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RESEARCH ON DEBUREAUCRATIZATION IN INDONESIAN BUSINESS LICENSING WINS 1ST BEST CONFERENCE PAPER AWARD

22/9/2017

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Licensing is one of the government regulations that entrepreneurs need to hurdle in starting their own business. Unfortunately, this is where companies encounter bottlenecks in applying for permits and licenses. This poses transaction costs that would potentially discourage investments and eventually slow down the economy. This is especially evident in the case of Indonesia, which is ranked 41st in terms of the Competitiveness Index and 91st out of 190 countries in the recent  World Bank’s Ease of Doing Business (EoDB) index.
 
It is under this context that Mr. Muhammad Syafiq and his colleague Mr. Naufal Sabda Auliya, researchers from the National Institute of Public Administration, Indonesia, explored means by which they can simplify business licensing in their country. Their study, “Public Perception Survey as an Early Warning Method in Reducing Negative Impact of Bureaucratization,” bagged the first Carlos P. Ramos Award for Best Conference Paper during the 2017 EROPA Conference in Seoul, Korea. Syafiq, Deputy for Policy Research of NIPA-RI, received the Award on behalf of his research team. 
 
Aside from identifying what made business licensing difficult, Syafiq and Auliya also looked into how data from public perception surveys can be used to simplify the process. In particular, the survey data may serve as an Early Warning System that would help determine the optimal limit of the following factors of bureaucratization: hierarchy, impersonality, formalization, and specialization. Consequently, it will be the basis for simplification of the business licensing system.
 
The study examined procedure, cost, and time variables that affect business-licensing processes in Indonesia, based on surveys administered by the World Bank, Asia Foundation, and the Regional Autonomy Watch (KPPOD). The study found that the licensing system in Indonesia is extremely formalized and specialized, leading to further problems such as overlapping guidelines, partial delegation of authority, and delays due to dependence between tasks and procedures. The study also noted the lack of IT utilization and lack of professionalism of human resources (HR). From these findings, Syafiq and Auliya recommended clear delegation of authority, capacity building for HR, and synchronization of licensing guidelines. They also suggested the full use of IT tools for simplifying business licensing.
 
The Carlos P. Ramos Award for Best Conference Paper began this year to recognize excellent papers presented in annual EROPA Conferences. It also hopes to draw more quality paper submissions for the conference and for possible publication in academic journals such as ARPA. The Award consists of a certificate and a USD1,000 cash award. 
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EASTERN REGIONAL ORGANIZATION FOR PUBLIC ADMINISTRATION
National College of Public Administration and Governance
University of the Philippines, Diliman 1101 Quezon City
Philippines
Telefax: (+632) 8 929 7789
​WhatsApp: 63917 465 4300
  • Home
  • About
    • Our Story
    • Constitution
    • EROPA Centers
    • EROPA Secretariat >
      • Sec-Gen's Corner
    • EROPA Chairperson
  • Publications
    • Public Administration News
    • ARPA >
      • ARPA Editorial Board
      • ARPA Call for Papers
      • Publication Ethics and Malpractice Statement
      • Notes for Contributors
      • Abstracts >
        • 2019, Volume 30, Nos. 1-2
        • 2018, Volume 29, Nos. 1-2
        • 2017 Volume 28, Nos. 1 & 2
        • 2016 Volume 27, Nos. 1 & 2
        • 2015 Volume 26, Nos. 1 & 2
        • 2014 Volume 25, No. 2
        • 2014 Volume 25, No. 1
        • 2013 Volume 24, Nos. 1 & 2
        • 2012 Volume 23, Nos. 1 & 2
        • 2011 Volume 22, No. 2
    • EROPA Bulletin >
      • Call for Inputs
    • Resources >
      • EROPA Brochure & Forms
  • Membership
    • Members' Corner
    • Join EROPA >
      • Individual Membership Form
      • Group Membership Form
      • State Membership
    • State Members
  • Conferences
    • 2023 EROPA Conference
    • 2022 EROPA Conference
    • 2021 EROPA Conference
    • 2020 EROPA Conference
    • List of Past Conferences
    • Database for Past Conferences >
      • EROPA 2022 Conference
      • EROPA 2019 Conference
      • EROPA 2018 Conference
      • EROPA 2017 Conference
      • EROPA 2016 Conference
      • 2012-2015 Conferences
    • Carlos P. Ramos Award for Best Conference Paper
    • Asian Leadership Forum
    • Stories to Share
  • Activities
    • Latest Activities
    • EROPA ExP >
      • Find an Expert >
        • Peter Bergerson
        • Edna Estifania A. Co
        • Sofian Effendi
        • Akio Kamiko
        • Pan Suk Kim
        • Masao Kikuchi
        • Perla Legaspi
        • Lue Li
        • Akira Nakamura
        • Orlando Mercado
        • Jon Quah
        • Lisa Saye
        • Sombat Thamrongthanyawong
        • Prijono Tjiptoherijanto
        • Roger Wettenhall
        • Tao Zhang
        • Mohd Afzanizam Mohd Badrin
        • Wong Wai Lun, Vincent
      • JOIN ExP DATABASE
    • OYPA >
      • FAQs/Guidelines
      • OYP Nomination Form
  • #TAG Dialogue
    • About #TAG Dialogue
    • #GovInTheTimeOfCorona
  • Contact Us