The Role Shifting of the State in Public Sector Affairs in Indonesia

Bambang Istianto, Bambang Is (2014) The Role Shifting of the State in Public Sector Affairs in Indonesia. The Role Shifting of the State in Public Sector Affairs in Indonesia, 1 (1). pp. 200-205.

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Abstract

The Implementation of public sectors such as transportation, oil and gas is done by the government as a regulator and the State Owned Enterprises as operators. First, the form of business was a state company. Next, it was transformed into a public company which later has become a limited liability company (PT). Such changes serve as development paradigm of the government administration from old public administration to new public management (NPM) and new public services. In the era of NPM, the shifting of public sectors has become commodities. It was intended to be more efficient in serving the public through the market mechanism. But the role shifting of the state has adverse effects on wider community. For example, the phenomenon of PT. Pertamina raising LPG price by 68% on January 1, 2014 got a strong reaction and the president intervened. The controversial incident was the evidence of the truth of the hypothetical statement above.

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