Single Window Policy for Trade Licensing in Surabaya

Lanny Ramli, Luggas Radianto, Ayu Putri Azahrawany, Vidy Fauzizah Sampurno, Sandra Bagus M

and Rintan Nur Indah Sari Anwar

Faculty of Law, Universitas Airlangga, Surabaya, Indonesia

Keywords: Bureaucracy, Effectiveness, Good Governance, Single Window.

Abstract: Responding to the current era of globalization, the Republic of Indonesia must be able to take advantage of

opportunities by inviting as many investors as possible. The government responded this condition by issuing

Presidential Regulation of the Republic of Indonesia No. 97 of 2014 on the Implementation of One-Stop

Integrated Service. The motivation underlying this Presidential Regulation is to get closer and improve

community service, and to shorten the service process in order to achieve the fast, easy, cheap, transparent,

certain and affordable service. The issuance of Presidential Regulation is translated differently in every

region in Indonesia, adapting to the capabilities of each local government, the availability of human

resources, geographical conditions, and the needs of each region. Nevertheless, it can also be translated into

innovation, such as movement made by government of Surabaya. The government aims to achieve a good

and clean government, free from corruption, collusion and nepotism, and to improve the quality of public

services, bureaucratic performance and accountability capacity, and to enhance apparatus professionalism.

Surabaya City Government has established a licensing service in the form of Surabaya Single Window, by

focusing on a user-friendly interface. This system will ease society, who is taking care of the licensing, as

they only make face-to-face interaction with an online integrated system. Surabaya Single Window system

is expected to reduce government’s negative image and increase effectiveness. This system is beneficial for

entrepreneurs who will run their business in Surabaya, because this system has supported Trading Business

License.

1 INTRODUCTION

The globalization and digital era is now increasingly

fading boundaries and distances. Customers have

been able to choose goods and services from best

sellers or providers according to them. Due to

technological development, customers can access

goods from sellers located around the world without

having to meet them in person. Nevertheless, these

conveniences have not been fully supported by local

government in providing services to the community.

During this decentralization era, licensing process is

important, particularly in Indonesia. The need for

change initiated by the central government and local

government is still on the principle of effective

bureaucracy, which is to encourage the efficiency of

business process to the community.

The local government has not yet been able to

achieve a big leap in realizing business process

efficiency. The government still faces many types of

licensing in the local area. This bureaucracy problem

might contribute to the weakness of investment

competitiveness and the growth of private sector in

the region. The achievement of business process

efficiency is a mere impression of failure, if the

government still cannot provide best solution for

administrative and policy problems.

One step taken by government of Surabaya to

achieve business process efficiency is by issuing the

Mayor Regulation No. 28 of 2013 on the Procedure

of Licensing and Non-Licensing Services in

Surabaya. The purpose of this regulation formulation

is to improve licensing and non-licensing services

that are effective, efficient and transparent to the

community, including business actors in the city.

The government has made a remarkable effort, as

this regulation gave birth to Surabaya Single

Window (SSW) system. These products become

pioneers in Indonesia in terms of effective, efficient

and transparent licensing arrangements, as well as

being the reference of other local governments in

846

Ramli, L., Radianto, L., Azahrawany, A., Sampurno, V., M, S. and Anwar, R.

Single Window Policy for Trade Licensing in Surabaya.

DOI: 10.5220/0007552608460848

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 846-848

ISBN: 978-989-758-348-3

licensing arrangements based on the meaning of

outcome for society (Sugiyono, 2011)

1. Purpose and Objectives

This brief study was conducted using interactive

analysis model proposed by Miles and Huberman

(Sugiyono, 2011) to determine the impact of SSW

application in Surabaya. The application has been

successfully accelerated business process efficiency.

The results of this study could gain trust from

public, particularly investors to make investments in

Surabaya. Moreover, the results can help growing

the business managed by private sector. Local

governments should create effective, efficient and

transparent licensing arrangements (Tangkilisan,

2005)

The discussion in this study is only limited to the

licensing product in the form of Trade Business

License or better known as Surat Izin Usaha

Perdagangan (SIUP). SIUP is the most basic

licensing product, and any kind of specific licensing

product requires this license. All forms of business

types are required to have SIUP, with the amount of

capital capability affecting the type or category of

SIUP classification, in which there is a business type

group.

2 UNDERSTANDING OF

PERMISSIONS

Some people argue that getting permission are

complicated, difficult, time consuming and other

negative things (Sutedi Adrian, 2011). According

to the Act No. 30 of 2014 on Government

Administration, permit is a Decision made by an

authorized Government Authority as a form of

approval of a citizen application in accordance with

the prevailing legislation. According to the Minister

of Home Affairs Regulation No. 20 of 2008 on the

Guidelines for the Organization and Working

Procedures of the Integrated Licensing Services Unit

in the Regions, permit is a document issued by the

regional government in accordance with regional

regulation or other regulation constituting a proof of

legality, providing a person or an organization a

legal permission to conduct a business or activity.

Permission has significance for the holder in

conducting legal relationship, either with

government or other parties. Urgency of permission

is as follows (Hadjon, 2009):

▪ As a legal base, certain activities can not be

undertaken by the community without the

permission of the competent government

organization;

▪ As an instrument to ensure legal certainty,

generally made for some activities, both

subjective and objective;

▪ As an instrument to protect the interests, either

the interests of the applicant, the interests of the

government, or other interests;

▪ As evidence for a claim, in the case of a dispute

the permit may be used as evidence to resolve

the dispute.

3 ANALYSIS OF RESULTS

The issuance of Surabaya Mayor Regulation No. 28

of 2013 on the Procedure of Electronic Licensing

and Non-Licensing Services in Surabaya initiates the

application of Surabaya Single Window Surabaya

(SSW). It is a system that allows single data and

information to be submitted, single data processing

and synergy as well as decision-making in

accordance with the duties and functions of each

Regional Working Unit in terms of licensing and

non-licensing services. The purpose of SSW is to

shorten service time, and the process of data

checking and requirements can be more carefully

done. Moreover, all permission arrangements can be

processed simultaneously.

The application of SSW gives a significant

impact for economic and business growth in

Surabaya. Utilizing the development of industrial

electricity, consumers give exact figures that are in

line with industrial growth in Surabaya. In 2012,

there were 3,993 electricity users for industry, and

74,863 users for business. The number in the

following year increased to 4,048 industrial users,

and 88,662 users for business sector. The growth of

electricity users continues to climb in 2014, reaching

4,082 industrial electricity users and 109,295 users

for business. Those numbers quite describe the

industrial and business development in Surabaya.

This increment is directly or indirectly affected by

the convenience provided by SSW system.

This convenience attracts many investors to

make investment in Surabaya, therefore it has some

potentials to be utilized by any party. Both domestic

and foreign investors are interested and ready to take

part in this opportunity. The indications are seen

from the data of Surabaya government as follows:

Single Window Policy for Trade Licensing in Surabaya

847

Table 1: Realization of foreign capital investment in

Surabaya.

Year

Investment ($)

Investment (Rp)

2011

24,831,570

22,500,600,000

2012

12,176,402

298,717,956,292

2013

12,735,769

1,383,698,021

2014

45,294,933

2015

14,675,100

Table 2: Realization of domestic capital investment in

Surabaya.

Year

Investment ($)

Investment (Rp)

2011

725,625,178,209

2012

4,396,363,620,332

2013

1,935,500

490,271,432,498

2014

639,625,900,000

2015

828,416,500,000

There are many different types of licensing

services offered by Surabaya government as a form

of public services (Wijoyo, 2009). Nevertheless,

there is one type of permit that becomes the most

basic licensing, so that this license becomes the basis

for the application of other specific permissions.

This type of license is a Trading Business License

(Surat Izin Usaha Perdagangan (SIUP)). From data

provided by Surabaya government, the growth of

SIUP management increases every year as follows:

Table 3: The growth of SIUP management.

Year

Total

Micro

Small

Medi

Lar

2011

2,780

6,764

2,113

219

11,876

2012

4,654

6,714

2,383

283

14,034

2014

2,844

6,929

2,606

293

12,672

2015

3,004

7,347

281

13,333

SSW user interface is very interesting, even

though there are still technical and non-technical

issues. Technically, the web sometimes provides

inadequate information or slower access that takes

some times to upload data into the system. For non-

technical issue, lack of socialization about the

development of latest public services resulted in

complaints, particularly for those who have

difficulty in using SSW.

4 CONCLUSIONS

With the convenience of Surabaya Single Window

(SSW) system, potential investors who make

investment in Surabaya will improve the economy of

the city. Moreover, SSW can reduce unprofessional

service or not in accordance with the prevailing

procedures. The application of SSW also provides a

transparent supervision on the performance of

Surabaya government, so that society can see the

administrative process real-time. Public satisfaction

index of local government will also increase.

5 SUGGESTION

Surabaya government deserves the highest

appreciation for the application of Surabaya Single

Window (SSW) system. Indeed, the system still

needs development, both the user interface and the

application to realize the habit of being paperless. It

is not an easy task to change the habit, but it must be

done. This attitude change serves as the basis of

Surabaya government in facing the globalization and

digital era, so that the city can get big benefit from

business and investment sector. Those benefits can

be utilized to develop society quality. Therefore, the

process of socialization should be performed

continuously.

REFERENCES

Hadjon, Philipus M (2009) Perijinan, Stensilan, Surabaya

Peraturan Menteri Dalam Negeri No 20 Tahun 2008

tentang Pedoman Organisasi dan Tata Kerja Unit

Pelayanan Perizinan Terpadu di Daerah

Peraturan Walikota Surabaya Nomor 28 Tahun 2013

tentang Tata Cara Perizinan dan Non Perizinan

Layanan Elektronik di Surabaya

Sugiyono, (2011) Metode Penelitian Kuantitatif, Kualitatif

dan R&D, Bandung

Sutedi, Adrian (2011), Hukum Perizinan Dalam Sektor

Pelayanan Publik, Sinar Grafika, Jakarta

Tangkilisan, Hessel, Nogi S (2005), Manajemen Publik,

Gramedia, Jakarta

Wijoyo,Suparto,(2009).Pelayanan Publik, AUP, Surabaya

ICPS 2018 - 2nd International Conference Postgraduate School

848