Additional Employee Income and Performance of Public Sector in

East Java, Indonesia

Windijarto, Falih Suaedi, Indrianawati Usman, and Rooswanti Putri

Post Graduate Program in Management, Airlangga University, 4-6 Airlangga St., Surabaya, Indonesia

Keywords: Remuneration in the public sector, Additional Employee Income, Performance.

Abstract: Additional Employee Income (TPP) is a term for a remuneration system for Civil Servants (PNS) in local

government. TPP is income other than salary, structural/functional job allowance, honorarium given in

accordance with local financial capability and prevailing laws and regulations. The purpose of this research

is to know the implementation, to analyze the acceptance, to formulate the appropriate system model in the

Incremental Income of Civil Servants in the cities of East Java Province, Indonesia. The research approach

used is qualitative research with multiple case study. Data collection methods used in-depth interviews with

informants who are officials in charge of remuneration and performance measurement at the Regional

Personnel Board in 8 (eight) cities. East Java province consists of 4 (four) cities/districts that have

implemented TPP and 4 (four) cities that have not implemented TPP in 2017. The discipline is increasing in

cities that have implemented TPP, both from timeliness of work and discipline in following routine events,

as well as increased motivation and morale. Civil servants are competing to show their best performance in

order to gain additional revenue. The biggest obstacle in TPP implementation is the ability of regional

finance and the willingness of regional leaders.

1 INTRODUCTION

Remuneration for civil servants in the local

government is called the Income of Employee

Income (TPP). Regulations on TPP in East Java had

been regulated in the East Java Governor Regulation

No. 81 of 2015. TPP policy is one form of

autonomous authority provided by the central

government to the local government. TPP is income

other than salary, structural or functional (general

and certain) job allowance, and honorarium given in

accordance with local financial capability and

prevailing laws and regulations in each region. The

Governor Regulation stipulates the criteria for

granting income to civil servants in the East Java

government stating that TPP is granted in

accordance with the financial capacity and local

legislation.

Remuneration is related to bureaucracy, then it

can be interpreted as an award given by the

government on the performance of an employee in a

government agency in the form of additional salary

allowance. Appropriate and adequate remuneration

is often not found in government sectors with low

state revenues. Low salaries can result in

consequences, including low staff morale and

reduced work effort; difficulties in recruitment and

maintenance of technical and professional staff, non-

transparent remuneration forms, and strong

incentives to accept bribes (UNDP, 2010: 3)

Many cities in East Java, Indonesia have not yet

applied TPP. The existence of freedom for cities and

districts in East Java to determine their own

remuneration system is based on the financial

capacity of their respective regions, causing the

application of different remuneration in each city

and district. Until the end of 2016 there were still 6

(six) City Districts in East Java that had not yet

applied TPP. This study selected 4 cities in East Java

that have applied TPP and 4 cities that have not

applied TPP. Furthermore, this research will analyze

the implementation of TPP to improve performance

and to analyze the acceptance of the system by the

Civil Servants (PNS) in East Java Province,

Indonesia.

Windijarto, ., Suaedi, F., Usman, I. and Putri, R.

Additional Employee Income and Performance of Public Sector in East Java, Indonesia.

DOI: 10.5220/0007537300510059

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 51-59

ISBN: 978-989-758-348-3

2 THEORETICAL

BACKGROUND

2.1 Performance Assessment

Rivai and Basri (2004: 14) argue that performance is

the overall work result of a person during a certain

period in carrying out tasks, such as standards of

work, targets or criteria that have been determined in

advance and have been mutually agreed.

Performance appraisals play an important role in

employee motivation. Motivation from employees

will rise when employees feel satisfied with the

feedback they receive on their work. The

performance appraisal system in government

agencies in Indonesia for civil servants (PNS) was

established in RI Government Regulation no.

46/2011 and the Regulation of the State Minister for

the Regulation of the Head of the State Personnel

Number 1/2013. Error! Reference source not

found. illustrates the employment of civil servants

in Indonesia in accordance with PP RI no. 46/2011

and Regulation of the Head of the State Personnel

Agency 1/2013.

Figure 1: Performance Assessment Chart

2.2 Work Behavior

Work Behavior is any behavior, attitude or action

performed by civil servants in accordance with the

provisions of legislation. It is measured through the

appraisal of the appraisal officer and taking into

account the opinions and inputs of the appraisal

officers who are level in their respective work units.

Job Target Employees is a work plan and targets

what is achieved by a civil servant. Assessment

compares between Target and Realization.

2.3 Remuneration

Remuneration is the total income of an individual

that can consist of separate payments, and is

determined based on existing rules (Buchan et al;

2000). In relation to the government bureaucratic

context, remuneration is the realignment of an

employee payroll system based on performance

appraisal, with the goal of creating a good and clean

governance system.

2.4 Performance and Remuneration

Appropriate remuneration may affect performance,

motivation, job satisfaction and employee behavior

in the workplace (Djamaludin, 2009; Gill, 2014;

Mendes et all, 2016; Campbell III, 2007).

Remuneration has an influence on motivation that

implies employee performance (Cahyanugroho et.

all; 2016). Mendes et. all (2016) also believes that

remuneration has a significant positive relationship

for both civil servants and private employees.

Motivation is an impulse found in a person to carry

out the task or job that becomes his responsibility

(Djamaludin, 2009).

The relationship between employees acts by

providing appropriate incentives - such as "carrots"

(premiums) and "sticks" (punishment).

Remuneration agents are principally based on input

(e.g. effort, time spent in the office) or on output

(outcome). Remuneration is referred to as "high-

powered" because it is strongly and directly related

to the outcome of the worker - which is a good

choice when efforts are not easy to quantify, and

there is expensive or unsuitable supervision (Paul

and Robinson, 2007).

3 RESEARCH METHOD

The approach of this research is by qualitative

research using a multiple case study method. The

data collection approach for cultural research can be

done in several ways, i.e. interviews, questionnaires,

observations, organizational notes/documentation

(Swanson, 1997:96). By using a leather approach

then the data obtained will be more complete, deep,

credible and meaningful meaning that the research

goal is achieved (Tahar, 2012). The selection of a

qualitative approach is inseparable from the case

ICPS 2018 - 2nd International Conference Postgraduate School

study examined, namely remuneration or TPP for

civil servants in East Java. In accordance with the

explanation of the theoretical basis, to establish

proper remuneration it is necessary to balance the

needs and desires of the employee and the

organization, so the qualitative approach will be

more appropriate. The principle of remuneration and

performance of employees is essentially qualitative,

so using a qualitative approach will be easier (Tahar,

2012).

3.1 List of Informants

The research location is 8 districts/cities in East Java

Province of Indonesia.

The selection of informants uses theoretical

sampling which is a technique of data sampling with

certain considerations, or in other words, sampling

based on theoretical considerations. The selected

informants are government agencies located in eight

cities or districts in East Java Province. The reason

for selecting the eight samples is to represent the

agencies in East Java province spread over the north,

south, west, east and central areas of Pamekasan,

Bangkalan, Mojokerto, Banyuwangi, Situbondo,

Nganjuk, Madiun, and Surabaya City. Of the eight

cities, 4 (four) cities namely Madiun, Nganjuk,

Pamekasan, and Mojokerto have not applied TPP,

while the rest have applied TPP. The informants are:

▪ Head of Regency Organization

▪ District Organization Staff

▪ Kabag Organization

▪ Head of Information and Procurement Section,

BKPSDM

▪ Secretary of the Regional Finance Agency

▪ Civil Service Agency

▪ BKPSDA Staff and Secretary

▪ Staff Head of Subdivision and Personnel

▪ BKSDA

▪ Staffing Staff Secretariat, BAPPEDA

▪ Head of Finance Section, BAPPEDA;

▪ Head of General and Civil Service Subdivision.

3.2 Types and Data Sources

This study uses data obtained through two sources,

namely:

1. Primary Data is data taken directly from

informants of the cities concerned by using in-

depth interviews to obtain objective, in-depth,

and detailed information. Informants will also be

given direction on the purpose and intent of the

interview conducted by the researcher. This is

because the informant can provide the right

information, credible to the researcher.

2. Secondary Data is data from the company's

internal data in the form of employee documents

and regulations contained in the company or data

that has been processed by parties or institutions.

3.3 Data Analysis Technique

In collecting data and information, researchers use

an in-depth interview technique with the help of an

MP3 Player tool. The results of the interviews

obtained will be used as the basis for making

interview reports. According to Yin (2014) analysis

techniques conducted in qualitative research

includes five stages:

1. Compiling The first stage is the process of

collecting data and sorting data to be managed in

a structured process of analysis. The result of the

compiling process is a record obtained from the

recording and transcript process.

2. Disassembling The second stage is the grouping

of data in accordance with the separation based

on the basic idea of the substance of each piece

of data.

3. Reassembling The third stage is data

rearrangement by disassembling. Preparation of

data is done repeatedly by shifting or simplifying

the data until obtaining more data accuracy and

showing patterns. The results of this process will

be used for analysis of the question and the

problem formulation.

4. Interpreting The process of interpretation is the

process undertaken to answer the problems and

research question using data that has been

arranged by pattern. The interpretation stage is

done according to the completeness, fairness

(objective), empirical accuracy (according to the

data obtained), value added, and credibility.

5. Concluding The last stage is the process of

making kesimpualan from the interpretation of

the results of the penumuan of research. From

this process researchers will gain empirical

findings, also see the significance of the study,

lessons learned, and implications of the research.

3.4 Data Processing Technique

After the results of interviews from various sources

in the form of text documents have been obtained

and collected, then the next can be analyzed by

identifying relevant concepts that exist in the data

and classified into several categories (open coding)

(Gioia, et al., 2010). In this study, the authors use

Additional Employee Income and Performance of Public Sector in East Java, Indonesia

NVIVO which is a qualitative data analysis program

to track the developing categories. This is done for

quick reference to similar concepts into fewer

categories and themes.

The data will be processed with NVIVO

software. Once the data has been inputted into

NVIVO, then a node can be created to classify the

results of the interview to facilitate the encoding.

The results of the coding are then presented in the

data in the form of charts and data queries. Query is

the process of taking data from a database and

providing it for use (Sutopo & Arief, 2010). In this

study, the query data created is the matrix coding

query used to compare the results of the interviews.

The last stage is to create a model to describe the

results of interviews.

3.5 Data Validation Technique

In qualitative research methods, data validation is an

important element because the data obtained from

various informants is very valuable from a research

in which the data will then be used for research

purposes. According to William Wiersma in

Sugiyono (2009: 372), triangulation in testing this

credibility is interpreted as checking data from

various sources in various ways and at various times.

Triangulation of data sources is exploring the truth

of certain information through various methods and

sources of data acquisition (Creswell, 2013: 201).

Patton (in Sutopo, 2006: 92) describes the

triangulation techniques that can be used including:

1. Triangulation A method is a triangulation used

by collecting similar data but using different

methods (Patton in Sutopo, 2006:93).

2. Triangulation of Data or Source is a triangulation

that is directed to find data from an existing

source.

3. Triangulation Theory is a triangulation that uses

the perspective of more than one theory in

discussing the issues to be studied (Patton in

Sutopo, 2006: 98).

4. Triangulation of researchers is the result of either

research in the form of data or conclusions about

a particular section, or the whole can be tested by

other researchers (Sutopo, 2006: 93).

Triangulation of researchers can be done by

holding a discussion or involving several

researchers who have sufficient knowledge.

This study uses a data triangulation technique,

which is directing the researcher in collecting data,

trying to use various existing sources by collecting

data in the form of documents from the city/regency

government in East Java and kominfo. This research

also uses a technique triangulation method in which

research uses a method of interviews and surveys.

This research method used a qualitative approach

with multiple case study.

4 DISCUSSION

All in-depth interviews from various informants

were changed in text form and then analyzed using

open coding. This study uses first-order categories

with more specific results and second-order themes

to illustrate the structure and compilation of data

presented as the basis of grounded theory of

influence on the performance of civil servants.

4.1 City and Regency Applying TPP

The cities and regencies that have implemented TPP

are Bangkalan, Banyuwangi, Situbondo, and

Surabaya. The application of TPP can be different

due to the Governor declaring that East Java

Regional Government can provide TPP based on

objective consideration by paying attention to

regional finance capability (East Java Governor

Regulation No. 81, 2015). Themes are listed in

Figure 2: .

ICPS 2018 - 2nd International Conference Postgraduate School

First-order categories

Understanding of TPP regulations

TPP has been implemented in the city or district

When the TPP starts

TPP indicators in cities or districts

Indicators of performance allowances in cities or districts

1. Knowledge or undestanding

about TPP

Second-order themes

Opinions regarding central government rules regarding TPP

Clarity of central government rules

Regulations of regents or mayors related to TPP

How to deliver information to civil servants

How to deliver info if there is a change

Consistency of information from the central government

Clarity of the TPP implementation instructions

Initially the staff knew the TPP

2. Communication

Quality and quantity of human resources for TPP

Financial resources for TPP

TPP fund allocation

TPP supporting equipment and equipment

Supervisor capacity in calculating TPP weight

Daily performance reporting

Process and content of daily performance reports

TPP must be balanced with proportional APBD amounts

3. Resources

TPP responsible party

Sikap pegawai terhadap TPP

Responsibility of "PNS" toward "Auth"

Responsibility of the TPP manager to the Auth

Opinions about the application of TPP

4. Disposition

SOP for TPP implementation

Pembagian tanggung jawab di antara unit kerja

Obstacles in cities or districts that have not implemented TPP

The regency / city government plan implements TPP

TPP SOP to ensure fairness of benefits

Opinion regarding the ease of running TPP

5. Bureaucracy

Suitability of income and workload

Suitability of workload with competence

Suitability of workload with position

Income before and after TPP

Comfort at work

Things that hinder work

Office facilities to support work

Motivated by the leadership attitude

6. Employee’s satisfaction

Figure 2: Data Structure with First-Order Categories and

Second-Order Themes City and District Applying TPP.

Source: Data processed

4.1.1 Theme 1: Knowledge and

Understanding about TPP

The first step taken in this research is the analysis of

the relationship between supplementary income of

civil servants and performance. The aim is to make

the responsible implementation of TPP and for all

civil servants who are under his control to know and

understand the existence of TPP. According to

Presidential Regulation no. 39 of 2016 concerning

Employee Performance Allowance in the

Environment of the State Civil Apparatus

Commission, that with the implementation of

bureaucracy reform within the State Civil Apparatus

Commission, in an effort to improve the

performance of the Civil State Apparatus

Commission employees should be given

Performance Allowance (Presidential Regulation

No. 39, 2016).

In terms of understanding, informants already

know and understand TPP regulations. Some of

them can even state what law is the basis for TPP

implementation in their area. Based on the results of

in-depth interviews conducted, TPP indicators are

generally not much different, namely fingerprint

attendance to know attendance and attendance apple

or ceremony. It turns out that the uniqueness of

Situbondo has a religious TPP indicator that is

sholawatnariyah. However, all informants except

from Surabaya still do not understand remuneration

based on performance because the informants can

not mention performance indicator allowance.

4.1.2 Theme 2: Communication

The rules set by the central government would

require good communication to be applied to all

components. Rules concerning TPP itself according

to Presidential Regulation No. 39 of 2016 in an

effort to improve the performance of employees

within the State Civil Apparatus Commission should

be given performance allowances. All informants

argued that the East Java Governor's Regulation No.

81 of 2015 was well established due to differing

regional income, budget and regional capabilities so

that local governments could regulate it in local

regulations and adjust to their financial capacity.

Rules made by the Central Government are

considered to be clear because it has been described

in detail through the Perka BKN No.1 of 2013 on

indicators, performance weight calculation, TPP

granting criteria, procedures for making SKP, and

others. Rules made by the regents or mayors have

been based on the rules of the central government,

but re-adjusted with the ability and resources owned.

In implementing a policy program to all ASNs, it

is necessary to coordinate to reach all civil servants

in order to achieve the goal of policy making. In the

outcome of the interview, socialization is carried out

to convey new regulations or policies of the

Additional Employee Income and Performance of Public Sector in East Java, Indonesia

regulation through coordination meetings,

ceremonies, circulars or e-mails, and meetings. If

there is any change then Article 14 requires that the

regulation undergoing such amendment be placed in

the Regional News of East Java. Consistency of the

Central Government Regulation tends not to change

much; it is just that Local Government Regulation

more often changes because of adjusting to local

financial conditions.

4.1.3 Theme 3: Resources

To be able to carry out activities within the agency,

it takes a number of resources such as human

resources and finance. Based on the results of

interviews, human resources of all informants have

met the quantity and quality, but in Banyuwangi it is

felt that the level of human resources in the area is

inadequate so that the workload feels heavy. The

financial capability of each region also differs from

one to another so that the Central Government

regulates in the East Java Governor Regulation No.

81 of 2015 Article 2 paragraph 1 stating that local

governments can provide TPP according to objective

considerations. The amount of TPP fund allocation

has also been regulated in Article 11 paragraph 1.

All informants agree that the region is financially

capable of carrying out TPP policy. The allocation

of TPP funds for each region also differs from one to

another; for example Surabaya allocates the largest

TPP funds of eight trillion rupiah, while other cities

allocate tens of billions of rupiah.

In order for TPP policy to run smoothly it would

require supporting equipment. All regions have

fingerprint scanners to assess discipline and

attendance levels but there is still fraud committed

so that Banyuwangi plans to use face recognition. In

Surabaya itself it has had applications that have been

integrated and tersistemasi with the database so that

is more transparent and credible.

4.1.4 Theme 4: Disposition

Value scoring should provide a better assessment of

the current effectiveness. The National Research

Council, in one of the journals published by the

American Review of Public Administration argues

that, "the supervisor can provide accountable

judgments on performance appraisals under

controlled conditions and with carefully developed

scale assessments (Pablo & Lewis, 2001).

The party responsible for the TPP weight

assessment is the direct and tiered supervisor while

the party responsible for implementing the main

indicators is the regional secretary, assistant sekda,

inspectors, heads of agencies, heads of departments,

and sub-district heads. One of the components of

TPS employment assessment of civil servants is

work behavior. In the aspects of employment

behavior of civil servants apparently they have

improved performance, both from daily tasks,

discipline to attend and go home on time, and follow

the apple. In the results of interviews conducted with

informants, the application of TPP is considered

very good because the level of employee satisfaction

increased, they are motivated in work, and more

disciplined in the presence or follow the ceremonies.

4.1.5 Theme 5: Bureaucracy

The implementation of TPP or SOP policy has been

regulated and explained in detail through the Perka

BKN Number 1 Year 2013. In the regulation of both

the central government and local government it has

set the mechanism of implementation of TPP, TPP

indicators, calculation methods, etc. so that SOP

implementation of TPP has been regulated and is

official and clear. It is just in the mechanism of TPP

implementation of each region, adapted to the ability

of the region. As in Bangkalan, there are SOPs of

TPP implementation such as SOP Preparation of

Fingerprint Result Report and SOP of Budget

Disbursement. One of the components of the TPP

assessment is the SKP that contains the job tasks and

targets to be achieved.

Assessment of the performance of civil servants

is performed with objective principles, is

measurable, accountable, participatory, and

transparent. If TPP implementation is in conformity

with the five principles, then justice allowances will

be created. The implementation of TPP in Surabaya

has been based on application that is e-performance

so that it meets the five principles of performance

appraisal. To prepare for the implementation of TPP

would require a detailed readiness and assessment

because it must be tailored to the ability of each

region.

4.1.6 Theme 6: Bureaucracy

The last thing that is expected to happen with the

application of TPP is the satisfaction of employees

so that there can be an increase in performance. Job

satisfaction can be achieved with the fulfillment of

employee welfare. Based on the results of interviews

conducted a difference was found. Staff who have

felt the benefits of TPP feel that their workload has

been matched with the income received. This can

happen because the calculation of TPP is more

ICPS 2018 - 2nd International Conference Postgraduate School

detailed and calculated with the format that has been

regulated in the Regulation of Head of BKN.

To motivate civil servants to work better, some

researchers recommend and introduce "high

powered" incentives in the public sector, based on

objective performance measurements (outputs or

outcomes). Linking wages to remuneration can

potentially increase employee incomes, motivation,

and outcomes, especially in contexts where

increasing general wages are hard to imagine, and

increasing government service to the community is

important (Robinson, 2007).

All assume that the competence has been in

accordance with the work or the existing workload.

However, the staff found in Bangkalan complained

about the inequality of workload between BKD and

regional library office which is not comparable. The

staff felt that the income generated increased

significantly due to the increasing performance and

motivated by the leadership attitude. The obstacles

in the work encountered are the workload between

SKPD that is not comparable, the number of

inadequate employees, and time-consuming

bureaucracy.

4.2 Cities and Districts That Have Not

Applied TPP

This study used four samples of cities and districts in

East Java that still have not applied TPP for civil

servants, among them are Madiun, Mojokerto,

Nganjuk, and Pamekasan. Although it has been

instructed through the East Java Regional News

related to the implementation of TPP by the central

government, municipalities and districts have not

been able to apply TPP due to constraints faced by

each region. Themes are listed in Error! Reference

source not found..

First-order categories

Understanding of TPP regulations

TPP has been implemented in the city or district

Indikator TPP

Indicators of performance allowances

1. Knowledge or undestanding

about TPP

Second-order themes

Opinions regarding central government rules regarding TPP

Clarity of central government rules

Initially the staff knew the TPP

2. Communication

Quality and quantity of human resources for TPP

Financial resources for TPP

3. Resources

TPP responsible party

Opinions about the application of TPP

4. Disposition

Obstacles in cities or districts that have not implemented TPP

The district / municipal government plan implements TPP

Opinion regarding the ease of running TPP

5. Bureaucracy

Suitability of income and workload

Suitability of workload with competence

Suitability of workload with position

Income before and after TPP

Comfort at work

Things that hinder work

Office facilities to support work

Motivated by the leadership attitude

6. Employee’s satisfaction

Figure 3: Data Structure with First-Order Categories and

Second-Order Themes City and District That Have Not

Applied TPP.

Source: Data processed

4.2.1 Theme 1: Knowledge and

Understanding about TPP

Based on the results of the interviews, all informants

already know about TPP even though the area is still

not implemented and they have not understood yet

the meaning of the actual policy and the indicators in

the assessment of TPP. While the District Nganjuk

and Pamekasan still do not get the information

officially although it has been instructed through

East Java Regional News. In cities and districts that

have not yet applied TPP, they still use incentives in

the form of money to eat and drink and transport, in

contrast to TPPs whose calculations are based on the

performance of each employee.

4.2.2 Theme 2: Communication

In terms of TPP policy communications with all

civil state apparatus is a crucial factor that can be

applied thoroughly for the implementation of

objectives; TPP is in order to improve employee

welfare based on objective considerations.

Informants from the regions that have not yet

applied TPP believe that the TPP regulations that

Additional Employee Income and Performance of Public Sector in East Java, Indonesia

have been made by the central government are a

good thing because it can improve the welfare of

civil servants and allocated funds can be adjusted

with the ability of the APBD. In cities that have not

yet implemented TPP, efforts will be made to

disseminate and discuss forums on TPP policy to

gain new views on TPP. The majority of staff who

became informants in this research know TPP policy

started from socialization conducted by local

government or workshops but staff from City

Nganjuk still have not received socialization from

local government.

4.2.3 Theme 3: Resources

To be able to carry out activities within an agency or

organization, it takes a number of human resources

that meet the needs or quantities needed and quality

or competence in doing a job. From the informants

studied, we argue that there is no problem related to

the quality or competence possessed by employees.

In some cities such as Madiun and Mojokerto,we

argue that the number of human resources owned is

inadequate so that the workload becomes more

severe. In allocating financial resources we should

pay attention to the financial capacity of the region

but it is the biggest factor as a TPP inhibitor.

4.2.4 Theme 4: Disposition

Nunberg in UNDP explains that community services

in many developing countries "are often too large,

too expensive, and few incentives and poor

motivation" (UNDP, 2010). Although they have

never felt the benefits of TPP, the informants feel

TPP implementation is a good thing because it can

increase employee satisfaction and improve

performance so as to serve the community better.

Even informants from Mojokerto argue that data

from the KPK states that areas that have

implemented TPP have fewer corruption figures

than those that have not implemented yet because

TPP is considered more objective, measurable,

accountable, participatory, and transparent.

4.2.5 Theme 5: Bureaucracy

Obstacles found from areas that have not

implemented TPP vary, but the biggest obstacle

came from the financial sector. Regulations on the

allocation of TPP funds have been regulated in East

Java Governor Regulation No. 81 of 2015 that each

region may consider the financial capacity of the

region and obtain approval of the DPRD in

accordance with legislation. It requires careful

calculation and consideration so that the review of

the implementation must wait for approval by the

Bupati. However, in Madiun, the informants argued

that the leadership prioritized to undertake the

development of regional infrastructure such as

repairing damaged roads, etc., so TPP have not been

applied. In the future, however, local governments

already have plans to implement TPP while still

under review which is assisted by academics as it

adapts to local finance. TPP policy is considered as

something that is easy to run because everything has

been arranged in the Perka BKN. However, its

implementation still requires readiness and detailed

assessment as it is tailored to the capability of each

region.

4.2.6 Theme 6: Bureaucracy

Community services in low income countries face

some characteristics and limitations that reduce the

power of motivators. The limits are: (1) lack of

and/or low quality of performance information, (2)

very low wages so that civil servants feel

unappreciated, (3) demotivation factors such as poor

working conditions and at least rewards can reduce

intrinsic motivation (Hofstede 2001).

From interviews it was found that staff who still

did not feel the benefits of TPP felt that the

workload is time-consuming and not in accordance

with the income earned due to the large workload

but only the basic salary paid so that it is not in

accordance with the performance of employees.

Informants from Mojokerto complained about a

seven-year moratorium so there was no employee

recruitment. Employee deficiencies result in

workload and tupoksi should be transferred to other

employees. The staff are looking forward to the TPP

because it can be more prosperous for employees so

they can work harder.

Although only partially, material motivation is

important. The opinion that appropriate wages are

essential to maintain the motivation, performance,

and integrity of civil servants is widely accepted and

documented (Kiragu et al., 2004: 109).

5 CONCLUSIONS

Based on the results of research conducted on eight

cities or districts in East Java on the policy of

Incremental Income of Civil Servants and its

performance, it can be concluded that the

implementation of TPP policy can affect the

performance of civil servants that show

ICPS 2018 - 2nd International Conference Postgraduate School

improvement when compared with employees who

still do not feel the benefits of TPP. This can be

evidenced by the statement from the informants who

are the leaders in carrying out TPP or weight

assessment TPP, stating that there is increasing

discipline of civil servants in terms of timeliness in

work (absenteeism), discipline in following apples

and ceremonies, as well as increased motivation in

work. Civil servants are competing to show their

best performance in order to gain additional income

increases.

While in areas that still have not implemented

TPP, it appears that civil servants feel lack of

enthusiasm in work because of the excessive

workload but the income generated tends to remain.

The biggest obstacle to TPP implementation is the

financial capacity possessed by the region and the

approval of the respective regional leaders.

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