High transaction costs, long bureaucracy, and a weak controlling system create bad image of public services, especially in terms of forestry business. One Timber One ID (SIPUHH) is an innovation as a tool in controlling forestry business. It provides a system in which any timber traded has an ID, so its origin and legality can be identified. It promotes greater accountability on the timber industry to respect forestry law.
As a country with the third largest tropical forest in the world, the Indonesian tropical forest plays an important role as one of the determinants of biological buffer system necessary to sustaining life on Earth. As a natural resource, the forest has also economic value as a source of state revenue, and in accordance with the Constitution, that land, water and natural resource inside is under control of the state and utilized for the people well-being. In order to optimize the forest economic value, the eligible license holders are allowed to utilize timber from the production forest through permission mechanism from the government.
Every log utilized from the forest should be recorded and reported through forest product administration to calculate the amount of non-tax state revenue. The forest product administration is started from the recording of tree stand in the forest, log harvesting, log transporting, up to log processing in industry. For years, the forest product administration has been conducted in official assessment by assigning officials as a supervisor in every stage to ensure the recording and reporting conducted properly. Because of the lack of officials compared to the number and location of the license holders, the supervision by officials becomes ineffective. Even, according to the study of the Corruption Eradication Commission of Republic of Indonesia, such conditions have created high cost economy burdening the license holders as a result of long bureaucracy chain.
In addition, because the recording is held manually based on paper document, and the reporting is conducted conventionally using postal service, the forest products administration is not able to provide accurate data and information. As a consequence, in case the license holders violate the regulation, cannot be taken an action promptly and appropriately. Based on the condition, the forest product administration is shifted from official assessment to self-assessment by implementing One Timber One ID system, a forest product administration carried out electronically web-based. By the One Timber One ID system, every recording and reporting shall be held electronically by the license holders themselves, while officials role is replaced by system automation. In addition, it provides facility for the license holders to issue their transport document electronically. However, the log transport document can only be issued when all obligation related to the timber is comply. Otherwise, it will not process any further and consequently the log transport document will not be issued.
From the government side, the One Timber One ID system is very helpful in providing a complete, accurate and real-time data and information as a control tool as well as a basis of action taken promptly and appropriately. It has also restored image in public services by providing self-service mechanism according to basic principles of good governance, i.e. transparency, participatory and accountability. From the business side, it has made the forestry business interesting and efficient, as well as encouraging the license holders to comply the rules according to the principles of good corporate governance.
What Makes Your Project Innovative?
As a public service innovation, the One Timber One ID is a pioneer technology. For the first time, recording and reporting in the forest product administration is done electronically using information technology. Before, the recording was done manually based on paper/physical document, and the reporting delivered conventionally using postal service. The implementation needs adaptation from all stakeholders, both human resources preparation and the infrastructure support such as the availability of internet network especially in remote areas.
This initiative is unique because it serves as a control tool to replace the officials role, by using regulatory compliance as a tool in verification and validation. Step of the forest product administration can only be done when it complies all the requirements. In case the license holder does not comply, it will not process any further and as a consequence, they cannot receive the services from system. Thereby, it has become a digitalized regulation that functions as an instrument to force the license holders obey the regulations.
It provides public service facilities without person to person interaction, performed by the license holders themselves in issuing electronic log transport document. Every e-transport document has an ID barcode as the document identity. Besides that, an ID barcode is also attached on timber as a timber identity. From the ID barcode, the document legality, the timber origin and its legality can be traced using chain of custody facility provided by system. The One Timber One ID is more innovative than the previous version of system that has been developed since 2009 that became the basis for system development. The system today is more comprehensive, conducted in self-assessment by the license holders themselves, covering all timber produced originally from natural forest as well as plantation forest, mass-applied to all license holders, both the natural and plantation forest, generates electronic log transport document, integrated with other information systems such as SIMPONI, a nontax state revenue system.
Collaborations & Partnerships
The One Timber One ID system was developed as a need of stakeholders. Therefore, all those parties that will be affected by the innovation, mainly the license holders, had been involved from the beginning. The license holder is the main user. Their involvement is important because they are the one that knows best the needs of innovation. In addition, the presence of the innovation will also reduce the official involvement, therefore, the local government engagement is very important to make sure that the innovation suits their needs and to convince that the innovation will be effective in replacing the role previously conducted by the officials. The collaborative approach is effective in enriching the innovation content. It makes the stakeholders become the part of the innovation and responsible for the innovation sustainability. One Timber One ID system is not just a mutual needs but it has become a mutual property of the stakeholders.
Users, Stakeholders & Beneficiaries
Engagement of stakeholders as follows:
a. The central government as facilitator in all cycle since problem identification, regulatory formulation, design preparation, system development, preparation of human resources and infrastructure up until the implementation and evaluation.
b. The local government wants the innovation addressing the limitation of officials and effective in replacing the role previously performed by the officials.
c. The license holders as a main user expect the innovation to be simple, cheap and efficient, therefore during the innovation cycle, they actively engaged in giving input in trials and development.
d. The Corruption Eradication Commission as an initiator gives inputs to ensure that the innovation is effective in minimizing the opportunities of the high economy transaction.
Results, Outcomes & Impacts
Outcomes and impacts obtained based on direct opinions, joint evaluation with Corruption Eradication Commission, and evaluation by the Audit Board of The Republic of Indonesia, are:
a. Direct opinions from the license holders state in general system is very beneficial in improving efficiency as the result of decreasing high economy cost. The services can be obtained any time without having to depend on the government officials.
b. Joint evaluation with Corruption Eradication Commission provides preliminary information that during the period of one year implementation of system has decreased a high cost economy in the forest product administration.
c. Evaluation by the Audit Board of The Republic of Indonesia shows that it has provided an accurate and reliable data and information therefore it can be relied as a monitoring and controlling system for the non-tax state revenue.
Expected impacts are as follows:
a. Restoring the government image in public services in the forest product administration as well as a trigger for the development of public services innovation in other sectors. To be widely known, the One Timber One ID system participates in a national level competition in public service innovation and has won the TOP 40 Public Service Innovation of the year 2017 held by The Ministry of Empowerment of State Apparatus and Bureaucracy Reform The Republic of Indonesia.
b. Increasing the forestry business attractiveness and encouraging the license holders to be orderly and comply with the regulations according to the good corporate governance principles.
c. The One Timber One ID system becomes a reference in providing data and information to support the implementation of the duties of the other government agencies.
Challenges and Failures
First challenge encountered was in the generating ideas stage, coming from the local government’s doubt whether the One Timber One ID system is effective in replacing the role and function of the officials. Measures taken was by reminding that it will control the processes through verification and validation as previously performed by the officials, and in case the verification by system cannot be executed, a physical verification by the officials will be taking place. Other challenges encountered were in the project implementation stage, coming from the user related to availability of internet network in the remote area, and the unpreparedness of operator. To overcome the internet network limitation, the government held a meeting attended by the users and the internet provider association, while to handle the limited capability of the operator, the government provides assistance and strengthens the role of local helpdesk at the local government.
Conditions for Success
The success of public service innovation strongly depends on a regulation, use of technology, budgeting, leadership and coordination between agencies. The One Timber One ID system was developed with:
a. regulation support,even it becomes the part of the regulations.
b. the use of the latest technology.
c. a sufficient financial budget.
d. leadership support in every level, i.e by inspecting on the site to ensure the innovation progress.
e. collaborative and partnership approach with all stake holders to remove bureaucracy obstacles.
What is replicable from the One Timber One ID system:
1. Self-management. As an information technology-based innovation, it requires an application developer which has an expertise in information technology. When the work has finished and submitted by the developer, it is fully operated by government as an asset owner. In many cases, although the contract has ended, however the system is still operated by the developer as a third parties and there is no technology transfer to the government.
2. Regulation support. Although it was developed on a basis of the needs of all stakeholders, but its implementation needs regulations support in order to bind and force all stakeholders to implement the innovation. Fortunately, it is supported and becomes a part of the regulations, so it is obeyed by the stakeholders, and its sustainability is also guaranteed.
The success of the One Timber One ID system:
a. As an innovation with a wide impact, it is developed in the basis of a strong commitment from all stakeholders that the innovation is the needs in tackling the problem faced together. Otherwise, a public service innovation will be difficult to implement.
b. It has encouraged the license holders to replicate the innovation into their internal system by using data from the system for their internal needs, such as job performance, payroll and wages. It proves that data is accurate and real-time, so can be used as a basis for the management decision making. The less successful from system was happened at the beginning of the implementation.
The system was responded to with glee by the license holders, as they consider it as an opportunity to prevent cheating. Through guidance, to the license holders is notified that any cheats can be easily detected from the recorded transaction in the database.
- Evaluation - understanding whether the innovative initiative has delivered what was needed
19 February 2016