POLICY INNOVATION IN THE PERSPECTIVE OF PUBLIC ADMINISTRATION TOWARDS THE REALIZATION OF GOOD PUBLIC POLICY GOVERNANCE

POLICY INNOVATION IN THE PERSPECTIVE OF PUBLIC

ADMINISTRATION TOWARDS THE REALIZATION OF GOOD

PUBLIC POLICY GOVERNANCE

Introduction

As a rational choice, innovation seems to have become an inseparable part and a demand for

public organizations in both central and local governments. This is in line with various

changes and dynamics of community demands. Innovation is expected to be a strategy in

increasing the leverage of organizational performance both in producing products and

services. One of the strategic efforts of public organizations to be able to continue to make

these changes is to create new products (both in terms of goods and services), new structures,

new relationships and new cultures (Siagian, 2007: 58). Thus, there is a logical consequence

for public organizations as public service entities, namely the application of service principles

based on effective, efficient and productive indicators and no longer apply the principles of

service delivery.

The demand for innovation in public organizations and central and local governments

requires more serious attention and must be carried out in an integrated and simultaneous

manner. This is because innovations that are carried out in an integrated and simultaneous

manner have a dispersive power that affects all parts of the organization. Partial innovations

will only affect certain parts of the organization and have less effect and impact factor on the

vision and mission of the organization.

In United States, the application of regulations on innovation is contained in Law Number 23

of 2014. It is stated that regional innovation is needed in order to improve the performance of

the Regional Government, the Regional Government can innovate. Innovation is all forms of

renewal in the administration of Regional Government. Innovation initiatives can come from

regional heads, DPRD members, state civil apparatus, Regional Apparatus, and community

members.

Tri Widodo Utomo (2016) said that although innovation in United States has developed

rapidly, it is still done relatively partially, piecemeal and stagnant. Partial because usually an

innovation is not automatically connected to other innovations. It is not connected to the

organization's road map, and does not have a long-term vision. Meanwhile, the piecemeal

nature of their innovations lacks a large and collective effect. As a result, innovation "goes

nowhere" aka stagnant. In fact, the new five-year development plan indicates a strategic

target program, but has not accommodated the need for innovation. Therefore, innovation in

public organizations requires collaboration and elaboration that is enabling.

At the government level, both local and central government, the ability to innovate, especially

policy innovation, is part of the ability to utilize the potential of both local and national

resources supported by bureaucratic creativity at various levels. Government policies to

support innovation activities are also absolutely necessary (World Bank, 2010 in Firdausy,

2013) emphasizing the importance of the government's role not only in the provision of

funds, educational and research institutions and laboratories for innovation as well as other

physical facilities, but also in the establishment or amendment of regulations, fiscal policies

(taxes, subsidies and loans) and monetary (credit and interest rates), as well as investment and

trade policies and other incentives and disincentives. The government's role in supporting the

innovation activities mentioned above is indeed necessary, although in practice it is not easy

to do. As previously described, innovation must have an impact factor. In this context, policy

innovation aims to increase competitiveness, impact and benefits for the public interest.

Therefore, the pattern of policy synergy both from the concept of formulation,

implementation and evaluation between the central and regional governments is an

inseparable part. One of the concrete forms of synergy is by overhauling regulations that are

considered obstacles (Sayekti, 2016).

Policy innovation is not innovative if the policy does not encourage the impact of

competitiveness and provide benefits to the public interest. One of the important prerequisites

to encourage the growth of policy innovation is the creativity of the bureaucracy in creating

the power of change and new ideas. Policy has some fundamental differences. Firstly, a

policy generally negates old policies, or is contradictory and secondly, policy and innovation

differ in terms of degree of creativity. Once established, policies lose most of their creative

aspects. (Tri Widodo Utomo, 2016)

The things that underlie the importance of policy innovation can be seen from the

phenomenon of several regional regulations that were revoked or revised some time ago by

the Government through the Minister of Home Affairs Cahyo Kumolo, 3.143

Regional Regulations (Perda) or Regional Head Regulations (Perkada) that were revoked or

revised by the government. The majority of the revoked regulations are related to investment

and licensing. In detail, of the 3,143 local regulations revoked or revised, 1,765 were local

regulations or regency / city regulations revoked or revised by the Minister of Home Affairs.

Then 111 regulations or decisions of the Minister of Home Affairs were revoked or revised

by the Minister of Home Affairs and 1,267 local regulations or district / city regulations were

revoked or revised by the Governor.

In addition The weak evaluative and controlling intervention functions of the central

government against local governments when drafting these regional policies. Public policy

innovation becomes a necessity when manual policies that only function to fulfill government

obligations give birth to various disappointments and anxieties in the midst of the public,

especially those concerning the interests of the lives of many people (Dede Mariana, 2010).

In line with the implementation of regional autonomy, which gives local governments the

authority to formulate policies, the role of public officials in the regions in innovating public

policies is expected to increase and have a positive impact on the quality of policies or

regulations that will be formulated. Thus, the quality of local regulations is an important

indicator of the performance of local governance (Agus Dwiyanto, 2010: 10). The low ability

to innovate and willingness to innovate are challenges for public officials in government

agencies both at the local and central levels. On the other hand, public policy as an instrument

that serves to unite the government and the public has not run optimally, this is due to the fact

that there are still overlapping policies issued by different policy-making agencies. Example

of policy failure public services in United States in the form of disconnectivity from the

output of the activities of Ministries and Non-Ministerial Institutions, for example, some

reservoirs that have been built by the government cannot function because there are no

irrigation channels, ports cannot operate properly because there are no roads connecting them

to industrial areas (Agus Dwiyanto, 2016). To avoid the termination of the policy, it is

necessary to reorient the policy of each agency or agency that is more focused both in terms

of the process, method and product of each public policy produced.

Problems such as development disparities due to inaccurate policy analysis, corrupt behavior

of public officials due to weak regulations, overlapping food security policy issues, poverty,

health and unemployment policy issues and low levels of public education are some

examples of the failure of public policy in responding to and solving public problems.

Substantive public policy innovation can provide strengthening in solving problems that

occur in society. Although policy innovation is carried out not following trends or seasonally,

policy innovation can be an alternative decision in the policy dimension public in the present

and the future. Innovation policies and innovations in public sector activities are oriented to

address market failures and in particular (Alvarez et al., 2012). meaning that policy

innovation and public sector innovation are oriented to address market failures and all parts

contained therein.

The importance of the public sector has an impact on a country, especially as a percentage of

GDP. On the other hand, innovation in the public sector can have an overall effect on

productivity growth, increasing product value through organizational improvements, the need

for policies that are in line with economic development in the global era, and public sector

innovation will guarantee private sector innovation.

Theoretical Foundation

The United Nations Department of Economic and Social Affairs (2006) provides an analysis

of innovation as part of the revitalization of public administration, innovations and

experiments in central and local government, especially in the field of service delivery, are

currently taking place around the world as part of government efforts to revitalize public

administration. This exchange and sharing of innovative experiences can create "new

knowledge" that can be accessed by countries around the world.

Public sector management innovation can also be defined as the development of new policy

designs and new standard operating procedures by public organizations to address public

policy problems. By Thus, an innovation in public administration is an effective, creative

and unique answer to a new problem or a new problem to an old problem. Furthermore, an

innovation is not a closed and complete solution, but an open solution, transformed by those

who adopt it. Conceptually, there are three types of policy innovation, namely:

 Policy innovation: new policy directions and initiatives. Policy innovation means the

existence of new policy initiatives and directions. This means that every (public)

policy issued in principle must contain something new.

 Innovations in the policy-making process. In this role, the focus is on innovations that

affect the policy-making or formulation process.

 Policy to foster innovation and its diffusion. The policies in question are those

specifically created to encourage and develop, and spread innovation in various

sectors. (Albury, 2003)

So what is meant by policy innovation according to Walker is a policy that is new to the

country that adopts it, regardless of how old the program is or how many other countries have

adopted it before. In his research, Benyamin Abdurahman (2014) raises the question of what

has happened to regional cooperation regulations and policies so far? Post-reform law and

policy products have provided various lessons for regional development and at the same time

left unresolved problems. Attached with regional development, there are various implications

of the implementation of regional autonomy, such as the failure of new autonomous regions,

the friction of "inter-regional interests" (read: regional ego), sectoral ego problems,

miscoordination, and mismanagement in the regions. On the other hand, regional innovation

in order to deal with and reduce the various implications of regional autonomy through

various forms (alliances) of cooperation between territorial areas dramatically "Constrained"

in the frame of regulations and policies. This condition occurs due to weaknesses in the basic

concepts that are ambivalent, and misleading to the essence of regional development and

development itself. Then Wijayanti (2012) in his research on the implementation of the

Sustainable development policy innovation concludes that the success of policy innovation is

created due to various factors, namely:

 Mayor's initiative and commitment

 Change in mindset so that trust is built in the management of street vendors

 Bureaucratic reform followed by the preparation of supporting documents

 Continuous and integrated implementation mechanism

 Cut the budget and focus on utilization that has an impact, especially welfare.

Research conducted by Elanor D Glor (2003) concluded that the successful implementation

of innovative processes to improve governance, public administration performance and to

effectively address public problems. To be effective the public and government must first

commit to addressing them. They must also identify effective strategies and techniques to do

so, and create mechanisms to develop the skills and values to make it happen. Meanwhile,

Mirlinda Batalli (2011) in her research concluded that the public administration innovation

process aims to modernize administrative capacity and create a more efficient and

accountable government. Innovation also affects management improvement public,

implementing public policies and promoting economic growth. Therefore, the role of the

State becomes more of a "servant" than a "ruler". In the perspective of public administration,

three paradigms are known: Old Public Administration, New Public Administration, New

Public Management and New Public Services. Table 1 outlines the views of these four

paradigms on innovation:

Of the four paradigms of public administration above, the New Public Services (NPS)

paradigm is a representation of public policy innovation. The application of the principles of

innovation through NPS, the public is seen as a whole and humanist, not reduced as a public

servant customers who are characterized by economistic-egoistic or as outsiders who are

subjected to bureaucratic mechanization.

Furthermore, it is mentioned that the NPS paradigm also pays great attention to innovation

and is integral and comprehensive because NPS is an approach that places high value on

collaboration between parties and improving the performance of every element of the

organization. NPS views the importance of policy innovation holistically and integrally and

aims to comply with the public interest.

Vigoda-Gadot, et al (2005: 70) analyze how innovation and public administration thinking

are related. Furthermore, Vigoda-Gadot, et al (2005) divides three perspectives on the

evolution of the development of public administration thinking, namely (1) classic public

administration canon; (2) new public management doctrine; and (3) post- managerial

avenues.

The United Nations Department of Economic and Social Affairs (2006:6) analyzes a number

of key principles and strategies for innovation in government as follows:

 Integrate services;

 Decentralization of service delivery;

 Leverage partnerships;

 Involve citizens; and

 Take advantage of Information and Communication Technology.

Glor (2001) identifies patterns of policy innovation based on three approaches:

 Individual motivation: This can be either extrinsic or intrinsic. Intrinsic motivation

arises from within the individual, for example, a commitment to a program because of

personal identification with it. Extrinsic motivation arises from. Outside the individual,

for example, managerial control or some form of. External rewards or incentives.

Intrinsic motivation allows for a higher level of. Problem seeking and problem solving

compared to extrinsic motivation.

 Organizational culture: This can be a bottom-up culture or a top-down culture

 Challenges: These can be minor (e.g., low risk to individuals or organizations) or major

(high risk to individuals and organizations).

The spread of policy innovation occurs with reference to two important determinants, namely

internal determinants and regional diffusion. (Tyran, 2003). What is meant by internal

determinants is that the social, economic, and political characteristics of a country determine

the innovativeness of a country. Meanwhile, regional diffusion is the possibility of a country

adopting a certain policy is higher if its neighboring countries have adopted the policy.

An illustrative example of the occurrence of internal determinants that cause policy

innovation is socio-economic changes in the country, public demonstrations, political

instability that forces fundamental policy changes related to public interests. Regional

Diffusion occurs when neighboring countries or other countries implement certain policies

that are copied by us. For example, in the case of traffic policies, in Malaysia the obligation

to turn on the lights for motorcyclists is enforced to reduce the number of traffic fatalities

accidents. This policy was later copied by United States, especially in several major cities,

with the expected result of reducing the number of traffic accidents.

Research Methods

The method used is a qualitative approach. The technique used by researchers is a survey of

academic literature in the scientific field of public policy to obtain concepts relevant to the

study of public policy innovation. Data collection techniques through searching various

sources and literature both from government documents and government documents as well

as news from print and electronic mass media, journals and books related to public

administration and public policy innovation policy innovation. The secondary data is

processed and described in narrative form according to data needs. Furthermore, the data

analysis process is based on theories and concepts and public policy innovation and then the

data interpretation process is carried out.

Results and Discussion

Policy Innovation in Public Administration perspective

The public administration paradigm based on the principles of New Public Services (NPS) is

a representation of policy innovation. The NPS principles are:

 Emphasizes the concept of a relationship of trust and collaboration with fellow citizens

and not just as customers.

 The public interest creates shared interests and responsibilities.

 Value on public service and citizen commitment to make a contribution

 Think strategically, act democratically

 Accountability is not simple

 Steer by helping citizens to articulate and fulfill common interests

 Valuing people and not just focusing on productivity

Public administration requires policy innovation via the creation of new knowledge in form

of service innovation for the public interest. This is where the importance of the innovator's

ability to apply administrator abilities and technical-based skills is emphasized. In the

perspective of public administration, policy innovation is not only focused on aspects of

planning, organizing, mobilizing and monitoring but also lies in the ability of innovators to

apply science and technology into a policy innovation.

Criteria for Policy Innovation from a Public Administration perspective

Process-based policy innovation.

The application of process-based innovations includes improving the quality of work of

various stakeholders which is carried out efficiently and effectively. The work mechanism of

public organizations that tends to be slow, convoluted and complicated is changed towards a

fast, precise and productive work mechanism. The purpose of process innovation is that

people get services in accordance with the expected service standards.

According to a study from the State Administration Institute (2016), there are two types of

work process innovation. First, internal innovation, which targets work processes carried out

among employees within the internal scope of an organization. Second, external innovations

carried out by the work unit process innovations are those that deal directly with external

parties (customers and stakeholders) in order to carry out routine work processes or provide

public services. The scope of process innovation includes standard operating procedures

(SOPs), procedures, systems, and procedures. Determination criteria:

 This innovation takes place at the level of routine administration.

 Innovation is successful when the work process becomes faster, easier, and more

effective.

 In routine procedures, there are fewer authorities and duplication or overlapping

stages are eliminated.

 For organizations that provide services to the public directly, the indicator of success

is an increase in satisfaction with the services provided, which can be measured

through the public satisfaction index (IKM).

Innovation by Method.

Implementation Innovation method Changes in old methods towards new methods are

intended to achieve more optimal goals. According to study LAN (2016). The criteria for

determining based on the method are as follows:

 The form of this innovation is policy organization that outlines a new way of the

organization's work processes. This new way can target various domains such as how

to make decisions, how to make products, how to perform services, and so on.

 This innovation is done when the old way or method used by the organization is no

longer effective and profitable.

 Given that this innovation is macro and can be applied to a wide range of fields, to

distinguish it from other innovations, it is necessary to find a method innovation that

is holistic and paradigmatic. The new method is applied to all activities and sectors in

the organization.

Product-based policy innovation

The application of product-based innovation is carried out by modifying the various products

produced by the organization with the aim that the organization has competitiveness.

According to the LAN study (2016), the criteria for determining product innovation are:

 This innovation is used or enjoyed directly by customers

 The organization is directly, actively, and fully engaged through its internal processes

to produce the outputs that the customer enjoys.

 Product innovation is called successful when: the product is more quality and

increase in quality so that users are increasingly satisfied; or the product created is a

new product for which there is no precedent. The novelty fulfills customer

expectations and desires in ways that were previously unimaginable.

Policy innovation

Public organizations need to continue to make paradigm changes, ideas, ideas as part of

innovations that are carried out based on the concept of organization to solve problems.

According to the LAN study, there are several criteria for product innovation, namely:

 This innovation is born from a change in perspective on a problem which is then

realized in policy.

 Assessment of this success can be seen by comparing it with previous policies based

on old perspectives. If the results or performance of the new policy are better, then the

conceptual innovation can be considered successful.

 Usually, this change in perspective is done by looking at an issue with a more positive

perspective or by updating the paradigm.

Policy innovation based on science and technology (science and technology)

The application of science and technology innovation includes renewal of various problems

faced by organizations such as organizational systems, equipment and apparatus skills. This

is the demand of the organization in facing changes and the development of an increasingly

dynamic society.

Policy innovation based on organizational structure

Organizational structure innovation is carried out so that the organization is able to be

flexible to the developments that occur in the organization. An organizational structure that is

relevant to the nature and development of society needs to be done so that the organization is

able to create increased apparatus performance.

Policy innovation based on relationships

Every organization, especially the public sector, must be in contact with external parties. In

order to achieve goals more easily and to use resources more intelligently and effectively,

organizations need to foster and structure relationship mechanisms with external parties in a

way that is innovative, mutually beneficial, and mutually enabling creating good

organizational governance.

Human resource development policy innovation

In principle, human resource innovation is a very important factor because the main asset of

the organization is human. All innovations made will not run as expected if human resource

innovation is not successful. The importance of the organization in formulating internal

organizational policies in giving priority to human resource innovation is something that

needs to be done. Training methods, competencies, career advancement and apparatus

empowerment are some of the innovation methods in human resource development.

Policy Innovation Towards the Realization of Good Policy Governance

In an effort towards good public policy governance, policy innovation power is analyzed

based on 4 (four) characteristics innovation characteristics as proposed by Freddy Navaro

(2016), namely as follows:

 Type of support

Good Public Policy Governance will be achieved through the implementation of policy

innovations carried out through cooperation between government officials from all levels and

levels with non-governmental actors with the aim of to achieve change in organizational

processes and support creativity. In this case, the identification of policy problems is

analyzed with the support of various parties in order to obtain a policy innovation orientation

based on problem solving.

 Innovation Management

Innovation management here is carried out in the form of organizational and administrative

arrangements as a result of the cooperation that has been carried out by involving external

and internal resources. The process of restructuring the procedures for preparing innovative

policies is an absolute requirement that needs to be done in preparing a policy including

institutional management and organizational innovation.

 Types and characteristics of relationships

Policy innovation demands symbiotic mutualism from all stakeholders. Via approach

Through such a relationship approach, the expected results will be achieved. The ability to

use resources optimally and support open cooperation in realizing good public policy

governance.

 Characteristics in value application

Level success policy innovation is obtained through the application of values that beneficial

for the public interest. And that is This is done by encouraging cooperation between the

government, the community and the private sector in an effort to strengthen human resources

in the field of policy design.

Conclusion

Innovative public policy governance requires contributions in providing new and useful

knowledge for the public interest. The public as the owner of the interests of an innovative

policy product wants policy outputs that can provide measurable and oriented impact factors.

On solving public problems. The simplification of policy innovation is a policy that

encourages the impact of competitiveness and provides benefits for the public interest.

The application of innovation principles through NPS is a representation of the application of

policy innovation. The public is seen as a whole, human and humanist through an approach

that provides space for the public to collaborate and is oriented towards improving the

performance of each organizational element. The NPS perspective in viewing policy

innovation is holistic and comprehensive and aims to obey the public interest. Good public

policy governance will be realized through the approach of 1) Type of support through the

implementation of policy innovations carried out through cooperation between government

officials from all levels and levels with non-government actors; 2) Innovation Management in

the form of organizational and administrative arrangements as a result of cooperation carried

out by involving external and internal resources; 3) Types and characteristics of relationships

through the existence of symbiotic mutualism characteristics of all stakeholders; 4)

Characteristics in the application of values measured through the application of values that

are beneficial to the public interest. And this is done by encouraging cooperation between the