Good Governance System Research Articles

Relationship Between FDI and Economic Growth in the Presence of Good Governance System: Evidence from OECD Countries

This study analyses the relationship between foreign direct investment (FDI) and economic growth in the presence of good governance system in the Organization for Economic Co-operation and Development (OECD) countries. The dataset comprised of the years 1996–2013. Fixed effect model and the Generalized method of moments (GMM) estimator are used in this study. The result of the study unveils that all the variables have a significant positive association with economic growth. Moreover, the study establishes the interaction terms which also depict a positive effect on economic growth. Further, the Granger causality test shows that the bidirectional causal relationship exists between the FDI and regulatory quality (REQ) on economic growth, whereas the unidirectional causal relationship is found among the corruption control, political stability (POS), voice and accountability (VAC), government effectiveness (GOE) and economic growth. Finally, it can be concluded from the above results that the more the countries maintain their institutional quality the better will be the economic growth and the FDI inflows. This result gives valuable policy implications, which the government should use to improve the economic growth. Further, the result obtained from this study is beneficial for policymakers who can draft effective government policies which will foster the economic growth rate of the country. Last but not least, there is a need to improve the REQ which can only be improved subject to changes in the laws of corruption.

IMPLEMENTASI UNDANG-UNDANG NO 14 TAHUN 2008 TENTANG KETERBUKAAN INFORMASI PUBLIK OLEH PEJABAT PENGELOLA INFORMASI DAN DOKUMENTASI (PPID) KEMKOMINFO

This research discusses about law No. 14 year 2008, the openness of public information implemented by the officers of the information and documentation Officer (PPID) Kemkominfo. The Act on public information disclosure aims to improve the management, service of information, and encourage public participation in the conduct of the State so as to realize the system of good governance. The purpose of this research is to describe how the Official information and documentation Manager (PPID) of the Ministry of communication and Informatics of carrying out the implementation of law No. 14 year 2008 about the openness of public information. The method used in this research is descriptive in nature with qualitative data collection techniques in the form of interviews with the informant Acting Manager of information and documentation. Data analysis techniques using models, Miles and Huberman that consists of data collection, data reduction, data display and verification, and assertion inference. Examination technique benefiting using triangulation of sources. The results of this research show the implementation ACT KIP done with through the six steps, namely: designating the PPID, build and make the system functional officials, pointing to information (public relations, archives, computer), providing information in the form (text, video, sound, infographics), providing information services in the form of front desk and website, as well as compiling daily, monthly and annual reports.

Forest Management Based on Local Culture of Dayak Kotabaru in the Perspective of Customary Law for a Sustainable Future and Prosperity of the Local Community

Forest management in Indonesia has not yet been able to realize the constitutional mandate which was followed by uncontrolled forest destruction. Implementing a good forest government system is necessary. Therefore, it is essential to give indigenous peoples the authority to play a more critical role in forest management in the future. This study aims to find a form of sustainable forest management and sanctions for the perpetrators of forest destruction based on Dayak Kotabaru’s indigenous people. This study uses the normative juridical method that focuses on data in the form of primary, secondary, and tertiary legal materials. While the objectives of this study are to review and describe the problems due to the absence of legal protection for customary rights, we also examine the extent of forest management by the Dayak Kotabaru’s customary law and seek to formulate forest management solutions in Indonesia based on the local culture as a prescriptive future policy. The results of this study indicate that a large amount of permits, given by the government to the private sector for forests in possession of indigenous peoples, are overlapping and as a result have increasingly marginalized the indigenous community and acted as a drawback to development. Forest management through the local culture, such as the Bera system in Dayak Kotabaru, can be beneficial for the local community, because locals will enjoy the production of farms and gardens, the soil will be naturally fertile because of a four year interlude, and the forest will remain sustainable as less forest area is cut down.

Determinants of Internal Audit Effectiveness (IAE) in the Ethiopian Public Enterprise, Case of Southern Region

Due to political, technological and economic changes in the last decades resulted in the rise of business risks, the economic instability and the important increase of financial fraud scandals have necessitated the use of internal audit for companies (Bekiaris et al., 2013; Vinary and Skaerbaek; 2014; Tsipouridou and Spathis, 2014; Gbadago, 2015). Therefore, it is of great importance to identify the factors affecting internal audit in order to be effective. Previous studies have used different approaches to investigate internal audit effectiveness, as effective internal audit is influenced by series of factors. Moreover, factors and measurement of internal audit effectiveness have been used differently by the researchers (Arena and Azzone, 2009) and until now, there is no consensus regarding the most appropriate framework for internal audit effectiveness (Endaya and Hanefah, 2013). Thus, effectiveness of internal audit is a dynamic process and a matter of considerable debate.Public sector offices are part of the public body which is partly or wholly financed by government budget and concerned with providing basic government services to the whole society (Ministry of Finance and Economic Development (MoFED, 2004). The compositions of the public sectors are varied by their function and purposes, but in most cases, they are designed in order to enable the public sectors to achieve their goals. The public sector provides services such as banking service, financing, education, communication service, healthcare, police, transportation, electric services, security and so on, which benefit all of the society and encourage equal opportunity to benefit from those services provided (Mihret and Yismaw, 2007). This research was focused on the determinants of Internal Audit Effectiveness in SNNPR Public sector office found in Hawasa mainly regional government offices. Mostly, the efficiency and effectiveness of the management operations in public sector are ensured by the effectiveness of its employees. Internal audit which are the focus of this study and also the key employee of public offices, are expected to work independently and objectively to enhance high quality of public services, achieve good internal control system, avoid corruption, ensure good corporate governance system, promote accountability and greater transparency (Coram et al, 2008; Van Peursem 2005; Belay, 2007). DOI : 10.7176/JRDM/52-02

Governance structure and performance of private family firms

A debate exists on the issue of whether a governance system is value additive or even necessary for a privately-held firm. One side of the debate suggests that, since agency problems do not exist in a small private firm, it does not need a costly governance system. The other side argues that a private firm indeed faces agency costs in the form of altruism and, therefore, could extract net gains from a governance system. In this paper, we empirically investigate whether a good governance system crates or destroys value of private family firms. We first demonstrate that a multifamily firm encounters larger agency costs stemming from inter-family conflicts, and therefore, has larger incentive than a single-family firm to institute a superior governance system. We then show that a multifamily firm, owing to its better governance system, outperforms its single-family counterpart.

IPTEKS EVALUASI PEMBINAAN DAN PENGAWASAN PENYELENGGARAAN PEMERINTAHAN DAERAH PADA DINAS TENAGA KERJA DAN TRANSMIGRASI DAERAH PROVINSI SULAWESI UTARA

Good governance is a requirement in every regional and central government. To ensure the good governance has proceeded well in the unity of government, then a regulation about guidance and supervision of the regional government is arranged which regulates all about the implementation of guidance and supervision in the regional government. The Official of Manpower and Transmigration of North Sulawesi Province is one of the official agencies that has a large workload and has implemented the internal guidance and supervision in accordance with applicable regulations. This was assessed based on the Regulation of Republic of Indonesia’s Government No. 12 of 2017 concerning the Guidance and Supervision of the Implementation of Regional Government. And in order to support the realization of a good government system in the North Sulawesi Province, the Department of Manpower and Transmigration continues to strive to maintain the process that has been carried out.Keywords: good governance, guidance, supervision, regional government

PENGEMBANGAN SISTEM INFORMASI PERSEDIAAN OBAT MENGGUNAKAN MODEL FIRST IN FIRST OUT DI APOTEK AL MA’SOEM BANDUNG

Al Ma'soem pharmacy headquartered at Jl. Horse Race No. 46 Arcamanik Bandung, currently has 17 branches of pharmacies spread across several cities and regencies in West Java, including Bandung, Sumedang, Majalengka, Garut, and Cianjur. Good governance system makes Apotek Al Ma'soem grow and develop rapidly in several cities and districts in West Java. In the sales system has been supported with adequate information technology, so that drug sales services can be done effectively. The method used to assess the supply of drugs in pharmacies is to use the last price method. The impact of the application of the method of inventory value becomes unreal because the price used to assess the inventory is not the actual cost, but the last price entered. Likewise, the gross profit generated by the system becomes unreal because the gross profit generated by the system is not the difference between the selling price and the acquisition price, increment the difference between the selling price and the last price. This will certainly make it difficult for the financial section to calculate and make adjusting entries because there will be differences between cash flow reports with inventory reports, purchases and sales generated by the system.The purpose of this research is to develop inventory system using FIFO (First In First Out) model, which is to assess inventory according to its cost. The goal is to generate inventory reports and real gross sales income, making it easier for the financial section in preparing financial statements and minimize the occurrence of financial fraud. The system development method used is a prototype with the stages of collecting all the needs, building prototyping, prototyping evaluation, encoding the system, testing the system, evaluating the system, and using the system.The development of this system can result in reports of drug supplies and real gross earnings so as to minimize the occurrence of financial fraud resulting from the difference in nominal value of money with the value contained in the report, as well as facilitate and streamline the work of the financial section in loading financial statements.

PENGEMBANGAN SISTEM INFORMASI PERSEDIAAN OBAT MENGGUNAKAN MODEL FIRST IN FIRST OUT DI APOTEK AL MA’SOEM BANDUNG

Al Ma'soem pharmacy headquartered at Jl. Horse Race No. 46 Arcamanik Bandung, currently has 17 branches of pharmacies spread across several cities and regencies in West Java, including Bandung, Sumedang, Majalengka, Garut, and Cianjur. Good governance system makes Apotek Al Ma'soem grow and develop rapidly in several cities and districts in West Java. In the sales system has been supported with adequate information technology, so that drug sales services can be done effectively. The method used to assess the supply of drugs in pharmacies is to use the last price method. The impact of the application of the method of inventory value becomes unreal because the price used to assess the inventory is not the actual cost, but the last price entered. Likewise, the gross profit generated by the system becomes unreal because the gross profit generated by the system is not the difference between the selling price and the acquisition price, increment the difference between the selling price and the last price. This will certainly make it difficult for the financial section to calculate and make adjusting entries because there will be differences between cash flow reports with inventory reports, purchases and sales generated by the system.The purpose of this research is to develop inventory system using FIFO (First In First Out) model, which is to assess inventory according to its cost. The goal is to generate inventory reports and real gross sales income, making it easier for the financial section in preparing financial statements and minimize the occurrence of financial fraud. The system development method used is a prototype with the stages of collecting all the needs, building prototyping, prototyping evaluation, encoding the system, testing the system, evaluating the system, and using the system.The development of this system can result in reports of drug supplies and real gross earnings so as to minimize the occurrence of financial fraud resulting from the difference in nominal value of money with the value contained in the report, as well as facilitate and streamline the work of the financial section in loading financial statements.

PENGARUH PENERAPAN GOOD GOVERNANCE DAN SISTEM AKUNTANSI KEUANGAN TERHADAP KUALITAS LAPORAN KEUANGAN PADA PEMERINTAH KOTA MANADO

This study aims to analyze the application of good governance and local financial accounting system to the quality of financial statements SKPD. This research was conducted in Manado City Government. Sampling method in this research is by using quantitative approach, by using primary data through questionnaire. This sample is distributed to 40 financial officers from 10 SKPD of Manado City. For this study data were analyzed by using multiple linear regression with statistical program tool, after classical assumption test fulfilled. The data is processed by using SPSS 21 program. The result of this research indicates that good governance has a significant positive influence to the quality of local financial statements and regional financial accounting system there is no significant positive effect on the quality of local financial statements.Keywords: Good Governance, Regional Financial Accounting System, Quality of Regional Financial Report

Communication Jurisprudence; How Far Is It Linked to Freedom of Speech and Expression including Information Right?

Communication, a human instinct acquired naturally, is not only the reality of law of nature but also personal and social reality for their respective function to be performed in target area. This human civilization has become well organized and developed as with the presence of communication; otherwise there wouldn't be difference between human and animal domain. So any personal expression is allowed to the extent that other person does not feel harm or ashamed and so is applicable to organized institution as such it may not go wrong and misuse the terms of reference as deemed under law and moral standards. Public communication is a base of human rights and popular sovereignty as the functions of democracy is possible only through socially responsible communication. The responsibility of this communication goes not only to government and its organ but also to private sectors to the extent that they are existed in the market. Under the domain of law, large numbers of legal philosophers describe the role and requirements of communication i.e. inner morality of Fuller, command of Austin, penumbra situation of Hart, principle of hard case of Dworkin, freedom of speech and expression as a personal interest of Roscoe Pound, no harm principle of JS Mill, requirement of publication of law for formality, participatory approach of law making, interpreting and enforcement process etc. No society and its organizational integration are possible in the absence of communication. Communication is tools of progress and development of all language, culture, social system, rules and behavior control. Communication is the oxygen of state, human knowledge, its storage and transfer. It is a base of transparency, good governance and effective government system. Thus, freedom of speech and expression and right to information are respiratory organ of public communication. So, both face to face and public communications are required for discourse of social phenomenon for Habermas. Yet, public communication cannot be used for defamation; libel and slander, contempt of court, racial disharmony, vested interest, criminal instigation etc. It attracts the necessity of reasonable regulation to the public media for healthy discourse both legal and social.

The Evaluation of Internal Audit Functions for Effective Public Sector Administration: A Survey of Accra Metropolitan Assembly, Ghana

This study examines the effectiveness of internal audit unit at the public sector within the local government level in Accra Metropolitan Assembly with a view to finding out how internal audit unit exists and its level of independence. Primary data were collected through questionnaires administered on a sample of one hundred (100) staff drawn randomly from eight (8) Public sector organizations within the Accra Metropolitan Assembly in Ghana. The data collected was first summarized and presented by means of Table and chart. A key table used was the frequency distribution table. The data presented were analyzed through percentages. The evidence from the study indicates that the internal auditors are focusing their activities more on compliance with laws and regulations and detections of errors and fraud. The scope of the internal audit activities pays very little attention to risk management and project evaluation. The Public sector internal auditors lack proper independence in conducting their duties. The internal audit units of MDAs are understaffed and they experience excessive work load. It can be concluded from the above that, the internal audit units are not very effective as a tool of good corporate governance system in the MDAs.

KONSEP ORWELISASI DAN PARKINSONISASI DALAM SISTEM PEMERINTAHAN PUBLIK

This article discusses the importance of the role of the right government system within a country. One of the determinants of the good governance system is based on the accuracy in the selection of government bureaucracy system. Therefore, to provide a more detailed understanding, this article will discuss about the bureaucratic system. This review will examine two bureaucratic systems currently dominantly applied by most countries in the world, namely Orwell Bureaucracy (Orwellization) and Parkinson's Bureaucracy (Parkinsonization). This article is divided into four studies, first on the backgrounds of Orwell and Parkinson, the two studies on the concept of Orwellization and Parkinsonization framework, the three analyzing the application of both concepts within a country, and the fourth is criticism given by experts to the concept of Orwellization and Parkinsonization. In this study it is found that the concept of Orwellization and Parkinsonization is still relevant in studying the problems of bureaucratic systems in some countries, the concept of Orwellisasi can create a strong state but weaken the issue of Human Rights (HAM), while the concept of Parkinsonization contributed considerably in the development effort but weaken the system of recruitment of public officials. However, there are some experts who give criticism to the concept of ureaucracy Orwellisasi and Parkinsonisasi this, this is not apart from weakness owned by each bureaucracy concept. Keywords: bureaucracy, Orwellisasi, dan Parkinsonisasi

Efektivitas Penerapan Sistem Akuntabilitas Kinerja Instansi Pemerintah (SAKIP) pada Pemerintahan Daerah Kota Bandung (Studi Kasus pada Badan Kepegawaian, Pendidikan dan Pelatihan; Bagian Umum dan Perlengkapan dan Badan Kesatuan Bangsa dan Politik)

AbstractThe creation of a good governance system (one good way of governance) one of the way with a good performance measurement system to support the implementation. The government then makes a performance measurement system that is Government Accountability System of Performance Institution (SAKIP). The final product of SAKIP that describes the performance achieved by a government agency on the implementation of programs and activities funded by APBN/APBD is known as LAKIP (Performance Accountability Report of Government Agencies). The number of Regional Device Units incorporated in the city or county governments throughout Indonesia, it was reported that no one had achieved an A rating of the LAKIP he had compiled. This phenomenon forms the basis for our research to attempt to disclose other factors that might influence the assessment of LAKIP on the performance appraisal system for SKPD in Indonesia. Based on previous research conducted by Spekle and Verbeeten (2013), this study tried to replicate to test whether it yielded the same conclusions. Sample amounted to 127 comes from population 3 SKPD in Bandung with data analysis technique Moderated Regression Analysis (MRA). The results showed that SAKIP oriented incentives did not affect the performance of civil servants. SAKIP-oriented exploration affects the performance of civil servants. Contractibility as a moderating variable can not strengthen or weaken the relationship of SAKIP oriented incentives tocivil servants performance while the relationship SAKIP oriented exploration and performance of civil servants negativf influence. Input for the next researcher so as not to focus on one office and test the variables in this study on different settings and is expected to increase the number of samples to obtain better resultsKeywords: Government Agency Performance Accountability System (SAKIP), Performance, Â Â Â Â Contractibility, SKPD Â Â Bandung

The Changing Trends in University Governance in Malaysia: Issues and Challenges

Society has undergone massive changes in its socioeconomic and cultural facets. Thus the concept of knowledge society has got momentum with it, with education being a key motivator of these changes. Following the introduction of the “Wawasan 2020” (Vision 2020) and the subsequent declaration of the Transformasi Nasional (TN50) policy, increasing attention has been made in the effort to change the structure of higher education governance in Malaysia (Dzulkifli, 2011). The ongoing reforms in University governance are driven by the notion that Malaysia aims to set themselves up as a central node for better education in the region (Quddus & Ahmad, 2015) and as a nation aims to transform into “a nation of calibre, with a new mindset” (New Straits Times, Online - 21 October, 2016). As a nation, Malaysia also wants to be fully developed in terms of economic development, ensuring social justice, a system of good governance, quality of life and to uphold social and spiritual values, political stability, national pride, confidence, unity and social cohesion in the polity (“The Way Forward—Vision 2020” speech delivered by Dr Tun Mahathir, Source: http://www.epu.jpm.my/ 02/28/1991). This paper explores whether these particular reform initiatives introduced in relation to higher education management would help to achieve the declared objectives of the government of Malaysia. In analysing the impact of reform initiatives on the production of knowledge in Malaysia, and across the globe, this paper has explored the answers of the following questions: a) What are the major changing trends of higher education governance in Malaysia; b) How current reform initiatives relating to university governance will affect the “soaring upwards” motto of the government i.e. the ministry of higher education; c) what are the current challenges of university governance in Malaysia and how to resolve them. The findings of this study reveal that there are many innovative programs and policies relating to higher education management in Malaysia, however some of them are not supportive of and to some extent even contradict the objectives of the government and society at large.

Short-run price performance of IPOs and corporate governance practices: Evidence from a frontier market

The short-run price performance of Initial Public Offerings (IPOs) indicates that the prices are often underpriced which is widely documented as a universal phenomenon. Corporate governance refers to the set of systems, principles and processes by which a company is governed. Establishing good corporate governance system in an IPO company makes good decisions which attract more outside investors. Therefore, this study examines whether there is any impact of corporate governance practices on short-run price performance of Sri Lankan IPOs. Study examined 44 fixed price IPOs which were listed on the Colombo Stock Exchange (CSE) during the period of 2003 – January to 2015- December. The study found that Sri Lankan IPOs underprice by 30% on AR, which is statistically significant at 5% level. Further, it found that block holder ownership (ownership concentration), CEO duality and existence of the non-executive directors in the board are positively related to the short-run underpricing, which are statistically significant at 5%. But, the board size has a significant negative impact on underpricing. These relationships are in line with the international literature which confirms that the corporate governance practices have significant impact on short-run price performance of IPOs in Sri Lanka. These findings also support the agency and signaling theories.

Prospects of Enduring Peace in Afghanistan: Avoiding Zero Sum Game in Af-Pak Region

Afghanistan has witnessed a turbulent history of long and devastating war due to Soviet unabated invasion of Afghanistan of ten years producing unbearable losses of life, institutions and society. The United States along-with the support of majority of Muslim countries supported Jihad to defeat communism. This victory was, however, short-lived as infighting among Afghan war lords later entangled the entire country with even graver consequence. The emergence of Taliban and resultant occupation of 70% of Afghanistan had brought some degree of stability by providing good governance and expeditious justice system, but failed to pragmatically adjust to international environment. The unfortunate incidents of 9/11 changed the world for foreseeable time with even harsher fall out for Afghan nation as unleashing of the war of terror destroyed the left over Afghanistan. The instability in Afghanistan has caused negative effects on Pakistan as next door neighbour, which has rendered all sorts of humanitarian, diplomatic and moral support to Afghan cause since Soviet invasion and has also suffered most in the process due to spill-over effects. The democratic government is incharge in Afghanistan after fall of Taliban regime in 2001 and several state institutions are also in place albeit at infancy stage, especially the security institutions, yet the prospects of enduring peace and stability are distant reality. More than three million Afghan refugees are still in Pakistan with very dim prospects of honourable return due to persisting instability. This paper highlights the causes of instability in Afghanistan with spill-over impact on Pakistan and suggests a course of action for enduring stability.

Transforming Urban Dichotomies and Challenges of South Asian Megacities: Rethinking Sustainable Growth of Dhaka, Bangladesh

Dhaka, the capital of Bangladesh, is the eleventh largest megacity city in the world, with a population of 18.2 million people living in an area of 1528 km2. This city profile traces the trajectories of its urban development to becoming a megacity and characterizes its emerging challenges due to informal urbanization and climate change impacts. Due to rapid population growth and uncontrolled urbanization, Dhaka currently faces various socio-economic and environmental challenges in aspects such as providing basic urban services; reliable transportation framework; constant water and energy supply; effective sanitation; sustainable waste management and affordable housing. Moreover, the urban setting has further deteriorated as Dhaka is already facing various adverse impacts of climate change. Studies predict that most of the urban sectors, public health and surrounding agriculture and fisheries in Dhaka will be severely impacted by climate change. Dhaka is trying to transform its existing “incremental development” model to an “integrated development” framework in order to effectively mitigate its extreme urban challenges. The future of Dhaka city significantly relies on the successful execution of integrated infrastructure and service planning, development, and management practices, operating under an accountable and good governance system.

Centenary Celebrations: The Role of Good Governance and Effective . Public Administration towards Achieving Economic Growth and Stability in Fledgling Democracy in Nigeria

Nigeria, a country endowed with abundant natural, mineral and human resources is grappling with problems of development; a century after her amalgamation and fifty-jive years of full fledged political independence. She has been overtaken in development by some other developing countries notably Indonesia, Malaysia and Venezuela. Today, she is faced with myriad of problems prominent among which are poverty, corruption, insecurity, kidnapping, ethno-religious crises and many more. These problems can be attributed to bad governance. This paper examines the role of good governance and effective public administrative system in ensuring economic growth and stable polity. The paper adopted Elite theory as its analytical tool. The paper contends that good governance is crucial to economic growth because it enhances human development which in turn is the pivot around which other developmental activities revolve. The paper further argues that .only an efficient and effective public administrative system can deliver the dividends of democracy. It concludes that adherence to basic tenets of good governance and a combination of well trained and carefully recruited and motivated public servants as well as an enabling environment can ensure economic growth and stable polity.

User Impact of Literacy on Treatment Outcomes Quality Regional Financial Information System

This study aims to determine the effectiveness of the Outcomes of the Quality Regional Financial Information System . The research is an explanatory survey exploration that explains the relationship between some variables. The population of this study is formed by 7 District Municipalities in North Sumatra. The sample comprises 197 respondents; the sampling process is a purposive random one. Variables used include User Literacy, Regional Information System, Role Ambiguity, Training and Local Government Finance Report. Treatment Outcomes Quality systems have a significant effect on the accuracy of Local Government Financial Statement Presentation. Role Ambiguity has no significant effect on the accuracy of Local Government Financial Statement Presentation. Training does not significantly influence the accuracy of Government Financial Statements literacy. The findings of this study provide recommendations for improvement of the performance manager in North Sumatra, which thus supporting the implementation of a good government system.

IBKIK JASA KONSULTANSI TALENT MANAGEMENT

Abstract The business unit developed called IbKIK Talent Management Consultancy Services (IbKIK JKTM) with main activities as a provider of research and development services in business and economics. Short-term goal is to meet and support the needs of the community, partners and businesses of of consultancy and training services in business and economics field. While the long-term goal IbKIK JKTM is the creation of a system of good governance, among others: a data base of research results and superior technology, a data base of client needs, index of client satisfaction, guidelines for unit activities of IbKIK, the working mechanism of IbKIK, creation of favorable cooperation between the UWP Surabaya with industry, local government and the community, an increasing number of new entrepreneurs of lecturers and students. The method applied is to maintain the existing condition of raw materials or clients and maintaining good relationships with customers or clients, especially clients remain. The production had a very adequate instrument assets, production process starting from understanding the client's needs until the implementation of the consultation as well as feedback and supervision to maintain good relationships with clients. The management is still not good so it need improvement, the marketing is done by segmenting and targeting strategy, pricing, promotion and maintaining good relationships with clients (developing relationship). While human resources are adequate to the needs of training and development, the existing facilities dedicated space business unit, but the ingredients are still to be developed. From the financial side, the financial return in 2016 are projected to reach Rp. 500.000.000, -. Accountability income and expenditure of money is managed independently by the management. The next steps to operate the business are improving organizational management especially in financial management, improving marketing strategy, developing products, increasing human resource competencies, maintaining existing clients and increasing public training.