10.47313 CORRELATIONAL ANALYSIS OF LICENSING SERVICE PERFORMANCE AND REGIONAL INVESTMENT IN INDONESIA

CORRELATIONAL ANALYSIS OF LICENSING SERVICE PERFORMANCE AND REGIONAL INVESTMENT IN INDONESIA

Abstract

Limited Budget for development has urged Government of Indonesia to improve
investment climate through fixing business licensing services ecosystem. Thus, the
Government of Indonesia formulated policies, such as development of Risk Based Analysis
of Online Single Submission (OSS) as a system for a provision of integrated business
licensing services, and improving performance of Investment Department One Stop
Integrated Services (DPM-PTSP) in the sub-national level as the operator of OSS. This
study aims to understand and analyze causal relationship between performances of
business licensing services (variable x) and provincial investment realization (variable y)
by using secondary data. The performance of business licensing services refers to the
Decree of the Head of Capital Investment Coordinating Board (Badan Koordinasi
Penanaman Modal – BKPM) on the Determining the Results of the Performance
Assessment of One-Stop Integrated Services and the Performance Business Service
Acceleration of Indonesia Sub-National Government, while the local investment data
refers to Domestic Investment (Penanaman Modal Dalam Negeri - PMDN) and Foreign
Investment (Penanaman Mmodal Asing - PMA) published officially by the Statistics
Central Agency (Badan Pusat Statistik – BPS). This study employs quantitative approach
and uses all sampling technique, namely all provinces in Indonesia. Data analysis will be
carried out by using Simple Linear Regression (SLR) method to determine the effect of
variable x on variable y.