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American Journal of Economic and
Management Business
e-ISSN: 2835-5199
Vol. 2 No. 10 October 2023
TRANSFORMATION OF LOCAL GOVERNMENT TECHNICAL
MANAGEMENT UNIT WASTE MANAGEMENT IMPLEMENTS
REGIONAL PUBLIC SERVICE AGENCY TO OVERCOME WASTE
PROBLEMS IN INDONESIA
Niza Wibyana Tito, Januar Eko Prasetio, Dian Indri Purnamasari
Universitas Pembangunan Nasional "Veteran" Yogyakarta, Indonesia
Abstract
Financing in local governments is an important point in dealing with the waste problem
in Indonesia. Converting waste into goods or materials that can be used in other forms is
a solution to the waste problem. At the Bagendung Cilegon TPSA, waste can be processed
into solid jumputan fuel which is a companion fuel to coal, of course this process requires
quite a lot of capital and operational costs, while regional budget funding will not be
sufficient. So it requires a financing scheme outside the regional budget but still one chain
of command of the regional government, the Regional Public Service Agency (BLUD)
which is the best choice to overcome financing problems in the region. By implementing
flexible BLUD, you can overcome various problems at UPTD related to financial
governance, one of which is financing. In the UPTD transformation to implement BLUD,
there are several requirements that must be met, namely: substantive requirements,
technical requirements and administrative requirements. These three conditions must be
met which will then be reviewed by the regional government assessment team. In this
research, it was conducted qualitatively, using primary and secondary data, obtained by
in-depth interviews and data collection and documents, there were 8 informants from the
regional government, environmental services and UPTD TPSA Bagendung, Cilegon city.
The aim of this research is to understand the process of transforming UPTD into UPTD
BLUD, how to fulfill all requirements and understand the commitment of all relevant
stack holders to changes in BLUD policy. UPTD BLUD will have a lot of flexibility in
managing revenue so that it is hoped that TPSA waste processing operations can run
according to government targets. In the formation of BLUDs, there is autonomous
regional government participation and policy which greatly influences whether or not
BLUDs are formed in a region. Commitment and understanding of BLUDs is very
important so that harmonization occurs in all lines of regional government.
Keywords: regional Public Service Agency; Financial governance; Waste
Management; Public Sector;
This article is licensed under a Creative Commons Attribution-ShareAlike 4.0
International
Niza Wibyana Tito, Januar Eko Prasetio, Dian Indri Purnamasari
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INTRODUCTION
The waste problem in Indonesia seems to know no word finished. In various
regions, waste handling is carried out but problems always reappear, this happens because
of the lack of regulations, institutions, management budgets and lack of community
participation (Bernstein, 2004). There are still many districts / cities in Indonesia that do
not have a clear legal umbrella in waste management and also strict law enforcement
against the behavior of people who litter (Hendra, 2016; Lestari, 2016). Institutions need
a separation between regulators and operators where implementation and supervision
mechanisms can be implemented. Then the guidelines and guidelines that explain the
respective roles between the government and the private sector are still unclear, there is
still overlap between the government and other parties (Shaoul et al., 2012).
The most important point in the waste problem lies in financing, especially the
government in waste management in the regions. The average amount is only 0.51 percent
of the total Regional Budget (APBD) in each district/city. This was said by the Head of
the Sub-directorate of Producer Governance, Directorate of Waste Reduction, Ministry
of Environment and Forestry (KLHK) Ujang Solihin Sidik in a discussion at the 2023
National Waste Care Festival (FPSN), which was held in a hybrid manner on Thursday,
June 15, 2023, at the Manggala Wanabakti auditorium, KLHK, Central Jakarta (source
kompas).
The Cilegon City Government has a technical management unit (UPT) for the final
waste processing site (TPSA) located in the Bagendung area of Cilegon can process waste
into BBJP (Solid Jump Fuel) which will be sold to the Suralaya PLTU as a companion
fuel for coal or co-firing. The existence of PT. Indonesia Power, which consumes 40,000
tons of coal fuel per day, is used by the Cilegon City Government as a recipient / offtaker
of co-firing needs or coal companion materials which have become the Roadmap &
Projection of co-firing PLTU PT. Indonesia Power is 5% of coal consumption or 2,000
tons per day. Currently, the Cilegon City TPSA can only process 30 tons / day of waste
to produce BBJP 10.5 tons / day or 3,150 tons / year with an investment cost of 10 billion
and operational costs of approximately 1.9 billion / year. In the future the Cilegon city
government plans to be able to process 100 tons / day of waste to produce BBJP 35 tons
/ day or 10,470 tons per year with investment costs reaching 35 billion and operational
costs of approximately 6 billion / year, still far from the target where to meet BBJP 2,000
tons / day will require waste to be managed at 5,700 tons / day, while the waste produced
by the city of Cilegon is only 240 tons / day. When viewed from the potential income of
PT. Indonesia Power can buy BBJP which will be a very extraordinary income for the
city of Cilegon.
The management of waste into BBJP carried out by the Cilegon City Government
will certainly have a major impact not only on the environment but can have an impact
on the economy of Cilegon City and can absorb local labor, and no less important is to be
a solution in reducing the use of non-renewable energy, namely coal (Krisnawati, 2022).
However, to be able to realize it all requires a lot of budget, not to mention that UPT as
an operational executor cannot carry out transactions PT. Indonesia Power because all
regional work units must comply with financial management patterns contained in laws,
government regulations, presidential regulations, finance ministry regulations, ministry
of home affairs regulations and decision decisions related to state financial governance.
The lack of regional budgets in waste management also plays a difficult role in
overcoming the problems mentioned above, only about 0.51 percent of the total regional
budget (Satria, 2021).
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In order for the TPSA UPT to run its operations without being constrained by
financial governance rules, exceptions are needed from the provisions of financial
management patterns from general, flexible mechanisms are needed so that operations
can run and are not categorized as violating state financial governance rules. The Regional
Public Service Agency can currently be a solution to the problems mentioned above, in
accordance with the domestic regulation abbreviated as Permendagri 79 of 2018
concerning Regional Public Service Agencies are work units that perform services to the
community are given exemptions from regional financial management patterns in
general. There are several requirements that must be met and a study is carried out from
ordinary upt to BLUD-status upt. It is expected to increase the status of the TPSA
Bagendung Cilegon upt institution to BLUD status so that the TPSA can carry out waste
management and can transact with Suralaya and not experience obstacles in the flexibility
of its financial governance.
The objectives of this study are bagaimana memahami proses transformasi dari upt
Become a UPT with the status of a Regional Public Service Agency.
RESEARCH METHODS
This research uses qualitative descriptive method and case study design (Kim et al.,
2017). The location of this research is in the technical management unit (UPT) of the final
waste processing site (TPSA) in Cilegon, the Cilegon City Environmental Office and the
Cilegon City Government. The way data is collected is through in-depth interviews,
observation and documentation. Data processing is carried out by compiling data that has
been collected, then data processing and analysis are carried out. The method of data
validity used is through source triangulation (Aulia, 2018).
RESULT AND DISCUSSION
Based on the domestic regulation abbreviated as Permendagri No. 79 of 2018, the
Regional Public Service Agency is a system applied by the regional apparatus work unit
or work unit in the regional apparatus work unit in providing services to the community
who have flexibility in Financial Management Patterns as an exception to regional
management provisions in general. Flexibility in KDP by implementing sound business
practices to improve services to the community without seeking profit in order to advance
general welfare and educate people's lives. Implementation of organizational functions
based on good management principles in the context of providing quality, sustainable and
competitive services. Where the duties and functions are operational in organizing public
services that produce semi-public goods / services (quasi public goods) (Hoffman & Kirk,
2013). The definition of semi-public goods / services is a range / service that should be
done by the government, but can be provided by the private (private). In this case, the upt
tpsa under the environmental office of waste processing can also be carried out by the
private / community. The semi-public can reduce dependence on spending on the regional
budget. The public service carried out by UPT TPSA Bagendung Cilegon is in the form
of processing waste to become goods that can be utilized, in this case converting waste
into solid jump fuel (BBJP) as a companion fuel for coal to be used at the Suralaya PLTU.
Final Waste Treatment Readiness in BLUD application
Niza Wibyana Tito, Januar Eko Prasetio, Dian Indri Purnamasari
369
TPSA Bagedung Cilegon City in meeting the requirements for the implementation
of BLUD policies has met the substantive requirements by showing its duties and
functions as a provider of goods / services and also meets administrative requirements by
making 6 administrative requirements documents that have been assessed by the
assessment team, even technical requirements in service performance show 2 feasible
criteria in terms of service and financial performance Rustam & Cahyono, (2023), This
is shown by the improvement of service performance in waste processing in Cilegon City
which will reach 100% organic waste handling in Cilegon City.
The reform of waste management services carried out in Cilegon City has many
positive impacts, what about flexibility and the concept of balancing funds, namely
balancing between sources of funds from the community called service services and
sources of local government APBD funds in operationalizing waste handling (Al’Afghani
et al., 2015; Amaruzaman et al., 2022). This change is called government
entrepreneurship, efficient and effective collaboration between the public and private
sectors to achieve quality services with available resources. Of course, this is very much
in line with the spirit of BLUD in the era of national economic growth.
In financial performance, it can also be seen in the ratio of income and operational
performance Sukmadewi, (2020), especially in waste processing, showing a ratio above
65% is a good number for the balance of APBD funds and Service Services. In the public
sector, financial performance is not merely a matter of increasing revenue, but carries the
concept of value for money, how to maximize finances efficiently and effectively in the
use of budgets.
The success variables of the implementation of BLUD in the public sector are
divided into 2 categories, namely non-financial and financial assessments, non-financial
of course related to the results of service quality to the community and government.
Stakeholders
Stakeholder analysis by looking at the level of importance and influence of
stakeholders (Nurfatriani et al., 2015). The level of importance and influence of
stakeholders involved in this study is quite high, we can look at it in the stakeholder
matrix. This shows that all stakeholders who are respondents in this study who are divided
into several levels have an interest and influence in the implementation of BLUD waste
management policies in Cilegon City. The results of stakeholder analysis in the matrix
show that their respective roles have a supportive attitude.
The policy of implementing waste processing BLUD in this study shows that
stakeholders are ready to implement and strongly support BLUD, but socialization is
needed so that there is good harmonization between stakeholders and implementers,
starting from the readiness of human resources and regulatory regulations that affect the
implementation of waste processing BLUD .
Backing
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Support from superiors of external stakeholders of waste processing and support
from local governments for the implementation of waste management BLUD already
exists, but the understanding of financial governance in its implementation has not been
fully understood by all parties both directly and indirectly involved. From the results of
the interview above, full support even from the highest regional leaders has been obtained
(Silalahi, 2021).
Commitment
The stakeholders are very excited starting from the preparation of documents and
the spirit of overcoming the challenges faced, none of them are not enthusiastic or just
implementing this policy, only understanding of BLUD governance is a problem.
Everyone understands that this waste problem has become a national issue, in Cilegon
City in collaboration with PT. Suralaya with the innovation of waste processing into BBJP
is a very good solution, in addition to overcoming waste, it can even increase local
original income, this is also an encouragement in the region. Therefore, all stakeholders
strive to understand and overcome the challenges of BLUD in accordance with their
respective duties and functions
CONCLUSION
The implementation of the BLUD waste management policy in Cilegon City is ready
to be implemented because it has met 3 requirements in accordance with Permendagri 79
of 2018 and has been approved by the mayor of Cilegon. Stakeholders in Cilegon City
all support the implementation of the BLUD policy in waste processing but have not fully
understood and prepared the regulations needed to be able to implement the BLUD
policy.
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Copyright holders:
Niza Wibyana Tito, Januar Eko Prasetio, Dian Indri Purnamasari (2023)
First publication right:
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