Revolution on Fiduciary Registration Service
Directorate General of Legal Administrative Affairs

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
1. Failure to Achieve the “One Day Service” With the enactment of the Decree of Minister of Finance obliging the vehicle financing companies to register the fiduciary assurance for the service, the submission for registration of fiduciary assurance at Fiduciary Registration Office (KPF) experienced a surge in the increase. Article 14 of Act No. 42 Year 1999 on Fiduciary mentions that the registration process can be completed fiduciary insurance on the same date since the notary filed registration at Fiduciary Registration Office. From October 2012 to September 2014, an application for registration of fiduciary insurance continue to rise to within a day of more than 20 thousand registrations per day whereas previously the number was only around 1500-3000. This indicates an increase in the amount of fiduciary guarantee enrollment rose nearly 15 times or by 666%. The increase should have been balanced with the human resources, tools, as well as the service spots and storage room. 2. The Limitation on The Number of Registrations The increasing number of people who enroll in the fiduciary has the potential to trigger a delay in the delivery of fiduciary insurance certificate as the number of incoming requests per day registration at KPF is not comparable with the existing human resources at KPF. Average employee who is on KPF is 6-10 people, where the average ability of each person to complete the application for only 75 files. 3. The High Cost Process The manual registration fee does not match the number stated in the rules. For example, for the value of the guarantee up to IDR 50 million cost only IDR 25,000, while in fact, the number reaches the amount of IDR 300,000. One of the reasons is the access that must be taken by a notary and financing institutions so that the costs are quite high because the registration is only performed in 33 KPF is located in the Capital of the Province, while the geographic regions of Indonesia which are islands where the distance between regencies/cities and the offices are separated by the sea. 4. The Indications of Illegal Levies Fiduciary registration process payments (tax revenues) are made directly to the employees of the Regional Office (Recipient Treasurer), raises the potential for extortion committed by unscrupulous employees to the notary with the lure of the registration process to get special priority so that the process can be faster. On the basis of concerns about potential setbacks fiduciary guarantee enrollment services and issues of KKN (corruption, collusion and nepotism), which are difficult to control, an initiative of fiduciary insurance online registration system was founded, that will provide more profit for notaries, financing institutions and society.

B. Strategic Approach

 2. What was the solution?
The idea of the online system was initiated by the Director General of General Legal Administration (DIRJEN AHU), the Secretary General, the Director of Civil Law Affairs, and advice from the Indonesian Financial Services Association, Notaries and the Financial Services Authority. The results of the online system are as follow: 1. More Quickly and More Accurately 24-hour Fiduciary Registration Service The fiduciary security certificate can be printed within 7 (seven) minutes, whereas before it imposed a fiduciary online system that takes weeks even up to 3 months. 2. No Limitations on The Number of Registration The service is opened for 24 hours without any limitation on the numbers of registration submitted. 3. The Easiness of the registration Process The online and simple process of the registration will eliminate of the burdening physical files to support the registration submission. 4. Lesser Cost of Registration No physical boundaries between the applicants and the registration office means the lesser fee paid by the applicants for the registration process. 5. No Illegal Levies The payment method of the online registration process minimizes the chances of illegal levies appearance. The commitment of Directorate General of General Legal Administration to set the offices as Free Corruption Zones also encourage such efforts towards the improvement.

 3. How did the initiative solve the problem and improve people’s lives?
On-line registration program is a response to the way the previous registration (manual) which takes a very long time. Revolutionary changes to the registration process with the fiduciary security-based Information Technology (online) makes it easy for the applicants, including: 1. Notaries can perform fiduciary security registration online, anywhere and anytime through the website of the Directorate General of AHU; 2. The Registration Forms are provided on the website. The applicants only need to fill in the form to complete the registration process. 3. On-line registration system hold no data-checking as the previous system did. 4. Payments are no longer made to the recipient treasurer at the Regional Office, but directly to the nearest BNI Bank by mentioning the fiduciary registration number. Besides, the payment can also be made by using services from Internet Banking, SMS Banking or ATM; 5. After payment is made, the Notary can print a certificate of registration Fiduciary wherever he is. 6. The existence of the barcode found on fiduciary insurance certificate which is valid proof of his own certificate printed by notary

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
In terms of the process of making the information system, it takes cooperation and good communication among the parts that controls the business processes that create a fiduciary with the information system. Good communication between the two parts is absolutely necessary, so that the information system is built according to the design of business processes that have been agreed upon. Before the manufacturing information system is done, the design of business processes have to be agreed upon by all stakeholders, so that when the process of information system no longer changes done significant business process design. The idea and the system are initially aiming to curb unnecessary powers. The main thought directed to seek the cause of the slow procedure of registration application fiduciary. Below are the simple descriptions of online fiduciary registration system: 1. Checking In checking the menu, a database that we can see only the registration number, name and address of the fiduciary, fiduciary type, time list, date of certificate, certificate number, name Notary Office and area territory. 2. Types of Fiduciary Transactions In the system there are several types of transactions that are provided including the registration, editing, listing and searching for transaction object, and removal/deletion of fiduciary insurance. 3. In the Data Input System When first fiduciary guarantee enrollment is done online registration fiduciary guarantee many failed access or loading very long. But now with the new server that is one of the best servers in Southeast Asia it may not be a significant problem anymore.

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
DR. Aidir Amin David as Director General of Legal Administration (DG AHU) and DR. Freddy Harris, ACCS as the Secretary of the Directorate General of AHU initiative to make a regulation to improve the service system registration Fiduciary Sub-section through the Directorate General Information Systems AHU with Online Fiduciary system design. Thanks to the support of the Deputy Minister of Justice and Human Rights, Secretary General of the Directorate General of Administration with the Director of Civil Law in this case and their staffs in charge of Fiduciary sit together to fix it by taking into account the advice and input of the notary, financial institutions as well as the Financial Services Authority (FSA) . The role of employees in the Directorate General Information Systems Subpart AHU in this case becomes very dominant, because in a very short time of less than 3 (three ) Months from the presence of up to have been the creation of the application.
 6. How was the strategy implemented and what resources were mobilized?
The cost of making the necessary fiduciary Online application system is Rp. 600 million from the Budget Directorate AHU as contained in Form DG Budget Implementation AHU Fiscal Year 2013 and 2014, because of the fiduciary system making on-line DG AHU only optimize existing employees, especially employees of the Sub Division of Information Systems and all employees of the Directorate General AHU generally contributing to contributing ideas for the creation of optimal service. In addition to the purchase of a server for Rp 5 billion, bringing the total cost required for the creation of applications, as well as the development of applications server purchase on-line fiduciary roughly $ 7 billion. Nominal is very small when compared with the non-tax revenues generated after the enactment of this system. Income tax revenues as at 12 September 2014 USD. 336 679 050 000, - so that when calculated mathematically comparison of the costs incurred by the resulting costs to 1: 49.

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
The results of the application of the Online Fiduciary Registration System are as follow: 1. The ease of registration process with one-day-service feature All data loaded in the process is the responsibility of the registrants so that no stuffing examination registration process takes a long time. Physical files that were previously examined is no longer needed, so as to prevent the buildup of fiduciary file. The certificate can be printed within 7 (seven) minutes, whereas previously, it may take weeks even up to 3 months. 2. The lesser cost for the whole process The online registration process certainly reduces the fee used in the registration. Previously, the manual process used up more fund for the registration, for the payment process was conducted at local offices rising the opportunity of the appearances of hidden fees. 3. The removal of limitations on the number of applications for registration Previously, the application for registration in all branches is limited, due to the lack of the resources dealing with the process. Presently, such limitations do not exist for the system serves the public 24 hours a day. 4. The removal of illegal levies cracks Before-tax revenues fiduciary Fiduciary online payments made directly to the treasurer of the recipient at the Regional Office, while the after-tax revenues paid online payments directly through the AHU DG Perception Bank BNI. Thus, the previously prone to extortion, can be eliminated.

 8. What were the most successful outputs and why was the initiative effective?
The systems used to evaluate the Fiduciary Online, among others, are as follows: 1. For all general problems faced by the applicants in the process, the complaints may be addressed to the official contact of the office at fidusia.ditjenahu@gmail.com; 2. For substantial issues related to the procedures of the registration, the applicants may find the direct solutions from Directorate of Civil Law Affairs, particularly the Directorate of Fiduciary; 3. For technical issues, the corresponding unit is the Sub-Division of Administration Information Systems; 4. Monitoring is done through application software for the server conducted by the Sub-Division of Administration Information; 5. Directorate General of General Legal Affairs, along with BNI Bank (as the perception bank); Board of Central Indonesian Notaries Association; Regional Board of Indonesian Notaries Association; and the Finance and Development Supervisory Agency (BPK) (as auditors examining non-tax revenues reporting accountability); as well as the Inspectorate General (as internal controller), conduct the monitoring activities to at least ten regions annually to see and accommodate the problems that arising in the areas; 6. The feature of being able to instantly check the real-time amount of non-tax revenues earned the online system is also one of the success indicators of the system.

 9. What were the main obstacles encountered and how were they overcome?
Obstacles: 1. Since the Soft Launch March 5, 2013, the Electronic Registration Fiduciary still needs to be disseminated to the public, financial institutions and other relevant agencies such as the FSA, the Investment Coordinating Board (BKPM), Notary and so forth; 2. Software Systems still need improvement so that the applicant no longer have difficulties and errors in the use of Application Security Registration System Fidisia; 3. Includes Hardware System Back Up Data needs to be confirmed by the procurement server that can accommodate the needs and requirements of data backing up the data, in addition to the needs of telecom networks; 4. intense coordination with the bank's perception, considering in this system involves the other party; 5. Network weak a constraint in the settlement process Fiduciary Online, such as for example in Irian Jaya. Solution: 1. Improve outreach to KPF officers and to the public (stakeholders) associated with the application of fiduciary assurance; 2. Strengthen coordination with parties related to the implementation of the Bank's operations such as perception Fiduciary Online, Telkom. 3. penyempurnakan system software and hard ware related to the implementation of Fiduciary Online registration. 4. Head of Regional Office (Kakanwil) and Head of the Division of Legal Services and Human Rights (Head of Yankum and human rights) immediately took measures against the Fiduciary requests that have not terselsaikan before the enforcement system Fiduciary Online. 5. In a period of 60 (sixty) days prior to the effective application of all arrears Online Fiduciary compulsory resolved so that no fiduciary assurance that the remaining requests. 6. KPF 6 trial shall perform audits, monitoring and reporting in accordance with the applicable provisions. 7. Preparation of Standard Operating Procedure (SOP) which aims to provide assurance to the public according to a predetermined zone refers to the response time have been made.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
The existence of Online Fiduciary Registration Service has shown significant results to improve public services and create professional and accountable employees. This condition can be seen from several things, among others: A. For the Applicant 1. Reduce and/or minimize transportation and geographical constraints 2. Efficiency (paperless registration process) 3. Practical (no file returns requirement) 4. Economical (no transporting cost) 5. Eliminate the illegal levies. B. For the Officials from the Regional Office 1. Time Efficiency 2. File Efficiency 3. Form and Process Efficiency: • No physical records; • Electronic Signature Implementation; • Prompt certificate issuance period; • Digital archiving 4. The increase in income tax revenues The Non-Tax Revenues from the fiduciary service are as follow: • In 2010: IDR 9,950,000 • In 2011: IDR 2,850,000 • In 2012: IDR 10,513,367,500 • In 2013: IDR 273,164,500,000 • On September 12th 2014, IDR 333,676,050,000 5. The Improvement of The Ease of Doing Business Rating From the previous record in 2013 of 128, in 2014 the rank climbed up to 120 based on data received from the World Bank and International Finance Corporation.

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
In order to keep the sustainability of the system, the government issued several regulations such as: 1. Regulation of the Minister of Law and Human Rights No. 8 Year 2013 on The Delegation of Electronically Signed Fiduciary Certificate; 2. Regulation of the Minister of Law and Human Rights No. 9 In 2013 on the Application of the Fiduciary Electronic Registration; 3. Regulation of the Minister of Law and Human Rights No. 10 Year 2013 on Procedures for Electronic Fiduciary Registration; 4. Regulation of the Minister of Law and Human Rights No. 4 Year 2014 on Procedures for Submission of Application for Legal Endorsement and Approval And Company Data and Statutes Amendment Submission; 5. Regulation of the Minister of Law and Human Rights No. 5 Year 2014 on Ratification of Legal Foundation 6. Regulation of the Minister of Law and Human Rights No. 6 Year 2014 on Ratification of the Law Society Board Planning: 1. Development of applications in the form of a mobile application in 2014. 2. Creating a system connected to the FSA to determine how many registrations finished and/or suspended. 3. Completion of Fiduciary Online application that will be launched in November 2014 include: a. Completion of the identity column; b. Completion of the search feature; c. The types of reports that need to be added Aspects of sustainability and financial allocation in this case is: 1. The regional office can reuse non-Tax Revenues on Fiduciary Service in the regional office in the year of 2012 in 2013. 2. The regional office can reuse non-Tax Revenues on Fiduciary Service in the regional office in the year of 2013 in 2014 with a calculation of 60% x 76.43% x nominal of non-tax revenues; and the budget is directly attached to each regional budget appropriation.

 12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)
Lessons learned from the implementation process: 1. The application of Information Technology (IT) services in an organization can lead to changes in the work function of human resources, which in turn can affect change in the organizational structure. 2. A “dip (decrease)” often tends to occurs in the process of implementing a project; it also occurs in the process of system implementation of online fiduciary registration. 3. The organization must be able to perform the management of the "dip performance" when the cutover is done by identifying the problems posed and to take immediate corrective action against these problems. 4. Before making an IT investment, organizations must be able to perform calculations that are provided from the IT investments, both tangible and intangible benefits, so that IT investments are made in accordance with the benefits of the poses. 5. In addition to seeing the benefits of IT application on a system, organizations also need to anticipate the risks arising from the application of IT. 6. It needs a thorough socialization and clear to all ranks for all parties to be able to give the related explanation.

Contact Information

Institution Name:   Directorate General of Legal Administrative Affairs
Institution Type:   Government Agency  
Contact Person:   Delmawati Delmawati
Title:   Head of Section Data and Information  
Telephone/ Fax:   +62 21 5261082, Fax: +62 21 5261082
Institution's / Project's Website:  
E-mail:   widhiyasa_10@yahoo.com  
Address:   Jl. HR. Rasuna Said Kav. X/8 Kuningan
Postal Code:   12940
City:   South Jakarta
State/Province:   DKI Jakarta
Country:  

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