Dynamic Capability in Licensing and Business Investment Services in Jakarta's Hinterland Area (Case Study of Bekasi City Integrated Licensing and Business Investment Service Agency)

The metropolitan city of Bekasi is one of the Jakarta hinterland which it has been urban area developed as one of the Jakarta megapolitan subnetwork. The polarization effect of the megapolitan network of Jakarta which has an impact on the growth of Bekasi, requires facilities for licensing and business investment to support economic growth and regional development of Bekasi. For this reason, the Bekasi City Government launched the one-stop integrated licensing and business investment service i.e Bekasi One-Stop Integrated Licensing and Investment Service (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu/DPMPTSP). The significance of the DPMPTSP is to accommodate the growth and development of Bekasi as a hinterland or a buffer zone of Jakarta. So far, the existence of DPMPTSP service in providing public services has been facing problems of integrity, accountability, accessibility, fairness and responsibility. Therefore, the purpose of the study was about how dynamic capabilities in licensing and business investment services are carried out by the Bekasi City Government. The research method used a qualitative method with a case study strategy. The study revealed that dynamic capabilities support the innovation of licensing business investment services in the city of Bekasi as a hinterland of Jakarta by accommodating integrated services from several technical bodies, so that they are more accessible, accountable, responsive, transparent, but there were several service brokers. So, the dynamic capability supports the innovation of e-adm-based services as a form of e-Gov and it has minimized red tape bureaucracy in the DPMPTSP services. Although it is still an incremental innovation than before and not fully interactive model yet. On the other hand, even though there is a complaint service link in the website of the DPMPTSP service, there is no space provided for public consultation and participation. Even though public participation is providing input for improving the service model process, collaborative ...