ASSESSING LOCAL GOVERNMENT CAPABILITY IN DELIVERING PUBLIC SERVICE: A CASE STUDY OF BUSINESS PERMITS

Abstract

This study aims to analyze the capabilities of the Investment and One-Stop Integrated Service Office (DPMPTSP) of Tanjungpinang City in implementing an integrated business licensing system (OSS-RBA). A qualitative approach with a case study method was employed. Data were collected through in-depth interviews and document analysis and were analyzed using the interactive model, consisting of data condensation, data display, and conclusion drawing. The findings reveal that the organizational capability of DPMPTSP is built upon institutional, human resource, financial, technical, policy implementation, and leadership capabilities, which are integrated to support OSS-RBA implementation. Nevertheless, the effectiveness of these capabilities is constrained by several challenges, including limited inter-agency coordination, disparities in digital competencies among civil servants, disruptions to the nationally integrated OSS-RBA system, and insufficient public understanding of risk-based licensing procedures. Furthermore, this study identifies innovation management capability as a key factor that strengthens organizational capability through service assistance, the utilization of digital media, and continuous improvement of service processes.