Abstract
Shifting from bureaucracy model to entrepreneurial model as the main characteristic of New Public Management (NPM) has been taking place at local governments in Indonesia since the implementation of Law No. 32 of 2004 on Local Government. Performance appraisal, local financial management accountability, public service improvement, innovation, civic engagement in planning process, and one-stop service are outstanding examples of NPM practices at local governments in Indonesia. Using WonosoboGovernment as a case study, this paper will address NPM practices at a local government in improving public service and government revenues. This study found that improvement of public service and capitalization of local government productive assets weretwo key strategies to encourage local competitiveness. Restructuring of bureaucracy was oriented to enhance the quality of the basic public service, while development of government corporation was aimed to strengthenthe capacity of regional budgetary.
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