The Organizational Readiness Towards Cashless Government (case study in the Ministry of Foreign Affairs in the Republic of Indonesia)
Paramita Nur Kurniati (a*); Bernardus Yuliarto Nugroho (b**); Ferdinand D. Saragih (c***)
a) Faculty of Administrative Sciences, University of Indonesia
Gedung Mochtar Lantai 3
Jl. Pegangsaan Timur No.16, Jakarta 10320
*paramita.kurniati[at]gmail.com
b) Faculty of Administrative Sciences, University of Indonesia
Gedung Mochtar Lantai 3
Jl. Pegangsaan Timur No.16, Jakarta 10320
**nugroho_yuliarto[at]yahoo.com
c) Faculty of Administrative Sciences, University of Indonesia
Gedung Mochtar Lantai 3
Jl. Pegangsaan Timur No.16, Jakarta 10320
***saragih_fds[at]yahoo.com
Abstract
Much of the operational expenditure of the State Budget (APBN) is carried out through cash basis. With this mechanism, several obstacles arise, namely the costs incurred due to the ineffectiveness of cash management; the obstruction of office operations due to problems with availability of money; and the potential for corruption from cash transactions. To overcome those problems, the Ministry of Finance has made a Government Credit Cards (Kartu Kredit Pemerintah - KKP) policy to modernize the payment system. Focus Group Discussion and literature studies in this paper found that organizational readiness plays an important role in efforts towards cashless government. The preparation phase of the organization is likened to being a foundation for the development of innovations. A solid foundation is expected to be able to support the implementation of innovation so it becomes more effective, efficient and sustainable. Variables that need to be prepared in implementing an innovation include: organizational motivation in seeing the urgency of the need to change the system from cash basis to cashless; resources devoted in implementing cashless government system; the readiness and adaptability of each individual towards the implementation of cashless government system, and the organizational culture that is open to an innovation.
Keywords: cashless basis, cashless society, organizational readiness, government credit card.
Topic: International Symposium on Social Sciences, Humanities, Education, and Religious Studies