Analysis of the Influence of Coordination and Supervision in Right to Cultivate Issuance Service on the Performance of Plantation Companies in Jambi Province

Abstract

Right to Cultivate (HGU or Hak Guna Usaha) as a legal capital for a plantation business takes a long time to be issued because getting permits as one of the requirements from various institutions is complicated in-process and expensive. This affects the quality of issuance service and comfort for HGU holders to invest and improve their performance in business activities. This study aims to describe and analyze the coordination between agencies related to the issuance of HGU, internal supervision of agencies related to the issuance of HGU, services of HGU issuance, and the performance of HGU holders in Jambi Province. Methodologically, this research fulfills descriptive, explanatory, and exploratory objectives. The population of the study is 120 plantation companies that have obtained HGU in Jambi Province, and there are 165 respondents. Hypothesis testing uses Structural Equation Modeling (SEM). The results of the study show that the coordination between agencies related to the issuance of HGU and the supervision of related agencies positively and significantly affects the service of HGU issuance and the performance of HGU holder companies in Jambi Province. However, those elements have not conducted as expected.

Keywords: Coordination, Supervision, Service, Company’s Performance

DOI: 10.7176/JESD/10-22-12

Publication date: November 30^th 2019