Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2019 Vol: 18 Issue: 2

Evaluation of the Aceh Provincial Government Performance on the Quality of Life of Acehnese: Through a Strategy Quality Approach

Zulkifli, Unissula, Semarang

Susanti, State University of Semarang

Windi Novia R, Unissula, Semarang

Abstract

This research proposes to evaluate the quality of planning and implementation of government policies on the quality of life of Acehnese and analyze the realization quality of the use of regional budgets in the Aceh Province. This research method uses exploratory research approach with descriptive qualitative analysis. The data analyzed in this study are secondary data taken from the 2017 Provincial Government Accountability Report of Aceh Province and the Aceh Medium Term Development Plan (RPJMA) document for the period 2012 to 2017. The Indicator of Community Quality of Life used in this study is the access to employment, growing the community economy and education. The results of this study indicate that the quality of planning and implementation of the Aceh government policies on Acehneses’ quality of life is insufficient. There is a lack of departure between the provincial and district/city level planning as the commitment of local government organizers in its implementation is still low. There are programs implemented out of the planning documents. Those show an inconsistency between the budget planning and realization, where realization is higher than planning.

Keywords

Regional Expenditure, Regional Revenue, Quality of Life, Quality Strategy.

Introduction

The concept of measuring quality of life was first developed by Maslow (1962) which we know as the concept of self-actualization. In essence, Maslow has set a theory of quality of life on this concept. Maslow's quality of life is characterized by the fulfillment of needs, which consists of happiness, health and the ability to develop. Furthermore, Maslow explained that to fulfill the life needs, individual should know who she/he is. Then the theory of quality of life continues to be developed. Ventegodt et al. (2003) explain that the theory of quality of life continues to develop. In the early stages, the quality of life is measured by physiological needs, the need for peace, the need for compassion and the need for recognition. Then continuing to develop in the second stage by the addition of the fulfillment of need for knowledge and freedom of expression. Furthermore, in the third stage, the quality of life is met by the needs of selfactualization and transcendence needs.

Research on quality of life continues to develop: Bhatti et al. (2017); Hacker (2010); Suwarni et al. (2018); Estoque et al. (2018); Sulistyo & Cahyono (2015) show that the community quality of life is reflected in the welfare in terms of the fulfillment of consumptive needs such as health, education and social and the fulfillment of the need for empowering productive businesses.

Literature Review

The community’s quality of life is the main target of the performance of government organizations which is driven by the quality of the strategy. The quality of life of community in public sector depends on the role of governance. Roles in the administration of government will boost the government performance better, to an integrated way of planning, implementing programs and evaluating programs aimed at improving the commnunity quality-of-life. The research conducted by Latif et al. (2018) shows that government policies greatly affect the community quality-of-life. Government policies will influence people's quality of life if they have good planning. Good planning should be in accordance with the needs of the community and integrated both in implementation and evaluation. The phenomenon that arises towards the administration of the government in improving the community quality-of-life is the change in policy along with the change of regional head. This is in line with the results of Latif's research, Omar et al. (2018) explaining that the situation factor greatly influences policy, that governance policies will reflect the performance of local government organizations. In fact, the nature of community quality-of-life is economic prosperity, mental well-being and social welfare.

Quality of life is the fulfillment of needs with a measure of social welfare and life satisfaction of people in a region, which consists of individuals as life perpetrators and all aspects that cover one’s life. The Indicators of quality of life include welfare, happiness, security and life satisfaction, while a good aimed at the outcome. The difference is in the process and output. Based on this explanation, we can conclude that quality of life is a process of fulfilling life's needs in the form of basic needs including welfare and psychological needs including knowledge and happiness.

Moons et al. (2006) state that a person's quality of life is categorized into six: 1). Normal life, 2). Social usefulness, 3). Defining happiness, 4). Life satisfaction, 5). Goals, 6). Increasing capacity naturally. While, Kumalasari et al. (2018) divide it into objective and subjective quality of life. Objective quality of life is measured by six dimensions, namely, house, living standards, income, health, job, and social environment, whereas subjective quality of life is measured by three dimensions, physical, economic and psychological. Suwarni et al. (2018) add that quality of life is observed by physical, psychological, social relations and social environment. The community quality-of-life, according to (Estoque et al., 2018) is defined by economic factors (income, employment and poverty levels), social (health services, education and security services) and the environment (availability of green/open space, environmental damage, air pollution).

Planning becomes an interesting issue in research, because planning strategy is an initial starting point of an implementation of work. According to Wolf & Floyd (2017); Napitupulu et al. (2016); Johnsen (2018); Said et al. (2016) planning strategy is a series of activities following organizational procedures, to create strategic planning, where a performance-oriented planning process involves many stakeholders with the principles of transparent, practical, pastisive and easy to apply. Said et al. (2016) the quality of implementation is an assessment of the implementation of activities based on the quality of planning set by the organization. Siapei (2015) explained that the quality of implementation is the implementation of organizational activities that prioritize efficiency and timeliness to achieve good performance.

Widodo's (2011) study explains that the quality of strategies in planning consists of policy adaptation, policy content, policy equipments, policy integration, knowledge development policies, increasing-commitment policy and policies to improve communication quality. Furthermore, the quality of strategy in implementation consists of coordination policies, smart work pattern policies, learning orientation policies, collaboration policies, work commitments and informal communication policies. While, the quality of the strategy in evaluation is composed by controlling the quality and quantity of performance, controlling output performance, career in accordance with experience, and maintaining knowledge procedures.

The previous studies shows that the community quality-of-life in public sector depends on the government roles which cover program planning, program implementation and program evaluation aimed at improving the community quality-of-life. The research conducted by Latif et al. (2018) shows that government policies greatly affect the community quality-of-life. Regional policies will have an impact on people's quality of life if they have good planning. Good planning should be in accordance with the needs of the community, integrated both in implementation and evaluation. The phenomenon arising towards the governance in improving the community’s quality-of-life is the change in policy along with the change of regional head. This is in line with Latif et al. (2018), explaining that the situation factor greatly influences policy.

The political situation and change of regional head is one of the factors that led to changes in policy, that each regional head will carry through his own vision and program in improving the community quality-of-life. In running the government, the regional and provincial government share authority.

The Aceh Provincial Government is one of the provinces in Indonesia which has special autonomy, of which budget from year to year continues to increase. In 2012, Aceh Expenditure Budget (APBA) of Aceh Province was Rp. 9,180,143,048,437.63 and increased to Rp. 12,364,563,976,147.30 in 2016. The average increase of APBA from 2012-2016 is 7.73%. That large budget of the Aceh province has not been directly proportional to the rate of poverty reduction, access to education and employment for the people of Aceh Province. The level of poverty in Aceh Province in 2012 was 19.46%, in 2016 it decreased to 16.73%, yet in 2017 rose again to 16.89%. The employment access in 2017 defined that of 2.139 million people who worked, there were 36.86% as employees, 20.47% businesses owners, 14.62% non-paid/unpaid workers, and 13.80% family workers/not paid. Furthermore, the access to education at the high school level in 2017 was 50.34% and junior high school was 71.11%, meaning that there were 20.77% who did not have access to education at the high school level. In 2018, the access to senior high school was 64.46%, while the access to junior high school was 78.55%, meaning that there were 14.09% did not get the access to high school. Based on these data, concluded that large budget has not been able to improve the quality of life of the people of Aceh Province, so it needs an in-depth study of these problems, seen from the quality of budget planning and implementation in the perspective of strategy quality. Based on the background and explanation of the occuring phenomena, this study is presented in order to evaluate the quality of planning and the quality of implementation of government policies on the quality of life of Aceh people and analyze the realization quality of the use of regional budgets in Aceh Province.

Research Methodology

This study employs exploratory research approach and descriptive research. The exploration research is used to identify problems, to be the alternative decisions on a problem and to be the most relevant variables which need to be considered as a solution to the problem (Aaker et al., 2008). The next stage is analyzing the data descriptively and analytically. It is to describe or identify the problems as subject of this study based on the data collected. The type of descriptive research generally does not require a hypothesis so that in the research step, determining a hypothesis is not necessary. In descriptive research, there are two groups of data, qualitative and quantitative data. Qualitative data are explained by words or sentences while quantitative data are tangible figures from the results of calculations or measurements (Arikunto, 2010). The research approach uses descriptive qualitative approach with a literature review and analyzing secondary data sourced from available documents including the LKPJ (Accountability Report) of the Aceh Provincial Government in 2017 and Aceh Medium Term Development Plan (RPJMA) for 2012-2017. To facilitate this research, the operational limitations of the research are formulated as in Table 1.

Table 1 : Operational Limitations
No Variable Limit of Measurement
1 Quality of planning strategy The quality of Aceh Government Policies in planning from the perspective of how much the output planning to improve the community quality-of-life.
2 Quality of implementation strategy Evaluation of the established planning observed from the quality of achievements and budget absorption.
3 Community quality-of-life Process of the community’s need fulfillments consisting of employment creation, economic growth, access to education.

Results

The provision of special status for the Aceh Government means that there are different arrangements from another regions in Indonesia. The process was achieved by the government and the people of Aceh through a long journey. The Aceh Province, in terms of the history of the concept of constitutionalism often changed its name: in the early of independence period, the term Aceh Province was used. The struggle of the Acehnese in obtaining whole autonomy rights and striving for the ability to run a different government bureaucracy from another regions is a fortune for the Aceh government. Through a long journey, Aceh finally received special autonomy rights in the administration of the government to coincide on 15 August 2005 at the time of the agreement between GAM (Free Aceh Movement) and the Government of the Republic of Indonesia, which was referred to the Helsinki MoU (Huda, 2014). The event became a historic event for the Aceh people, which the autonomy right intending to raise the spirit and quality of life of the Acehnese could be realized through Regional Autonomy Rights.

At this point, the autonomy rights granted by the Central Government to the Aceh Government are the regional autonomy budget to improve the people’s quality of life. In realizing regional autonomy, the role of central government is still dominant as the human resources and regional financial independence have not been steady (Pujianto et al., 2018). The need for synergy between networks in improving the community quality-of-life has to certainly be overviewed from the quality of regional planning and budgeting. In essence, policies to increase regional autonomy is defined from the quality of planning and implementation of the Aceh government’s performance and budget policies.

Quality of Planning and Implementation of the Aceh Province Government’s Performance and Budget in Improving the Community Quality-of-Life

The quality of planning is a primary strategy in improving the government’s performance which is ultimately oriented towards improving the community quality-of-life. The results of the Kemp & Kuznik (2018) study state that quality planning is a future-oriented plan, also emphasize that the purpose of quality planning is to guide the community to be more productive and qualified. The future orientation of course should be realized through the implementation of planned activities. Apart from the implementation, improving consistency in the implementation of the established plans is really necessary.

Based on those description and the phenomena, showed that planning and implementation of the administration of the Aceh Province government needs to be evaluated. Therefore, this study will focus on evaluating the performance achievements in improving community quality of life according to the set limitations of research. The community quality of life measured in this study consists of planning and implementation in employment creation, community economic growth and increase of access to education. Reviewing from the Aceh Province Planning document focusing on planning indicators compiled in the Middle Term Development Plan (RPJMA) of 2012-2017, and comparing the realization achieved through LKPJ AMJ (End of Term Accountability Statement) as detailed in Tables 2 A and B.

Tabel 2 (A): The Summary Of Target Dan Realization
No Indicator Unit 2013 2014
Target Realization Target Realization
Education
1 Adult literacy rates % 97.1 96.04 97.3 96.66
2 The mean of school year Tahun 9.7 11.99 10 12.28
3 High school/equivalent gross rate % 87.00 83.80 88.00 80.03
4 Finished high school/equivalent rate % 26.00 27.8 28.00 25.34
5 High school/ equivalent pure participation rate % 64.50 59.50 67.50 63.43
6 High school dropout rate % 13 12.07 12 11.74
7 High school graduation rate % 165 97.95 166 98.62
Man Power
1 Workforce participation rate % 66.94 62.07 68.54 63.06
2 Open unemployment rate % 7.22 10.30 7.10 9.02
Economic
1 GRDP growth % 5.5-6 5.36 5.8-6.3 5.78
2 Aceh’s rate of inflation % 3-5 4.18 3-5 8.09
3 Residents below poverty line % 17.5 17,6 15.5 18.05
Tabel 2 (B): The Summary Of Target Dan Realization
No Indicator Unit 2015 2016 2017
Target Realization Target Realization Target Realization
Education
1 Adult literacy rates % 97.5 98.25 97.8 97.63 98.00 97.92
2 The mean of school year Tahun 10.5 11.98 11 13.37 11.5 9
3 High school/Equivalent gross rate % 90.00 79.26 91.00 86.19 93.00 89.06
4 Finished high school/equivalent rate % 30.00 26.15 32.00 35.52 33.00 31.9
5 High school/equivalent pure participation rate % 70.50 62.06 74.50 67.22 77.50 64.46
6 High school dropout rate % 11 3.8 10 0.37 9 3
7 High school graduation rate % 167 99.91 168 99 169 98.71
Man Power
1 Workforce participation rate % 70.18 63.44 71.83 64.26 72.77 63.74
2 Open unemployment rate % 7.00 7.93 6.8 7.57 6.5 6.67
Economic
1 GRDP growth % 6.2-6.7 5.33 6.5-6.9 3.31 70-7.5 6.69
2 Aceh’s Rate of Inflation % 3-5 1.53 3-5 3.86 3-5 4.25
3 Residents below poverty line % 13.5 17.08 11.5 16.73 9.5 16,89

Based on Table 2, revealed that in the access variable of Education, of the 7 indicators developed in this study, the school year indicator on average acquires the target set in the planning each year. However, none of the two indicators of the labor variable reached the targets. The economic variables of the three indicators of Gross Regional Domestic Income (GRDP) reached the target in the first two years, yet didn’t succeed in the next three years. Differently, the inflation rate experienced a very significant change every year, both increasing and decreasing, then residents below the poverty line stayed high and very far from the targets. The next overview is the planning and financial implementation of Aceh Province as shown in Table 3.

Table 3: Summary Of Target And Regional Financial Achievements
No Year RPJMA Need RGB RGB Realization
1 2013 10,013,971,208,105 12,398,354,500,801 11,217,741,311,905
2 2014 10,291,935,643,154 12,939,644,749,248 12,045,847,341,692,80
3 2015 10,893,308,089,872 12,749,671,570,835 12,149,422,255,379,70
4 2016 11,546,099,390,670 12,874,631,946,619 12,119,713,196,647,10
5 2017 12,238,824,994,881 14,911,632,809,908 13,832,500,610,367,60

From the data, it can be seen that the quality of budget planning formulated in the Aceh Medium Term Development Plan (RPJMA) document in Aceh Province does not suit the regional financial conditions and realization. This is reflected in the low need of RPJMA, still the realization of budget implementation is always higher than the requirements in the planning documents. This fact illustrates that between planning and implementation documents is not balance. Another data shows that the quality of planning in realizing the decentralization of central government policy authority to the regional governments, shown from the Planning Integration between provincial and district/city governments in Aceh Province was only 50%. Other findings show that the conformity between the RPJMA and RKPA planning documents (Aceh Government Work Plan) was 86%. In essence the RPJMD is a technocratic planning document in regional government which should be the basis for the preparation of programs. In addition, shown that there were still 14% of the programs carried out by Regional Organizations which were not part of regional planning documents.

Discussion

Based on those data, found that the program target in the planning document has not been properly realized. All the more, the quality of budget planning is not directly proportional to the budget realization, that the realization of budget expenditure each year exceeded the planned budget. This proves that the quality of budget implementation is not in line with the budget planning. The cost of budget implementation shows that the implemented programs are not in accordance with the planning program, reflected in the 14% of activities presence organized by the Aceh provincial government which are not part of the development planning. Widodo (2011) explains that the essence of implementation quality is to realize and integrate it with planning documents. Furthermore Widodo (2011) adds that the quality of implementation can be seen from the orientation of performance achievements and work commitments of government administrators. Build upon the results of these studies from the orientation of performance achievements, most of them are not optimal or not sufficient for the determined target. Besides, the consistency, compared between the budget planning and the realization that has a very large difference, showing that the consistency of regional administrators in implementing planning is still low. The planning quality can be observed from the content and integration of policies in planning (Widodo, 2011). Integration of planning between the provincial government and district or city governments in improving the community quality-of-life is one of the qualified planning reflection. The results of this study indicate that the integration of planning documents between the Aceh Province Government and the District/city Government is only 50%, which means that the integration of planning has not run optimally. Therefore, from several indicators, the quality of planning in the Aceh Province government is classified as poor.

The rate of Aceh Government’s implementation in improving the quality of life for Acehnese people is reflected in the commitment of local government administrators. The higher work commitment, the higher the implementation quality at work, so that it can reach the specified target. The results of this study indicate that work commitments from regional administrators have not been optimal as no indicator having achieved the specified target of 100%. In contrast, the results of the Johnsen (2018) study state that qualified planning will have a positive impact on policy implementation. Another results of studies show that networkingenhancing planning will improve community quality-of-life (Urzúa et al., 2017).

The community quality-of-life is reflected in the presence of government in stimulating the community to improve their standard of living, through increasing human resources through access to education, getting proper jobs through access to employment; as well as the in maintaining economic stability. According to the results of this study, the presence of the Aceh provincial government in improving the community quality-of-life shown by the three variables in the study: access to education is 77.78% of performance achievement, categorized as good; employment is quite high, at 75.16% and good economy is reaching 86.54% of performance achievement. The presence of the government in improving the community quality-of-life can explain the budget planning and implementation to improve welfare. The results of the Pujianto study, Susiyanti et al. (2018) show that local governments prioritizing their regional expenditure on operational expenditure will increase the level of public welfare. To manifest the quality of planning and implementation in improve the community quality-of-life refers to Hadi's (2018) opinion that to realize a planning and budgeting strategy oriented towards strengthening the economy, the community must establish the synergy between networks, through coordination between policy makers, creating integration, synchronizing interregions, interspaces, intertimes, interfunctions of government, consistency between planning, budgeting and implementation, optimizing the community role and the use of effective, efficient, equitable and sustainable resources.

Conclusion

Based on the discussion, our work has led us to conclude that the quality of planning and quality of implementation is still low as there is a lack of synergy between the provincial and district/city level planning. The commitment of local government administrators in implementation is still low, that there are programs implemented out of planning documents, as well as an inconsistency between budget planning and realization, showing by the realization which is higher than planning.

Acknowledgement

The authors are particularly grateful to families who have always supported, the Aceh Provincial Government who make available their data, to the colleagues who contributed ideas in the completion of this scientific article, without whose help this work would never have been possible.

References