proposed collaborative e-learning solution, targeting IT competency and experience-sharing needs of public managers who utilize IT in citizen-focused government programs. In particular, training for Government Chief Information Officers, with its strong requirements for experience-sharing and network-building, will be targeted (Fernandes, 2012).


D.2. Collaboration Issues

Rose, J., Hawryszkiewycz, I.T. & Kang, K. (2013) refer to De Michelis state's definition of a collaboration as a dynamic, purposeful, human co-operative process “characterized by the communication relations binding its participants to each other and with the actions they are performing” and Wanna (2008) states, collaboration means joint working or working in conjunction with others. It implies actors—individuals, groups or organizations—cooperating in some endeavor. The reasons for collaboration occurring are important—as are the means and practices involved, the motivations of the actors, the intended outcomes and the ends involved. Collaboration can involve engagement, the development of internal motivations and personal commitment to projects, decisions, organizational goals or strategic objectives. It is apparent, even with a cursory glance, that These six dimensions are not necessarily either consistent or complementary with one another—indeed, some could be mutually exclusive. Collaboration was by now the next wave of public-sector reform. It allowed governments to reconsider where they could best direct their strategies and energies to achieve desired outcomes. Collaboration can lead to mutual learning and shared experience. It can provide direction for capacity building inside and outside organizations (either through the recruitment of different profiles and skills or the development of networks of supportive/dependent contributors). Collaboration and cooperation at local, regional and national levels, as well as between public and private organizations, are important elements in the e-government development and implementation process. Nevertheless, collaboration and cooperation are not simple to realize. Governments often exhibit considerable resistance to open and transparent systems as they try to preserve their authority, power and hierarchical status. Citizens distrust their government, especially where there has been a history of dictatorship, political instability or large-scale corruption. To ensure that the public and stakeholders will be partners in the e-government effort, it is important to try to build trust in government. A collaboration between the private (assuming that there is a private sector) and public sectors is needed too, in order to provide resources, skills and capabilities that the government lacks. It is not easy to facilitate collaboration across different organizational boundaries, especially in wicked problems. (Yoo, C., Hawryszkiewycz, I.T. & Kang, K., 2013) described the term of ‘wicked problems’ can refer to an issue that is highly resistant to resolution. The original focus of the wicked problem literature was on systems design, but the concept has gradually been applied to broader social and economic policy problems (Head and Alford 2013). Stimulate collaboration and coordination among government departments and agencies to increase efficiency and effectiveness in process handling. Address challenges and opportunities in strong partnership with private organizations, major donors, research institutions and universities, and support cross fertilization of ideas, solutions and knowledge. For successful implementation and effectiveness, collaboration issues is not only on inter-organizational but also within its organization. Studies of Lim, T.K Erik, Tan, Chee-Wee, Pan, Shan Lin (2009) describes in balancing collaboration and control in stakeholder management, four important groups of stakeholders known as the Engineers, Dissidents, Seasoners, and Skeptics who possess


vastly different characteristics and varying levels of acceptance of and commitment towards the e filing paradigm. Accordingly, four corresponding management strategies with varying degrees of collaboration and control mechanisms are devised in the bid to align these stakeholder interests such that their participation in e-government can be leveraged by public organizations to achieve competitive advantage.

D.3. Collaborative e-government and Effectiveness

When dealing with emerging trends, definition is not a basic formality, but a fundamental goal of the

implementation. Where traditionally government produces the data and builds services, collaborative

e-government is typically considered as “cool app” built by third party on top of open government

data. But our definition goes beyond this, we define as collaborative e-government any public service

that is electronically provided by government, citizens, NGOs, private companies and individual civil

servants, in collaboration or not with government institutions, based on government or citizens-

generated data. This definition spells out the 2 architectural components of collaborative e-

government: the data produced and the service provision (Osimo, David et.al, 2012).

The improved effectiveness of public services is one of the most important expected contributions

from co-production. In co-production approaches users are not anymore just “customers” or “passive

users” waiting at the end of the production process and just eventually involved in the evaluation of

services' quality. They are considered part of the delivery process, and this will, at least theoretically,

steer the output of the process in line with their expectations.

E. E-government and Competitiveness

As Chevallerau (2005) explained, competitiveness could be defined, at a basic level, as the ability of

an entity or a group (a company, a set of companies, a region, a country, a group of countries, etc.)

to operate efficiently and productively in relation to other similar entities or groups. This ability can

be measured by the entity’s "advantage or disadvantage in selling its products in international

markets”, and, as a consequence of this, by its capacity to achieve economic growth.

The World Economic Forum (WEF 1996), for instance, defines a country’s competitiveness as “the

ability of a national economy to achieve sustained rates of economic growth as measured by the

annual changes in per capita GDP”

The OECD definition of competitiveness as “the ability of companies, industries, regions or

supranational regions to generate, while being and remaining exposed to international competition,

relatively high factor income and factor employment levels on a sustainable basis”. For a country, a

region or a city, increasing competitiveness thus translates into an economy-wide sustainable

improvement in living standards; for an industry, into a dominant market position through the sale

of high quality products; for a firm, into long-run growth in profits and sales through rising market

share The definition of competitiveness comprises two aspects that may in some cases appear as

contradictory: an international element in the sense that products and services are exposed to

international trade, competing with products and services produced by countries with different cost

structures and/or more sophisticated features; and a domestic element in the sense that

competitiveness implies rising returns on resources and rising real income for citizens. Meeting global


market requirements, where cost is often a key factor, while simultaneously achieving rising real

incomes, is a true and pressing challenge. The key to simultaneously achieve both low costs and high

wages is productivity. There is indeed a growing consensus that e-government is now becoming a key

factor for increasing competitiveness.

Econometric studies have found evidence of a strong positive relationship between ICT investments

and GDP growth illustrating the importance of ICTs for development, both in the commercial and the

public sectors. An OECD (2002) research project, based on national studies about the impact of ICT

on the economy, has shown that ICT investments accounted for between 0.5% and 1.3% in GDP

growth per capita per annum over a number of economies in the 1995–2000 period. In Australia, the

growth was 1.3% per annum over 1996-2000 (Ndou, 2012).

Nevertheless, ICT represents a high risk for developing countries – the risk to deepen the digital divide

and to further marginalize them with the networking revolution. Countries which fail to embrace and

use ICT tools for entering the global network and for addressing development needs, will suffer

pivotal disadvantages in the form of information poverty that could further widen the gap in

economic status and competitiveness.

Recognizing the power of ICTs, many developing countries have started building and encouraging e-

strategies and initiatives to address a wide range of economic, social, technological, infrastructure,

legal and educational issues Reaping the advantages and opportunities of ICT and the knowledge

economy for collaboration, networking, better services, efficiency and effectiveness.

E.1. Relating e-government to Competitiveness Variables

Chevallerau (2005) on the IDABC e-government Observatory states even though a number of

methods have been developed to assess the wider benefits of e-government, most of them focus on

the internal benefits (i.e. The benefits of e-government within a given jurisdiction) and overlook the

impact of e-government on competitiveness (i.e. The benefits of e-government to improve the

jurisdiction’s economic performance compared to its competitors). When they establish a relation

between e-government and competitiveness, it is usually limited to the role of ICT in reducing ‘red

tape’ and the cost of regulatory compliance for businesses.

While this is undoubtedly one of the key links between e-government and competitiveness, it is far

from being the only one. To grasp the full extent and the complexity of the relation between

government and competitiveness, it is necessary to investigate in detail the role of government as an

actor of competitiveness, before addressing the way we-government can be leveraged as a real

competitive factor.

The European Competitiveness Report 2004, released by the European Commission in November

2004, investigated the impact of public policies on economic performance, and in particular the

impact of the public sector on productivity growth. The report identifies three main levers through

which ‘government’ (understood as the public sector) can influence the economic performance of

economic actors: taxation, government spending, and regulations.


To see connectivity , the potential for e-government implementation in Vietnam shown improvement

in country’s efficiency and effectiveness in terms of public sector performance and as a strategic tool

for national competitiveness (Vu, 2005).

Lanvin and Lewin from Word Bank (2007) reported that e-government has the potential to be both

an engine and a contributor to compete at the local as well as at the international level.

Through outsourcing contracts (private-public partnerships, or PPPs), for example, the dynamics

between local government and local ICT firms can provide new markets and job opportunities for

domestic firms, including SMEs as providers of local e-government services.

E-government is a key enabler of the transition to competitive government. Application of ICT in

government services can indeed increase both the efficiency and the quality of public services, while

reducing the cost and hassle of administrative compliance for citizens and businesses. E-enabled

public services can be produced and delivered much faster, thus saving considerable time and money

for both service providers and users. Even though precise measurements are still missing, there are

strong indications that these benefits are substantial and are likely to have a multiplier effect across

the economy. Therefore, governments need to re-focus their e-government efforts towards two key

objectives: the identification and realization of productivity and efficiency gains across the public

sector, and the reduction of administrative burdens for both citizens and businesses.

Effective implementation of e-government will lead and be functioning as a competitive strategy

platform to build strategic alliances and business networks, can provide organizations or government

with the capability and flexibility to compete with the world.

Strategic alliances are providing such organizations with the capability and flexibility to compete with

the world. The benefits of forming such cooperative strategies are not limited to small or remote

organizations – it seems that many organizations in Australia and throughout the world can benefit

from forming alliances (Killen C.P, 2004).


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Jatmiko Nugroho 2014 PhD Research Proposal V3

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