KLIPPER
Investment and Licensing Agency of Yogyakarta City

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
Yogyakarta City lies between 110o 14i 19ii to 110o 28i 53ii East Longitudine and 7o 15i 24ii to 7o 49i 26ii South Latitude, with the area of 32.5 Km2 or covering 1,025% of Yogyakarta Special Region (DIY) area, and total population of 489,000 people in 2015 with the density of 15.000,- people/Km2.  Yogyakarta City is popular as Education City and Tourism City or Culture Tourism (Cultural Centers, i.e. Kasultanan Palace and Kadipaten Pakualaman Ngayogyokarto). The prominent economic sectors in Yogyakarta are Processing Industry, Trading, Hotel and Restaurant.  Yogyakarta City is the capital city of DIY Province that has high commitment in achieving good and clean Governance. The Investment and Licensing Agency of Yogyakarta City was established to integrate licensing services and to make a faster, easier and more transparent licensing process but at the same time keeping the quality of the services provided. There is a Public Satisfaction Survey to service users, according to Regulation of the Minister of State Apparatus Empowerment and Bureaucracy Reformation Number 16 Year 2014 regarding Public Service Holder.  Investors frequently encounter problems or constraints related to the requirements of permit processing either administrative or technical, especially for large scale building, a lot of provisions in licensing regulations that must be fulfilled by the permit applicants, therefore it seems a difficult and long process, and also no assurance requirements and service time. The problems frequently encountered by the applicants are: - Difficulty in describing Provisions of Advice Planning when it is implemented into administrative requirements and technical design of permit, so it requires a more detail explanation. - Unclear information regarding administrative and technical requirements, while the allocation time in the counter services for permit consultation is very limited, so the information provided is sometimes incomplete and less detail regarding administrative and technical requirements of urban management. - The applicant must return several times to the service counter due to incomplete documents. - A lot of permit applications which are registered are rejected due to incomplete and incorrect documents.

B. Strategic Approach

 2. What was the solution?
To resolve those problems, the Investment and Licensing Agency of Yogyakarta City has an initiative to open a comprehensive consultation media involving many parties that are formed into a Licensing Service Clinic Team or hereinafter referred as KLIPPER.  KLIPPER is a consultation service toward an activity/business plan related to administrative and technical requirements of permit application, and it provides complete and comprehensive information before registration, so that it prevents lack of documents presented at the time of registration and permit processing, as well as at the time of verification/document verification, field verification. Finally permit can be processed faster and the issuance is not exceding the time limit set in the standards of permit services.  The authority has an initiative to propose Permit Service Clinic as the problem solving, implementation strategy, purpose, target and KLIPPER has proven that it solves problems:  KLIPPER service is the initiative proposed by the Investment and Licensing Agency of Yogyakarta City, in order to improve service quality, clarify the requirements and accelerate the time to process permit service accomplishment.  The strategy implemented is by forming KLIPPER Team, with the Head of Investment and Licensing Agency as the chairman, the Head of Service Sector as the Secretary and structural officials, staff and the related technical Local Government Units in Yogyakarta City government.  The main purpose of this KLIPPER’s service innovation is to give permit consultation service for society in a comprehensive, effective and efficient way.  The target of KLIPPER service are new investors or society as the permit applicants who deals with constraints, problems or difficulties in order to fulfill administrative and technical requirements according to the provision of applicable laws and regulations, especially for large-scale buildings.

 3. How did the initiative solve the problem and improve people’s lives?
 KLIPPER is a development and improvement of permit consultation system in the service counter which is considered less effective and efficient due to the time limit and the line of the applicants who want to get the same service. Therefore, KLIPPER assists the applicants to get clear, complete, correct and comprehensive information according to the provisions of the applicable laws and regulations.  With the new ways implemented in this KLIPPER forum, the applicants can convey the problems encountered while processing permit and discuss them together with the KLIPPER team, through a series of discussion and argumentation based on data, facts and laws and regulations regarding licensing.  The term of Clinic is derived from the term in health service unit which functions as the prevention tool or medication for health problem symptoms before getting chronic. Thus, Permit Service Clinic's (KLIPPER) function is similar to the prevention tool to solve problems arise in permit processing held by the Investment and Licensing Agency of Yogyakarta City as well as to avoid application rejection

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
 KLIPPER implementation is assigned by Act of the Head of Investment and Licensing Agency of Yogyakarta City Number 47/KEP/DINZIN/2011 regarding Determination of System and Procedure of Permit Services in the Investment and Licensing Agency of Yogyakarta City.  KLIPPER team is formed with the Head of Investment and Licensing Agency as the Chairman, the Head of Service Sector as the Secretary and structural officials, staffs and the related technical Local Government Units in Yogyakarta City Government.  Determining mechanism of initial observation application in written to the Head of Investment and Licensing Agency to get facilitated through KLIPPER, enclosed by supporting documents in the form of technical design.  The Agency Head gives disposition to the Service Sector Head as the Secretary of the KLIPPER team to conduct initial observation toward the supporting documents such as technical design, according to the applicable laws and regulations.  The applicant delivers presentation as expected. The encountered problems are then discussed comprehensively together with the KLIPPER team in a series of discussion and argumentation based on data, facts and laws and regulations in licensing field.  Based on the conclusion of the discussion, the KLIPPER team gives notes related to the administrative and technical requirements to the applicants to be followed up.

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
The personnel who give contribution or get involved in the process and implementation of KLIPPER’s service innovation are:  The Head of Agency, Structural Officials and Staffs or employees who master regulations in licensing field in the environment of the Investment and Licensing Agency of Yogyakarta Municipality;  KLIPPER applicants (Service Users);  Technical Local Government Units (SKPD) in Yogyakarta City environment are: - Land Agency related land status; - Regional Development Planning Agency (Bappeda), related to land use plan; - Environmental Agency, related to environmental studies; - Transportation Agency, related to traffic study and parking necessity; - Tourism and Culture Agency, terkait dengan tetentuan kawasan cagar budaya dan Benda Cagar Budaya; - Settlements and Regional Infrastructure Agency, related to regional infrastructure; - Local Assets and Building Agency, related to building provisions; - Local Agency for Disaster Management (BPBD), related to fire detection and protection; - Legal Division of the Regional Secretariat of Yogyakarta City, related to legal considerations or regulations; - Governance Division of the Regional Secretariat of Yogyakarta City, related to the use and utilization of state land
 6. How was the strategy implemented and what resources were mobilized?
The sources used to support the implementation of KLIPPER services are:  Human resources or good quality employees from the Investment and Licensing Agency according to the required competencies.  All costs to support KLIPPER’s activities are financed by Local Budget (APBD) of Yogyakarta City:  Operational costs of KLIPPER for the last 4 (four) years are as follows: - In 2012 amounting to Rp 34,575,000.- or US$ 2,59. - In 2013 amounting to Rp 31,875,000.- or US$ 2,39 - In 2014 amounting to Rp 37,149,000,- or US$ 2,78 - In 2015 amounting to Rp 56,345,000,- or US$ 4,22 - In 2016 amounting to Rp 58,425,000,- or US$ 4,37 The above operational cost are used by KLIPPER to organize meetings and 1 year stipend for the team.  The infrastructure to support KLIPPER activities are a representative registration room and meeting room completed by AC, Laptop, Printer, LCD, electric board, internet connection and telephone.

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
7. Outputs from KLIPPER activities:  Products of KLIPPER services are notes or written recommendation from the KLIPPER team containing: provisions of administrative and technical requirements which must be fulfilled and followed up in the application of Building Permit (IMB).  Permit application in KLIPPER is guaranteed to be issued, processed faster and smoother, due to the fulfillment of complete and correct administrative and technical documents in registration process.  Act of the Head of Investment and Licensing Agency of Yogyakarta City Number 47/KEP/DINZIN/2011 concerning Determination of System and Procedure of Permit Services in the Investment and Licensing Agency of Yogyakarta City.  Act of the Head of Investment and Licensing Agency regarding Determination of Membership Structure and Duties of KLIPPER team.

 8. What were the most successful outputs and why was the initiative effective?
8. The system used to monitor progress and evaluate activities done by KLIPPER are:  Supervising, monitoring and evaluation of KLIPPER’s activities implementation done by the Head of Investment and Licensing Agency, through regular meeting of structural officials, at least once a month in order to find out whether there is constraint in the implementation.  Monitoring of the notes given by KLIPPER team have been followed up by the applicants done by the Head of Service Sector.  Decrease of number of claims from year to year: Year Number of Claims Decrease number Percentage of success in handling cases (%) 2011 73 cases - - 2012 66 cases 7 cases 9.58 % 2013 59 cases 14 cases 19.17 % 2014 51 cases 22 cases 30.13 % 2015 42 cases 31 cases 42.89 % 2016 40 cases 33 cases 45.20%

 9. What were the main obstacles encountered and how were they overcome?
 Main Problems: - Lack of personnel number in the Investment and Licensing Agency who understand well the regulation of permit technically. - Imperfect regulation that is still frequently changed and not in line with other regulations which become the guideline in the permit implementation.  Solutions: - Proposing additional employees to Regional Employment Office of Yogyakarta City, according to the competency needed. - Asking recommendation or technical approval from the related Local Government Units that authorized with the problems.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
10. The main benefit by the existence of KLIPPER  KLIPPER has been succeed in helping and giving benefit for the users: - The applicant understands the administrative and technical requirements in processing permit. - The applicant who has passed through the process in KLIPPER and followed up the notes from the team is guaranteed not to be rejected. - The applicant can only come once when submitting the permit application with correct and complete documents required. - The process of permit issuance becomes smoother, faster, and on time according to the standards of permit services.  KLIPPER services will constantly be improved in quality and dynamically developed from time to time adjusting people’s demand and technology advancement.

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
11. The initiative program can improve integrity and accountability.  Licensing services become more transparent, quicker, fairer and accountable; The applicants get clear information about data, fact, laws and regulations in the licensing area; The applicant also get clear information about administrative and technical requirements which have to be fulfilled.  In 2014, Yogyakarta City Investment and Licensing Agency also gained the achievement entitled “Working Unit as a Corruption-free Area (WBK)” from the Indonesian Ministry of Administrative and Bureaucratic Reformation (Kemenpan dan RB).

 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)
12. The initiative benefits women and girls and improves the situation of the poorest and most vulnerable  KLIPPER does not distinguish gender and society’s levels. Permit application in KLIPPER is guaranteed to be issued, processed faster and smoother, due to the fulfillment of complete and correct administrative and technical documents in registration process.

Contact Information

Institution Name:   Investment and Licensing Agency of Yogyakarta City
Institution Type:   Local Government  
Contact Person:   Darsana Darsana
Title:   SH  
Telephone/ Fax:   +6285643849465 (tel), +62274555241 (Fax)
Institution's / Project's Website:  
E-mail:   darsanapphi@gmail.com  
Address:   Jalan Kenari 56
Postal Code:   55165
City:   Yogyakarta
State/Province:   Yogyakarta Special Region
Country:  

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