The Effect of Local Wisdom Formalization by the Regencies/Cities Government in Bali Province to the Quality of Licensing Services

Abstract

The Government of Indonesia both at the central or local government had not been fully able to provide the quality of public services in accordance with the expectations of the society and the challenges faced. The result of the integrity survey ever conducted by the Corruption Eradication Commission shows that the quality of the Indonesian public service had only reached a score of 6.84 from the scale of 10 for central agencies, and 6.69 for public service units in the regions. In that case, bureaucratic reforms that change the mindset of government officials (bureaucrats) from the mental rulers to the mental servants of the society according to their own local wisdom were an urgent need. Some local governments make local vision and motto of local wisdom as a basis in providing public services. In this regard, how the influence of formalization of local wisdom in the implementation of Regencies/Cities Government in Bali Province on the quality of service in the field of licensing becomes an actual and interesting issue to be researched. The purpose of this research is to analyze how did the Regencies/Cities government in Bali Province internalize the local wisdom of the society into its institutional policy, and also to analyze the influence of the localization of the local community’s formal wisdom into the institutional policies of the Regencies/Cities Government in Bali Province towards the quality of licensing services carried out by the government to the society. Data that has been collected, then performed the analysis through Partial Least Square (PLS) method. The results indicate that some Regencies/Cities governments in Bali Province had formalize the values ​​of local wisdom of the people in their policies, either as vision or motto, such as the motto "Sewaka Dharma" to the Denpasar City Government and the vision "The Realization of Excellent Service Based on Tri Hita Karana" in Badung Regency Government. Meanwhile, the local bureaucratic behavior of the local government offices/agencies/licensing offices in Bali Province was found to have a positive and significant impact on service quality. The path coefficient shows that bureaucratic behavior with local wisdom consisting of officer clarity indicator, officer discipline, officer responsibility, officer ability, and courtesy and officer friendliness are able to improve service quality to be better.

Keywords: Vision, Local wisdom, Public service, Quality of service