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Organizational Culture Change in the Decentralization Practice: Case Study of Boyolali Local Government, Indonesia Oleh : Budiarjo Pusat Inovasi Kelembagaan dan Sumber Daya Aparatur Deputi Bidang Inovasi Administrasi Negara Lembaga Administrasi Negara Jl. Veteran 10, Jakarta 10110, Indonesia E-mail: budilan@yahoo.com
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Organizational Culture Change in the Decentralization Practice: Case Study of Boyolali Local Government, Indonesia Oleh : Budiarjo Pusat Inovasi Kelembagaan dan Sumber Daya Aparatur Deputi Bidang Inovasi Administrasi Negara Lembaga Administrasi Negara Jl. Veteran 10, Jakarta 10110, Indonesia Phone. (62-21) 3848217, E-mail: budilan@yahoo.com Abstract In Indonesia, decentralization came in one package with the democratization process. Therefore, local governments should reform their internal structures to accommodate the huge increase in responsibility and personnel that were transferred from the central government, and simultaneously, they should create their policies based on the spirit of transparency, good governance, and democracy. These dramatic changed has, theoretically, a great impact to the organizational culture of local government institutions. This study described how one of the local governments in Indonesia, i.e. Boyolali Regency changed its organizational culture to meet the demands and the changes of the decentralization practice. The purpose of this research was studying the implementation of decentralization policy in Indonesia with particularly reference to organization culture change of local government institution. 
This study found that organizational culture change, are to some extent, occurring in Boyolali local government, especially because of the change in political culture of the environment. Because of the increasing public participation and control, government institution becomes more accountable and transparent. However, some aspects of organizational culture in Boyolali local government remain the same (before the
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reforms) because they have deeply rooted relationship with Javanese culture being immune to the political system change. Keywords: Decentralization, Democratization, Organizational Culture 
A. Introduction 
What happened in Indonesian decentralization practice in 2001 was a dramatic change and actually it was not just a change, it was re-formation. World Bank in its report called Indonesian decentralization as a “Big Bang” (World Bank Report, 2003)1. Thisbig bang omens by the rapidly moving from one of the most centralized systems in the world to one of the most decentralized. The country has implement a program of fiscal, administrative, and political decentralization at the same time, thereforein the new autonomy framework; the Local Government has been given more authority and resources to manage their territory. Law 22/1999, passed in 1999 and effective-ally implemented in 2001, gave broad autonomy especially administrative and politic decentralization to the regions. Local governments had all but a few tasks that were explicitly assigned to the central government including defense, security, justice, foreign affairs, fiscal affairs, and religion. Although finally Law 22/1999 was amended and government promulgated Law 32/2004, this new law did not change dramatically the decentralization practice that had been set up by Law 22/1999, because it mainly deals with the issues of relationship between province and the local government, and the election of head of region. 
1 See World Bank report, Decentralizing Indonesia: A Regional Public Expenditure Review Overview Report, Overview Report, 2003
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In Indonesia, decentralization came in one package with the democratization process. In Suharto era, what ensured the legitimacy of the political regime was to delivered economic development (Yuri Sato, 2000), that according to Valerie Bunce (2000), it would producedan educated, attentive, and expectant public that demand inclusion and accountability. This new society that was not strong enough to push the powerful government for reform then finally has its momentum when Indonesia suffers from the economic crisis, because the government became weakened and lost its legitimacy. A massive demonstration by the student, public intellectual, professional, and blow up by mass media forcing Suharto in 1998 “surrendered” and let Habibie, his vice president, took over the leadership. This democratization process, characterized by a free election, freedom of the press, and nation-wide calls for reformasi, had also causedthe raisedof regional demands for decentralization. There was increased pressure on the central government to establish the framework of democratic political system, and to decentralize many of its functions. The demands from the regions for greater autonomy are too strong to be ignored and finally, in 1999, Habibie signed the new law of decentralization that will change the face of decentralization in Indonesia dramatically. 
Along with political reform in the national level, democracy was enforced in the Local Government practice. Public participation and public empowering were the main issues that enforced by public discourse and the ordinances. Local governments should be creating their policies based on the spirit of transparency, good governance, and democracy. Legislative body in the local government (DPRD) as a set of equipment of democracy has been empowered with more authorities
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(legislative, budget and control functions) and the separation with executive agent. Moreover, decentralization has been a catalyst for participation, as Law 22/1999 required regional governments to engage the local citizenry in local development. 
Democratization process had produced a new condition which was people more critical and demanding for transparency, and accountability of the government. A boom in civil society organizations since the reformation era2has increased the demand for participation in governmental process beyond the traditional electoral channels. Civil society organizations came in many shapes and sizes ranging from advocacy groups to budget watchdogs, to more traditional organizations such as charities, and other NGOs involved in service delivery. 
Although there were big differences between the new and the old structures of local government, personnel who ran the organization were still the same, therefore we should paid attention to this issue. More than thirty years, government institutions had and build their own organizational culture. Therewas a negative perception about bureaucracy for instance the feudalistic behavior. People of Indonesia have several perception of a feudalistic behavior3 such as bureaucracy not sensitive and responsive to the public’s need, it has a 
2 In the new order era, NGOs are always associated with the group that always oppose the government or even alleged as “foreign agent". NGO at that moment was considered asa power of government’s enemy and as a result they were oppressed by the government.On the contrary, in the reformation era when political freedom occurred, NGO considered as one part of important institution of democratization. As a result, according to Statistic Bureau, NGOs have grew from only 10.000 in 1996 becoming 70.000 in 2000 (Kompas, 2004) 3 We can find one example of this description in Sugondo’s web page, available online : http://station.mywwwserver.com/~cars/kentus/indo-feudalistic.php
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very low public accountability, weak decision making ability, and bureaucracy not serves the public instead asks for service from the public.To deal with such great transformations, the key success of organizational culture change therefore depends on how local governments identify and describe external and internal factors, and arrange appropriate policy to change their organizational culture. Problem statement As was mentioned, In Indonesia, decentralization came in one bundled with the democratization process. Therefore, local governments should reform their internal structures to accommodate the huge increase in responsibility and personnel that have been passed on from the central government, and in the same time, they should create their policies based on the spirit of transparency, good governance, and democracy. 
One challenge that local government has to deal is how to change the “old” organizational culture in the government institution that was developed almost for thirty years in the new order era4. To change organization structure, central government provides regulation and assistance but no for organizational culture change, it merely local government matter to deal with its local environment, moreover all responsibility is on local government itself because the condition of every region were different. This paper will describe how one of the local governments in Indonesia, in this case Boyolali Regency, changes its organizational culture to meet the demand and the change of the decentralization and democratization practice in Indonesia. 
4 In Indonesia, new order era represent the era of General Suharto presidency (1966 – 1998).
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B. Conceptual Review 
In order to describe organizational culture change, some concepts such as decentralization, organizational change, and organizational culture were used.Organizational change, that base on open system approach, is used to clarifying the need of government’s institution for change because of decentralization policy that was applied in Indonesia. Since it is difficult to tackle the entire system, author will only focus on organizational culture. Decentralization 
Decentralization has emerged as dominant feature of contemporary world particularly in developing countries such as Latin America, East Europe, and the former of Soviet as well as East Asia (Litvack et.al, 1998). Although East Asia’s5 decentralization has come later than in some other parts of the world, the process has gained momentum across it. From China to Cambodia to Indonesia, countries with varying in sizes, income level and political system now they are implementing decentralization policy (World Bank, 2005). These countries develop strategic approaches that fit with their country conditions, such as politics, history, and geography. Theterm "decentralization" itself embraces a variety of concepts which must be carefully analyzed. It was used by many different people to define many different things, broad spectrum from politic to administration, and economy (Peter Self in Griffith ed., 1976; Cohen and Peterson, 1999). 
5 World Bank published its study “East Asia Decentralize” in 2005, and the countries include Cambodia, China, Indonesia, Philippines, Thailand and Vietnam.
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Although it can be diverge, many writers have written about decentralization and they have shared a relatively concise definition of decentralization. Boko (2002) argued that decentralization refers to transfer of authority from a central government to sub-national entity. Moreover, Cheema, Rondinelli, and Nellis, (1983) defined decentralization as the transfer of responsibility for planning, management and resource raising and allocation from the central government and its agencies to: (a) field units of central government ministries or agencies, (b) subordinate units or levels of government, (c) semi autonomous public authorities or corporations, (d) area wide, regional or functional authorities, or (e) non- governmental, private, or voluntary organization. Therefore, decentralization in general is the transfer of authority and power in public planning, management and decision making from higher to lower levels of government or from national to sub national levels. This definition is similar with the definition of decentralization used in Indonesia. Decentralization was defined as the delegation of government authority by the Government to the regional autonomy to regulate and take care of government affairs within the system of the Unitary State of the Republic of Indonesia (Law 32/2004). Organizational Change Organizationalchange could be dividedin two characters, planned and unplanned change (Burke, 2002) or in other words, “natural” change process and managing change (Connor and Lake, 1994). In natural change process, change occurs as phenomenon and the process is natural in this sense: it starts and will progress on its own. As the contrast in the managing change, change appears as a set of actions.
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According to Burke, there are 12 factorsof organizational changethat can be divided into 2 categories: transformational factors and transactional factors (Burke, 2002). 
Figure 1. Transformational factors of organizational change (Burke, 2002) From Figure 1, mission and strategy, leadership, and culture are the transformational factors that most immediately and directly respond to external environment dynamic. The remaining factors: structure, systems, management practice, work unit climate, individual needs and value, task requirement and individual skills/abilities, and motivation in the model are the transactional factors that represent organization dimension and day-to-day operation and incremental regarding change. 
External environment 
Leadership 
Individual and organizational performance environment 
Mission and strategy 
Organizational culture
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As author mentioned in previous part, this study focused on the organizational culture change. Therefore, we will focus only in the transactional factors that contain culture and also the two others factor that have significant relation with it and will be discuss briefly: mission and strategy, and leadership. Culture and Public Administration Schreiner (2002) provided the identification of 164 different definitions of culture that will affect how people define organizational culture. In this broad meaning, culture can be define as a set of learned beliefs, values and behaviors the way of life shared by the members of a society (http://www.saa.org/) and in the widest sense, culture embraces spiritual life, values, morality, education, and political processes (Amanda Rath, 1997). Despite the fact that organizations will develop their own culture, organizations still bounded by the value system of their societies. In the context of government’s institution, Guy Peters (2001) proposed three distinct level of culture for purpose of understanding how government institution works. There are societal culture, political culture, and administrative culture that influence the conduct of public administration. The conceptual relationship among these three levels of culture can be seen in figure 2.
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Figure 2, Culture and Public Administration (Peters Guy B., 2001). General societal culture in the society will influence the behavior of individual who working within organization. Reinhard Bendix (1956) made distinction between entrepreneurial and bureaucratic societies. In the entrepreneurial societies, the style of management has tended to remain personal, and therefore, the manner of functioning of public administration appears to be more informal, and personality manner based generally on personal acquaintance and personal trust. In the contrary, in bureaucratic society, bureaucracy is a dominant form of social organization, and therefore authority and status relationship become more important in social relationship. This societal culture will be reflected in administrative culture, a general orientation of the society toward management and impersonal authority in formal organization. 
The political culture influences the relationship between political and elite of bureaucratic, and between the population and the bureaucracy. Guy Petters 
Public Administration 
Societal Culture 
Administrative Culture 
Political Culture
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(2001) attempt to classify political culture by develop four dimensions for examination of political inputs that also useful for analysis administrative aspect of government. These four dimensions are: 
1. Hierarchy and equality 
Cultural values concerning authority and impersonality of personnel and authority in the hierarchical structure of administrative structures are important for determining the acceptability of hierarchical management service. 
2. Liberty and coercion 
It is about political control and stability of democratic society. Control and stability may depend upon the degree of value consensus among the enforcers of those rules and the majority of citizens. Often the bureaucracy should decide the limits of liberty of expression and social action and also determine how much coercion is acceptable in enforcing decisions or policy. 
3. Loyalty and commitment 
It refers mainly to terminal community to which individual gives his or her ultimate loyalty. Loyalties for language, religion, caste, or ethnic group can diminish individual commitment to the national political system and therefore produce potential for political unrest and instability. 
4. Trust and distrust 
The last aspect of political culture is the level of trust and distrust among the population that contain two different components. First, trust in individual as opposed to personal cynicism, a degree to which individual in the society
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believe that others outside their immediate family can be trusted, or at least are not actively an enemy. Second, trust in government and political institutions, a degree to which individual believes that government’s institutions are worthy of trust. Organizational culture Talking about organizational culture, people agree that it exists and is important but sometimes people have completely different ideas of what it is, there is no consensus about exactly what the term means (Schein, 1985; Tepeci, 2001). However, considerable agreement and overlap do exist. There are some common ideas from several scholars regarding the key elements and dimensions of organizational culture, including shared meanings, norms, values and beliefs (Denison, 1996; Hodge and Anthony, 1988; Schein, 1985). Jones (1995) defined organizational culture as set of shared values that control organizational member's interactions with each other and with suppliers, customers and other people outside the organization. In addition, one prominent researcher in the organizational culture studies, Schein (1985) define organizational culture as a pattern of basic assumption - invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration - that has worked well enough to be considered valid and, therefore, to be thought to new members as the correct way to perceive, think, and feel in relation to those problems. 
This concept of organizational culture refers to the stated values of an organization, implying that culture is something that exists at a conscious level and can be deliberately transformed by leader. Those theories shows that
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organizational culture can be seen easily from daily activity but actually is a complex and deep aspect of organization that support or impact organization’s members strongly in the way to do their job and communicate with their peers, superiors and subsidiaries In order to reveals the culture, Schein (1985) described three essential levels of culture at which culture reveals itself. 
Figure 3, Level of Culture and Their Interaction (Schein, 1987) 
Figure 3 shows the difference of each level of cultures and the way they correlate and give impact to each other. The model explain that in order to understand visible items one should relate items to organization’s values that guide organization member to create their artifacts. Moreover, to understand values one should relate values to organization’s assumptions. Basic underlying assumption leads organization to create value. 
Values 
Testable in the physical environment 
Testable only by social consensus 
Basic Underlying 
Relationship to environment 
Nature of reality, time, and space 
Nature of human nature 
Nature of human activity 
Nature of human relationship 
Artifacs and creation 
Technology 
Art 
Visible and audible behavior pattern 
Visible but often not decipherable 
Greater levels of awareness 
Taken from granted 
Invisible 
Preconscious
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C. Implication of The New Policyto the Organizational Culture 
As mention, although organizations developed their own culture; they still bounded by the value system of their societies and Guy Peters (2001) proposed three distinct level of culture for purpose of understanding how government institution works. This part mainly discussed about societal culture, political culture, and administrative culture in Indonesia and also organization culture in new order regime era before the new policy of decentralization and democratization were implemented. 
Actually it is difficult to define Indonesian culture because of the diverse of religion, ethnic, language, and tradition of the people6. Every ethnic have their own culture and even in one ethnic the culture can be vary, for example there many types of wayang7 and batik8 because each region has its own style of wayang and batik. Moreover they also develop their own music and theatre, the visual arts, poetry and literature. Therefore, the description about Indonesian culture will be more in general and was influenced by Javanese culture since the majority of Indonesian people are Javanese. 
In the societal culture and administrative culture, refer to the terminology of entrepreneurial and bureaucratic society, characteristic of these two societies do exist in Indonesian culture. For example in the decision making trough personal 
6We can see in the republic’s motto, Bhineka Tunggal Ika (unity in diversity) as a national symbol of Indonesia's multi-cultural population. 7Wayangis Indonesia’s famous shadow puppet theatre which combines Indian epic tales with indigenous mythology. 8Indonesia also developed some of the richest textile traditions in the world, the best known of which is batik
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bargaining and negotiation in public administration, it is common if people ask for something that actually, according to the rule or procedure, is not allowed9. Because of rational or irrational reason10, people cannot fulfill the requirement a kind of service but they still ask for the service to the officer. This condition pushes the officer to choose, follow the rule or think about human consideration, and in many case it caused bribe phenomenon emerged in Indonesian bureaucracy. 
Moreover, traditionally Indonesia has concepts of "gotong royong11" (mutual assistance) that derived from rural way of life and is still very much in use in community life throughout the country not only in informal community but also in formal community such as civil service organizations and private sector companies. Bowen (1986) argued that gotong royong become the key element of political and social system. The term actually was derived from Javanese expression of “several people carrying something together”. The philosophy of gotong royong reflects that Indonesian people, disregarding their ethnic group, uphold cooperatives and collective life as the most important element. 
9It is common if people ask the officer for kebijaksanaan, literally mean is wisdom but in this context, this means: it is out of the standard procedure. 10Perhaps it is difficult to imagine in others advanced country, in several region of Indonesia, people need two or three days to travel to the government office to get the service and in another case, people don’t have money and therefore they pay for the health service with sweet potato or banana. Moreover when they need the service butbecause some reasons they can’t fulfill the service requirement,therefore the want special treatment. 11There is another expression for gotong royong, in java some people use term gugur gunung.
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In term of bureaucratic society, there is a relation between government and the people that was derived from Javanese values: kawulo and gusti, literary meaning is the relation between follower and the ruler. In this value, social interaction base on the social status of authority. Kawulo should give respect, obey, and follow the gusti’s order because the leader’s power and authority is a blessing from the god; on the other hand, gusti should give protection and regulate kawulo wisely. Thus the ideal relationship in this value is manunggaling kawula lan gusti12, means the unification of the follower and the leader. When the leader and the follower become one entity, they actingand running function as according to its position and therefore there is no conflict in the society. 
This Javanese value than was adopted, with intention or unintentionally, by New Order regime (1966- 1998) by put the government (bureaucracy) as gusti and the people as kawulo, in other words, government is the patron and people is the client. Then, the long history of new order regime under President Soeharto13 has falsely interpreted their function. Instead of serve the people, bureaucracy became super power and dictating people what they want to do, they know 
12This value actually derives from IslamicSufism"Manunggaling kawulo Gusti", manunggal means unity; kawulo means servant, human beings; Gusti means God. So, manunggaling kawulo Gusti means "The spiritual unity of the man and God, the creature and creator". Everything could be happened by the wish of God Almighty. 13Suharto is a Javanese and he adopts many Javanese value and term in Indonesian politic in his presidency. He published his book: Butir-butir Budaya Jawa (Javanese Cultural Items), edited by his daughter Siti Hardiyanti Indra Rukmana (Tutut). This book was criticized by Hersri Setiawan:$uharto Orang Jawa yang 'Ora Jawa, available online: http://www.listserv.dfn.de/cgi- bin/wa?A2=ind9808d&L=indonews&O=D&F=&S=&P=31108
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everything and much more smart than the people, therefore they create a program that sometimes actually are not needed by the people. 
In the political culture, New Order regime was characterized by centralized and authoritarian government. Indoctrination in ideology became a powerful social control andwe can saw it, for instance in how government forcing all of party and other social organization to adopt Pancasila14 as one and the only ideology. Indoctrination was done by repression mechanism that frightened people to behave different from what it was stated by authority’s instruction. The repression forms in many ways and in all sectors such as education, and professions. Bureaucracy was used by the regime as a tool of political control and stability. Therefore, often the bureaucracy limiting the liberty of expression and social action, and also it use coercion to enforcing decisions or policy. Then, bureaucracy becomes a powerful machine with absolute power. This make bureaucracy misusing authority, corruption and collusion appear and become phenomena and therefore trust from the people become less and less. Indonesia is being heavily corrupted by its own people, and notably by its own leaders. 
14 Pancasila (panca means five, sila means principles) is the five basis ideology of the Republic of Indonesia which comprises five inseparable and interrelated principles. They are Belief in the One and Only God, Justice and Civilized Humanity, The Unity of Indonesia, Democracy Guided by the Inner Wisdom in the Unanimity Arising out of Deliberations Amongst Representatives, and Social Justice for the Whole of the People of Indonesia.
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Change in the Political culture There are some implications of democratization and decentralization process to the political culture of Indonesia. These processes changeddramatically the paradigm of political life as a whole. 
1. Political liberalization 
The first and the most foremost condition of establishing democratization is the guarantee of freedom for speech, and freedom for association. Habibie, soon after he takes over the presidency, making decision to allow the people to regain their freedom for speech and association. He abolish the power of ministry of information to license newspaper, magazines and other publication that in the previous time, the license use by the government to control the mass media. The freedom of association, one of the examples is the announcement the policy of liberalization of political party formation and as the result, in January 1999, more than 200 new political parties report their establishment to the ministry of home affair. 
2. Institutionalization of political competition and participation 
In 1998 government submitted bills to the parliament (DPR) for revision of three political bills: the law on political parties and Golkar, the law on general election and the law on the composition of people representative assembly (MPR), parliament (DPR) and local parliament (DPRD). The new law on political parties allows the new parties, after they fulfill the requirements, participate in the general election. The law of political party is also guarantee
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the bureaucracy, police, and military neutrality and therefore, there is no obligation anymore to choose and treat one of political party exclusively. 
3. Institutionalization of power relationship 
The constitution amendments create the new institutional relationship. The first is elimination of the power of MPR, MPR is not the supreme power instead only the joint session of DPR and region’s representative (DPD), the new institution that establish by the amendment. Moreover, the amendments reduce the power of president and empowering the DPR as legislative body. 
4. Combating corruption, collusion, and nepotism 
People become more critical and demanding for transparency, and accountability of the government. Therefore, the fundamental part of the reformation program in Indonesia is how establishing good governance to supports economic and social progress. The program requires comprehensive performance accountability as the one of some important elements of good government.The Indonesia governance then implemented government reformation since 1998 to build a clean government and eliminating corruption which are the hottest issue in the reformation. 
Decentralization practice is fertile ground for democratization to grow in region. Decentralization make the democratization spread not only in Jakarta but also in every region in Indonesia. Law 32/2004 bringing several implications to the democratization process in region. According to this law, in running their autonomy, regions must promote democracy (article 22) and also, it was reflected in the obligations of head and deputy regional head when they perform their duties and authorities. Regional head has obligations such as to promote
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democracy; carry out the principles of clean and good governance; and implement and be accountable for the regional finance management. Moreover according to this law, The Regional House of Representatives (DPRD) has significant role to ensure democratization and governmental process run as the hope of the people. The main roles of DPRD are drafting the laws, preparing the regional budget and conducting supervision which have big effect in control the way government institution manage the region. The new suitable culture The change in the political culture of Indonesia raises the demand of new culture in the bureaucracy. In other words, government institutions should change their organizational culture to meet the demand from the environment. Base on previous description about implication of democratization and decentralization, author identified several issues that related with organizational culture of local government institutions. Concerning hierarchy and equality in public administration, especially the means of recruitment into administrative position, open and transparent procedure of recruitment are required. It is also related with how the leader manages the new organization since the officer come from various organizations (local and central government officer). 
Concerning liberty and coercion, the era was changed therefore the role of government in political control and stability of democratic become less. Although there still need limitation of liberty of expression and social action the uses of coercion should be minimize. In the loyalty and commitment, bureaucracy neutrality should be protected and the only legitimate commitment is serve the
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public appropriately. In order to run democratic system smoothly, the new system of politic need high level of trust. With the long history of low level trust from the public, government institution should work hard to gain the trust. Therefore, the culture of transparency and accountability should be maintained along with the strong law enforcement. 
D. Organizational Culture Change in Boyolali Local Government 
Located in mountainside of Merapi and Merbabu, Boyolali Regency is one of the 35 regency/city in Central Java Province.Boyolali was divided into 19 sub-districts with a high potency in agriculture commodities such as rice, papaya, and tobacco. Moreover, dairy cannot be disassociated from Boyolali identity.In year 2001 dairy contribution wasRp 425.25 billion and the population of Oxenin year 2002 are 60,205, represent the biggest population of oxen in Central Java. Recently,the dairy cattle breeder in Boyolali could produce 92,960 liters of milk a day. Organizational Culture in Boyolali Local Government Boyolali in the Dutch colonialism era is part of Surakarta Kingdom, one of main Javanese cultural center be side Yogyakarta Kingdom. Therefore, Javanese culture has an effect deeply on the way of thinking and behavior of the people. How Javanese culture affect organizational culture in Boyolali local government can be described briefly as below: 
1. As mention earlier, Javanese has concepts of "gotong royong" (mutual assistance) that is still very much in use in community life not only in informal community but also in formal community like Boyolali local government organization. The philosophy of gotong royong reflects that people should uphold cooperatives and collective life as the most important element in the
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social interaction. They help each other voluntarily by giving assistance, money or other materials. For instance, author saw how one officer assist her officemate when there were too many people in queued. She asked what kind documents was required for apply the service and then she quickly checked it. Moreover, it is also common, they collect money and call it urunan if the money was collected for buy something and call it sumbangan when they use the collected money to donate their friend for instance for funeral ceremony. 
2. Another value is tengggang rasa, a kind of tolerance behavior when others do something that we do not like because, for example, it is unpleasant, or disturbance. We can find this value in occurs for instance in the straightening of officer’s discipline. Although there is a government regulation No. 30/1980 on discipline of government officer that regulate how sanctions15, step by step are gave to the undisciplined officer, local civil agency (BKD) usually does not implement this regulation immediately to the officer. They will ask the officer if they have problem so they can help him or her to solve it. If there is no behavior change, BKD will punish the officer base on the rule. In year 2005, 7 officers were punished by delay their promotion. 
3. The using of symbols, colors, and old Javanese words (sengkalan) in the regency logo. 
4. The using of batik as uniform, 
Uniform is one system to be a sign of member identity of organization. There are four kinds of uniforms used by Boyolali local government officers, a pairs of light brown (kaki) shirt and trousers that called pakaian dinas harian (daily 
15There are several sanctions includes oral and written warning, delay promotion and discharged.
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clothes on duty) and be dressed in on Monday and Tuesday, a pairs of light green shirt and trousers that called pakaian hansip16 and be dressed in on Wednesday and Thursday, and because all government officers are member of Korpri, they have Korpri’s uniform for special ceremony.On Friday, known as krida17 day (hari krida), they have sports activity and therefore they wear sport clothe in the morning and then change with batik cloth. Batik cloth is also wear on Saturday. One officer informed how these uniforms, especially pakian dinas harian, affect their life; uniform of government officers in the reality bring the major effect which hence their pertinent even for newly honorable candidate government officers. It able to lift their degree in social structure from ordinary people to becoming somebody that closes to the power circle. Therefore people who dress in the uniform get the special social place. They were respected, and especially for the bachelor many people want them to become their daughter/son in law. 
5. The using of Javanese language 
Officially Indonesian language (bahasa Indonesia) is official language in the governmental process in Indonesia but in case of Boyolali, since almost all of the people are Javanese, the uses of Javanese language is frequent. Sometimes 
16Hansip (Pertahanan Sipil – Civilian Defense) is security organization under government control through the village, and sub-districts. Hansip are under the Department of Home Affairs rather than TNI (Indonesian Military), but TNI provides training for them. Hansip platoons are established in each village, the members of which come from the village community such as farmers, laborers and others. Organically Hansip is under the supervision of the district head and the governor of the province. 17Krida is physical activity (as opposed to office, school work)
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they mix Javanese and Indonesian language in their conversation or use Javanese words or idioms when they speak Indonesian language. 
6. Office layout 
Social interaction base on the social status of authority that reflected in the values: kawulo and gusti can be seen in the office layout of Boyolali local government. The leaders18 have special status, they work in separate room with their staff which is have different facilities such as television, computer, conference room, toilet, and special phone line depend on their levels in the hierarchy. In contrast, staffs works together in an open space room (without partition) and use the facilities together. Organizational Culture Change As it is a general phenomenon in Indonesia after the reformation era, Boyolali local government aware to the change and percept that change is an obligation and therefore, they don’t have choices. They should compromise with the demand from the people and moreover they should comply with central government regulation such as Government Regulation No. 8/2006 concerning report of budget and government institution performance; and President Instruction No. 7/1999 regarding accountability report of performance of government institution. 
18There are four level of leader in Indonesian bureaucracy system (echelon) from echelon 1 to echelon 4. According to Government Regulation 8/2003 on Guidelines of Local Government Organization, the highest echelon in the regency is Sekda (echelon 2a) and the lowest is leader of sub unit (echelon 4). These leaders work separate with their staff, but in case of limited room occurs, the echelon 4 could work in the same room with their staff. Although work in the same room, they still have privileges than their staff such as different type of table and chair, personal computer, and phone line.
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The change in the political culture of Indonesia raises the demand of new culture in the bureaucracy. In New Order regime, in Boyolali likewise the other regions, government officers were controlled tightly to ensure high conformity in the direction of authorities and to reduce critics and disagreement. For promotion purposes, they should show how they loyal and winning Golkar in the general election by urge their family and neighbors to voted Golkar. In the reformation era, the process of recruitment into administrative position and also recruitment for the new officer become more open and transparent. For example, BKD and Sekda base on competency test, held fit and proper test in the recruitment into administrative position. All government officers who fulfill administrative (grade) and competency requirement, disregarding their previous status (local or formerly central government officer) have the same opportunity to appoint for administrative position. In the peaceful condition of Boyolali, the government saw the increasing of public participation. There are several NGOs in Boyolali, and they had significant role in the process of people empowerment and participation. Regarding public participation, we can note here the award that had received by Forum Rakyat Boyolali (Forum of Boyolali People). Forabi get the Participatory Awardfrom Home Affairs Department and USAID after defeated 79 citizen forum from eight provinces (www.suaramerdeka.com). 
Increasing public participation and control was supported by the increasing of local and national mass media such as newspaper, radio and television in Boyolali and other neighbor regency and city such as Semarang, Surakarta and Sukoharjo that also cover Boyolali in their service. These mass media and also national
26 
television and newspaper, they have representative or reporter19 in Boyolali regency. As government sees these media as partner in the democratization process, they have a good mutualism relationship. These media can be use as tool for communication between government and the people. 
This increasing in public participation is accompanied with the increasing of public control and public demand for better services. From budgeting process, recruitment process of new officer, public services, traditional market renovation, to the new organizational arrangement20, all were monitored by the public and the DPRD. Government officer have to more accountable and discipline in running their task. Nowadays, it became more difficult to make corruption, collusion, and nepotism that appeared in the previous time because the public control and the law enforcement21. 
In the loyalty and commitment, bureaucracy neutrality should be protected and the only legitimate commitment is serve the public appropriately. In order to run democratic system smoothly, the new system of politic need high level of trust. With the long history of low level trust from the public, government institution should work hard to gain the trust. Therefore, the culture of transparency and accountability should be maintained along with the strong law enforcement. 
19There is an association of journalist in Boyolali (Forum Komunikasi Wartawan Boyolali or Boyolali’s Journalist communication Forum). The members are the representative or reporter of mass media that operate or cover Boyolali in their service. 20There are many reportages related to these issues, for further informations see http://www.solopos.net/ 21Recently the former Bupati and the former head of DPRD were prosecuted because of corruption. They were accused for corrupt the budget of 2004 local budget that equal to 3.325 billion rupiah (Indonesian currency).
1 
Moreover, there are some policies developed by the government such as formulate the vision and mission of regency as a guidance, hope and fundamental value of the government and the citizens. These vision and mission formalized in region regulation as part of regency’s strategic plan. The vision of Boyolali Regency is: the existing of secure and prosperous society of Boyolali, self- supporting, and competitive base on agriculture, industrial and tourism 
All of the government institutions of Boyolali Regency should create their own vision and mission base on the regency’s vision and mission, and their core function. Base on their vision mission, they should make long term and short term planning. Moreover, they should make progress report monthly and yearly so the head of region can evaluate their performance. Sekda gathers the reports from all of unit organizations and base on this report, they make accountability report of the head of regency (Bupati) to the DPRD and central government. Yearly the DPRD assesses performance and accountability report of Bupati and local government organization. Moreover, Local Inspector Agency periodically conducts inspection or investigating the public report of authority abuse of government officer in a project22. 
To improve and maintain the quality of public services, government integrated all of services in one place. There is one stop service under the office of integrated service. All information related to service, such as the requirement, cost, time, and procedure were displayed therefore, people well inform about the service. Moreover, for efficiency reason, some public services were delegated to sub- 
22Recently the local inspector agency investigated the project of SemadohBridge in sub district Musuk. According to the DPRD, the officer in this project had broken the bestek (specification of construction).
28 
district and village levels. According to one officer, this policy is also to tackle the bribes issue in public services that occurs in the new order era. 
To improve apparatus ability and discipline, local civil service agency develop training and development program. It is include bounce development through religion approach. Moreover there are morning and afternoon meeting (in Indonesia we call it apel) which is officers should attend monitoring meeting both in morning and afternoon before they start their task and before they go home. If they twice absence without confirmation, they will get punishment. It is important to note how the assistant of Sekda (functionary of echelon 2b) and also some camats (the head of Kecamatan) that also get the punishment by Polisi Pamong Praja23, a rare case in the previous era24, because they came late to the apel. It is one effect of reformation, the officer in charges enforce the law disregarding their position in the bureaucracy. 
E. Conclusion 
There are some implications of democratization and decentralization process to the political culture of Indonesia. There are: 
1. Concerning hierarchy and equality in public administration, especially the means of recruitment into administrative position, open and transparent procedure of recruitment are required. 
23Polisi Pamong Praja or Police of Pamong Praja is part of local government organ that have duty to looking after and carrying out public orderliness and pacification and also uphold the local regulation. 24It was common in the new order era, law enforcement will be applied strictly by the officer in charge only for the staff that in fact they weak and powerless and for the leader they get privilege“to break the rule”.
1 
2. Concerning liberty and coercion, the era was changed therefore the role of government in political control and stability of democratic become more less. Although there still need limitation of liberty of expression and social action the uses of coercion should be minimize. Public participation is the key for the better governmental system. 
3. In the loyalty and commitment, bureaucracy neutrality should be protected and the only legitimate commitment is serve the public appropriately. 
4. In order to run democratic system smoothly, the new system of politic need high level of trust. With the long history of low level trust from the public, government institution should work hard to grow the trust. Therefore, the culture of transparency and accountability should be maintained along with the strong law enforcement. 
Boyolali, as part of Republic of Indonesia, the government aware about the change and percept the change as an obligation and therefore they don’t have choices; they have to compromise with the demand from the people and also from the central government. There are several government regulation regarding good governance and accountability that should be followed by Boyolali local government 
Therefore, some policies was developed by the government such as formulate the vision and mission of regency as a guidance, hope and fundamental value of the government and the citizens; improve and maintain the quality of public services by integrated all of services in one place and delegated some public services to sub-district and village levels; improve apparatus ability and discipline; develop
30 
open and transparent procedure of recruitment base on competency; and develop public hearing mechanism. Organizational culture changes for some extent are occurring in Boyolali local government, especially because of the change in political culture of the environment. Because of the increasing public participation and control, government institution becomes more accountable and transparent. However, some aspects of organizational culture in Boyolali local government still remain as the previous condition (before the reformation era) because it has deep root relation with Javanese culture that not affected by the political system change. The literature review explains the positive relation between organizational culture and organization performance that means organizational culture is important element to achieve high performance. In case of Boyolali, even the organizational culture change smoothly, the government pays less attention to the systematic approach of organizational culture. Organizational culture was treated as natural thing that can run well without systematic approach. Therefore, in order to have effective organizational culture that fit with challenges, the government should this systematic approach. By knowing organizational culture in the government institution of Boyolali Regency it will help the leader has accurate figure of its organization weaknesses and problems. Accurate understanding of organizational culture and expectations allows the management to make right decision to improve their organization
1 
F. References 
Bendix, Reinhard (1956), Work and authority in industry: ideologies of management in the course of industrialization, Wiley, New York. Boko, Sylvain H., (2002), Decentralization and Reform in Africa, Kluwer Academic Publisher, Massachusseth,. Bowen, J.R. (1986), “On the Political Construction of Tradition: Gotong Royong in Indonesia”, The Journal of Asian Studies, Vol. 45, No. 3, 545-561 Boyolali Local Government (2004), Kabupaten Boyolali Dalam Angka, Bappeda – BPS, Boyolali, Burke, W. Warner, (2002), Organization Change: Theory and Practice, Sage Publications, Inc., California. Cheema, G.S., Rondinelli, D.A., Nellis, J.R. (1983), Decentralization in Developing Countries: A Review of Recent Experience, World Bank Staff Working Papers, No. 581, World Bank, Washington D.C. Cohen, John M., and Peterson, Stephen B., (1999), Administrative Decentralization: Strategies for developing Country, Kumarian Press, Inc., Connnecticut. Connor, Patrick E and Linda K., (1994), Managing Organizational Change, Praeger Publisher, Westport. Gareth R. Jones (1995), Organizational Theory: Text and Cases, Addison-Wesley Publishing Company, Texas, Geertz, Clifford, (1964), The religion of Java, Free Press, Glencoe, Ill. 
Hersri Setiawan, $uharto Orang Jawa yang Ora Jawa, available online: http://www.listserv.dfn.de/cgi- bin/wa?A2=ind9808d&L=indonews&O=D&F=&S=&P=31108, 1998.
32 
Hodge B.J., and Anthony William P., (1988), Organization Theory: third edition, Allyn and Bacon Inc., Massachusetts. Hull, Terence H., (1999), Striking a Most Delicate Balance: The Implications of Otonomi Daerah for the Planning and Implementation of Development Cooperation Projects, Final report, Demography Program, RSSS, ANU. Jennie Litvact, Junaid Ahmad, Richard Bird, (1998), Rethinking Decentralization in Developing Country, World Bank. 
Kompas (Indonesian newspaper), LSM sebagai Kekuatan Sosial Baru, April 2004. available online: http://www.kompas.co.id/kompas- cetak/0404/17/pustaka/972516.htm Peters Guy B., (2001), The Politics of Bureaucracy: fifth edition, Routledge, London. Rath,Amanda, (1997), Cultural Sublimation: The Museumizing of Indonesia, Paper, available online: http://www2.hawaii.edu/~seassa/explorations/v1n1/art2/v1n1- art2.html Schein, Edgar H., (1985), Organizational Culture and Leadership: A Dynamic View, Jossey-Bass Inc., California. SchreinerMelanie, (2002), The Influence of Organizational Culture on Alliance Competence and Performance: A Framework Concept, paper, available online: http://www.item.unisg.ch/org/item/inets.nsf/SysWebRessources/AOMPaper_2002/$FILE/PaperAOM2002_AllianceCompetence.pdf.
1 
Self, P. Rational decentralization in Griffith J.A.G., ed., (1976), From policy to Administration: Essay in Honor of William A. Robson, George Allen & Unwin LTD., London. Tepeci Mustafa, (2001), The Effect of Personal Values, Organizational Culture, and Person Organization Fit on Individual Outcomes In The Restaurant Industry, Thesis, The Pennsylvania State University. The World Bank, (2005), East Asia Decentralize: Making Local Government Work, Washington. World Bank report, Decentralizing Indonesia: A Regional Public Expenditure Review Overview Report, Overview Report, 2003 Regulations: Indonesia’s 1945 Constitution . Law 22/1999 on Local Government. Law 32/2004 on Local Government Boyolali Regional Regulation No. 1 to No. 6/2001 on Structural Organization of Boyolali Local Government. Government Regulation No. 8/2006 on report of budget and government institution’s performance; President Instruction No. 7/1999 on accountability report of performance of government institution.
34 
Newspapers: Kompas (Indonesian Language) Koran Tempo (Indonesian Language) Sinar Harapan (Indonesian Language) Suara Merdeka (Indonesian Language) Solo Pos (Indonesian Language) Wawasan (Indonesian Language) The Jakarta Post Useful website: 
http://www.jawapalace.org 
http://boyolali.go.id/ 
http://www.solopos.net/ 
http://www.ri.go.id/produk_uu/datar_isi-2.htm

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Organizational culture change in the decentralization practice boyolali budiarjo

  • 1. 1 Organizational Culture Change in the Decentralization Practice: Case Study of Boyolali Local Government, Indonesia Oleh : Budiarjo Pusat Inovasi Kelembagaan dan Sumber Daya Aparatur Deputi Bidang Inovasi Administrasi Negara Lembaga Administrasi Negara Jl. Veteran 10, Jakarta 10110, Indonesia E-mail: budilan@yahoo.com
  • 2. 1 Organizational Culture Change in the Decentralization Practice: Case Study of Boyolali Local Government, Indonesia Oleh : Budiarjo Pusat Inovasi Kelembagaan dan Sumber Daya Aparatur Deputi Bidang Inovasi Administrasi Negara Lembaga Administrasi Negara Jl. Veteran 10, Jakarta 10110, Indonesia Phone. (62-21) 3848217, E-mail: budilan@yahoo.com Abstract In Indonesia, decentralization came in one package with the democratization process. Therefore, local governments should reform their internal structures to accommodate the huge increase in responsibility and personnel that were transferred from the central government, and simultaneously, they should create their policies based on the spirit of transparency, good governance, and democracy. These dramatic changed has, theoretically, a great impact to the organizational culture of local government institutions. This study described how one of the local governments in Indonesia, i.e. Boyolali Regency changed its organizational culture to meet the demands and the changes of the decentralization practice. The purpose of this research was studying the implementation of decentralization policy in Indonesia with particularly reference to organization culture change of local government institution. This study found that organizational culture change, are to some extent, occurring in Boyolali local government, especially because of the change in political culture of the environment. Because of the increasing public participation and control, government institution becomes more accountable and transparent. However, some aspects of organizational culture in Boyolali local government remain the same (before the
  • 3. 2 reforms) because they have deeply rooted relationship with Javanese culture being immune to the political system change. Keywords: Decentralization, Democratization, Organizational Culture A. Introduction What happened in Indonesian decentralization practice in 2001 was a dramatic change and actually it was not just a change, it was re-formation. World Bank in its report called Indonesian decentralization as a “Big Bang” (World Bank Report, 2003)1. Thisbig bang omens by the rapidly moving from one of the most centralized systems in the world to one of the most decentralized. The country has implement a program of fiscal, administrative, and political decentralization at the same time, thereforein the new autonomy framework; the Local Government has been given more authority and resources to manage their territory. Law 22/1999, passed in 1999 and effective-ally implemented in 2001, gave broad autonomy especially administrative and politic decentralization to the regions. Local governments had all but a few tasks that were explicitly assigned to the central government including defense, security, justice, foreign affairs, fiscal affairs, and religion. Although finally Law 22/1999 was amended and government promulgated Law 32/2004, this new law did not change dramatically the decentralization practice that had been set up by Law 22/1999, because it mainly deals with the issues of relationship between province and the local government, and the election of head of region. 1 See World Bank report, Decentralizing Indonesia: A Regional Public Expenditure Review Overview Report, Overview Report, 2003
  • 4. 1 In Indonesia, decentralization came in one package with the democratization process. In Suharto era, what ensured the legitimacy of the political regime was to delivered economic development (Yuri Sato, 2000), that according to Valerie Bunce (2000), it would producedan educated, attentive, and expectant public that demand inclusion and accountability. This new society that was not strong enough to push the powerful government for reform then finally has its momentum when Indonesia suffers from the economic crisis, because the government became weakened and lost its legitimacy. A massive demonstration by the student, public intellectual, professional, and blow up by mass media forcing Suharto in 1998 “surrendered” and let Habibie, his vice president, took over the leadership. This democratization process, characterized by a free election, freedom of the press, and nation-wide calls for reformasi, had also causedthe raisedof regional demands for decentralization. There was increased pressure on the central government to establish the framework of democratic political system, and to decentralize many of its functions. The demands from the regions for greater autonomy are too strong to be ignored and finally, in 1999, Habibie signed the new law of decentralization that will change the face of decentralization in Indonesia dramatically. Along with political reform in the national level, democracy was enforced in the Local Government practice. Public participation and public empowering were the main issues that enforced by public discourse and the ordinances. Local governments should be creating their policies based on the spirit of transparency, good governance, and democracy. Legislative body in the local government (DPRD) as a set of equipment of democracy has been empowered with more authorities
  • 5. 4 (legislative, budget and control functions) and the separation with executive agent. Moreover, decentralization has been a catalyst for participation, as Law 22/1999 required regional governments to engage the local citizenry in local development. Democratization process had produced a new condition which was people more critical and demanding for transparency, and accountability of the government. A boom in civil society organizations since the reformation era2has increased the demand for participation in governmental process beyond the traditional electoral channels. Civil society organizations came in many shapes and sizes ranging from advocacy groups to budget watchdogs, to more traditional organizations such as charities, and other NGOs involved in service delivery. Although there were big differences between the new and the old structures of local government, personnel who ran the organization were still the same, therefore we should paid attention to this issue. More than thirty years, government institutions had and build their own organizational culture. Therewas a negative perception about bureaucracy for instance the feudalistic behavior. People of Indonesia have several perception of a feudalistic behavior3 such as bureaucracy not sensitive and responsive to the public’s need, it has a 2 In the new order era, NGOs are always associated with the group that always oppose the government or even alleged as “foreign agent". NGO at that moment was considered asa power of government’s enemy and as a result they were oppressed by the government.On the contrary, in the reformation era when political freedom occurred, NGO considered as one part of important institution of democratization. As a result, according to Statistic Bureau, NGOs have grew from only 10.000 in 1996 becoming 70.000 in 2000 (Kompas, 2004) 3 We can find one example of this description in Sugondo’s web page, available online : http://station.mywwwserver.com/~cars/kentus/indo-feudalistic.php
  • 6. 1 very low public accountability, weak decision making ability, and bureaucracy not serves the public instead asks for service from the public.To deal with such great transformations, the key success of organizational culture change therefore depends on how local governments identify and describe external and internal factors, and arrange appropriate policy to change their organizational culture. Problem statement As was mentioned, In Indonesia, decentralization came in one bundled with the democratization process. Therefore, local governments should reform their internal structures to accommodate the huge increase in responsibility and personnel that have been passed on from the central government, and in the same time, they should create their policies based on the spirit of transparency, good governance, and democracy. One challenge that local government has to deal is how to change the “old” organizational culture in the government institution that was developed almost for thirty years in the new order era4. To change organization structure, central government provides regulation and assistance but no for organizational culture change, it merely local government matter to deal with its local environment, moreover all responsibility is on local government itself because the condition of every region were different. This paper will describe how one of the local governments in Indonesia, in this case Boyolali Regency, changes its organizational culture to meet the demand and the change of the decentralization and democratization practice in Indonesia. 4 In Indonesia, new order era represent the era of General Suharto presidency (1966 – 1998).
  • 7. 6 B. Conceptual Review In order to describe organizational culture change, some concepts such as decentralization, organizational change, and organizational culture were used.Organizational change, that base on open system approach, is used to clarifying the need of government’s institution for change because of decentralization policy that was applied in Indonesia. Since it is difficult to tackle the entire system, author will only focus on organizational culture. Decentralization Decentralization has emerged as dominant feature of contemporary world particularly in developing countries such as Latin America, East Europe, and the former of Soviet as well as East Asia (Litvack et.al, 1998). Although East Asia’s5 decentralization has come later than in some other parts of the world, the process has gained momentum across it. From China to Cambodia to Indonesia, countries with varying in sizes, income level and political system now they are implementing decentralization policy (World Bank, 2005). These countries develop strategic approaches that fit with their country conditions, such as politics, history, and geography. Theterm "decentralization" itself embraces a variety of concepts which must be carefully analyzed. It was used by many different people to define many different things, broad spectrum from politic to administration, and economy (Peter Self in Griffith ed., 1976; Cohen and Peterson, 1999). 5 World Bank published its study “East Asia Decentralize” in 2005, and the countries include Cambodia, China, Indonesia, Philippines, Thailand and Vietnam.
  • 8. 1 Although it can be diverge, many writers have written about decentralization and they have shared a relatively concise definition of decentralization. Boko (2002) argued that decentralization refers to transfer of authority from a central government to sub-national entity. Moreover, Cheema, Rondinelli, and Nellis, (1983) defined decentralization as the transfer of responsibility for planning, management and resource raising and allocation from the central government and its agencies to: (a) field units of central government ministries or agencies, (b) subordinate units or levels of government, (c) semi autonomous public authorities or corporations, (d) area wide, regional or functional authorities, or (e) non- governmental, private, or voluntary organization. Therefore, decentralization in general is the transfer of authority and power in public planning, management and decision making from higher to lower levels of government or from national to sub national levels. This definition is similar with the definition of decentralization used in Indonesia. Decentralization was defined as the delegation of government authority by the Government to the regional autonomy to regulate and take care of government affairs within the system of the Unitary State of the Republic of Indonesia (Law 32/2004). Organizational Change Organizationalchange could be dividedin two characters, planned and unplanned change (Burke, 2002) or in other words, “natural” change process and managing change (Connor and Lake, 1994). In natural change process, change occurs as phenomenon and the process is natural in this sense: it starts and will progress on its own. As the contrast in the managing change, change appears as a set of actions.
  • 9. 8 According to Burke, there are 12 factorsof organizational changethat can be divided into 2 categories: transformational factors and transactional factors (Burke, 2002). Figure 1. Transformational factors of organizational change (Burke, 2002) From Figure 1, mission and strategy, leadership, and culture are the transformational factors that most immediately and directly respond to external environment dynamic. The remaining factors: structure, systems, management practice, work unit climate, individual needs and value, task requirement and individual skills/abilities, and motivation in the model are the transactional factors that represent organization dimension and day-to-day operation and incremental regarding change. External environment Leadership Individual and organizational performance environment Mission and strategy Organizational culture
  • 10. 1 As author mentioned in previous part, this study focused on the organizational culture change. Therefore, we will focus only in the transactional factors that contain culture and also the two others factor that have significant relation with it and will be discuss briefly: mission and strategy, and leadership. Culture and Public Administration Schreiner (2002) provided the identification of 164 different definitions of culture that will affect how people define organizational culture. In this broad meaning, culture can be define as a set of learned beliefs, values and behaviors the way of life shared by the members of a society (http://www.saa.org/) and in the widest sense, culture embraces spiritual life, values, morality, education, and political processes (Amanda Rath, 1997). Despite the fact that organizations will develop their own culture, organizations still bounded by the value system of their societies. In the context of government’s institution, Guy Peters (2001) proposed three distinct level of culture for purpose of understanding how government institution works. There are societal culture, political culture, and administrative culture that influence the conduct of public administration. The conceptual relationship among these three levels of culture can be seen in figure 2.
  • 11. 10 Figure 2, Culture and Public Administration (Peters Guy B., 2001). General societal culture in the society will influence the behavior of individual who working within organization. Reinhard Bendix (1956) made distinction between entrepreneurial and bureaucratic societies. In the entrepreneurial societies, the style of management has tended to remain personal, and therefore, the manner of functioning of public administration appears to be more informal, and personality manner based generally on personal acquaintance and personal trust. In the contrary, in bureaucratic society, bureaucracy is a dominant form of social organization, and therefore authority and status relationship become more important in social relationship. This societal culture will be reflected in administrative culture, a general orientation of the society toward management and impersonal authority in formal organization. The political culture influences the relationship between political and elite of bureaucratic, and between the population and the bureaucracy. Guy Petters Public Administration Societal Culture Administrative Culture Political Culture
  • 12. 1 (2001) attempt to classify political culture by develop four dimensions for examination of political inputs that also useful for analysis administrative aspect of government. These four dimensions are: 1. Hierarchy and equality Cultural values concerning authority and impersonality of personnel and authority in the hierarchical structure of administrative structures are important for determining the acceptability of hierarchical management service. 2. Liberty and coercion It is about political control and stability of democratic society. Control and stability may depend upon the degree of value consensus among the enforcers of those rules and the majority of citizens. Often the bureaucracy should decide the limits of liberty of expression and social action and also determine how much coercion is acceptable in enforcing decisions or policy. 3. Loyalty and commitment It refers mainly to terminal community to which individual gives his or her ultimate loyalty. Loyalties for language, religion, caste, or ethnic group can diminish individual commitment to the national political system and therefore produce potential for political unrest and instability. 4. Trust and distrust The last aspect of political culture is the level of trust and distrust among the population that contain two different components. First, trust in individual as opposed to personal cynicism, a degree to which individual in the society
  • 13. 12 believe that others outside their immediate family can be trusted, or at least are not actively an enemy. Second, trust in government and political institutions, a degree to which individual believes that government’s institutions are worthy of trust. Organizational culture Talking about organizational culture, people agree that it exists and is important but sometimes people have completely different ideas of what it is, there is no consensus about exactly what the term means (Schein, 1985; Tepeci, 2001). However, considerable agreement and overlap do exist. There are some common ideas from several scholars regarding the key elements and dimensions of organizational culture, including shared meanings, norms, values and beliefs (Denison, 1996; Hodge and Anthony, 1988; Schein, 1985). Jones (1995) defined organizational culture as set of shared values that control organizational member's interactions with each other and with suppliers, customers and other people outside the organization. In addition, one prominent researcher in the organizational culture studies, Schein (1985) define organizational culture as a pattern of basic assumption - invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration - that has worked well enough to be considered valid and, therefore, to be thought to new members as the correct way to perceive, think, and feel in relation to those problems. This concept of organizational culture refers to the stated values of an organization, implying that culture is something that exists at a conscious level and can be deliberately transformed by leader. Those theories shows that
  • 14. 1 organizational culture can be seen easily from daily activity but actually is a complex and deep aspect of organization that support or impact organization’s members strongly in the way to do their job and communicate with their peers, superiors and subsidiaries In order to reveals the culture, Schein (1985) described three essential levels of culture at which culture reveals itself. Figure 3, Level of Culture and Their Interaction (Schein, 1987) Figure 3 shows the difference of each level of cultures and the way they correlate and give impact to each other. The model explain that in order to understand visible items one should relate items to organization’s values that guide organization member to create their artifacts. Moreover, to understand values one should relate values to organization’s assumptions. Basic underlying assumption leads organization to create value. Values Testable in the physical environment Testable only by social consensus Basic Underlying Relationship to environment Nature of reality, time, and space Nature of human nature Nature of human activity Nature of human relationship Artifacs and creation Technology Art Visible and audible behavior pattern Visible but often not decipherable Greater levels of awareness Taken from granted Invisible Preconscious
  • 15. 14 C. Implication of The New Policyto the Organizational Culture As mention, although organizations developed their own culture; they still bounded by the value system of their societies and Guy Peters (2001) proposed three distinct level of culture for purpose of understanding how government institution works. This part mainly discussed about societal culture, political culture, and administrative culture in Indonesia and also organization culture in new order regime era before the new policy of decentralization and democratization were implemented. Actually it is difficult to define Indonesian culture because of the diverse of religion, ethnic, language, and tradition of the people6. Every ethnic have their own culture and even in one ethnic the culture can be vary, for example there many types of wayang7 and batik8 because each region has its own style of wayang and batik. Moreover they also develop their own music and theatre, the visual arts, poetry and literature. Therefore, the description about Indonesian culture will be more in general and was influenced by Javanese culture since the majority of Indonesian people are Javanese. In the societal culture and administrative culture, refer to the terminology of entrepreneurial and bureaucratic society, characteristic of these two societies do exist in Indonesian culture. For example in the decision making trough personal 6We can see in the republic’s motto, Bhineka Tunggal Ika (unity in diversity) as a national symbol of Indonesia's multi-cultural population. 7Wayangis Indonesia’s famous shadow puppet theatre which combines Indian epic tales with indigenous mythology. 8Indonesia also developed some of the richest textile traditions in the world, the best known of which is batik
  • 16. 1 bargaining and negotiation in public administration, it is common if people ask for something that actually, according to the rule or procedure, is not allowed9. Because of rational or irrational reason10, people cannot fulfill the requirement a kind of service but they still ask for the service to the officer. This condition pushes the officer to choose, follow the rule or think about human consideration, and in many case it caused bribe phenomenon emerged in Indonesian bureaucracy. Moreover, traditionally Indonesia has concepts of "gotong royong11" (mutual assistance) that derived from rural way of life and is still very much in use in community life throughout the country not only in informal community but also in formal community such as civil service organizations and private sector companies. Bowen (1986) argued that gotong royong become the key element of political and social system. The term actually was derived from Javanese expression of “several people carrying something together”. The philosophy of gotong royong reflects that Indonesian people, disregarding their ethnic group, uphold cooperatives and collective life as the most important element. 9It is common if people ask the officer for kebijaksanaan, literally mean is wisdom but in this context, this means: it is out of the standard procedure. 10Perhaps it is difficult to imagine in others advanced country, in several region of Indonesia, people need two or three days to travel to the government office to get the service and in another case, people don’t have money and therefore they pay for the health service with sweet potato or banana. Moreover when they need the service butbecause some reasons they can’t fulfill the service requirement,therefore the want special treatment. 11There is another expression for gotong royong, in java some people use term gugur gunung.
  • 17. 16 In term of bureaucratic society, there is a relation between government and the people that was derived from Javanese values: kawulo and gusti, literary meaning is the relation between follower and the ruler. In this value, social interaction base on the social status of authority. Kawulo should give respect, obey, and follow the gusti’s order because the leader’s power and authority is a blessing from the god; on the other hand, gusti should give protection and regulate kawulo wisely. Thus the ideal relationship in this value is manunggaling kawula lan gusti12, means the unification of the follower and the leader. When the leader and the follower become one entity, they actingand running function as according to its position and therefore there is no conflict in the society. This Javanese value than was adopted, with intention or unintentionally, by New Order regime (1966- 1998) by put the government (bureaucracy) as gusti and the people as kawulo, in other words, government is the patron and people is the client. Then, the long history of new order regime under President Soeharto13 has falsely interpreted their function. Instead of serve the people, bureaucracy became super power and dictating people what they want to do, they know 12This value actually derives from IslamicSufism"Manunggaling kawulo Gusti", manunggal means unity; kawulo means servant, human beings; Gusti means God. So, manunggaling kawulo Gusti means "The spiritual unity of the man and God, the creature and creator". Everything could be happened by the wish of God Almighty. 13Suharto is a Javanese and he adopts many Javanese value and term in Indonesian politic in his presidency. He published his book: Butir-butir Budaya Jawa (Javanese Cultural Items), edited by his daughter Siti Hardiyanti Indra Rukmana (Tutut). This book was criticized by Hersri Setiawan:$uharto Orang Jawa yang 'Ora Jawa, available online: http://www.listserv.dfn.de/cgi- bin/wa?A2=ind9808d&L=indonews&O=D&F=&S=&P=31108
  • 18. 1 everything and much more smart than the people, therefore they create a program that sometimes actually are not needed by the people. In the political culture, New Order regime was characterized by centralized and authoritarian government. Indoctrination in ideology became a powerful social control andwe can saw it, for instance in how government forcing all of party and other social organization to adopt Pancasila14 as one and the only ideology. Indoctrination was done by repression mechanism that frightened people to behave different from what it was stated by authority’s instruction. The repression forms in many ways and in all sectors such as education, and professions. Bureaucracy was used by the regime as a tool of political control and stability. Therefore, often the bureaucracy limiting the liberty of expression and social action, and also it use coercion to enforcing decisions or policy. Then, bureaucracy becomes a powerful machine with absolute power. This make bureaucracy misusing authority, corruption and collusion appear and become phenomena and therefore trust from the people become less and less. Indonesia is being heavily corrupted by its own people, and notably by its own leaders. 14 Pancasila (panca means five, sila means principles) is the five basis ideology of the Republic of Indonesia which comprises five inseparable and interrelated principles. They are Belief in the One and Only God, Justice and Civilized Humanity, The Unity of Indonesia, Democracy Guided by the Inner Wisdom in the Unanimity Arising out of Deliberations Amongst Representatives, and Social Justice for the Whole of the People of Indonesia.
  • 19. 18 Change in the Political culture There are some implications of democratization and decentralization process to the political culture of Indonesia. These processes changeddramatically the paradigm of political life as a whole. 1. Political liberalization The first and the most foremost condition of establishing democratization is the guarantee of freedom for speech, and freedom for association. Habibie, soon after he takes over the presidency, making decision to allow the people to regain their freedom for speech and association. He abolish the power of ministry of information to license newspaper, magazines and other publication that in the previous time, the license use by the government to control the mass media. The freedom of association, one of the examples is the announcement the policy of liberalization of political party formation and as the result, in January 1999, more than 200 new political parties report their establishment to the ministry of home affair. 2. Institutionalization of political competition and participation In 1998 government submitted bills to the parliament (DPR) for revision of three political bills: the law on political parties and Golkar, the law on general election and the law on the composition of people representative assembly (MPR), parliament (DPR) and local parliament (DPRD). The new law on political parties allows the new parties, after they fulfill the requirements, participate in the general election. The law of political party is also guarantee
  • 20. 1 the bureaucracy, police, and military neutrality and therefore, there is no obligation anymore to choose and treat one of political party exclusively. 3. Institutionalization of power relationship The constitution amendments create the new institutional relationship. The first is elimination of the power of MPR, MPR is not the supreme power instead only the joint session of DPR and region’s representative (DPD), the new institution that establish by the amendment. Moreover, the amendments reduce the power of president and empowering the DPR as legislative body. 4. Combating corruption, collusion, and nepotism People become more critical and demanding for transparency, and accountability of the government. Therefore, the fundamental part of the reformation program in Indonesia is how establishing good governance to supports economic and social progress. The program requires comprehensive performance accountability as the one of some important elements of good government.The Indonesia governance then implemented government reformation since 1998 to build a clean government and eliminating corruption which are the hottest issue in the reformation. Decentralization practice is fertile ground for democratization to grow in region. Decentralization make the democratization spread not only in Jakarta but also in every region in Indonesia. Law 32/2004 bringing several implications to the democratization process in region. According to this law, in running their autonomy, regions must promote democracy (article 22) and also, it was reflected in the obligations of head and deputy regional head when they perform their duties and authorities. Regional head has obligations such as to promote
  • 21. 20 democracy; carry out the principles of clean and good governance; and implement and be accountable for the regional finance management. Moreover according to this law, The Regional House of Representatives (DPRD) has significant role to ensure democratization and governmental process run as the hope of the people. The main roles of DPRD are drafting the laws, preparing the regional budget and conducting supervision which have big effect in control the way government institution manage the region. The new suitable culture The change in the political culture of Indonesia raises the demand of new culture in the bureaucracy. In other words, government institutions should change their organizational culture to meet the demand from the environment. Base on previous description about implication of democratization and decentralization, author identified several issues that related with organizational culture of local government institutions. Concerning hierarchy and equality in public administration, especially the means of recruitment into administrative position, open and transparent procedure of recruitment are required. It is also related with how the leader manages the new organization since the officer come from various organizations (local and central government officer). Concerning liberty and coercion, the era was changed therefore the role of government in political control and stability of democratic become less. Although there still need limitation of liberty of expression and social action the uses of coercion should be minimize. In the loyalty and commitment, bureaucracy neutrality should be protected and the only legitimate commitment is serve the
  • 22. 1 public appropriately. In order to run democratic system smoothly, the new system of politic need high level of trust. With the long history of low level trust from the public, government institution should work hard to gain the trust. Therefore, the culture of transparency and accountability should be maintained along with the strong law enforcement. D. Organizational Culture Change in Boyolali Local Government Located in mountainside of Merapi and Merbabu, Boyolali Regency is one of the 35 regency/city in Central Java Province.Boyolali was divided into 19 sub-districts with a high potency in agriculture commodities such as rice, papaya, and tobacco. Moreover, dairy cannot be disassociated from Boyolali identity.In year 2001 dairy contribution wasRp 425.25 billion and the population of Oxenin year 2002 are 60,205, represent the biggest population of oxen in Central Java. Recently,the dairy cattle breeder in Boyolali could produce 92,960 liters of milk a day. Organizational Culture in Boyolali Local Government Boyolali in the Dutch colonialism era is part of Surakarta Kingdom, one of main Javanese cultural center be side Yogyakarta Kingdom. Therefore, Javanese culture has an effect deeply on the way of thinking and behavior of the people. How Javanese culture affect organizational culture in Boyolali local government can be described briefly as below: 1. As mention earlier, Javanese has concepts of "gotong royong" (mutual assistance) that is still very much in use in community life not only in informal community but also in formal community like Boyolali local government organization. The philosophy of gotong royong reflects that people should uphold cooperatives and collective life as the most important element in the
  • 23. 22 social interaction. They help each other voluntarily by giving assistance, money or other materials. For instance, author saw how one officer assist her officemate when there were too many people in queued. She asked what kind documents was required for apply the service and then she quickly checked it. Moreover, it is also common, they collect money and call it urunan if the money was collected for buy something and call it sumbangan when they use the collected money to donate their friend for instance for funeral ceremony. 2. Another value is tengggang rasa, a kind of tolerance behavior when others do something that we do not like because, for example, it is unpleasant, or disturbance. We can find this value in occurs for instance in the straightening of officer’s discipline. Although there is a government regulation No. 30/1980 on discipline of government officer that regulate how sanctions15, step by step are gave to the undisciplined officer, local civil agency (BKD) usually does not implement this regulation immediately to the officer. They will ask the officer if they have problem so they can help him or her to solve it. If there is no behavior change, BKD will punish the officer base on the rule. In year 2005, 7 officers were punished by delay their promotion. 3. The using of symbols, colors, and old Javanese words (sengkalan) in the regency logo. 4. The using of batik as uniform, Uniform is one system to be a sign of member identity of organization. There are four kinds of uniforms used by Boyolali local government officers, a pairs of light brown (kaki) shirt and trousers that called pakaian dinas harian (daily 15There are several sanctions includes oral and written warning, delay promotion and discharged.
  • 24. 1 clothes on duty) and be dressed in on Monday and Tuesday, a pairs of light green shirt and trousers that called pakaian hansip16 and be dressed in on Wednesday and Thursday, and because all government officers are member of Korpri, they have Korpri’s uniform for special ceremony.On Friday, known as krida17 day (hari krida), they have sports activity and therefore they wear sport clothe in the morning and then change with batik cloth. Batik cloth is also wear on Saturday. One officer informed how these uniforms, especially pakian dinas harian, affect their life; uniform of government officers in the reality bring the major effect which hence their pertinent even for newly honorable candidate government officers. It able to lift their degree in social structure from ordinary people to becoming somebody that closes to the power circle. Therefore people who dress in the uniform get the special social place. They were respected, and especially for the bachelor many people want them to become their daughter/son in law. 5. The using of Javanese language Officially Indonesian language (bahasa Indonesia) is official language in the governmental process in Indonesia but in case of Boyolali, since almost all of the people are Javanese, the uses of Javanese language is frequent. Sometimes 16Hansip (Pertahanan Sipil – Civilian Defense) is security organization under government control through the village, and sub-districts. Hansip are under the Department of Home Affairs rather than TNI (Indonesian Military), but TNI provides training for them. Hansip platoons are established in each village, the members of which come from the village community such as farmers, laborers and others. Organically Hansip is under the supervision of the district head and the governor of the province. 17Krida is physical activity (as opposed to office, school work)
  • 25. 24 they mix Javanese and Indonesian language in their conversation or use Javanese words or idioms when they speak Indonesian language. 6. Office layout Social interaction base on the social status of authority that reflected in the values: kawulo and gusti can be seen in the office layout of Boyolali local government. The leaders18 have special status, they work in separate room with their staff which is have different facilities such as television, computer, conference room, toilet, and special phone line depend on their levels in the hierarchy. In contrast, staffs works together in an open space room (without partition) and use the facilities together. Organizational Culture Change As it is a general phenomenon in Indonesia after the reformation era, Boyolali local government aware to the change and percept that change is an obligation and therefore, they don’t have choices. They should compromise with the demand from the people and moreover they should comply with central government regulation such as Government Regulation No. 8/2006 concerning report of budget and government institution performance; and President Instruction No. 7/1999 regarding accountability report of performance of government institution. 18There are four level of leader in Indonesian bureaucracy system (echelon) from echelon 1 to echelon 4. According to Government Regulation 8/2003 on Guidelines of Local Government Organization, the highest echelon in the regency is Sekda (echelon 2a) and the lowest is leader of sub unit (echelon 4). These leaders work separate with their staff, but in case of limited room occurs, the echelon 4 could work in the same room with their staff. Although work in the same room, they still have privileges than their staff such as different type of table and chair, personal computer, and phone line.
  • 26. 1 The change in the political culture of Indonesia raises the demand of new culture in the bureaucracy. In New Order regime, in Boyolali likewise the other regions, government officers were controlled tightly to ensure high conformity in the direction of authorities and to reduce critics and disagreement. For promotion purposes, they should show how they loyal and winning Golkar in the general election by urge their family and neighbors to voted Golkar. In the reformation era, the process of recruitment into administrative position and also recruitment for the new officer become more open and transparent. For example, BKD and Sekda base on competency test, held fit and proper test in the recruitment into administrative position. All government officers who fulfill administrative (grade) and competency requirement, disregarding their previous status (local or formerly central government officer) have the same opportunity to appoint for administrative position. In the peaceful condition of Boyolali, the government saw the increasing of public participation. There are several NGOs in Boyolali, and they had significant role in the process of people empowerment and participation. Regarding public participation, we can note here the award that had received by Forum Rakyat Boyolali (Forum of Boyolali People). Forabi get the Participatory Awardfrom Home Affairs Department and USAID after defeated 79 citizen forum from eight provinces (www.suaramerdeka.com). Increasing public participation and control was supported by the increasing of local and national mass media such as newspaper, radio and television in Boyolali and other neighbor regency and city such as Semarang, Surakarta and Sukoharjo that also cover Boyolali in their service. These mass media and also national
  • 27. 26 television and newspaper, they have representative or reporter19 in Boyolali regency. As government sees these media as partner in the democratization process, they have a good mutualism relationship. These media can be use as tool for communication between government and the people. This increasing in public participation is accompanied with the increasing of public control and public demand for better services. From budgeting process, recruitment process of new officer, public services, traditional market renovation, to the new organizational arrangement20, all were monitored by the public and the DPRD. Government officer have to more accountable and discipline in running their task. Nowadays, it became more difficult to make corruption, collusion, and nepotism that appeared in the previous time because the public control and the law enforcement21. In the loyalty and commitment, bureaucracy neutrality should be protected and the only legitimate commitment is serve the public appropriately. In order to run democratic system smoothly, the new system of politic need high level of trust. With the long history of low level trust from the public, government institution should work hard to gain the trust. Therefore, the culture of transparency and accountability should be maintained along with the strong law enforcement. 19There is an association of journalist in Boyolali (Forum Komunikasi Wartawan Boyolali or Boyolali’s Journalist communication Forum). The members are the representative or reporter of mass media that operate or cover Boyolali in their service. 20There are many reportages related to these issues, for further informations see http://www.solopos.net/ 21Recently the former Bupati and the former head of DPRD were prosecuted because of corruption. They were accused for corrupt the budget of 2004 local budget that equal to 3.325 billion rupiah (Indonesian currency).
  • 28. 1 Moreover, there are some policies developed by the government such as formulate the vision and mission of regency as a guidance, hope and fundamental value of the government and the citizens. These vision and mission formalized in region regulation as part of regency’s strategic plan. The vision of Boyolali Regency is: the existing of secure and prosperous society of Boyolali, self- supporting, and competitive base on agriculture, industrial and tourism All of the government institutions of Boyolali Regency should create their own vision and mission base on the regency’s vision and mission, and their core function. Base on their vision mission, they should make long term and short term planning. Moreover, they should make progress report monthly and yearly so the head of region can evaluate their performance. Sekda gathers the reports from all of unit organizations and base on this report, they make accountability report of the head of regency (Bupati) to the DPRD and central government. Yearly the DPRD assesses performance and accountability report of Bupati and local government organization. Moreover, Local Inspector Agency periodically conducts inspection or investigating the public report of authority abuse of government officer in a project22. To improve and maintain the quality of public services, government integrated all of services in one place. There is one stop service under the office of integrated service. All information related to service, such as the requirement, cost, time, and procedure were displayed therefore, people well inform about the service. Moreover, for efficiency reason, some public services were delegated to sub- 22Recently the local inspector agency investigated the project of SemadohBridge in sub district Musuk. According to the DPRD, the officer in this project had broken the bestek (specification of construction).
  • 29. 28 district and village levels. According to one officer, this policy is also to tackle the bribes issue in public services that occurs in the new order era. To improve apparatus ability and discipline, local civil service agency develop training and development program. It is include bounce development through religion approach. Moreover there are morning and afternoon meeting (in Indonesia we call it apel) which is officers should attend monitoring meeting both in morning and afternoon before they start their task and before they go home. If they twice absence without confirmation, they will get punishment. It is important to note how the assistant of Sekda (functionary of echelon 2b) and also some camats (the head of Kecamatan) that also get the punishment by Polisi Pamong Praja23, a rare case in the previous era24, because they came late to the apel. It is one effect of reformation, the officer in charges enforce the law disregarding their position in the bureaucracy. E. Conclusion There are some implications of democratization and decentralization process to the political culture of Indonesia. There are: 1. Concerning hierarchy and equality in public administration, especially the means of recruitment into administrative position, open and transparent procedure of recruitment are required. 23Polisi Pamong Praja or Police of Pamong Praja is part of local government organ that have duty to looking after and carrying out public orderliness and pacification and also uphold the local regulation. 24It was common in the new order era, law enforcement will be applied strictly by the officer in charge only for the staff that in fact they weak and powerless and for the leader they get privilege“to break the rule”.
  • 30. 1 2. Concerning liberty and coercion, the era was changed therefore the role of government in political control and stability of democratic become more less. Although there still need limitation of liberty of expression and social action the uses of coercion should be minimize. Public participation is the key for the better governmental system. 3. In the loyalty and commitment, bureaucracy neutrality should be protected and the only legitimate commitment is serve the public appropriately. 4. In order to run democratic system smoothly, the new system of politic need high level of trust. With the long history of low level trust from the public, government institution should work hard to grow the trust. Therefore, the culture of transparency and accountability should be maintained along with the strong law enforcement. Boyolali, as part of Republic of Indonesia, the government aware about the change and percept the change as an obligation and therefore they don’t have choices; they have to compromise with the demand from the people and also from the central government. There are several government regulation regarding good governance and accountability that should be followed by Boyolali local government Therefore, some policies was developed by the government such as formulate the vision and mission of regency as a guidance, hope and fundamental value of the government and the citizens; improve and maintain the quality of public services by integrated all of services in one place and delegated some public services to sub-district and village levels; improve apparatus ability and discipline; develop
  • 31. 30 open and transparent procedure of recruitment base on competency; and develop public hearing mechanism. Organizational culture changes for some extent are occurring in Boyolali local government, especially because of the change in political culture of the environment. Because of the increasing public participation and control, government institution becomes more accountable and transparent. However, some aspects of organizational culture in Boyolali local government still remain as the previous condition (before the reformation era) because it has deep root relation with Javanese culture that not affected by the political system change. The literature review explains the positive relation between organizational culture and organization performance that means organizational culture is important element to achieve high performance. In case of Boyolali, even the organizational culture change smoothly, the government pays less attention to the systematic approach of organizational culture. Organizational culture was treated as natural thing that can run well without systematic approach. Therefore, in order to have effective organizational culture that fit with challenges, the government should this systematic approach. By knowing organizational culture in the government institution of Boyolali Regency it will help the leader has accurate figure of its organization weaknesses and problems. Accurate understanding of organizational culture and expectations allows the management to make right decision to improve their organization
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  • 34. 1 Self, P. Rational decentralization in Griffith J.A.G., ed., (1976), From policy to Administration: Essay in Honor of William A. Robson, George Allen & Unwin LTD., London. Tepeci Mustafa, (2001), The Effect of Personal Values, Organizational Culture, and Person Organization Fit on Individual Outcomes In The Restaurant Industry, Thesis, The Pennsylvania State University. The World Bank, (2005), East Asia Decentralize: Making Local Government Work, Washington. World Bank report, Decentralizing Indonesia: A Regional Public Expenditure Review Overview Report, Overview Report, 2003 Regulations: Indonesia’s 1945 Constitution . Law 22/1999 on Local Government. Law 32/2004 on Local Government Boyolali Regional Regulation No. 1 to No. 6/2001 on Structural Organization of Boyolali Local Government. Government Regulation No. 8/2006 on report of budget and government institution’s performance; President Instruction No. 7/1999 on accountability report of performance of government institution.
  • 35. 34 Newspapers: Kompas (Indonesian Language) Koran Tempo (Indonesian Language) Sinar Harapan (Indonesian Language) Suara Merdeka (Indonesian Language) Solo Pos (Indonesian Language) Wawasan (Indonesian Language) The Jakarta Post Useful website: http://www.jawapalace.org http://boyolali.go.id/ http://www.solopos.net/ http://www.ri.go.id/produk_uu/datar_isi-2.htm