1. Introduction

The granting of autonomy to wider autonomous region followed with the changes in the Law No. 22 of 2009 [1] on Local Government into the Law No. 32 of 2004 [2]. It was supported by the changes on the affairs division between the Central Government, the Province, Regency/City as Government Regulation (PP) No. 38 of 2007 [3]. Further development of policies related to public services such as PP No. 63 Year 2003 [4] on Guidelines for the implementation of public services and the Decree of the Minister of State Apparatus Control No. 25 of 2004 [5] on the General Guidelines for Preparation of Community Satisfaction Index Services in Unit Government Agencies. Government Regulation No. 65 of 2005 [6] explained the Standards of Public Service, followed up by the Ministry Decree of Domestic Affairs No. 24 of 2006 [7] about One Stop Services (PPTSP) and the Law No. 25 of 2009 [8] of the Public Service. All policies are intended to improve the welfare of the community through the provision of public services, which became the main task of the Government including Local Government.

Although various new policies and laws on public services has been assigned as mentioned above, the level of empirical public services still has gaps that occur from policies that have been appointed. International Finance Corporation survey in 2006 as cited in Prasojo [9] showed that Indonesia is a country with the most inefficient and expensive service in proceeding the new permit for the investment. The process is commonly passes through 12 procedures (12 agencies), which took 151 days with the high cost of US $ 1,163. Meanwhile, in Thailand taking care of new investment licenses is more readily through 8 procedure/agencies, which takes 33 days with a cost of $ 160. Furthermore, Dwiyanto [10] revealed that the bureaucratic reforms have been carried out by Indonesia, but the reform of public services remains homework. Another study by Mursitama et al. [11] found that reform and development in three cities of Purbalingga, Makassar and Banjarbaru are: 1). Licensing service has not proceeded in ideal time; 2). Official cost was high; 3). High moral hazard behaviour thus cut up the licensing service reform. The situation is also supported by the results of the World Bank's survey in 2011 [12] to 183 countries. It appears that Indonesia ranked 129 in the license service quality. Recent investment climate conditions, health and education are not very satisfactory, as a result of unclear and poor quality of services offered by government institutions. Legal uncertainty, the trial court protracted and full of corruption, making investors turn invest their shares in other countries.

Similarly, service quality of Building Permit in Bogor Regency does not satisfy the customer. However, Customer Satisfaction Index surveyed on Integrated Licensing Agency in Bogor got good numbers, as well as the process of building permit services which already certified for ISO 2008: 9001 [13]. Based on observations in January 2013, the implementation of license service in Bogor Regency has not integrated in one agency. The basis of the above explanation arise curiosity to conduct in-depth research on building permit service delivery (IMBG) in Bogor Regency. The research question posed is: 1). How is the quality of public services of Building Permit? 2). What factors that inhibiting and supporting the public service Building Permit?

Furthermore, this study aimed to describe and analyse the quality of public services and inhibiting and supporting factors on the public services of building permit. This study synthesized Denhardt and Denhardt opinion [14] on eight aspects of service quality, i.e. convenience; reliability; personal attention; citizen influence; fairness; problem solving approach; fiscal responsibility; and security. We also refer the opinion of Parasuraman et al. about SERVQUAL [15] with the five elements of service quality: tangible; reliability; responsiveness; assurance; and empathy.

2. Research Method

2.1. Study Object

This study was conducted in Bogor Regency, with main locus on Integrated Licensing Agency. The interview directed to the Department of Spatial Planning and Land; Department of Building and Housing Administration, the District Unit Planning Office of Building and Housing, Office of Environment Planning Agency and the Department of Highways and Irrigation.

2.2. Research Approach

The paradigm of this research approach is Post Positivism, means it is a qualitative research approach. Meanwhile, our study conducted data collection and documentation of observations, thus the qualitative research approach in this study is called mixed method. The type of study is descriptive research. Research frame work was described in Supplementary 1.

2.3. Research Focus

Measurement of quality of public services is including: convenience; fairness; influence citizen; reliability; Personal Attention; problem solving approach. We also focus on the obstacles and supporting factor for creating Service of Building Permit.

2.4. Data Collection

Data collection includes in-depth interviews, documentation and observation. Techniques of informant for interview determination are with purposive, snowball and accidental method. Purposive technique was used for Head Institution of Integrated Licensing as licensing service providers. It is chosen by the consideration that the head of institution understand thoroughly about the service of permit application in Bogor Regency. The first informant that represents the user of permit service was appointed or recommended by BPT Bogor, e.g. resident development. The first informant recommend for the next user informant to be interviewed.

Snowball technique used for relevant officials, such as Secretaries of Integrated Licensing Institution, Section Head of Licensing Services, Head of Department of Building and Housing Administration, Section Head of the Department of Highways and Irrigation, Section Head of Spatial Planning and Land Planning Office, and Head of Regional Environment Agency and Chairman of DPRD’s A Commission. Regional Secretary as the supervisor was appointed by the head of BPT and interviewed by the researcher. Snowball sampling was continued until there is no more new information obtained.

Accidental technique was used for citizen at the study site who applies for the data collection for building permit (BPT Office). The informants that obtained by accidental method are non developer citizen, commonly small to medium business.

Observation was conducted in the front office and back office about the process of permit licensing service. Front Line Employee (FLE) is an indicator of service quality that perceived by the customer, as stated by Bhiwajee and Naidoo [16]. The observation also supported by interview the employee and the user citizen. We also observed the various tools and equipment either in field or office that used in processing the permit.

Document as a data source in the study can be either printed or video recordings of the various processes in licensing services. There are several documents, records/CDs, and printed documents that were arranged randomly without regard to academic weights or hierarchies legislation.

Participant observation and documentary review also used by Isa [17] in assessing the public service reform in Tanzania, specifically using complimentary data with case analysis method.

2.5. Data Analysis

The data analysis technique refers to Mac Nabb [18]: organize the data; generate categories, themes and patterns; coding the data; apply the ideas, themes and categories; search for alternative explanations; and write and present the report. Validity of the data was tested using triangulation [19]. Triangulation techniques used in this research is through cross-checked with other sources. Triangulation achieved with techniques: 1). comparing the observed data with the results of the interview; 2). comparing what people are saying in public with what was said in private; 3). comparing what people are saying about the situation of research in what they says all the time; 4). compare the state of one's perspective with a wide range of opinions and views of people like ordinary people, educated people, wealthy people and government, and 5). Compare the results of interviews with the contents of related documents.

3. Results and Discussion

3.1. Services Quality of IMBG in Bogor

3.1.1. Convenience

Convenience or comfort, it means that the service provided by the government is accessible and available easily by the user community. Leisure includes environmental comfort, facilities and infrastructure, prerequisites, requirements and procedures.

Environmental Convenience, Facilities and Infrastructure

Environmental comfort is a description of the ease access to the office of Integrated Licensing Agency. According to Wibisono [20], there are six basic principles in the provision of public services to the community. One of the principles is accessibility. Each type of service should be accessible to all service users both in terms of place and distance, and service system should be as close as possible and reachable by service users.

Based on interviews with several informants and observations and review on documentation, the access road to the Office of Integrated Licensing Agency is easy because it is located on the side of the road and urban transport bypassed. At the time of the study (2013), space of office’s back was not feasible for work; one with another employee touched each other when running in corridor and the layout is inadequate. Parking lot were less broad for user community thus cars parked on the roadside, and the official car was parked in the yard of office. It means that the Integrated Licensing Agency officials are more concerned with their own needs than the user community.

Prerequisites, Requirements and Procedures for Building Permit

Prerequisites that must be met by user community for building permit licensing service including:

a) Have IPPT (Land Use Permit designation)/ILOK (site permit) from Integrated Licensing Agency;

b) Provide site plan permit that must be related to the seven (7) agencies (institution). The institutions consisted of the Department of Spatial Planning and Land; Buildings and Settlement Planning Office, Environment Planning Agency Office, Department of Highways and Water Resources, Department of Law and the Department of Natural Resources Management.

c) Processing the Document of Technical Approval Plan (PDRT) in the Department of Building and Housing Administration;

d) Mapping the UPT (Technical Implementation Unit) situation in the Office of District’s Building and Settlement Planning;

e) Acquire the Statement of Environment Management and Environment Impact Assessment (AMDAL) from Regional Environmental Agency;

f) Determine the minimum height of Flood Piel from Department of Highways and Irrigation;

g) Prepare Traffic Impact Analysis which published by the Department of Road Traffic and Transport.

The requirements to acquire Building Permit include Administrative and Technical Requirements. Administrative requirements include copy of Land Certificate, copy of ID card, photo ID, copy of tax ID. The administration also requires proof of approval from residents (neighbourhood and community association, Village, and District), proof of deposited Tax, Situation Map, and PDRT. Technical requirements include pictures of the building along with the budget costs. The entire above file was brought to sign up to the Integrated Licensing Agency. In the Integrated Licensing Agency, users follow the procedures according to SOP of Building Permit. It consists of 10 stages; from the front office, inner office until the completion of the Building Permit Documents submitted to the citizens of default users within 14 days.

After the crosscheck, the service flow is contained in the SOP of Building Permit by the Regents Regulation No. 58 of 2011 [21] on the Standard Operating Procedures for 40 Licensing and Non-Licensing services. The fact showed that the service was already conducted according to the regulation. However, to meet the prerequisites, requirements and procedures for Building Permit, users are still feeling less comfortable, because it is not easily accessible. They perceived the prerequisites, requirements and procedures were convoluted. It is certainly not in accordance with the mandate of Domestic Affairs Ministry Regulation No. 24 of 2006 on Guidelines for One Stop Service (PPTSP). The regulation stated that to achieve the satisfaction of the user community, service provider should simplify the prerequisites, requirements and procedures of the licensing service. The service also needs to be easier, served fast and low cost.

3.1.2. Dimension of Reliability

Reliability meant the ability to provide accurate and professional services to government services; can be provided properly and timely. The reliability dimensions include accuracy, discipline and speed of personnel service.

Appropriateness of Care

The service process carried out correctly in accordance with the Standard Operating Procedure (SOP) or the provisions of relevant laws and regulations. The SOP should not have error in the process of licensing the product service. However, if an error occurs, the Integrated Licensing Agency employees will improve it. User residents asked to wait three days to take the results of repair.

Discipline of Service Officers

The users assessed discipline of front office employee of Integrated Licensing Agency. It is recognized that the user community can start to proceed the licensing in the front office around 9.00. Integrated Licensing Agency officials informed that the employees supposed to be present at 7.15 and 7.20 following the morning assembly.

Speed of service

Speed of service is the target of the service time to be completed in accordance with standard operating procedures that have been made by Integrated Licensing Agency. The speed factor is often complained, that the average time of Building Permit completion exceeding the SOP, more than 14 days. Survey of Public Satisfaction Index, also implied the same thing about the slow service.

3.1.3. Dimensions of Personal Attention

Services by Integrated Licensing Agency staff get praise from the various citizens of users because they are polite, friendly, smile a lot, and able to convey vivid explanation to the user. Citizens become better informed on the process of licensing services they need.

The cautiousness of employees towards the service users for the Building Permit in Bogor Regency was considered very high. Giving personal attention from officials to users is a necessity and reasonableness, because the front line or the front office generally has a high level of solidarity with the people due to continuous daily interaction [22].

3.1.4. Problem Solving Approach

Capability Service Officers

Integrated Licensing Agency has 90 employees, with majority bachelor graduate (75%). That condition is a good first step to get the qualified performance to serve more intelligent, courageous and creative services. Motivation to learn was proven by doctoral graduates of high officials. More professional services can help users more in managing the problem related to the Building Permit.

Considering abundance permits application, the institution takes the addition of human resources through outsourcing as much as 29 persons. According to the Employment Law No. 13 of 2003 [23], outsourcing policy is not appropriate for administrative personnel. Thus the majority of the front office personnel from outsourcing violate labour laws.

The situation is certainly given less optimal impact on workers in helping to solve the problems faced by the users in managing IMBG. Sutopo in Wibisono [20] asserts that service workers should have manner, in the sense that attention and interest to solve problems spontaneously and friendly. The institution has no online information system (Local area networking). Therefore, the institution directed to prepare a reserve fund for purchasing computer hardware and software and employ training on the use of high technology. Thus the idea of Bovens and Zouridis [24] on the Screen-Level bureaucracy (transactions via computer screen) can be realized.

Officer’s Responsiveness

Users should pass through 5-7 stages for purchasing the Building Permit and complaining about how convoluted the bureaucracy is. The complaint was conveyed repeatedly, but it still continues without any change. This implied the low responsiveness of the officer. The cause factor is the issue of less human resources number that get complained. While Lovelock [25] revealed that expectations of the user community about the quality of service based on the aspect of the ability to capture the desires of consumers and provide needed services quickly.

Clarity of Service Officers

Services personnel should provide their name, position, authority and responsibility. On each clerk’s desk in Integrated Licensing Agency, employee names are written on the board but without including the position, authority and responsibility. Written clarity of authority and responsibility of the clerk is important to be known by the user community. It was made for the user community to do not hesitate ask questions or explanation from authorized personnel. Therefore, the assignment of staff should use the principle of the right man in the right place. The division of labour must be rational/objective, not emotional/subjective, based on the basis of like and dislike. With the principle of the right people in the right place can also provide a guarantee of stability, smoothness and efficiency of work.

3.1.5. Fairness

The front office looks fair in service, because early users will be served first, by taking a queue number. However, the process in the inner office is uncertain; whether the file proceeded according to the date of entry, or because of other factors. The process has not been using the online system, thus the user can not directly process the file through the internet. However, the procedure to submit the files regulated in the Minister of Domestic Affairs Decree No. 24 of 2006 on PPTSP. The decree mentioned that the Regional Working Units (on education) must inform the citizens about the way users submitted their work file.

Fair service is not 100% entirely correct, because sometimes officers can also deposit from the superior with a slight pressure, as occurs in the case of Hambalang. Smith in Muluk [26] stated that the government has a duty to protect the public from infringement and invasion of other societies, and as far as possible the duty to protect every other community members, as well as the duty to uphold the administration of justice by all means.

Reasonableness of Service Charges

The fees specified in the Regulation No. 30 of 2011 [27] about specific retribution. The user considers the retribution is not expensive. The old retribution was even more expensive, which based on Regulation No. 24 of 2000 on retribution cost of Building Permit. The retribution is intended to be low cost because local government recognize the right of society to get better service. Denhardt and Denhardt [14] in their first principle of the New Public Service through taxes paid by the citizens of the legal owner (legitimate), not as a customer.

Certainty of Service Cost

Retribution paid by residents in Bank of West Java are considered in accordance with the provisions of Law No. 30 of 2011 on Specific Retribution. Uncertainty care costs would occur in the form of retribution beside the official retribution. The unscrupulous non-official retribution to the staff includes: for Technical Plan Document (PDRT) of Building Planning Office, for Situation Map from Technical Implementation Unit, Department of Building Administration, for budget plan (RAB) to actors and many more costs incurred to the user community to the officer. This treatment is considered by the user as cash cows / source of money / gold mine and commonly occurs in the Integrated Licensing Agency and related institution. It is a deviation from the provisions of local regulations. User’s residents should be invited in the formulation of policies, especially related to the amount of retribution. As stated by Denhardt and Denhardt [14], users are the owner of the state, thus must be involved.

3.2. Inhibiting and Supporting Factors

3.2.1. Inhibiting Factors

Inhibiting factors include: high moral hazard; low community participation; inadequate quality and quantity of human resources; less infrastructures; institution and services have not been integrated; information systems has not online yet; taxpayer afraid to complain; and the agency has no Public Service Standards yet. These inhibiting factors also faced by the public service in following regional government in Indonesia: Banggai Regency, South Sulawesi [28]; Purbalingga, Makassar and Banjarbaru [29].

3.2.2. Supporting Factors

Supporting factors include: SOP in accordance with the license number; Certified ISO 9001: 2008 for 20 Licensing services; Central and Regional Policy mutual support; IMBG permits high productivity; friendly and capable Front Office; cheap retribution, and adequate finance.

4. Conclusions

Service quality of the Building Permit licensing in Bogor has convoluted procedures and requirements are less simple. The completion time of licensing process for building permit is not in accordance with the SOP. The office is also has inadequate resources and moral hazard of the officials is very high (Supplementary 2).

We recommend a required system of Integrated Services and One Stop Service with the online system (Supplementary 3). As soon as possible, Bogor Government should make standard for public service.

Appendix

Supplementary 1. Research Framework

Supplementary 2. Existing Models

Supplementary 3. Recommendation Model