THE NEW PHENOMENAOF PUBLIC ADMINI$TRATIONIN ASIAN COUNTRIE$

A Proceeding Book

Third lnternational conference 0n public Organization (rcoNp0)

organized by lnternational Public Organization Association (lpOA)

Bali on February 21st, 2013

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THE NEST PHENOMENAOF PUBLIC ADMINISTRATION

IN,A,SIAN COUNTRIES

A Proceeding Book

By International Public Organization AssociationFor the 3rd International Conference

on Public Organization

Editor:Prof Dr. Sunhyuk Kim, Korea UniversiryProf Dr. Jin-wook Choi, Korea Universiry

Prof Dr. Christope Behrens, Center of Good GovernanceProl Dr. Ahmed Murtadha, Universiti lJtara MalaysiaProf, Dr. Arnporn Thmrolak, Thammasar University

Prof, Dr. Darwin Manubag, Mindanau State UniversiryD r. Achmad Nurmandi, lJniversitas Muhammadiyah Yogyakarta

Dr. Dyah Mutiarin, lJniversitas Muhammadiyah YogyakartaProf. Dr. Azhari Samudra, lJniversitas Ngurahrai, Bali

Dr. Tirka, lJniversitas NgurahraiProf. Dr. \Tirman Syafri, Institut Pemerintahan Dalam Negeri

Dr. Abdullah Sumrahadi, lJniversitas Ngurahrai, Bali

Organized:

Univtrsitas Muhammadiyah Thamm6at Unlversiry Univqsit Uiara Malalsta Ktrea University

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THE NEW PHENOMENA OF PUBLIC ADMINISTRATION IN ASIAN COUNTRIESA Proceeding Book

By lnternationai Public Organization AssociationFor the 3rd lnternational Conference on Public Organization

Editor:

Prof Dr. Sunhyuk Kim, Korea University

Prof Dr. Jin-wook Choi, Korea University

Prof Dr. Christope Behrens, Center of Good GovernanceProf. Dr. Ahmed Murtadha, Universiti Utara MalaysiaProf. Dr. Amporn Tamrolak, Thammasat UniversityProf. Dr. Darwin Manubag, Mindanau State UniversityDr. Achmad Nurmandi, Universitas Muhammadiyah YogyakartaDr. Dyah Mutiarin, Universitas Muhammadiyah Yogyakarta

Prof. Dr. Azhari Samudra, Universitas Ngurahrai, Bali

Dr. Tirka, Universitas Ngurahrai

Prof. Dr. Wrman Syafri, lnstitut Pemerintahan Dalam NegeriDr. Abdullah Sumrahadi, Universitas Ngurahrai, Bali

Cover & Layout:

AksaraBumi Jogjakarta

aksarabumi.jogja@gmail.com

Special Edition 150 exp, February 2013

Printed on Book Paper 200x280 mm ; 860 p.

ISBN:978-947124-6

Published by:

lnternational Public 0rganization AssociationFor the 3rd lntemational Conference on Public Organization

TABLE OF CONTENTS

T-\BLE OF CONTENTS -3EDITORIAL PREF'ACE, -1.1

PART 1

l

J

CORRUPTION PRACTICE,S AMONG YOUNG E,LE.CTIVE, PUBLIC OF'FICIALS(SANGGUNIAN KABATAAN) IN ILIGAN CITY, SOUTHE,RN PHILIPPINE,SDr. Sulpecia L. Ponce, DomshellJohn B. Cahiles, Mohammad Naif S. Pimping,

_lonathan A.jangao, Prof. Amabelle A. Embornas, Dr. MytmaJean A. Mendoza -15

GRAFT AND CORRUPTION PRACTICES AN,{ONG SELECTE,D PUBLICOFFICIALS iN MINDANAO, SOUTI{ERN PHILIPPINES

-\mer Husain L. Laut, Abdul Azis G. ltlariano, Fay Elaine B. Ontolan, Dt. Nimfa L.Baracamonte, Prof. Christian T.N. Aguado, and Dr. Suipecia L. Ponce -27

DE,CE,NTfuA.LIZATION, CORRUPTION,AND DE,MOCfu\CY ACC OUNTABILITYNurliah Nurdin -39

CORRUPTION, PROBLEMS AND CFIALLENGE,S IN CRE,ATING GOODGOVERNANCE,: A COMPARISON BET\TEE,N \,{,{IAYSIA AND INDONE,SIADr. Makmur, Dr. Muhadam Labolo -49

THICK INDIVIDUALITY WITHIN THIN SENSE OF PUBLIC:CONtrUSION \TITHIN THE, BATTLE, AGAINST CORRUPTIONPur.wo Santoso -74

CITIZEN CONTROL BASED ON COMPE,TENCY COLLABORATION ONSTRUCTURES AND CULTURES TONTARDS URBAN SPATIAL POLITICSDr. Tti Sulistyaningsih, M.Si. -85

POLITICAL NL{RKE,TING FOR POLITICAL LE,ADE,RS IN MAiIYSIA:ANALYSIS FROM THE PERSPE,CTIVE OF IMAGE, CONTRUCTIONAND BODY LANGUAGE,Assoc. Prof. Dr. Mohd Azizuddin Mohd Sani -93

)

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

8 OBSTACLE,S TO BUREAUCRATIC RE,FORM IN INDONESIA:LE,SSON LE.ARNE,DUntung Subagio -115

9 ADMINISTRATI\B, RE,F.ORM IN SOUTH I(ORE,A: NE\7 PUBLICN,IANAGE,MENT AND THE,'ORTHODOX PARADOX'Professor Sunhyrrk Kirn, Professor Chonghee FIan -125

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

\uli Tirtariandi El Anshori, SIP., M.AP -137

11 QUICK WINS AS IMPROVING THE QUALITY OF PUBLIC SE,RVICE,

TO RE,ALIZE GOOD PUBI;IC GOVERNANCE (CASE, STUDYPLBLIC SE,RVICE, AT KECAMATAN (DISTRICT) AMPE,K ANGKE,K,REGENCY OF'AGAM, PROVINCE. OF SUMATE,RA BARAT)Tiahjo Suprajogo *146

12 E_PROCUREMENT AS AN INSTRUME,NT ON E,NHANCINGTRUST TO\7ARDS ACHIE,VING GOOD GO\E,RNANCE,:CASE STUDY AT BANTUL YOGYAKARTAArdhi Hetizharmas, Rizki Surya Putra, Anak Agung Gde Putu \X/ahyura -757

G OVE,RNIN G THROUGFI C OMPETITI ON : AI]TE,RNATIVE, APPROACH TOTRANSFORM BUREAUCRACY (A CASE, OF IMPLE,ME,NTATION OF PROGRAMPE,NDANAAN KOMPE,TI SI -iND E,KS PEMBAN GUNAN N,4,{NU SIA IN \XE,ST

JAVA PROVINCE,, IND ONE,SIA)Caroline Paskarina, S.IP., M.Si. -170

THE, E,F'F'E,CTI\E,NESS AND TFIE, E,FFICIE,NCY OF THE USE OF BIOMETRICSYSTEMS IN SUPPORTING NATIONAL DATABASE, BASE,D ON SINGLE,-KTPNUMBE,R GFIE IMPLEMENTATION OF E,-I<TP IN BANDUNG)Dt. Etin Indmyani, MT -185

THE, PROF'E,SSIONAL BURE,AUCRACY ON PUBLIC ADMiNISTRATION ATNE\7 DE,\T,LOPME,NT COUNTRIE,S IN ASIANAdy Muzwardi -203

DE,MOCRACY SOCIE,TAL PRE,SSURES, AND INDONE,SIAS WAR ON TE,RROR

Dr. Ali Muhammad -21.1

I NF ORN&\TI ON F'RE,E,D OM IN THE, C ONTE,MPORARY IND ONE,S IA:POLITICAL RE,GULATION AND ITS D\TJAMICS TO\rARDS THE, OPE,N

PUBLIC SPHE,REAbdullah Sumrahadi -227

PHILIPPINE, E,LE,CTORAL MODE,RNIZATION: PRE,_ AND POST_ ATTITUDE,SOF RE,GISTE,RED VOTE,RS OF TIBANGA AND DE,L CARMEN, ILIGAN CITY,

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

Princess NIae S. Chua, Elaine M. Baulete -239

T3

14

15

t6

17

1B

The New Phenomena of Public Administration ln Asian Countries

: '

\.\TION,\L COMPE,TITIVE,NE,SS AND CORRUPTION: A COMPARISON OFSOUTH KORE,A AND INDONESIA

-lin-Ebok Choi -258

PART 2

: THE COLLABORATION IN MANAGE,ME,NT ADMINISTfu\TION OF TFIEE,LDE,RLY SCHOOLS IN PUBLIC SERVICE,: A CROSS CASE, ANALYSISPir-akorn $Thangmahaporn -271

:1 E,NSURING 3ES AND RE,SPONSIVE,NE,SS IN THE DELI\E,RY OFEDUCATIONAL SE,RVICES IN THE AUTONOMOUS RE,GION IN MUSLIM\{INDANAO (ARMI\O IN THE PHILIPPINE,SDr. Sapia Moalam Abdulrachman, Dr. Badnya P. Makol -289

f .) THE, DEVELOPME,NT OF'TEACHE,R AND EDUCATIONAL PERSONNELPROMOTIONAL ASSE,SSME,NT FRAME,WORK IN THAILANDDt. Ampotn Tamrongiak -306

-: THE, D\'I.{AMICS OF' LOCAL AUTONOMY IMPLEMENTATION INiNDONE,SIA: THE, SHIFT FROM DE,CENTRALIZATION TO AS\.METRICDE,CE,NTRALIZATIONFnezca RaraJuta, ChristophelAndre Hadi -323

]+ \NALYZING TFIE, PE,RF'ORN,,{,{NCE, OF'DE,CE,NTRALIZATION IN THE CASEOF JAMKE,SMAS AAMINAN KESEI IATAN MASYARAKAT-HEALTHINSUR,\NCE SCHE,ME, FOR PEOPLE,) AND JAMKESDA OAMINANI{ESEHATAN MASYARAK.{T DAERAFT_HE,ALTH INSUR,\NCE SCHEI,{E, F'ORLOCAL PE,OPLE,).Hevi l(urnia Flardini -330

]5 ORGANIZATIONAL CULTURE AND LE,VEL OF JOB PERFORMANCEEF'F'E,CTI\ENESS AMONG THE ILIGAN CITY PHILIPPINEN,\TIONALPOLICE ENP) PE,RSONNE,Ll{s. Flazel D.,Jovita, Prof. Girlie B. Miguel -342

PART 3

]6 KEBUILDING NATION THROUGFI APPLICATION ORGANIZATION BASICVALUES STUDY PHENOME,NON IN TRIBUNGAN \rIRO\TONGSO JE,MBERPutri Robiatul Adawiyah S.Sos., I\{.Si -357

:- FINDING PUBLIC SERVICE, AS A CALLING: INTRODUCING \7Oil<PLACESPIzuTUALITY AS A WORK ETHIC iN INDONESIAN BUREAUCRACY-\rio \Ticaksono -365

]B PUBLIC SE,RVICE, POLICY MAKING USING ISIZEN METHODCONIBiNATION-\rif Zainudin, Anwar l{holid *377

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

29 PLBLIC ADMINISTRATION: HISTORY AND FUTURE, TRAJECTORY RE,FORM

Dr. Asep Nurjaman, M.Si -390

30 INfPLEME,NTATION ELECTRONIC IDE,NTIF'ICATION POPUL,T|ION CARD(E_ID) ON DEPARTE,ME,N OF POPULATION AND CIVII, RE,GYSTRA'TION

(DPCR) IN PAMEKASAN REGE,NCY E,ASTJAVA PROVINCEDra. Gatiningsih, MT, Luciana \Wulandari, S.STp -398

31 A,4,\KING PE,RFORI\,4,{NCE,_BASE,D BUDGE,TING WORKS IN SOME, LOCALGOVE,RNMENTS OF' INDONE,SIADyah Mutiarin, Achmad Nurmandi -409

POLICE COMMUNITY SERVICE: THE, CASE, OF KIBI-A\f4N, DAVAO DE,L SUR

Velouna R. Perez, fuchard B. Dumasig -428

ANALYSIS OF E,MPO\TERMENT OF RURAL ECONOMIC INSTITUTIONS ANDITS EFFECTS ON RURAL COMMUNITIES E,CONOMIC PERFORMANCEMuhammad Basri -442

34 STK/\*TEGIC PI-ANNING ON POLLUTE,D RIVER RE,SOLUTION PROBLE,M ATCIh,L\HI MUNICIPALITYAyLrning Budiati, SIP, MPPM -455

35 APPLICATION Otr ISO 9001-2000IN PUBLIC SERVICE: TO\7ARDS BETTERPERFORMANCE? (A CASE STUDY FROM CITY OF BANDUNG)Mudiyati Rahmatunnisa, Asep C. Cahyadi -460

PART 4

36 INfPACTS OF GOVE,RNMENT STRATEGIES ON TFIE, E,NVIRONME,NTALIL{NAGEMENT OF' MT. GABUNAN !7ATE,RSFIE,D, NORTFIE,RN MINDANAqPHILIPPINE,Sgsgilia B. Tangian, Ph.D. -473

3- SOLID WASTE, CHARACTE,RIZATION AND CORRELATION BE,TWE,EN THE,

LE\E,L OF AWARE,NE,SS OF'MSU_IIT CONSTITUENTS AND THE,IRPL\CTICES IN HANDLING SOLID STASTES

)tana Pra 1r{. Sison, Dr. Alita T. Roxas -485

38 GRL\TE,R PROGRAM: ITS IMPACT TO TFIE, SOCIO_E,CONOMIC ANDE \-\_I RO\ } IE,NTAL DEVE,LOPME,NT O F LINAMON, IANAO DEL N O RTE,,

\ORTHE,fu\I MINDANAOFlaine \I. Baulete, Sapia Abdulrachman -495

39 E\_\-IRONT,{E,NTAL GOVE,RNANCE IN MT. MALINDANG ANDI\ {PLIC.\TI ONS ON BIODI\E,RSITY AND HUN{,\N WE,LL_BE,INGDr. -\hta Timonera Roxas -51.1

The New phenomena of public Administration ln Asian Courrtries

STR\TEGIC PLBIIC CHOICE, OF STASTE MANAGEME,NT PUBLIC SE,RVICESh' DISTRICT C^\TCHMENT AREA (CASE STUDY DISTRICT TAPOS, DEPOK.rrEsT_l-{\-!Flrrrenrine Ratih S,'ulandari -527

LOC{T M\ERN]\fE,NT ECOLOGICAL COMMITME,NT IN PUBLIC POLICYPROCESSWITHIN THE, OUTONOMY ERAQ11*tiene A. Kambo, Sukri Tamma -532

PTRT 5

"'': E.R\DICATING CHILD I.ABOR: A CHALLE,NGE, To THE, PHILIPPINEBLRLdUCRACYDarid N. Almarez: DM, traisah R. pandita,Jan Lianne M. Ozanga _54g

13 }fL\DANAO,S CHILD LABORERS: A PROPOSE,D INTER\ENTIoN PROGRAMDESIGN FOR THE, COMMUNITY, GO'S AND NGO,SProf. Alma G. Maranda, ph.D *564

.Ii,J DECENTRAI-IZATION POLICY AND GooD GOVERNANCE: GE,NDE,RPERSPECTIVE\ur Azizah -574

J: REVIE,WING THE, IMPLE,MENTATION OF THE, AF'F-IRMATIVE POLICYRia Angin -585

.ff LL\DERSHIP AND MANAGE,MENT OF NGO SE,CTOR ACTIVITIE,S TOENSURE !7OME,N E,MPO\IERME,NT\fohammad Zulfrquar Hossain, Dr, A K M

+- -\TTITUDE OF FIOUSEHOLD HEADS IN BARANAGY VILLA \E,RDE,, ILIGANCITY TOSTARDS TFIE PASSING OF' PHiLIPPINE REPRODUCTIVE. H;ALTHBILL 2011 VIS_A-VIS THE ROMAN CATHOLIC CHURCH INTE,R\ENTiONElaine M. Baulere, Lordlyn B. Saligumb a -607

+8 SITUATING INDIGE,NOUS CONFLICT RESOLUTION INTO PHILIPPINEGO\'ERNANCE, AS ME,ANS OF RE,SOLVING FAMILY FEUDS AMONG MUSLIMFILIPINOSDavid N. Almarez, DN{ -618

+9 DE,SCRIBING THE ORGANIZATIONAL CULTURE OF-ILIGAN INSTITUTE OFTECHNOLOGY OF THE, MINDANAO STATE, UNIVE,RSITY, trLIGAN CITYMs. Eucil Pabatang-Hussien, prof. Gfulie B. Miguel -632

'J REALIZING PUBLIC POLICY BASE,D oN HUMAN RIGHTS IN THE ER,{ oFAUTONOMYNanik Prasetyoningsih, S.H., M.H. -649

Motinur Rahman -Sg3

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

51 STRE,NGTHE,NING THE NATIONAL AND POLITICAL UNITY (KE,SBANGPOL)F'UNCTIONS IN ADDRE,SSING PROBLE,MS POSE,D BY NGOS IN INDONE,SIAAndi Ali Akbat Vela -657

52 GENDE,R MAINSTREAMING IN LOCAL GO\E,RNANCE: FOCUS ON THEcrrrEs IN NORTHERN MINDANAO (2004 2010)

Dr. FliltonJ. Aguja, Prof. DarwinJ. Manubag, Prof. Elaine M. Baulete -667

PART 6

53 THE ROLE Otr THE, MIDDLE, CIISS iN PUBLIC SECTOR: IN THE, CASE, OFDE,VE,LOPING COUNTRIE,STulus \Warsito -683

54 TIIE, UNDERSTANDING OF GRO\rTH Otr LOCAL NODE, AT DE\IELOPMENTAXE,S AS BASE, OF'DE,VE,LOPME,NT OF'NEW STRATEGY OF LOCALDE,VE,LOPME,NTEko Budi Santoso, Dt. Hetu Purboyo, Dr. Dewi Sawitri *693

55 PUBLIC PARTICIPATION IN TFIE,IMPLEME,NTATION OF'F'ORE,ST FIRE,

CONTROL POLICY AND IAND INI RIAU PROVINCEBy : Dr. Febri Yuliani, M.Si -707

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

AUTONOL,{OUS RE,GION IN MUSLIM MINDANAO: ISSUES ANDCHALLENGE,SDr. Macapado A. Muslim, Dr. Sapia Moalam Abduh'achman -71'7

LOCAL GOVERNME,NT ROLE IN THE DE,VE,LOPME,NT OF INDUSTRYCLUSTE,R BASE,D TOURISNTDr. Ika Sartika -729

LOCAL E,AR]\f,\RKING TAX IN INDONE,SIA: PROSPECT AND POTtr,NTIATPROBLE,MSAchmad Lut6 -741

ASSE,SSING AN INSTITUTIONAL DISASTE,R RISK REDUCTION &44,{NAGE,ME,NT PROGRAM: BASIS F'OR PILOTING IN A T\?FIOONSE,NDONG -DE,VASTATE,D CITY IN SOUTHE,RN PHiLIPPINE,SDr. Cesar T. Miguel -753

NATUR,\L DISASTERS AND VULNE,RABLE, COMMUNITIES IN THEP} IILIPPINE,S: A CASE STUDY ON THE, IMPLE,ME,NTATION OF DRRM OF2O1O IN ILIGAN CITYX{arilou F. Siton Nanaman -763

PARTNERSHIP BASE,D LOCAL GOVE,RNANCE,: AN ARERNATIVE,APPROACFI IN STRENGTFIE,NING LOCAL GOVE,RNANCE IN DE,VE,LOPING

COUNTRIESXlohammed Asadwzzaman -773

57

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6L)

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The New Phenomena of Public Adminishation ln Asian Countries

THE EFFORT TO INCREASE, RE,GIONAL RE,VENUE THROUGH VE,HICLELICENSE, TAX USING THE MODELING OF SYSTEM D}NAMICS IN TAKARTADr. Azhari Azn Samuden -787 i

RE,GIONAL AUTONOA4Y AND RE,GIONAL INCOME PROBLEM: A CRITICALNOTE,I lWade Sumada -803

THE U N CO N STITU TI O N A L OF' VILIAGE GO\E,RNME,NTHanif Nurcholis, Ace Sriati Rachman -B0B

TFI E, IMPLE,ME,NTATION OF ALC OFI OL'S BEVE,fuA.GE I NDUSTRY P OLICYCASE STUDY IN KARANGASE,M RE,GE,NCY BALI, INDONESIANi Putu Tirka \X/idanti, I Made Mudia -817

CAPACITY BUILDING OF NAGARI GOVERNMENT AS A UNITY OF.\UTONOMOUS SOCIE,T\'IN MINANGKABAU, \TEST SUMATE,RA (STUDY ON};AGARI KOTO TINGGI, AGAM REGE.NC\)Ismail Nurdin -823

:LBLIC PRIVATE PARTNE,RSHIP: LESSON FROM LOCAL GOVERNME,NTCASE, BANDUNG CITY GOVERI{MENT \rITH PT. MARGATIRTAKE,NCANAI\ DE\E,LOPING AND STRUCTURING CICADAS TR-{DITIONAL MARIGT)EgnasSukma F,. Tomi Setiawan, Sintaningrum -832

POLITICAL INVOLUTION NE\r ARE,A OF DISTRICT, ETFINICITY ANDRELIGION: TFIE CASE, OF.NORTFI X,LALUKIIZulv Qodir -847

:,i

(,

"o 67 "o

PUBLIC PRIVATE PARTNERSHIP:

LESSON FROM LOCAL GOVERNMENT(CASE BANDUNG CITY GOVERNMENT WITH

PT. MARGATIRTAKENCANA IN DEVELOPING AND STRUCTURIMG

crcADAS TRADTTTONAL MARKET)

EgnasSukma F, TomiSctiawan, and Sintaningrum

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

AbstractThe change in the paradigm of governance currently demanded the government to pro\-:;i rbetter service to the society.The provision of dris service is faced with the limited abrl:,; -rgovernments, limitation of financial resources in the form of and human resources manager:-dr!:. Solution to resolve this issue is byinvolving the role of stakeholders, for example thr:,:::Public Private Partnership ePP). Local governments who have opted to apply the concer: : :PPP is the Bandung City Government, one of the sectors of application are traditional rru:.,*lsectors.This research was conducted on a Public Private Partnership between Banduns ---Government and PT MargaTirtal{encana in the deveioping and Structuring Cicadas Tradrn::;l"Market. PPP is done by the Build Operate Ttansfer scheme for dre ground floor and abor-e, :":jBuild Transfer Operate for semi basement floor with Z}.year concession period cofiurrercr.{from Match 2"'1,2006. Method in this srudy hasused a qualitative approach. The techruquc - :retrieval of informet b)'-.^tt. of purposive and snowballtechnique. Research result indrc:*dris partnership not benefiting each other. This occurs because of a problem in the implemental:,:of the partnership itself, for example, delays in der,'elopment. Mechanism of communice:"ccatried out to gain legitimacy ftom the ttader was not getting results. The absence of tech::car-standard and standard of service from the Government, coupled with the abiliq' of pri;::parties that are not derived from the retail business. For the government, the benefits are *-=ithe government assets by PT. MTI( and infrastructure improvements, but in terms oi ser-;:.:eto the merchant could not be said to be optimal. On the other hand the advantage privare pr::l-J:that profit is still not reached.

Key'word:P u b li c p ri ua t e p a rt n e rs h ip, i nfra$ru ctu re i mp ra u e m e n t s

832

The New phenomena of public Administration ln Asian Counbies

A. INTRODUCTION

Good Governance makes pattefns of governance more open now The government hasdemanded to provide optimal service delivety to the public. However, amid claims the govemmentlras its limitations, for example in the form of limited financialresources, human resourcesrrlanagement and adminisftation. One way is a Public Private Partnership epp), which is thepro'"-ision of capital investment by the private sector in pubiic services.

Local governments can also use this approach as an attempt to improve pubiic services, oneof which is Bandung City Govetnment. Bandung City Govern*.ni through the perusahaanDaerah PasarBermartabatpD. Pasar) is implementrng the PPP in the traditionalmarket servicessector' This was done because of the limitations of PDPasar in technical management andhuman resou-tce availability. taditionai Market in Bandung, in terms of infrasftucture, as manyas 21 of the 38 markets are in decent condition.' Public Private Partnetship in the management of the market aimed to rcirtayzation ofgovernment services thtough improved infrasttucture and market operations traditionallycooperated' This patnership manifested by fixed asset ( the market ) lent to third party bot .tiillegally is its assets PD. Pasar. Thete are nine markets of 38 markets under pD. pasar thatcoopetated with thfud parties. One of which is Cicadas Traditional Market. Cicadas TraditionalMarket is the third latgest market and it potential for development.

PPP in management of Cicadas Traditional Market do with PT. MargaTirtaKencana withthe agteement number 511.2 / 055-HUK/2006. F'orm of this .oop"r"rtn is Build operateTlansfer @or) and Build Transfer opetate (BTo) fot semi-basement floor as traditionalmarkets' This agreement has a term of 20 years of cooperation. In this partnership, BandungCity Govetnmentincludes caprtalamounting to Rp. 72.7 i1.21g.000,00, which consists of, (1) theland Market Cicadas of Rp. 62.465.000.000.-and (2) Building Market Cicadas oi np.10'286'219'000.-. Meanwhile, in the framewotk of the construction market of Cicadas pT.MargaTiltal(encanagives Rp. 1 3 2. 5 B 9.67 4.3 60.

After almost six years of apartnership between the PD. Pasar with pT. MargaTirtal{.encanain management of Cicadas Ttaditional Market, there is indication not benefiIing each othe.Benefit of assets and an increase in the coverage of services for the Government and the proiit1o $e prir'zte companies has yet to be optimized. PD. Pasar gain confidence crisis fr.om tradersin Cicadas Traditional Market. It is also manifested in the r"j".tion of the plan that the plan willbe implemented with the private sector. \X4rile the private sector has not received adequate profitfrom this partnetship because conditions of Cicadas taditional Market were only filted 55%and tends to slack.

Generally, the City Government in this PD. Pasar as the leading sector has a weak bargainingposition in negotiations with private parties because PD. Pasar do.s not yet have a clearconceptabout the partnership as an effort to tevttaltze the uaditional market. pD. pasar is highlydependent on the design offered by private parties. According to PD. pasar itself fiom ninemarkets that management has cooperated with a third party, the one that vote is going wellCicadas Traditional Market including one market that has yet to run optimally in the managementthtough this pattnership. Consequently, when design applied private have not been successfll,partnership in Cicadas Ttaditional Market this both parties have not murually beneficial and hasnot able to rcaltze purpose.

Partnetship of management Cicadas Ttaditional Market requires a mechanism for reachingcoflsensus' That usefirl for realizing the mutually beneficial partnerships and at the same timetraders are receiving the impact of the partnership .urr r.."irr". The impact of partnerships fortraders Cicadas can be assessed positively and negatively, positively aisessed t".uor. market

833

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

tevitahzatton is not only limited to changing the infrastructure but also to managed the marketprofesionally. While negative assessed relate to the uncertainty of the post revitalization such as

the location and the high prices of stalls in the new place.The partnership uses a communicative mechanism as a tool to achieve conselrsus, but irr

practice is merely a formality. For example, a Tipar:jt meeting on October 1, 2007, which isplanncd as a meeting betr.veen PT N{argaTirtal(encana, Bandung City Government, andrePresentatir''es of traders. in its implementation, traders refusing to attend because of a suddeninvitation and rated only a formality. The emergence of the rejection of the old rnarket tradetreflects that the partnersh4) does not have the legitimacy of those affected. Corrsequently, basedon the data in 2010, taditional Markets in BTM built 1830 units by the number of stalls. Onlyabout 1000 units uscd to sell, rvhile the rest are not used because traders sti.ll refuse to move andsutvive in temporary shelter market.

There are indications of injustice in this partnership. Based on the agreement in coopcration,determination of sale price conducted by private parties with the agreement with the tradcr. Infact, the determination of the sale price has not been carded out based on the consensus offtaders. In other words, drete is an imbalance as the traders who use market infrastruchrre andthe pdvate sector in determining the selling price so the private sector is still disadvantaged andtraders have a hard time paying privately. The determination of the sale price by pdvate partiesrvas Rp 9 million per square meter for a kiosk, Rp 7 million per square meter fot a table, and Rp6 square million per meter to the stall. \7hi1e traders only undertakes the pal-ment kiosk for Rp1 million per square meter, desk for Rp 3 million per square meter, and the stall for Rp 2 millionper square meter. As a result, about 570 of the 964 tradets remained rn sheltcrs and temporarymatkets in the area around Santo Yusuf hospital for failing to hire a high enough prices.

Based on thc above background the authors are interested in doing research on public,pdvate partnerships in the arrangement and construction of Cicadas Traditional Market ofBandung Ciry

B. LITERATURE REVIEW

The new approach as a solution to the provision of public services is to involve stakeholders inthe implementation of good governance, namel1. the government, prir.'ate, and socieryThePublic-Private Partnership @ublic-Pdvate partnetship) realizes one of them, this pattnership is

a way to collabotate on these roles. Public Private Partnership is the pdvatc sector provides :significant capital iffrestment in the management of large-scale infrastructure provision (Soesrl .

2000:7 -7).

Public Private Pattnetship's chaLactettzed are the distribution of the invcstmelrr. .-1 i-responsibility and reward between the government and private sector partners. \(/in '-r,.

partneffihip, the advantages possessed by the gor.elnment and the private sector can be combrne:l{oles and responsibilities of the partnership may vary, it could be the role of governmenr n -':-r

that private ot vice versa the roie of the pdvate more that the government in a form of par-rn-r- :-:Flowevet, the role of a strong and effectrve government still needed in policl,making. l-L.government continues to be the parry responsible and accountable to eflsure the qualin-oi : -:,:seLvices.

PPPsprovidebene1itsinthefotmofefficienc1,andeffectir''encssirrt1reprol.isroilpublic services. Florvevet, on the other hand, the role of private sector in fundirrg :::-. =.-::.,::facilities sen'iccs does not remove the responsibility of the Gorrernment to for mu1.::. :: - J "'

that guarantee standard setvice and costs remain affordable fot all users c.,f :h= .=: .-, -'.:.,,

government sets the basic rules for determining the PPP model il accc,,:i-..:r:r-:-- -. :

834

The New phenomena of public Administration ln Asian Countries

of the society- Government control is reduced in some t1,pes of PPP, but in factthe governmentstill plays an important role in ensuring the quality of services provided by the priyate sector.(Paskarina, 2007:5)

Traditionally, public services including infiastructure services in it planned, operated andmaintained b)' th. Gor''ernment. This perception is driven by the .on."pt that economicinfrastrucrure is a public good (public goods). Berween public goods and pri"'ate goods wasrnised items (quasi), which are a mixrure of public goods (quasi pubiic) and a mlrrure of privategoods (quasi ptivate). Mlxed goods are goods that have two characteristics at once thatare theexception and the use of that competition. When a person consumes more mean others willconsume small amounts.

Casanova (2011) describes the essential guide to measure the success of the partnershipinclude: (1) Equiry. A project in Public Prir,'ate Partnership should be fair, which means thosewho use and get benefit from the use of the infiastructur have to pay the cost of both operationsand maintenance in accordance with the use. (2) Effectiveness. Effectiveness refers to financialmatters, oversight of income, quality of service and maintenance to ensure that the infrastructureand public services ate the best provided within a period of partnership. Government as theleading sector in public sector infrastructure development needs to be prJactive to the needs ofthe society. (3) Efficiency' PPP in the provision and maintenance proved to be more efficient.The private sector has a good capability in adapting technology, so rhe efficiency of the servicecan be achier.'ed. And (fl Exportability. Exportability refers to the dsk allocation shift fiomgovernment to the pdvate sector. The government does not have to bear the loss for givingguarantees to the private sector. However, the private sector provided a teasonabl" ftofit,transparent and flexible customized financing mechanisms and the associated risks botne.

C. METHODOLOGY

The method in this research is descriptive research method. Descriptir.e qualitative researchmethod, which is the tesearch, is designed to present an in-depth description und complete, sothat the information submitted appear lir,'e presence and actors - actors hur-" u place to play theirIOIC.

D. ANALYSIS

Cicadas Traditional Matket is one of a sizable marker and potential to be developed, the potentialassociated wrth the traditional market as one of the dlir.'ing force of the economy. Cicadas mar.ketwas built in1977, initially this market located at Cikutra street, Village Cikutra, and DistrictCibeunyinglCdui. Over time, the existence of a market increasingly

""t"nd, to IbrahimAdjieStreet. Cicadas market is the third largest market in the city with ui urru of 19,220 m2.

In 2004 the number of traders selling as many as 964 traders, and the number of placesselling teached 1086 units. The presence of Cicadas Market enlivened by the many street vendorswho sell around the market atea andthe Cicadas. In the same year, the number oi street vendorsin the area reached 365 units Cicadas tent.

Based on interviews with one representative Market Traders Association Cicadas, the marketphysical condition in the same year vile and dirry If a ni^ry day, the market becomes muddy anduncomfortable for shopping. The same thing is desclibed by the head of the Cicadas Marketexisting market conditions were so rickety slums and interfere with the beauty of the city itselfThe physical condition of the market the less wolthy and unable to accoffmodate more number

835

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

of traders this can impede the achievement of the market potential. Therefore, it will cause less

impact to both merchants and consumers that come to Cicadas Market.The market potential of Cicadas as a traditional market may not be eliminated simply becau,.e

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

any time. Iithe Cicadas Market conditions leave granted, it will have an impact on the economic growth ofBandung because it rvill increase the number of unemployment and declining purchasing porrrer

of the middle class down.Cicadas Traditional Market was supposed to be done by the Bandung City Goverlunenl

Bandung Ciq' Government that is responsible for the management of Cicadas Market isDinasPengelolaanPasar that has been changed to Petusahaan Daerah PasarBermartabat (PD.

Pasar) in 2008. Amid the demands of the matket management imptovements, PD. matkets are

experiencing problems of incompetence in managing the technical and human fesourc-availability. This was confirmed by a statement from the head of the Sub fields of asse:

management PD. Pasar, mentioning that the human resources of PD. Pasat are still limiteii-officials of the PD. Markets most still comes ftom civil servants and there aren't people *'hcreally ate experts in the management of the market.

In addition to the limitations of human resources and the paradigm change, in the year pncrto the performance of the parurership in the market this Market Management Agency of Cicadas

has a dilemmatic position. As it is written in the document, Management Matket Evaluation ofBandung Municipality Government is in a position of dilemma. On the one hand, the Crr';

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

the city of Bandung is a potential source of revenue. Howevef, on the othet hand, the Citl'doesnot have funds to rcvitahze the market. Budgets of Provincial STestJava and Bandung Municrpalu.Government never make a special post for sttucturing the market, so that the Governmentaluai 'involves developers to rcvttahze the market. Budget provided by the government onll- mir.-;rehabilitation costs, the ptor.-ision of land, public and social facilities, such as roads, toilet* r:latrines, drainage, health facilities, and others. In the 2005 budget, which was about to achier-:

revenue targets Market Management Department City of Bandung is Rp 4,557,750,[it 'r.'. ,

Target revenue comes from levies matket, otdet bath-laundty facilities-toilet ${Cr-'SuratPemakaianTempatBerjualan (I-etter of Usage Selling Points), and the contribution oi --:-.

private market. Budget expenditules o\r'n Market Management Department in 2005 rer.t:":more than Rp 5 billion (Evaluation of Market Management Bandung, 2007).

To overcome the limitations of a budget in the financing of management the mark;t -Citl' Qot'.tnment was supposed to be looking for a non-conventional funding sourci ;"i ir:alternative of financing management of the market. This lack of funding was one of the ::r"-:'iof Bandung City Government to consider the entry of private patties to invest. Good : i:llasr

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

of funds management and development because of the potential private market 1e 6;;- 6tlimited amount of money the government is enofmous. Sirrrilady, the managemenr -: :r:Cicadas that transfer and operate to private parties.Here is a di.scussion of partnersl::. '- :rmarket based on the theory of Cicadas Casanova:

Equity

After this partnership runs for approximately six years of implementation j oni i : - -: - . 'rs - r

in other words the implementation details of the agreement, several problerrl. h=:::: -lr*.rproblems are related to the implementation of the partnership with the u:.'*:-: - rr(-,I

cooperation agLeement, fot example related to the delay in construction.

836

The New phenomena of public Administration ln Asian Countries

The reason fot the delayed development is that inventory of the number of traders andstreet vendots ate always changing. The delay in this development to be one of the backgroundsdoing addendum to the cooperation agreement between the City Government and pT. MTK.At first agreed development time held for 12 months fiom the issuance of Building permit(IjtnMendfuikanBangunan) , after the amendment of the agreed construction time is 21 monthsfrom the publication of the IMB.

Delal's in consffuction of the fact not to violate the agreement but the effect on the comfortof traders who rvere on tempofary shelters became one of the reasons of the appearance of nolegidmacy from tradets against cooperation of Cicadas market. The mechanism to get thelegitrmacy of any ffaders yet to get results. Consequently, PT. MTK harmed and the Cicadas arestill relatively quiet. During the six years of new business space is filled totaled 55oh, otapproximately 1006 business space occupied from 1830 business space.

Related with the mechanism to genefate consefrsus, one of the mechanisms used in thePartnership of Deveioping and Structuring Cicadas Market to gain legitimacy from the trader iscommunicative mechanism. However, the mechanism of communicative also has not been ableto generate legitimacy fiom the affected parties.

Failure of communicative mechanism in Cicadas Market happens because previously therehave been indications of distrust from ttaders against the Government. pikiran Rakyai NervsPaper, June 30, 2005 mentions the P3CB statement complained about the attitude of thedevelopers, PT. MTK, which is considered to have u.t.d too moch with making TppS (SheltersWhile Tladers) in Cikutra Stteet, projective measurements and initial impleJentation of theE'nvironmental Impact Analysis. Traders also claimed to be surprised by thJpresence of circularletter in April 2005 from Bandung City Government signed by the Head Office of the market(DinasPengelolaanPasar). The circular said, the ftaders must submit a letter use place Selling(SuratPemakaianTempatBeriualan) which still applies to the head of the market, because of thetevitaltzatton will be implemented in mid-2005. This strengthens rhe government,s distrust ofttaders, as there are indications of weakness in the concerll of goo'"rJrnent to the interests ofthe ftaders in the Cicadas.

One representative trader e3CB) that still survives in the temporary shelters tells about hGattitude toward the government that local government reneged on promises to the ex-tradersCicadas' At fust municipal government ptomised 700 merchant are priority to occupy the newbuildings of Cicadas and to accotdance the selling price the commercial space with theircapabiJities, but now the city government hands off. Even the promised .omp-.nrntion to thetrader r.vas not cleal.

Communicatir''e mechanisms will be bogged dorvn if the acceptance of a person's empiricalstatement is followed by a doubting petson's sincerity. Resulted in an imbalun.. of the trader asthe parry that uses the infrastructute of the market and private parties especially in the fixing ofthe selling price so that the private companies are s :ll disadvantag.d and rraders had troublepaying.

The impact of partnerships for traders Cicadas can be assessed positively and negatively,positiveiy assessed because market rcvitaltzaion is not only limited to chunging the infrastructurebut also to managed the market professionally. While negative assessed relate to the uncertaintyof the post revitalization such as the location and the high prices of stalls in the new place.

Effotts to overcome the negative impact of the traders actually been written in the pointsin the agreement of cooperation between the Bandung municipal government and the pT lv{TK.Clause states that Selling Price of Bussiness space fot trud.rr-r"t by both parties by agreementwith the trader and known by the fust parry in this case the Market Munuig.m"nt DepartmentCity of Bandung. (Document Collaboration Agreement, 2006). Other items that The marketing

837

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

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

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

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

the first party and second partf @ocuments Cooperation Agreement, 2006)

Both point agreemeflt was an effort to minimize the negative impact of the mefchant, so

that it c fi ^ttaLtn

legitimacy from the merchant. A conflict of interest between the two sides

including the affected group is reasonableness. Flowel'et, the most important is the response ofthe existence of the conflict. Therefore, it can achieve the legitimacy, which resulted in consensus

and in the end the mission of the partnership, ate achieved with the acceptance of the parties

affected by the partnetshrp.

Effectiveness

The purpose of the implementation Public Private Partnership in the sffucfuring and

development Cicadas Market the revitalization by improving market building and improvement

services to the traders and buyers. These goals implied a goal fot the Government. For the

private market to revitalize the purpose implied cicadas ate making a profrt through the sale ofspace cofirmerce and management of the market.

Based on rhe results of interviews with the head of product development and Market

Investment of PD. Pasarcriteria of good set'"'ices market management is stakeholders wiii gain

an advantage, the buyer will acquire ease and comfort in getting the clean and healthyitem, and

to obtain security guafantees. Traders g ln a better inftastructute sefl'ices, find comfort and

security, an increasing numbet of buyers and increased income.

Judging from these criteria, improved market management services in partnership withMarket Cicadas noryet arc realized. First to stakeholders in this PD. Markets and PT. NfTK, as

previously described benefits thtough private sectof contribution has been delayed. PT. MTK isstill disadvantaged as the market relatively quiet. Second to buyers, based on obsetvations ofbuyers cror.vded at 03.00 a.m. to 06.00, however the buyers just crowded in the parking Cicadas

N{arket are not in the market. Third to ffaders, services infiastructure is indeed better so more

leisure and securiq'is assured, but an increasing number of buyets as .'vell as increased income

has yet to be achieved in a significant wa1'. Flere is a table of estimated tevenue traders accordinl

to the tlpe of business space:

Table 1.

Estimated average income in the Market Tradet Cicadas / day

Kiosk 2x3m 75.000-120.000

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

Kiosk 2x2m 55.000 95.000

NIid Kiosk,5x1,5m 50.000-85.000

Table 1.5x1m 30.000-50.000

(Soutcc:'l'hc rcseatchcr, 2012 based on field interviews)

Based on the observations, the merchants who were at the center of the market te flJ i, -'':

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

market. Slack buyers caused also by the presence of traders in so anr-bur-er conc-::---::a- -

temporary shelter GPPS) are divided. Pro{it for the private sector iras not r-et been:::::.''. i -'

told by the N{anager Director of PT. MTK that market conditions *'ere rel:dr-ei-,' :':--r l:,,concentration of traders rn the market is sti1l divided befween Cicadas and T?l: -:-.:'-:

838

The New phenomena of public Administration ln Asian Countries

affecting the ptofit PT. MTK. Currently 55oh of new business space is filled. pT. MTK alwayscoordinates with PD. Market in order to get a solution. However, until now there has been noaction, only from the PT. MTK willingness to adjust to the traders.

Here is the calculation of income estimation calculations PT. MTK based commercial spacethat has been filled in Market Cicadas:

Table2.Estimated Revenue PT. MTK on Market cicadas February 200g-Febru ary 20L2

'SrPffi, ,i, ,(*"y ';,t,

C;"dAn, fl

#,;;J

Kiosk 2x3m 680 198 35.000 9.979.200.000Kiosk 2x2,5m 500 221 30.000 9.547.000.000Kiosk 2x2m 300 265 25.000 9.540.000.000N{id Kiosk 1,5x1,5m 200 180 20.000 5.184.000.000Table1,5x1m 150 142 10.000 2.044.000.000Sum 1 830 1006 36.294.200.000

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

For the private sector, in partnership profits means income from operations, in acldition tobenefits, the experience in partnership with the government. Partnership seen as a r.Llbleproduction economically and technically. Then the private sector must generate revenues tocover expenses plus a reasonable profit.

In otder to benefit all parties, this partnership government should have the standard ofoperation of a partnership. The existences of standards in partnership are used to ensure thatthe infrastructure and public services are provided is the Lest in one period partnership. Inaddition to technical and service standards can be a means of communication and surveillance,ptivate parties wiil be mote confident in work due to knorv what must be achieved in each job.

Based on the observation, the lack of technical standards and service standards of theGovetnment to its partnership in the market cicadas cause lack of technical guidance forimplementation and service. Head of Product l)evelopment and Investment pD. pasartell theabsence of technical standards and setvice standards for markets cooperation. Technicalstandards and service standards derived from local regulation should ,hup. th. form of decision-making dilector of PD. Pasar. PD. Pasar only has a standard of service thar is managed by thePD. Pasar itself. As for the market cooperation, they just keep an eye on how the private marketto manage the market.

The lack of technical standards 1ed to the Bandung Ciry Government in this case pD.Markets as a leading sector has a weak bargaining position in negotiations with pdvare parties,because it only depends on the design offered by prirrut" parties. Depending on the designconditions are offered private parties exacerbated when plivate parties did ,roi.o*e from theretail business. Like the PT. MTK as inr.'estors elect of the partnership arrangement andconstruction markets Cicadas are not from the retail busrness, but comes from real estatebusiness. As told by Traditional Market Manager PT. MTK that PT. MTK is a company engagedin the Iield of construction with a core business rn the field of residential construction. Thecooperation agreement has been arranged on the implementatron of an increase in the abilityof both parties to conduct the management of the market.The cooperation clause states thatEstablish a Standatd Opetating Procedure (SOP) Management of semi-basement floor of atraditional matket with teference to the Standard Operatrng Procedure (SOP), which is determinedby the Second Party (PT MTI9, among others, attend trairung programs, seminars, laining

839

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

telated to the management of matket / buildrrg @ocuments Cooperation, 2006). In fact afterrunning six-;rs21 partnership has never held training program, seminar or training related to themanagement of market / building both conducred by PT. N{TK and government.

Core business which is not in accordance with the needs of and there are notsize programsto increase the abiJiq' of managing the market certainly will affect the ability of the partner inthe der.'eloping markets. Nlarket design making it felt quite complicared aspect of the fires,including aspects of the 1a;'e111 of the booth, the comfort aspects of consumer, aspects ofhlgiene, and so on are therefore required special skills from the private companies that willestablish a partnership with the Government of (?ermatasari,2011).

Efficiency

Traditional markets in Bandung last few years started to decline. In terms of infrastructureas many as 21 of the 38 traditional markets in Bandung City in decent condition.PD. Pasar as

the responsible party faced with human resources and capabilities in PD. Pasar. In addition, basedon the evaluation of the management of document market, West Java province and Bandungcity nevet made a special post for structuring the market. The budget provided by the Governrnentare only mild rehabilitation costs, the provision of land, public and social facilities, such as roads,means a small room or a sanrtary factJtq, drainage, health facilities, and others. Therefore,Bandung City Government involves developers to do revitalization the market in hopes of costsand human resources required more efficient, as well as the strucfudng and development ofCicadas Market.

Efficiency can be vierved flom the perspective of service providets in this PD. Pasar andPT I\ITK and service user perspective in this trader. For government partnership sfteamlinesthe process of rcvttaitzation of uaditional markets because the City Government does not needto budget resources, only assets transferred and managed to the private sector to organize andbuild. Besides saving budget tesources, Bandung City Government can reduce the risk but stillbe able to improve service ler.els and increase fevenue. As for the prir,ate sector, efficiencv canbe viewed in terms of input consisung of capitai der.'elopment and licensing.

In terms of efficiency of use of resoutces was a constraint is related to the constructionpermit as told by the Manager Directot of PT. MTK that there are rules to the contrart'.Forexample, on the one hand, there are the inr,'estment regulations but on the other hand, there are

rules about the deliverl' of public facilities and special facilities such as this market to rh-government. The process of petmitting also takes a long time. In the meantime, the Investme:::Board and the Integrated Permit Bandung (BadanPenanaman Modal danljinTerpadu Kc,::Bandung) Bandung argues that permit capital inr.esting in Bandung is not something that su:::,alone, but are part of one and the othet's permission. This is the one that directly or indut: -alfect the activiq-of a business from the private sector.

This is contrary to the agreement where the Government should provide a smooth pernurui:associated with the implementation of the cooperation. The Government is responsible r,,:creating a climate that is conducive to stimulating the role of the private sectof in the pro\ Lr: -:of setvices.

In this partnership PD. Markets gain efficiency in terms of human resources, it is assr,cur.:with a lack of human resources owned by PD. Market, as told by Head of manageme::: P^Pasar, Pd. Pasar is still limited, yet there are people who are really expert in the flizn?pe:r:..- .

r

the market. Thetefore, human fesource capabilities of the private sector became or-ir ,: --:,.

important factots for the pdvate partner. As it is written in the law of Bandung \o. r-,: - , * : :the implementation of the Coopetauon tender pfocess or the selection of inr-estors sir ,._ j :r, ,

840

,i

dII

ti

l

I

The New Phenomena of public Administration ln Asian Counfries

the ability to suit the needs because the market is an asset will remain the property of BandungCity Government.

On this partnership, PT, MTK has background a service of real estate is not fiom the retailbusiness. As a result, ptoblems arise in the market one related case Cicadas socializing with thetrader. Fot example, in case of tefusal of traders, PT. MTK less able to communicate tleirintention in building the market, so that there was a problem. In the case of for example,tripartite after running six yeats PT. MTK has lowered the selling price of the space effort buttradets'refusal up to now stil high. Now, commercial space that contains only about 55%. Thiscan lead to a partnership that is not mutually beneficial. Thetefore, that required the cotrectassessment completely scrupulous in choosing paftners of cooperation by PD market. Thatpartnership can be of munral benefit to both parties.

In addition efficiency is due to the existence of the technology can be utilizsd to he$manage market electronically. The management of information technology-based markets canleahze automation services in managing the market. To facilitate moaitoring activities morequickly and accurately (Prasetyo, 2011).

In this partnetship, there is no significant use of different technologies. Changing thetraditional matket building into a modetn, market-adaptingtechnology, which is, appted forexample PT. MTK escalator usage (a ladder rurining) in the market building, with automaticparking. Moteover, there is no adapting in the management of technology markets of Cicadas.Then the theory of the private sector has better capability in adapting technology, so thatefficiency can be achieved in the service has yet to be realtzed in this partnetship.

Exportability

The process of structuring and construction Cicadas market begin since 2006. Efforts tofind investors who are willing and able to be done openly. Bandung City Government with theapproval of Parliament decides PT. MTK as a company that is viable in the structuring andexecution of market development Cicadas. Partnership as a joint effot carried out with the aimto revitalize Market Cicadas and ptovide better service to both traders and buyers.

One qf the important contents of the agreement regarding the rights and obligations thatwill pottray the allocation of risk. Based on the allocation of risk is known that the goverrimenttogether with the private do placement traders on each floor of the building after construction.Nevertheless, in reality it has not happened as told by taditional Market Manager PT. MTK thatPT. MTK feel the government gets out of hand, as in the case of refusal of traders. PT. MTKtequires cooperation to move the traders, as traders remained under the auspices of PD. M"yb"if the government firm, traders want to hear. PT. MTK and PD. Pasarcontinue to performcoordination, but no real action. PT. MTK did not want chaos relocation, as often happens,however PT. MTK just want a real acion fiom the govefnment.

In a partnership, the roles and responsibiJities may vary indeed, the government's role wasmore or vice vetsa. In partnetship, Cicadas Market is the private sector to get more roles.Howevet, the role of a strong and effective government still needed in policymaking. Thegovetnment continues to be the party respolrsible and accountable to ensure the quality of publicsetvices.

For example in the case of o1d merchant's refusal to feturn to the market of Cicadas. Despitethe rejection and the risk of void space effort is the risk of PT. MTK however takes the role ofPD. matkets as ovetshadowing the party trader. The vacuum commercial space is one of therisks with a bigimpact on the marketin this paftnership. Therefore, itis necessary the government'srole in this partnership with the form of regulation or increased partnerships supporting facilities.

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

Both parties must be mutually beneficial and obtain guarantees comparable to w-hat is gir-en. Sothat both parties are able ro achieve their goals ([.{arrawipran1,2012).

One of the Govetnment's authorities in this partnership is to conduct surveillance andevaluation in the course of the partnership. The mechanism of supervision and evaluation areagteed through drect superr,'ision and written through periodic reports. The content of acooperation agreement cleadl' gives the mandate to the Government to conduct surveillance.According to Paskarina Q007) Government control, it wanes in partnership, but in fact, theGovernment stiil plays an important role in ensuring the quality of service provided by privateparties. Therefore, responsibility and accountability remain in the hands of the Governmenr.

In fact up to now has not been optimal supervision. As told by the Division of InvestmentCooperation and oversight mechanisms consisting of dirsgl supervision and or,,ersight throughwriften reports. Until recendy on\' done indirect supervision over the market's head, a wriftenreport of PT. MTK has never existed. Accordingly, taditional Market Manager PT. CSE saidthat the position of PT. MTK and PD. A,{arkets are parallel, so there is no obligation for the pT.MTK to report the PT. MTK did the PD. Market. City Government itself has handed over allprocesses on PT. MTK. For the direct supetvision of the market, we have head of market ftomPDPasat.

Supervision is less than optimal in partnership Cicadas market this directly affects thehandling of the issues actually faced by the pdvate sector as it has been told before. As a result.the two sides were not able to provide solutions to all the problems that adse, particularly relatedto the movement of traders of temporary shelter GPPS).

Supervision also needs to be done in terms of the frnancial of private sector in themanagement of markets. In partnership in the market of Cicadas, financial problems became a

problem, as it has been tecounted earlier losses that continually make frnancial PT. tdTKdeteriorated. If this situation happens repeatedly can cause the PT. A'ITK cafinot continue thispartnership in accordance with dre partnership. Therefore, the frnancialsupervision is consideredimportant in the implementation of this partnership.

The lack of financial supen ision can be a risk for the government itself. If PD. Pasar drinot know the financial conditron of PT. MTK, then wiren there are problems of PD. Pasar c:::participate to find solutions so that the partnetship can continue to run according to the nmePT. MTK itself, rvorsening the financial impact on the demand for the extension of the conrr.:period. As told b)'th. Manager Dilector of PT. A,{TK that the losses incurred due to tire li:-,.number of traders and business space paid in installments according to abiJity merchants. C

the othet hand the costs of building operational not stop. This could be a problem, PT. \{ - ialso had asked for a contract extension, so that the material can be replaced issued. T:-partnership has been running 6 yeats but PT. MTK is still losing money. If this corrtri--'-::happen there can be, tension between the parties that partner because most likely the gor-e r:r:,::will teject the application because it did not conform ro the agreemenr.

Traditional market assets held by the gor.'ernment can be classified into a mrx of p-.f-goods (quasi public), meaning items will not be depleted w-hen consumed by 2 consunc:. r -consumers who do not pay can s ;ll be sepatated from the paying customers. Consur::.:s ,

traditional markets are traders r.vho use the asset.

Public Private Partnership conducted Cicadas market in terms of marke r :::-,':::managementcan not satisfl' tradet.'fhis is because although the infrastrucrure urar,:..:::-::_:achieved, but traders still refuse occupy business space. I{ejectron arises becrr:s- :--.:- ,. :agreementtheselLingpriceandtheabiJiryof thePT.MTK.Asaresult.apronr::.--: -:.-.,'sector is not yet optimal. I-Iere is an over-u'iew of the results of tllrs srud:-:

842

. Lack of Technical

Standards and

Services

. Limited privatesector is not fromretail

Revenues

increased

Need togovernmentinterference in therules andregulationsregarding theimplementation ofthe partnership andthe partners inaccordance with the

Partnership not yet

mutually beneficial

d

The New phenomena of public Adminishation ln Asian Countries

RESEARCH SCHEME

. Failure

MechanismsCommunicativewith merchants

. Lack ofLegitimacy oftraders

I

Business Space in

Market Cicadas filled

only 55%

oPrivate and trader

have low-income

o

Service to the public /consumers reached

Commercial space

fully

Mutually beneficial

partnership

*

d

Need trader

involvement in the

business market

management and

government

interference in the

regulation about

merchants

Service to the public /consumers within the

scope of his efforts

has not materialized.

(Sourcc: -l-he rcsearchcq 2012)

q

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

A partnetship is defined as a relationship (a partnership) as a parrfler. This parrnership isestablished as a ioint intention to achieve a set goal. However, perhaps not the same pufpose,but each party believes that through this partnership goal will be achieved. The basic principleof the partnership is a "win and win" and not "win and loss". From the sense it can be said thatin any partnership no one has felt would be harmed while others wili benefit. So even with thepartnership in the structuring and development of cicadas this market, Bandung City Goverrulentis the party that gar''e the task to the PT. MTK. The parties in the implementation of thiscooperation joint with the objective of structuling and the development of malket cicadas. Thepurpose is not the same, local government to provide services to the community and PT. MTKto generate profit.

Partnership in the structuring and development of Cicadas Market within a period of slxYears as seen from infrastructure improvements Bandung City more benefited than PT. L{TK.While for PT. MTK has not been beneficial because as of the momenr of this research in therevenue generated from the sale of the space effort has not been able to cover the total cost.

As a public policy, Public Private Partnership has a purpose for the public welfare. publicprivate partnership is the tradets and the private. In terms of service to taders throughpartnetship, PD. Pasar was not able to make it happen optimally. The rejection of the old markettrader Cicadas is one indication of PD. Pasar has not been able to bring services to the communityin accordance with the scope of its business.

Provision of services in the sector market through the Public Private Partnership is analternative solution for infiastructure market that has not been handled by the government.Private capital and its resoufces will be able to cover the Limitations of government, withouttaking over the responsibility of the government. To ensure the interests of the parties invoh.,edin the partnerships and the public interest (public) protected from detrimental ro one party andthe other partyt favor, the task of the Government through its policies and authorities that areable to be the distance between the business entities (prir.'ate), consumers and the Government'sown political authority.

E. CONCLUSIONS AND SUGGESTIONS

Conclusions

Public Pdvate Partnership betr.veen the Bandung City Government and PT MargaTirtal{enc-an.:in the Structuring and development cicadas Markets are not mufuall;, beneficial. The benel:.of partnerships for the Bandung city, which had been achieved, as used asset PD. Pasar::-:infrastructure improvements, but in terms of serl,ice to traders cannot be said to be op----This is due to not har.'ing an agreement of the parties affected by this partnership, such as rr.'.:On the other hand profit is still not reachedfor the private parties.

The results showed that the partnership was not mutually beneficial because of prob-;::l,in the implementation of the partnership itselt for example, delays in development. Commu:-;:, ,

mechanisms implemented to gain legitimacy from the trader were not getting results b.:r-,:. -

has been the emergence of disffust fiom trader against the Government. Thc ab."-:-,-.technical standard and the standard service fiom Government exacerbated uith dr. -.-:

PT MTK, rvhich is not derived from the tetail business. Implementadon of dre sul.:-,r:: :- ; !not in accordance with the agreed mechanism. During the partnership rur. .- -:supervision in the form of a written report has never been made br- PT. \lT\ ::- : - -,has had never acted on the matter.

The New phenomena of public Administration ln Asian Countries

Recommendations

1- Partnership model that can be used for the management of the market is better not onlyinvolving private sector but also empower the traders in tladitional markets, such as thepartnership model of Public communiq' (Social) prjvate partnership.

2. In this partnership, the government intervention is required rn ordet PT. MTK , ill eafn areasonable profit and ttadets would follow voluntarily or forcecl. For example, by makingrules that restrict merchants in temporary shelters GPPS). Government as th; r.golutor.uiparticipate and create conditions conducir.,e to the implementation of the partnership.

3. In the selection of partners to consider the record of accomplishment of private business.Furthermore,PT. MTK has a core bussines real-estate construction would be better tostop the implementation of the construction and subsequent management system givento the party who has the better business skills.

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