Development Administration Division (Bagian Administrasi Pembangunan Pemerintah Kota Surabaya)

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
Surabaya is the capital city of East Java Province and second biggest city in Indonesia after Jakarta, with total population more than three million citizens. The government of Surabaya City as a government administration has second biggest budget for Governmnmt Cities in Indonesia. When managing budget to give a better public service for Surabaya City’s resident, there were some obstacles happen in Surabaya: a. Unefficient budget and did not meet the need and expectation of the society. Budget allocation for public service was low, allocation was higher for paying civil servant of Surabaya City Government’s salary. An unefficient budget led to a condition where many city problems were unresolved, to be specified unhealthy village environment, many abandoned and homeless children on the streets, many dropout students due to poverty and wasteful budget; b.There were high indication corruption at central and local Government in Indonesia, due to lack of transparency in the procurement processes, there were still wide opportunities for Corruption that made less maximized quality in the procurement of goods and services; c.In the Government bureaucracy, public servant performance tend not optimal, less enthutiastic in work because lack of transparency on reward system, that led to extortion and corruption in public services; d.There were a moratorium policy from Central Government on civil servant recruitment, that made total civil servant became limited since the pension has not replaced. that demand of society is high in a good public services; e.Manual system for financial management government, system not integrated and rather slow to keep up with rapid development in Information Technology. That problem made public service run by Surabaya City Government become hampered and not optimal.

B. Strategic Approach

 2. What was the solution?
Surabaya City Government made financial budget management system more effective and efficient with standardization of price, transparancy, data integration, online system and easy process for users with fast and accuracy in providing information. The Government of Surabaya City also made a procurement system of goods and services transparant and minimize contact between procurement team and providers of good and services. Lastly, Surabaya City Government develop reward and punishment system for civil servant more tranparant and accountable.

 3. How did the initiative solve the problem and improve people’s lives?
Surabaya City Government developed Government Resources Management Systems (GRMS). GRMS consist of several application : e-Budgeting, e-Project Planning, e-Procurement, e-Delivery, e-Controlling and e-Performance. Beggining in 2003 e-Budgeting and e-Procurement was initiated by Development Administration Division (formerly known as Program Control Division). e-Budgeting used by every Department in Surabaya City Government when preparing budget plan for each program of activities. The users in every Department has access to GRMS and entry their budget plan through online system. The budget team of Surabaya City Government consist of Development Planning Agency, Financial Management and Tax Agency, and Development Administration Division. Budget team, especially Development Administration Division prepared standardization of budget prices, activities program and output targets for every Department. The process of preparing budget plan in every Deparment and verification by Budget Team is easy and fast to do since every budget plan can be access in detail, transparant and real time. Budget policies are integrated in system, including restriction and saving plan, so that user can’t abuse system by manipulating budget plan. E-Budgeting make verification by budget team is easier and faster. After final budget deliberations by City Officials with City Council in Surabaya (DPRD), e-Project Planning used for preparing procurement plan including packaging activities and budget spending plan on every Department. e-Project Planning used by every Department in Surabaya City Government when preparing work plan including time schedule for procurement and implementation, choosing procurement method based on regulation (auction, direct procurement, direct appointment, e-purchasing, self management) and preparing payment plan for project. Total payment plan used by Budget Team to control budget cash flow (spend and revenue) in Surabaya City Government. The work plan used for contract performance between Head of Department and Mayor of Surabaya. The announcement of procurement plan can be access transparantly by every citizen. e-Procurement used in procurement of goods and services with auction method. E-Procurement aims to increase transparancy and accountability, improve market access and competittion, increase efficiency in procurement process, support monitoring and audit to meet the need of real time information access. e-Delivery used for procurement contracts standardization and project payment process. Procurement contracts have been reviewed by contract legal experts to minimize error on preparing procurement contracts by every Department in Surabaya City Government. E-Delivery used by contractors and suppliers who have signed contract with Surabaya City Government to submit work progress for payment processing project. Data from e-Delivery integrated with e-Payment managed by Financial Management and Taxes Department of Surabaya City Government to continue the process of financial administration until transfered to contractors and suppliers’ bank account. e-Controlling used for control of implementation project by every Deparment in Surabaya City Government with compare the work plan in e-Project Planning with the payment process in e-Delivery. E-Controlling accessed by Mayor, Budget Team, Regional Legislative Council of Surabaya. Budget spending detail every program in every Department of Surabaya City Government provided in real time. e-Performance used in performance measurement of civil servant with remuneration system by replacing the old system of honorarium based with performance based so if civil servant is not actively involved in implementation project that will take effect on civil servant’s take home pay. Performance assessment criteria covers budget spending, effectiveness, budget efficiency and civil servant performance test.

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
GRMS initiatives is unique in problem solving. First, Surabaya City Government has started GRMS inovation since 2003 when there was small number of Government Agencies implement integrated e-Government, especially in Local Government. Until now in Central Government, implementation of fully integrated e-Government in financial budget management still unevenly and a discosure. System that has been developed still separated and stand alone because of high sectoral ego between Government Agencies. Second, since government bureaucracy known to be complicated, bureaucratic, corrupt, inovation implemented by Surabaya City Government prove that financial local budget system can run effective, efficient, fast, easy to use and can handle every obstacle in the initial process from internal and external (city council, contractor/supplier) who used to work by the old system.

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
This initative implement by every Department in Surabaya City Government and coordinated by Development Administration Division with Development Planning Department, Financial Management and Tax Department and Informatics and Communication Department. Total population benefitted from this initiative is every Surabaya City Citizen (approximately 3,118,724 citizens), every civil servant of Surabaya City Government (18,613 civil servant) and also 11,709 contractors/suppliers that involved in procurement process in Surabaya City Government.
 6. How was the strategy implemented and what resources were mobilized?
Surabaya City Government through Development Administration Division since 2003 has gradually started to develop GRMS, accords to Presidential Decree in the year of 2003 on Guidelines for Government Procurement of Goods and Services that mention procurement can be done by online system. The development is sustainable up to this time and adjusted by the needs and update latest regulations. GRMS development stages are: a. System planning stage a.1.Forming a system development team consisting of policy makers, technical implementation, programmers, and administrators; a.2.System development team with involving internal and external users, identify all of issues in detail, then forming the goal of systems making and identify the constraints b. System analysis stage b.1.Formulating business processes and workflow for each application b.2.Formulating standard operating procedures and regulations relating to GRMS implementation and Mayor regulation about technical guidelines in the procurement of goods and services c. Information system drafting stage c.1.Formulating data standardization used in each application, that is always updated periodically or adjusting new applicable policies / regulations. The data standardizations are: 1) Standard Budget Price on the application of e-Budgeting, which always update at least 6 (six) months with involving consultant from Public University. 2) The standard contract for each type of project on the application of e-Delivery, which always update based on the needs on the field as well as the latest regulations. Formulation of contract standard involve Legal Experts from the Public University and Legal Division of Surabaya City Government. 3) The procurement document standard on e-Procurement application is updated based on the latest procurement regulation. 4) The standard of civil official performance is always updated with the involvement of performance management team from Surabaya City Government assisted with the management team from academics. c.2.In parallel, programmers develop electronic applications with support team for application testing c.3.Preparing the supporting infrastructure (hardware) required c.4.Writing guide books related to application execution flow d. Information System Implementation Stage d.1.Doing socialization and sustainable training throughout the entire internal and external user d.2.Conducting initial trials with involving some internal and external user e. Evaluation Stage e.1.Rechecking the application, if there are errors e.2.Rechecking the application implementation flow whether it has facilitated all of user needs or it is in accordance with the applicable regulations e.3.Rechecking whether the whole of infrastructure system has run well (connection, server) f. Use and Maintenance Stages f.1.The two stages is carried out in parallel, to ensure that the system has been tested and evaluated well when it is implemented directly and they are in accordance with the applicable regulations or the needs of all internal and external users. f.2.Routine system maintenance which includes database settings, back up and virus scanning. Meanwhile, the maintenance also includes of making adjustments for keeping the system recency. Budget for GRMS implementation allocated in Development Administration Division and Informatics and Communication Department for IT networking infrastructure. Budget allocation for GRMS in 2017 on Development Administration Division is as big as $190,959.

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
Initial idiea from Mrs. Tri Rismaharini as Head of Development Administration Division in 2003, cooperated with Budget Team : Development Planning Agency, Financial Management and Tax Agency, Procurement Services and Asset Management Division and fully support by Mayor of Surabaya City. In implementation coordinated by Development Administration Division of Regional Secretariat Surabaya City Government and implement by 72 Deparment in Surabaya City Government. City Council in Surabaya involved in GRMS implementation at budget deliberation and project monitoring. Public institution who involved are public universities in Surabaya : Sepuluh Nopember Institute of Technology (ITS) and Airlangga University in giving advice technically and contract standarization, civil servant performance measurement and research about Government project. Private sector who involved are Contractor and Suppliers of goods and services who made a bid in procurement process and give price information in making price standarization. Citizen of Surabaya City can acess GRMS online, especially in procurement process.

 8. What were the most successful outputs and why was the initiative effective?
Outputs or concrete outcomes that support the initiative successful of GRMS implementation in Surabaya City Government environmental are: a.Budget price is scalable, standardized and transparant in every Department. With standard budget price then budget allocation will be more efficient and optimized for public services. b.The efficiency of budget and work program which is adjusted to the needs c.Activities and work program is implemented and planned based on schedule and target d.Bidding process is faster, more transparent, and more accountable. Corruption, Collusion and Nepotism can be avoided. e.The improvement of discipline, motivation, and creativity in the performance of Surabaya City Government officials.

 9. What were the main obstacles encountered and how were they overcome?
At the initial time being implemented, harsh opposition occurs, from officials environmental, and entrepreneurs, generally are capitalized entrepreneur, who can easily channel their opinion through the mass media and community groups that they fund to thwart the program. Human resource competency which is not yet classified and qualified to be able to run, maintain and develop the information technology advances application (likely rejecting). At the time this initiative has not been implemented, the threat of cyber crimes, the law for ICT is still not complete (including ITE Law has not been legalized). The change of work culture from manual to electronic raises fears of losing career opportunity with the new work models. Prior to the initiative, the mental of civil servants have small salaries but a lot of additional income tends to make complicated process line (making “system” many tables for accomplishment), workers in the field of ICT in local government is very rare, database is not in one unit, even the most is still paper based not paperless. The solution through this initiative is by coercion way of certain business processes associated with the interests of the organization and regulated by Mayor Regulation and policy. SIM application making is done internally with involving programmers and hiring contract employee as programmer. Then, it is supported with the use of multiple applications based on Open Source such as Linux Operating System such as, database PostgresSQL etc., and making network infrastructure between Local Government Offices. Surabaya City Government always provides free training and socialization about GRMS to all users of the application. In addition Surabaya City Government also provide helpdesk services with telephone, email, and fax facility and face-to-face service facilities in order to provide information to users regarding the use of application or information of the latest regulations.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
1. Significant impacts that are generated by this method are: a.Budgeting is more efficient and results in the acceleration of budgeting process that directly aims to improve the public service; b.In auctions, there is budget savings from 20-30% every budget year, then the rest of the budget is used at the time of Financial Budget Amendment to optimize the unmet needs of the community; c.Increasing the performance of civil servants, because the work manner is no longer based on honor, but it is based on performance, so in general it improves the quality of public services that provide to the society d.For goods / services providers in Surabaya and National, previously only provider of goods / services that have a close relationship with officials who have opportunity to win the auction. In this case, with e-Procurement makes every Providers of Goods / Services who want to participate have similar opportunity to win the same tender. This transparency results in competitive rivalry among entrepreneurs, which makes the price offered is competitive. The benefits perceived Surabaya City Government are budget savings, in percentage of the total budget, including improving the quality of the goods / services received. 2.The final impact that is obtained from the innovation is the society in general can enjoy a development program that is closely relating to the needs and expectations. The lesson that can be learned is that community participation initiatives that are properly addressed and facilitated by the Government will facilitate the implementation of a program and also reduce the burden of government itself. The improvement and responsive governance management development to the aspirations of society becomes the main objective of this initiative. 3.Various methods that can increase the speed of response time to problems of the city, the technical requirement fulfillment of goods / services required by the community, the openness of public policy making process, institution performance accountability in the scope of government and others, indicator of the quality of public services implemented in stages so that society see that the government is really serve their interests and needs. City government believes if people feel there is an increase in the quality of service, then a sense of belonging in their daily can grow. Community will believe that the tax has been paid will be well-managed by the government. So that local revenues will increase significantly because people will obey and diligently pay taxes. 4.Furthermore, the quality of service will increase as a chain reaction, due to the availability of sufficient funds, local governments can improve the quality of human resources and support of services production process desired by society, because Information Technology through GRMS makes it easy for Surabaya city government in order to support the management of local finance that is effective, efficient, transparent, and accountable, as well as in supporting the process of monitoring and controlling the performance of Surabaya city government with involving society as customers of Surabaya city government.

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
With using price standardization in budget planning that assigned with decree of Mayor, budget price used is accountable and transparant. Before this inovation, in budget planning prepared by every Department in Surabaya City Government didn't use a standard price, so the budget price in 1 Department can be different and indicated mark up in budget price. The auction process done by electronic, accountable and integrated with Indonesian Procurement held by Government Procurement of Good and Services Agency (LKPP) and minimize contact between the auction committee, civil servant and contractors/suppliers. Auction process of every Department in Surabaya City Government held centrally by Procurement Services and Asset Management Division that separated with Development Administration Division who held the Procurement System. This will cut conflict of interest that the Auction Commitee can manipulated procurement system. Citizen can monitor the procurement plan which announced globally and transparently by every Department of Surabaya City Government and monitor the auction process online in

 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)
With efficient budget system, the budget allocation for women empowerment and social protection can maximised for public services. In medium term development plan of Surabaya City 2016-2021 facilited in gender equality and women empowerment program, women and children protection program, services and rehabilitation of social welfare program through several project : facilitation handling problem of women and children, giving food for orphan, people with disabilities, elderly and rehabilitation broken homes of the poorest and most vulnerable Surabaya City Citizen. With the efficient budget price $1,13 for giving food to 31.800 orphan, people with disabilities and elderly every day for 1 year. Total budget allocation for giving food in 2017 is $8,922,708.54 increased by 10.92% in the last 3 year. Total budget allocation for rehabilitation broken homes of the poorest and most vulnerable Surabaya City Citizen is $2,880,553.55 increased by 291.33% in the last 3 year. By giving food and rehabilitation broken homes program that is a primary need for human being, the Government of Surabaya City ensure all Surabaya City Citizen get a sufficient food and a decent home.

Contact Information

Institution Name:   Development Administration Division (Bagian Administrasi Pembangunan Pemerintah Kota Surabaya)
Institution Type:   Local Government  
Contact Person:   Dedik Irianto
Title:   Head of Development Administration Division  
Telephone/ Fax:   +6231 5462064
Institution's / Project's Website:  
Address:   Jimerto No 25-27
Postal Code:   60272
City:   Surabaya
State/Province:   East Java

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