PRIVATIZATION POLICY IN THE IMPLEMENTATION OF PUBLIC SERVICE IN LOCAL GOVERNMENT: EVIDENCE FROM INDONESIA
Keywords:
Aprivatized duties, Approach, Privatization model, Privatization mechanism, Advantages, RisksAbstract
The purpose of writing this article is to describe and provide concrete examples of privatization policies in the implementation of public services in local governments. The writing of this article uses a literature review method. The literature used comes from books and journals related to privatization policy. Privatization carried out by following the principles of managerial economic performance will provide dual benefits to the government and society at large. Therefore, a prudential approach is usually taken, before deciding privatization policy. Selection of affairs or areas of works that are appropriate and worthy of privatization must be performed through intensive study, or if necessary through comparative studies. Sensitivity analysis can be applied by determining alternatives so that each alternative is supported by strong reasoning and can be justified in theory and practice. Privatization policy should benefit local governments in terms of local revenues, quality improvement, and types of public services. Privatization that will create new problems and burdens must be avoided. Hence, hastiness in making decisions about privatization should not occur.
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