Honduras, Libya, Ozambik, and Uganda. For Public Service Index, the difference is not too significant from Corruption Perception Index.
Local autonomy implementation which is hoped to be able to increase the acceleration of public service in some cases just performs the contradictive condition. The
superior authority is taken by each region as an authority to make policy which intended to increase local income. Thus public policy is issued which is contra productive to
investment, even it raises high cost for investor, which is known as a thousand in trouble local rule Murtir Jeddawi, 2004. The high cost economy causes imbalance between
stakeholders in a corporation. Thus the implementation of good corporate governance in a local government can be utopian indicated by low investment realization in the proper
region. Politic condition before local election also influences investment. Indonesian
Bank’s data in Makasar has recorded that the economy of South Sulawesi grows 8,45 percent. In the same period last year, the province economy grew 8,6 percent Koran
Tempo, 18 Oktober 2012.
Based on the thought, then the author can make problem statement of theanalysis, namely, How should bureaucracy play role in increasing competitiveness of local
investment?
II. LITERATURE REVIEW a. Urgency of Bureaucracy
In the literature, Bureaucracy is generally seen as an actor who merely implements policy that has been decided elsewhere. But from experience, particularly in developing
countries, the bureaucracy does not only dominate the administration of the government, but also the political life of society as whole. In many developing countries, the state
apparatus bureaucracy are the initiator and planners.
In a history of bureaucracy, especially Western Europe, Weber describes the development of bureaucratic modernization along with the development of the people.
The increase of economy monetization, the emergence of capitalist economy, rationality and demystifying progress in society, democratization and socio-economic modernization
in general pose administrative problems which are increasingly numerous and complex. As a result, there was necessity to implement clear division of labor in society. In this
context then bureaucracy appears in response to the needs of the times. Thus the bureaucracy appears as a response to the expansion and complexity of government
administrative tasks. Needs are considered more urgent due to the decline in the role of the kings patrimonial management of public affairs. While the corporate bureaucracy or
industrial management arises because the rapid advances in the techniques of industry
Mochtar Mas’oed, 1994. In another dimension there is an idea that the emergence of bureaucracy doesm
not only coordinate the various elements function in the governance process or production process. The phenomenon is much more important to note, that the
bureaucracy was actually created for the functioning of discipline and control. The need for discipline and control functions, associated with the development of capitalism.
Therefore, the talk about the bureaucracy will always be associated with the discussion of capitalism. If according to Weber progress with the development of modernization,
other opinions give more emphasis that the bureaucracy was due to the need of capitalism to produce himself.
So is management industry not only serves as a coordinator, but more importantly as controlling production activities for capital accumulation and control of labor relations
that occur insubordination. Beetham, 1987 The position is supported by the bureaucratic elements that are the sources of
power, namely: privacy, monopoly of information, technical expertise and a high social status Mochtar, 1985. According to Weber, the elements are necessary for the effective
functioning of such coordination. According to another view, the elements of the underlying function are precisely the control of society.
History of bureaucracy in many countries suggests that the bureaucracy was created to respond to the need for control. Bureaucracy does not arise solely as a result
of the complexity of modern society functional. In Indonesia we often hear complaints about the attitude of the bureaucrats are
just asking to be served, not to serve the public. Why is that? What framework could explain this issue? One way of understanding
these phenomena is to pay attention to the characteristics of the typical bureaucracy in these “post-colonial countries and identifying domestic and international environment
faced by bureaucrats in third world countries Masoed Mochtar, 2008 b. The concept of global competitiveness
The term of competitiveness is defined variously. Michael Porter stated, “There is no accepted definition of competitiveness. Whichever, definition of competitiveness is
adopted, an even more serious problem has been there is no generally accepted theory to explain it.” Kuncoro, 2005. Regional Autonomy Implementation Monitoring Committee
defines competitiveness of the region with an emphasis on the attractiveness of investment in the region. According to Tatang Taufik 2005, the competitiveness of the
region is the regions ability to create, develop, offer, climate most productive environment for business and innovation, investment attraction, easily moving factors, as
well as the potential for sustained superior performance in areas. The concept of competitiveness that can be applied is the productivity which he defines as the value of
output produced by a workforce. The World Bank states that are relatively similar in terms of where the competitiveness refers to the magnitude and rate of change of value added
per unit of input which is achieved by the company. However, both the World Bank, Porter, as well as current literature on national competitiveness, the view that
competitiveness is not narrowly limited to cover only the efficiency of a company. The competitiveness of the broader aspects, not dwell only on the micro level of the company,
but also reach beyond the corporate aspects such as climate business environment that are clearly beyond the control of the company. These aspects can be firm-specific, region-
specific, and even country-specific Pieter et al, 2002.
World Economic Forum WEF, an organization that regularly publishes Global Competitiveness Report, defines national competitiveness more broadly, but in short,
simple sentences. WEF defines national competitiveness as the ability of the national economy to achieve high economic growth and sustainable. The focus then is on the
right policies, appropriate institutions, as well as other economic characteristics that support the realization of high and sustained economic growth.
Another institution that is widely known in the literature of national competitiveness is the Institute of Management Development IMD with the publication of
competitiveness World Yearbook. Full and relatively normal IMD defines national competitiveness as the ability of a country in creating added value in order to increase
national wealth by managing assets and processes, attractiveness and aggressiveness, globalism and proximity, and by integrating these relationships into a model of economic
and social development. In simpler words, national competitiveness is a concept to measure and compare how well a country in providing a particular climate that is
conducive to maintain the competitiveness of the domestic and global to the companies in its territory.
Referring to the various definitions above, it seems impossible to find the perfect uniformity of definition. However, variations of the definition of competitiveness are not
denying the possibility of consensus among the experts. At least, even with such a uniform definition, almost all experts have the same opinion about what needs to be done
in order to improve competitiveness Sachs et al, 2000. Thus, the definition of a definite and agreed by all parties is no longer an absolute requirement in order to determine the
factors that can determine the competitiveness of a region Piter, et al, 2002 c. Local Competitiveness
Local competitivenbess is the skill of the Local in producing the income and high opportunity of job and keep opening -ended to the domestic or international competition.
Local competitivness as the bussiness sector skill or company in a local in producing the high income as well as the wealth level which is spreader to the society.
In Generally, when comparing the competitiveness of the local above with the national competitiveness definition that was discussed before, contain the essensial
similarity. Could be stated that the competitiveness concept difference just centralized in the large area, where the first is the local a part of a country, and the second is the
country. Even in all discussion about the local competitiveness, explicit or implicit, summarise the adaptation relevance of national competitiveness into the local
competitiveness. For example the International bank, explicitly mentions how the determine aspect of competitiveness is able to compete region-specific.
Despite of seeing from the subtance the adopt of national competitiveness concept into the local competitiveness concept is relevan, but in the practice some of the
adaptation needs to be done. The economic competition of the power country is not absolut similar to the local competition in a country. Some of the principles should be
matched. For the example is how we define the opn -ended economic, or how to treat the aspects which variations only exist if been compared among countries.
According to the discussin of some concepts and definitions about a country competitiveness, or local competitiveness as explained above, the conclusion could be
taken that in defining the competitiveness needs some ways as follow: The competitiveness covers the larger aspect than the productivity or
eficiency in the micro level. This things enable us to prefer define the competitiveness as “skill and economic” than “compani privat skill sector”.
Economic actor Economic agent not only the company, but also home, government, and others. All of them are managed in the sinergic economic
system. Without disown the big role of the private company sector in the economic, the focus attention not only to that. This thing is strived for
keeping the competitiveness large area.
The aim and the last result of competitiveness development of the economic is also the improvement of society wealth in that economic. Wealth level of
living is the large concept that not only describe in the variable mulberry as the economic growing. The economic growing is only an aspect of the
economic developing in the living society standar improvement.
The key word of the competitiveness concept is “competition”, Here the role of the open -ended in the competition to the competitors become relevan.
The word “competitiveness” losing its meaning in the closes -ended economic Piter, 2002. Thereby, in the local otonomy era, the acces of the
local competitiveness is more open--ended.
D. Investment theory
