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One Hour Service
PT. Taspen (Persero)
Indonesia

The Problem

PT TASPEN (PERSERO) is a State Owned Enterprise (SOE) and established by the Government of Republic of Indonesia on 17 April 1963 through the Government Regulation No. 15/1963. Its legal basis has been amended several times, lastly through Government Regulation No. 26/1981.

The establishment of PT TASPEN (PERSERO) is mainly aimed to implement the Social Security Scheme for government employees, covering the Pension Fund and Old Age Insurance Schemes. PT TASPEN (PERSERO) has been assigned by the government to run pension payment for pensioner of government employees since 1987. Starting from three provinces, its operation has been gradually widened to all over Indonesia in 1990.

Implementation of social security scheme is in order to improve the participants’ welfare. These schemes have significant role to give a security, especially in the form of income stability, for the government employees entering their retirement period. Thereby, they are expected to work optimally in order to give excellent public service while they are in service period.

At the beginning of TASPEN incorporation in 1963, the service of participant claim took one month because at that time claim service was still centered in Jakarta so transportations, communication, and accommodation became the main obstacles. Moreover there were also many participants who proposed their claims with incomplete requirements, which caused delayed claim (so it caused the claims to be delayed), and then it was quickened to be one week service.

To foster the quality of public service improvement, President of Indonesia established President Instruction No. 1 of 1995 regarding Improvement and Development of Government Official Service Quality for Public. As one of public service institution, PT TASPEN willing to support the instruction by applying One Hour Service system since 1992 as an initiative in improving service quality. Thus, that made TASPEN the first public service institution in Indonesia particularly on insurance industry which applied “One Hour Service.”

To inspire public institutions, the government held a competition for public service institutions to give the excellent service to the public. PT TASPEN which was represented by Semarang Main Branch Office awarded Abdi Satya Bhakti Award by the government which was inaugurated by President of Indonesia in 1997.

This initiative could be a solution as this could quicken the claim process, give time assurance, and service comfort ability for participants. Regarding to this matter, the social group influenced were: TASPEN participants (government employees and participant of State Owned Enterprises) and related departments/institutions where participants worked (participated in document completeness as data provider).

Solution and Key Benefits

 What is the initiative about? (the solution)
The implementation of One hour service particularly benefiting TASPEN stakeholders especially the participants, prominently government employees as they should not have to waste more time waiting to finish their claims. For TASPEN itself, it is also beneficial as this system could increase time efficiency, quicken service process and create good corporate image. With this system, participants gain more trust and satisfaction from TASPEN (shown by the result of participant satisfaction survey).

The superiority of TASPEN One Hour Service achieved recognition from the Ministry of State for Administrative Reforms of the Republic of Indonesia by winning the Abdi Satya Bhakti Award in 1997. Beside that, Semarang Main Branch Office and Jember Branch Office also won Citra Pelayanan Prima (Service Excellent Award) in 2001 and 2002. In 2004, four TASPEN branch offices, those were Jember, Kendari, Kupang and Padang Branch Offices also inaugurated the Citra Pelayanan Prima (Service Excellent Award).

The measurement of One Hour Service performance quantitatively could be seen from monthly report of claim completion time from all Main Branch Offices/ Branch Offices which ought to be sent to Head Office on the beginning of next month, which is also used as one of PKUK (Work Unit Performance Evaluation) indicator. The requirement of this report is based on General Manager of Service Division Letter No: SRT-1847/D/102002 dated October 23, 2002 regarding Claim Performance Report which stated that all Main/Branch offices should reach at least 80 % “One Hour Service” for direct claim each month. If the target were not reached, the President Director would send them a warning letter.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The initiative of One hour service is officially regulated through the Board of Directors Decree No. 17/1999 dated 29 April 1999 regarding Service Procedures for TASPEN’s participants. The implementation of such system is particularly used by TASPEN branch offices as front liners, and supported by work units in Head Office. External parties that participated in the initiative implementation were participant institutions, the National Civil Service Agency (BKN), and the participants themselves (in document completeness).

TASPEN stakeholders are government employees, local governments, Parliament (House of Representatives), State/Local Owned Enterprises which become TASPEN participants, and shareholders (Ministry of State Owned Company and Ministry of Finance).

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
In implementing the initiative, Bogor Branch Office was chosen as the pilot project model, because it had relatively large amount of participants. Besides, the location was relatively close to TASPEN Head Office in Jakarta therefore it would be easier to monitor and to fulfill the need of infrastructures. Following the successful result of the initial pilot project in Bogor Branch Office, the Board of Directors decided to expand the initiative pilot project to other 7 Main Branch Offices as well as 32 Branch Offices all over Indonesia, which also resulted successfully. As the result of the initial pilot project, Bogor Branch Office has been awarded certificate of ISO 9002 for Service Quality Management dated May 5, 1998.

Considering the successful result, the Board of Directors established Decree of Directors No: 17/DIR/1999 dated April 29, 1999 regarding Service procedure for TASPEN Participants and established Team of Assistance for Service Procedures Implementation with Decree of Directors No : 18/DIR/1999 dated April 29, 1999.

Besides ISO, TASPEN also participate in Indonesia Quality Award (IQA), an award for State Owned Enterprises (SOE), based on Malcolm Baldrige Criteria for National Quality Award. For the first time of its participation in 2006, TASPEN achieved the score of 354 with Early Result predicate, and in 2007 TASPEN achieved the score of 402 with Early Improvement predicate.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
Since 1997, PT TASPEN (PERSERO) has designed One Hour Service Program for direct claim and chose Bogor branch office as the pilot project to test the implementation of this system. As the result, on May 5th Bogor branch office achieved ISO 9002 certificate from Societe Generale de Surveillance (SGS).

Following the achievement of this initial pilot project, the Board of Directors decided to extend One Hour Service program to 3 (three) main branch offices and 7 branch offices located in Java which also ran smoothly and satisfying.

Finally One Hour Service became standard operating procedure (SOP) to deliver service for TASPEN participants by the implementation of Directors Decree No: SK-17/DIR/1999 dated April 29, 1999 regarding Service Procedures for TASPEN Participants. In order to help branch offices throughout Indonesia implementing the new system, the Board of Directors issued another decree, that was Directors Decree Number: SK-18/DIR/1999 dated April 29 1999 regarding Team of Assistance for Service Procedure Implementation for TASPEN Participants. In order to control the implementation, Division of Service issued Letter No: SRT-1847/D/2002 dated October 23, 2002 regarding Claim Performance Report. As the company develops, to create operational guidance for all TASPEN branch offices which also contains Service Procedure for TASPEN Participants, the Board of Directors issued decree number: SK-01/DIR/2004 regarding Company Guidance for The Branch Offices.

Since implemented in all Main Branch Offices/Branch Offices in 1999, by the Board of Directors the initiative achievement was targeted to achieve 60% from the total of monthly claim proposal. Along with its development, the target was raised to 80%. This target was quite successful (seen from the company statistic data of 1999-2004). While in 2005 and 2006 target was not achieved because there was an operational system transition from Distributed Database System (non online) into Integrated Database System (online).

During the transition process, response time was relatively slow therefore the claim completion process took more time. After the transition time, it was easier for TASPEN to serve participants so that this system became one of vital supporting factors in the initiative implementation. As the current year, the performance of One Hour Service until November 2007 has achieved the average of 149.793 claims from the total 181.502 claims or approximately 83% for the Pension Program, and the average of 91.189 claims from the total 112.174 claims or approximately 81% for the Old Age Insurance Scheme, which means both of them are above the target (80%).

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
The main obstacle encountered were not only about the lack of participant discipline on the document completeness (whereas persuade in Government Regulation No. 8 of 1989 regarding Government Employees Dismissal and Pension, and Pension Extension for Widow / Widower), but also about the lack of discipline on sending the enclosure document punctually from BKN (The National Civil Service Agency) as data provider.

If participant’s data were incomplete, the service could not be given in exactly one hour and sometimes it was even delayed until the next day. In order to clarify as well as to complete all the requirements needed.

One way to overcome them was by giving more complete information to participants through intensive socialization to participant institution and participant itself, for instance whenever the Government recruiting a new Civil Servant and for those who would entering Retirement Period, TASPEN would made a socialization to explain the rights and obligation as a Civil Servant.

The other way to overcome the obstacle was by implementing Pro Active Service. Pro Active Service was aimed to make services easier for the participants in order to make sure that every one gets their rights when at the date they entering the retirement period. To make it possible, one month before the Civil Servant entering the Retirement Period, TASPEN made a cooperation with the National Civil Service Agency (BKN) and the Participants Institution in order to collect and to verify all the Participant’s data needed to process the claim.

The front liners were also given refreshment training about how to deliver the most complete information to participant. In addition, TASPEN published the manual book of service ethics as a guideline for TASPEN personnel in giving high quality service to participant based on TASPEN vision which is “To create/creating TASPEN as World Class Pension Fund & Old Age Insurance Provider with clean, sound and correct management based on the 5 (Five) Right Principles, i.e: The Right Person, Right Time, Right Quantity, Right Place and Right Administration.”

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
First time this initiative was implemented, TASPEN spent large amount of expenses. Since all branch offices must share/have the same information and infrastructure, there must be the same information and infrastructure for all branch offices, TASPEN held intensive socialization and training for its human resources.
Expense spent/ sources used are:

- Financial cost :
all expenses occurred by establishing this initiative (infrastructure, consultant for designing room layout, and accommodation expense needed by the assistance team) was included in company budget.

- Human Resources cost :
expense for service performance training to create more skillful human resources by consultant was included in company budget.

- Technical cost :
expense for using computerized system in claim process service, including the transition from the first system (Distributed Database System/non online) to the latest system (Integrated Database System/online) was included to company budget.

Those sources above were mobilized by allocating them in RKAP (Annual Working & Budget Planning) and breakdown/deploying in every Division/branch offices Action Plan.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The initiative is sustainable because it is still implemented in all TASPEN Branch Offices all over Indonesia with data completeness as the absolute requirement to make this initiative run well for years. Nowadays it still becomes a distinctive factor and trademark for TASPEN from other insurance companies in insurance industry.

The initiative is also transferable because there are other institutions such as PT ASABRI (Insurance Company for Indonesian Armed Forces) and KPPN (State Treasury Service Institution) which are inspired to implement this initiative. Even PT ASABRI paid a visit in order to make a benchmark since it is relatively similar with TASPEN in business process, particularly the delivery service to its participants.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
One of the elements that make this initiative succeed is the massive socialization agenda to participant’s institutions (which ended in the participants data completeness just in time when they want to propose a claim). Besides, good cooperation with the third parties which are closely tied with claim requirements such as National Civil Service Agency (BKN) and State Treasury Service Institution (KPPN) also contributes to the success of the initiative.

Other elements are the quality of human resources, proper technology, and standard operating procedure.

As one of the companies in insurance industry, delivering high quality service is a must. It is the main role of Customer Service Officer (CSO) as “the company’s image representative” who directly in touch with participants. Therefore TASPEN put the education of it’s CSO in top priority, through TASPEN MEANS SERVICE program. It is always held periodically to maintain high quality service and to refresh CSO performance so that each one of them could give excellent service to participants as the commitment of PT TASPEN.

Contact Information

Institution Name:   PT. Taspen (Persero)
Institution Type:   Government Agency  
Contact Person:   ACHMAD SUBIANTO
Title:   PRESIDENT DIRECTOR  
Telephone/ Fax:   +62214244386
Institution's / Project's Website:   +6242878747
E-mail:   achmadsubianto@taspen.com  
Address:   Jl. LETJEN. SUPRAPTO, CEMPAKA PUTIH
Postal Code:   10520
City:   JAKARTA
State/Province:   JAKARTA
Country:   Indonesia

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