The Social Sciences

Year: 2015
Volume: 10
Issue: 7
Page No. 1712 - 1717

An Assessment of Intellectual Capital in Regional Government Enterprise; Experience in Indonesia

Authors : Bambang Setiaji and Anton A. Setyawan

Abstract: Regional autonomy demands high quality performance of government organization. BUMD (Regional Government Enterprise) plays an important role in the regional economic performance. BUMD is one of the sources of revenue for regional government, whether provincial or district. But the fact is BUMD has a low performance. This happens due to lack of understanding about quality service standard and also low quality of human resource. BUMD faces the same changes in business climate just like any other business organization. Those changes, include the emerge of knowledge base economy which in demands BUMD to be more professional and profit oriented. This research uses intellectual capital approach to analyze the quality of organization in BUMD. Intellectual capital is intellectual material such as knowledge, information, patent and experience which use to increase the wealth of organization. It contains of three sources, they are human capital, customer capital and structural capital. This research analyses the effects of human capital and customer capital to customer capital. The respondents are BUMD employee in Sukoharjo District who had been work more than a year in their institution. This research use intellectual capital methods developed. The tools of analyses of this research is hierarchical regression analyses. The result shows that human capital and customer capital have a positive effect to structural capital. The conclusion is BUMD must increase their human resource’s quality and standardized their service in order to increase their organization’s performance. This research has two limitation, first, there is a low respond rate among BUMD employee. Second, this research is not directly relates the effect of intellectual capital to company’s performance which can be an opportunity for further research.

How to cite this article:

Bambang Setiaji and Anton A. Setyawan, 2015. An Assessment of Intellectual Capital in Regional Government Enterprise; Experience in Indonesia. The Social Sciences, 10: 1712-1717.

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