International Seminar on Scientific Issues and Trends (ISSIT) 2013

Increase Index MDGs for Accelerate Optimalization of E-Government Through Economic Growth Index Indonesia and Good Governance Period 2013

Rahmad Wijaya AMIK Bina Sarana Informatika Jl. Damai No. 8, Warung Jati Barat (Margasatwa), Jakarta Selatan Email: [email protected]

Abstract - Indonesian Economic Growth Index, in the period 2009-2013 successfully spur economic growth average of 5.9% per year, this growth is higher than the average of the previous five years of economic growth. In 2004, Indonesia’s gross domestic product was US $ 645 billion, while the current has reached more than US 1.1 trillion. Indonesia with the fourth largest population in the world (240 million) face high maternal mortality rate. To achieve the MDGs, since 2000, The Ministry of Health with the support of The House of Representatives Implement labor insurance program (jampersal). Nationally, the target of reducing the maternal mortality rate (MMR), three-quarters of 1990. But some studies say the figure is very difficult to achieve. In addition, the Indonesian government’s efforts seem to realize the MDGs by 2015 will be quite difficult, because at the same time the government also had to bear the burden of a huge debt payments, where as the eight MDGs program requires a considerable cost. In early 2007, The National Committee on Governance has perfected the Code of Good Corporate Governance (GCG) and pioneered the manufacture Guidelines Good Public Governance (Combined Code) which is the first in Indonesia, and maybe even in the world. This is a demonstration and proof of concern for the creation of a better business environment in Indonesia and promising if applied consistently. Besides the need for information quickly, precisely and accurately the development of EGovernment in Indonesia was also supported by the Indonesian Presidential Instruction No.3 of 2003, dated June 9, 2003 On National Policy and Strategy Development of E-Government. E-Government is a representation of information on the performance of electronic government, especially Indonesia. In this study, researchers tried to find variables and measure it, what are the exogenous variables that can affect the performance of EGovernment. The exogenous variables used in this study are the MDGs (Millennium Development Goals), Good Governance and Economic Growth Index Indonesia. So that the results in this study, may be a recommendation for the Indonesian government to develop and improve the efficiency and effectiveness of the application of the E-Government as an instrument of state information. The sampling method in this study is purposive sampling, while the data collection techniques used by technical documentation is obtained from secondary data. Analysis of the data used is a bivariate correlation analysis- Pearson Product Moment, regression analysis path and analysis cube cubit elasticity. Because the researchers wanted to know the relationship and or influence of exogenous variables on the performance of E-Government in Indonesia during 2013 as well as the level of elasticity between variables. Key Word: MDGs (Millenium Development Goals), Good Governance, Economic Growth Index, EGovernment.

I.

INTRODUCTION

Indonesia in the dynamics of the national and global developments, is currently facing a variety of challenges that require serious attention of all parties. Implementation of good governance or good governance in Indonesia is very necessary The report from The World Competitiveness Year Book 1999 states that the bureaucracy in Indonesia is in a group of countries that have the lowest index of competitiveness among 100 countries studied (Cullen & Cushman: 2000). Center entitled research results in 3 provinces in 2000 which concluded that the performance of the bureaucracy in the public service is still very bad, Proceeding ISSIT 2013, Page: A-20

because it is caused by the strong influence of paternalism (Dwiyanto: 2003). In addition, the results of the study of political and economic risk consultancy in 14 countries in 2001, declared an indication of the performance of the bureaucracy in Indonesia is getting worse and corrupt (Kompas: June 22, 2001). Meanwhile, in Locus, developing countries, studies Dwight King (1989) reveals some characteristics of the opaque bureaucracy in developing countries such as inefficient; numbers of staff overload; was not modern or obsolete; frequent misuse of powers, the lack of attention and or ignore the poor areas and the diversity of needs and responsive to local conditions.

International Seminar on Scientific Issues and Trends (ISSIT) 2013

International institutions and experts (Bappenas, UK- ODA, UNDP, World Bank, OECD- DAC, MTI, TII, Partnership for Development, Nurcholish Madjid, Erna Witular, Bintoro Tjokromidjojo, and Setia Budi), looked fourteen characteristics of good governance as follows: (1) strategic visionary; (2) transparency; (3) responsiveness; (4) accountability; (5) professionalism; (6) efficiency and effectiveness; (7) decentralistic; (8) democration; (9) legitimation; (10) equity; (11) law enforcement; (12) a commitment to poverty reduction; (13) commitment to human resources development; and (14) a commitment to the environment. The lack of education and socialization of national development at lower levels is one of the problems that make it difficult step MDGs in Indonesia. Three things became difficult trouble spots MDGs in Indonesia which is as follows, the lack of transparency of reporting on the most local level; lack of education and socialization to all levels, as well as the lack of application of the MDGs reflect on the reality of the field. Now the MDGs are important references for the development of Indonesia, from the planning phase as listed in The Medium Term Development Plan (MTDP) to its implementation. In governance, we need a communications system that established effective communication and has a value that can forward the echievement of development goals. Then in 2002, E-Government adopted in Indonesia as a start of a new innovation in the field of governance. In 2002, The Pacific Council International Policy (PCIP) published an interesting publication entitled, “Roadmap for E-Government in the Developing World”, which aims to assist countries in the implementation of strategy and development of its EGovernment. Later in 2004, the government through the Ministry of Communications and Information Technology has made the blue-print for the development of E-Government applications. Major goal in the implementation of EGovernment is to improve the quality of public services. E-Government is encouraging the establishment of governance that is transparent, accountable, corruption-free, streamlined bureaucracy, and increasing citizen participation in governance controls. II. TEORY 2.1 E-Government Wyld (2004) defines E-Government as an electronic processing is used by governments to communicate, disseminate or collect information, as facilities and licensing transactions for a particular purpose. While the World Bank defines E-Government as a reference used in government information systems

(such as wide area networks, the internet, and communication goes) which has the ability to bridge relations with other citizens, businesses, and various other government elements, (in Drajat, 2004:3). 2.2 MDGs (Millennium Development Goals) MDGs is a global development paradigm that agreed by 189 member states of the United Nations Summit (High Level Conference) September 2000 United Nations Millennium. The United Nations General Assembly resolution, No. 55/2 dated September 18, 2000, About The United Nations Millennium Declaration (A/RES/55/2, United Nation Millennium Declaration). This report includes efforts to achieve eight development goals with 18 targets and 48 indicators in 2015. MDGs place human development and has a time limit and measurable progress. The MDGs in each destination has one or several targets and indicators. Eight millennium development goals (MDGs) consist of: 1. Eradicate extreme poverty and hunger. 2. Achieve universal primary education for all. 3. Promoting gender equity and empowering women. 4. Reduce child mortality. 5. Improve maternal health. 6. Combat HIV and AIDS, malaria, and other diseases. 7. Ensuring environmental sustainability. 8. Promoting global cooperation for development.

2.3 Indonesia Economic Growth Index The formula for calculating Economic Growth Index are as follows: g=((GDPt0 – GDPt-1)/GDPt-1) x 100% Description: g = Economic Growth Index PDBt0 = GDP in now PDBt-1= GDP of the previous year GDP = Gross Domestic Product 2.4 Good Governance Good governance is more a condition that ensures alignment process, equity, cohesion, and balance as well as the role of each control is performed by three components, namely: government, citizens, and businesses which are in the private sector (Taschereau and Campos: 1997 in Toha: 2003). UNDP (1997) defines good governance as the implementation of the administrative authority, political, and economic problems of a country to manage at all levels that include mechanisms, processes, and institutions as citizens and community groups expressed interest, do their political rights, meet their obligations, and discuss the differences between them. (Dwiyanto et all: 2003). Proceeding ISSIT 2013, Page: A-21

International Seminar on Scientific Issues and Trends (ISSIT) 2013

Good governance should be focused on developing synergies between the state, business community, civil society, which is based on the capacity to build consensus, cooperation, and mutually accommodating relationship that is based on equity (Pratikno: 2004). UNDP (United Nations Development Programme) gives some characteristics of good governance (Endarti: 2005) is a follows: (1) participation; (2) rule of law; (3) transparency; (4) responsiveness; (5) consensus orientation; (6) equity); (7) efficiency and effectiveness; (8) accountability, and (9) strategic vision. III. RESULTS AND DISCUSSION A.

RESULTS Population in this research is the site of the Republic of Indonesia government recorded until 2013. The number of samples used in this study based on purposive sampling. This research will take a sample of 8 department official website of the Republic of Indonesia. The criteria used in determining the research sample are as follows:

1.

2.

Official website of the Republic of Indonesia is an active department in 2013 that a number of 16 sites. Department official website of the Republic of Indonesia, recorded in 2013, has a post listing the number of visitors as much as 8 site.

The technical analysis of the data used is to use the test as follows: 1. Classical Test Assumptions; a. Normality Test; b. Multicollinearity Test; c. Heteroskidastisity Test. 2. Bivariate Correlation Analysis Test- Pearson Product Moment; 3. Path Analysis Testing; and 4. Elasticity Test Cube Cubic. B. 1.

DISCUSSION Description of Data Analysis a.

E-Government Performance

Table 1: Accumulated User Level E-Government in Indonesia Observations Amount of Visitors Site 9/3/2013 9/5/2013 9/6/2013 9/9/2013 9/10/2013 KKP 196,476 211,755 220,287 229,191 237,362 DEPHUT 19,932 20,133 20,205 20,312 20,406 KEMENAG 4,150,015 4,170,688 4,178,845 4,190,660 4,199,625 KEMHAN 2,704,181 2,704,181 2,704,181 2,704,181 2,704,181 KEMENKUMHAM 577,015 597,506 607,663 622,070 636,331 KEMENPERIN 12,474,500 12,564,490 12,601,645 12,670,001 12,717,758 DEPTAN 13,277,019 13,311,894 13,327,345 13,346,308 13,366,207 KEMENDAG 10,130,598 10,232,098 10,278,460 10,329,291 10,369,461 Total 43,529,736 43,812,745 43,938,631 44,112,014 44,251,331 (Sources: Secondary Data Processed) Ministry Websites

9/11/2013 245,350 20,494 4,206,352 2,704,181 646,338 12,771,348 13,380,594 10,397,358 44,372,015

b. MDGs Performance (Millennium Development Goals) Table 2 : Performance Indicators MDGs Σ Poor AIDS The Level of Year EDE*) Population*) Case**) Exports*) 37.168.300 2007 66.64% 11.141 114.100.890.751 34.963.300 2008 66.98% 16.110 137.020.424.402 32.530.000 2009 67.40% 19.973 116.510.026.081 31.023.400 2010 67.62% 24.131 157.779.103.470 30.018.930 2011 67.98% 26.483 203.496.620.060 28.594.600 2012 70.73% 26.483 190.031.845.244 (Sources: *)www.bps.go.id); **)Strathmore University AIDS Surveilans Report January 2000-June 2011)

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International Seminar on Scientific Issues and Trends (ISSIT) 2013

Description: EDE AIDS Cases Export Level

: Elementary Education Enrollments 9- Year Compulsory Education. : Cumulative Number of AIDS Cases in Indonesia. : Value in US $.

Indonesia’s population of 234 million, is now more than 32 million live below the poverty line (less than US $1 per day)

And about half of all households remain around the national poverty line is set at IDR. 200,262 per month.

c. Performance Index Growth Table 3: Economic Growth Rate Index Total

Economic

GDP

Growth Index

2006

1.847.126,70

-

2007

1.964.327,30

6.35%

2008

2.082.456,10

6.01%

2009

2.178.850,40

4.63%

2010

2.314.458,80

6.22%

2011

2.464.676,50

6.49%

2012 2.618.139,20 (Source: Secondary Data Processed)

6.23%

Year

Description: 1. Total GDP is Calculated in Billion. 2. GDP at Constant Prices. d. Performance of Good Governance Table 4: Performance Indicators of Good Governance Good Governance Score (-2.5 to +2.5)

Year I

II

III

IV

V

VI

2007

-0.09

-1.19

-0.27

-0.30

-0.65

-0.59

2008

-0.08

-1.07

-0.23

-0.29

-0.64

-0.56

2009

-0.05

-0.76

-0.26

-0.30

-0.60

-0.81

2010

-0.09

-0.86

-0.19

-0.36

-0.64

-0.74

2011

-0.08

-0.82

-0.24

-0.33

-0.66

-0.66

2012 -0.08 -0.82 -0.24 -0.33 -0.66 (Source: info.worldbank.org/governance) Kaufmann D., A. Kraav, and M. Mastruzzi. 2010. The Worldwide Governance Indicators: Methodology and Analytical Issues

-0.66

Description: I :Voice and Accountability II :Political Stability/ Absence of III :Government Effectiveness IV :Regulatory Quality

V :Rule of Law VI :Control of Corruption Violence Period of 2012 data is assumed to be the same as for 2011. Proceeding ISSIT 2013, Page: A-23

International Seminar on Scientific Issues and Trends (ISSIT) 2013

2.

Test Result Statistics The research design model is as follows:

B.

Multicollinearity Test (Collinearity Statistics)

Analysis

Table 5: Test Results Multicollinearity X2

Variable X1

Y

X3

Figure 1: Model Design Research Description: X1 : MDGs X2 : Rate of Economic Growth Index X3 : Good Governance Y : E-Government :Causal Relationship or Direct Influence

Tolerance

VIF

MDG’s

0.780

1.283

Good Governance

0.234

4.265

Economic Index

0.207

4.827

(Source: Secondary Data Processed) Based on Table 5 above, shows the value of tolerance VIF (Varian Inflating) variable MDGs, Good Governance and Economic Growth Index was around the 1. The data in this study did not find symptoms of multicollinearity. C. Test Analysis Heteroskidasticity

A. Classical Assumption Test Results 1. Normality Test Analysis

Figure 3: Test Results Heteroskidasticity (Source: Secondary Data Processed)

Figure 2: Normality Test Results (Source: Secondary Data Processed) Based on Figure 2 above shows the points spread around the diagonal lines and distribution lines that follow the diagonal direction. Then the regression model to meet the assumptions of normality and appropriate.

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Based on Figure 3 above, dots spread randomly, do not form a particular pattern of clear, scattered both above and below the 0 on the Y axis. Then this is not the case of heteroscedasticity in regression models.

International Seminar on Scientific Issues and Trends (ISSIT) 2013

B. Bivariate Correlation Test Results- Pearson Product Moment Table 6: Bivariate Correlation Test Result- Pearson Product Moment E-Government E-Government

MDGs

Good

Economic

Governance

Index

Pearson Correlation

1

0.929

0.005

0.144

Sig. (2 tailed)

-

0.007

0.992

0.786

6

6

6

6

N (Source: Secondary Data Processed)

Based on Table 6 above, it can be interpreted that the correlation between the EGovernment with the MDGs, Good Governance and Economic Growth Index shows the coefficient value of 0.929; 0.005; 0.144. Has a strong correlation interpreted that, if the value of the coefficient almost reached 1. This means that, the MDGs have a very strong level of correlation of the E-Government, while good governance has a very weak correlation and Economic Growth Index Level has a weak correlation of the E-Government. Rate coefficient is positive, this indicates unidirectional relationship, ie if the value of MDGs indicators; Good Governance and Economic Growth Index increases, the performance of E-Governance will also increase. C. Path Analysis of Test Results The form of the equations used in this study are as follows: X2=β0+β1X1+ε1 X3=β0+β1X1+ε2 Y=β0+β1X1+β2X2+β3X3+ε2 Based on the above model, is then performed with the parameter estimation method through Ordinary Least Squares regression analysis with the help of software SPSS 20 for windows with the following results:

1.

Effect MDGs Against Economic Index

Table 7: Effect of MDGs for Economic Index

Variabl e Consta nta Index Eco R R Square F Arithm etic F Sig

Beta Unstandar Standard dized ized Coefficient Coefficie s nts 0.060 0.002 0.423

0.423

t

sig

21.1 65 0.93 4

0.0 00 0.4 03

0.179

0.872 0.403

(Source: Secondary Data Processed) Beta 0.002 can not be interpreted as the influence of the MDGs on Economic Growth Index Level is not significant. R2 of 17.90%, explained that the variables X1 X2 can only be explained by 17.90% and the remaining 82.10% is explained by other variables and error. Meanwhile, at 42.30% R shows the relationship X1 and X2 are strong enough.

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International Seminar on Scientific Issues and Trends (ISSIT) 2013

2.

Effect MDGs Against Good Governance Tabel 8: Effect of MDGs For Good Governance

Variab le

Consta nta GoodGov R R Square F Arithm atic F Sig

Beta Unstandar Standar dized dized Coefficien Coeffici ts ents

-0.144

-0.277 0.266

-0.266

t 0.1 73 0.5 51

sig

0.8 71 0.6 11

0.071

0.304 0.611

(Source: Secondary Data Processed) Beta -0.277 can not be interpreted as the influence of the MDGs on Good Governance is not significant. R2 of 7.10%, explained that variable can only explain the variable X1 X2 at 7.10% and the remaining 92.90% is explained by other variables and error. while R was 26.60% explained that the level of closeness of relationship X1 and X2 have a weak relationship. 3. Effect of MDGs, Good Governance, Economic Growth Index Against EGovernment Table 9: Effect of The MDGs, Good Governance, Economic Growth Index for EGovernment

Variable Constant a MDG’s GoodGov Index Eco R R Square F Arithma F Sig

Unstan dardized Coefficients

Beta Standardize d Coefficients

Beta 2 and 3 can not be interpreted as the influence of Good Governance and Economic Growth Index Level is not significant. Meanwhile, beta 1 has a value of 178,083.834, this means that if the performance of the MDGs has gained one unit, then the performance of the EGovernment will experience an increase of 178,083.834. That is, if the MDGs performance increased by 1 point, then the appreciation of the public make use of E-Government information 178,083.834 points. Therefor, the government should be more serious about improving its performance to achieve the fulfillment of the goals in the MDG program until 2015. So that people’s appreciation will increase in the use of E-Government effectively, efficiently and provide value, either for the government or for the general public and the business community. In the regression model obtained R2 of 94.10%, explained that the variables X1, X2 and X3 may explain the variable Y by 94.10% and the remaining 5.90% is explained by other variables and error. While R of 97% shows the relationship X1, X2, and X3 on Y which is very strong. Based on the test results on the relationship between the influence of these variables, the effect can be modeled trajectories as follows: ε1

X2

t

44.094

4.459 178,083.83 4

1.046

5.375

15,736.691

0.096

0.272

-9.686 0.970 0.941

-0.215

-0.570

10.631 0.087

(Source: Secondary Data Processed)

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sig 0.00 1 0.03 3 0.81 1 0.62 6

0.096 (0.272)

-0.266 (0.611) 1.046 (0.033) X1

Y

-0.215 (0.626)

0.423 (0.403) X3

ε2

Figure 4: Model Design Research (Validity Data)

ε3

International Seminar on Scientific Issues and Trends (ISSIT) 2013

To improve the structure of the path analysis model, use the model trimming, issued a path coefficients of the exogenous variables are not significant. The new path are as follows:

MDG’s (X)

E-Government (Y)

Figure 5: Model Design Research (New Effect of Tracks)

D. Elasticity Test Result Cubic Rank 3 Then continued research to determine how much elasticity of any exogenous variables on the endogenous variables. Based on the test results of the cube cubic elasticity analysis of data obtained as follows: MDGs variable has a value of elasticity cubic cube with formula y = 4.410 + 1.240X1 – 4.736X2 + 1.481X3 + ε. The elasticity values can be interpreted that the MDGs have a variable elasticity of 4.41%. It means that any increase in the performance of E-Government by 1%, it will increase the performance of the MDGs by 4.41%. Good Governance variable has a value of elasticity cubic cube with formula y = 4.416 - 2.216X1 - 9.773X2 + 5.114X3 + ε. The elasticity values can be interpreted that good governance has a variable elasticity of 4.42%. it means that any increase in the performance of E-Government by 1%. It will increase the performance of Good Governance of 4.42%. Economic Growth Index variable has a value of elasticity cubic cube with formula y = 4.725 - 9.551X1 + 0.000X2 + 1.116X3 + ε. The elasticity values can be interpreted that the variable has an elasticity of Economic Growth Index by 4.73%. It means that any increase in the performance of EGovernment by 1%. Then the performance of the index will increase by 4.73% Economic Growth. IV. CONCLUSION Based on the above results, it can be concluded that the variables MDGs directly or indirectly and can explain the relationship and its influence on the performance of EGovernment. While the variable Good Governance and Economic Growth Index, in

one hand can not explain the significant influence, on the other hand can only explain its relation to the performance of EGovernment is weak. Government efforts to improve the performance of the E-Government to continue to do better, the performance of government information transparency, and accountability of the government support the development of E-Government. Measure the elasticity of each variable is very important to know the extent of the influence of the sensitivity of the elasticity of the variables change when certain conditions are not constant or the performance of E-Government in Indonesia. Variable elasticity MDGs, Good Governance and Economic Growth Index has a positive elasticity. That is, any changes in the elasticity of the performance of the EGovernment will affect the direction of the variables mentioned above. REFERENCES [1] Buyan, A. R. 2006. Millennium Development Goals (MDG’s): A Review of Bangladesh’s Achievements. [2] Cullen, Ronald B dan Donald Chusman. 2000. Transitions to Competitiveness Government: Speed, Consensus, and Performance. Albany- New York: State University of New York Press. [3] Dwiyanto, Agus dkk. 2003. Reformasi Tata Pemerintahan dan Otonomi Daerah. Yogyakarta: Pusat Studi Kependudukan dan Kebijakan Universitas Gajah Mada. [4] Dwiyanto, Agus dkk. 2003. Teladan dan Pantangan dalam Penyelenggaraan Pemerintahan dan Otonomi Daerah. Yogyakarta: Galang Printika. [5] Emirzon, Joni. 2006. Regulatory Driven dalam Implementasi Prinsip-prinsip Good Corporate Governance Pada perusahaan di Indonesia. Jurnal Manajemen dan Bisnis Sriwijaya. 4 (8): 92-114. [6] Endarti, Esa Wahyu. 2005. Aplikasi Prinsip Good Governance dalam Sektor Publik. Jurnal Administrasi Publik. 2 (1): 117-126. [7] Firdaus, M. dkk. 2012. Mari Bicara Fakta: Catatan Masyarakat Sipil Atas Satu Dekade Pelaksanaan MDG’s di Indonesia. Yogyakarta: Insist Press. [9] General Assembly. 2001. Report of Secretary General: Road Map Towards

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International Seminar on Scientific Issues and Trends (ISSIT) 2013

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[18] Thoha, Miftah. 2000. Peranan Ilmu Administrasi Publik dalam Mewujudkan Tata Kepemerintahan yang Baik. Makalah dalam Pembukaan Kuliah Program Pascasarjana. Yogyakarta: Universitas Gajah Mada Yogyakarta. [19] UN Department of Public Information. 2010. Press Release: UN Summit Concludes with Adoption of Global Action Plan to Achieve Development Goals by 2015, 22 September. [20] UN Department of Public Information. 2010. Press Release: United Nations Convenes World Leaders to Deliver on Anti- Poverty Commitments, 13 September. [21] www.bps.go.id [22] www.id.undp.org [23]www.jurnal-ekonomi.org (diakses pertanggal 5September 2013, pukul 4.31 wib). [24] www.mdgs-dev.bps.go.id [25] www.mdgsindonesia.org [26] www.setneg.go.id [27] www.worldbank.org [28] www.worldbank.org [29] Wyld, David C. 2004. The 3ps: The Essential Elements of a Definition of EGovernment. Journal of EGovernment. (1). The Haworth Press Inc.