PLN Bersih - Better Service Delivery from State Owned Enterprise

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PLN Bersih - Better Service Delivery from State Owned Enterprise

Jakarta, IndonesiaJakarta, Indonesia
Year Founded:
2011
Organization type: 
nonprofit/ngo/citizen sector
Project Stage:
Established
Budget: 
$1 million - $5 million
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

PLN Bersih is creating a cleaner state owned enterprise (from graft, bribe, and all sorts of corruption), to help PLN (Perusahaan Listrik Negara - state owned electricity company) deliver better service to its consumer and business partner.

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if state owned enterprise can incorporate customer feedback to improve service and corporate governance?
About Project

Problem: What problem is this project trying to address?

State owned enterprises have long became cash cow for political interests. Along with lack of competition, this has prevented such enterprises from providing efficient and customer oriented service. PLN (State Electric Company) is one of the cases, in which corruption attack (both externally and internally) has resulted in low quality of service - provision of electricity as basic public utility.

Solution: What is the proposed solution? Please be specific!

PLN bersih minimize corruption by involving consumer in monitoring service quality through feedback mechanism; reviewing/ reformulating company's policy (particularly in procurement); and capacity building to prepare a generation of anti-corruption champion within the top management down to the workers at the bottom. Transparency International Indonesia collaborate with Consumers Watch and independent consultant to assess corruption risks along the operation chain. Then we develop together a new system to cover the holes that allows corruption, also a monitoring system.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

For example, consumer experienced that higher fee was charged for new home installation. New monitoring system now use call center to gather customers' feedback post-installation, among which asking specifically whether illegal charge was applied. If such cases were found, a verification team would investigate and follow-up, to the extent of taking disciplinary measure to personnel found guilty. Apart from that, PLN made all information about installation fee and all sorts of tariff open for public, thus increasing transparency and accountability. Another example, procurement bid often become soft spot for political interest, by which winner cut the project money for other purpose. We reformulate company policy to minimize this.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

PLN is moving toward internalization of good corporate governnace or PITA principles (Participation, Integrity, Transparency, Accountability). Participation of consumer through feedback, transparency of all sorts of tariff and fee, resulting in more accountability and integrity. Customer's satisfaction survey also reflected higher score. And with less intervention from political interest, budget inefficiencies could be minimized. From our capacity building program, senior management as well as blue collar employees have better knowledge and awareness on corruption, gratification, and good corporate governance. In the future, we hope to replicate this initiative to other state owned enterprises, and the staffs would have more capacity to maintain good corporate governance.
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

The program was a pilot on 13 units in PLN, but has been institutionalized by PLN headquarter to be implemented as nation-wide policy. Customer feedback in particular has been part of business strategy, thus allocated in operational budget. A number of PLN distribution office has fully adopted the program, PLN Jabar-Banten and PLN Jatim are among the most advance implementer.

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

We believe this type of collaboration model between citizen sector and corporate is relatively new. Unlike conventional approach, in this program we're working hand in hand with state owned enterprise to combat corruption from the inside system.
Team

Founding Story

PLN (State Electric Company) is second largest state owned company in Indonesia, with annual procurement budget reaching the scale of trillion. There were typically two kinds of corruption in place. First one related to political interest, in which politicians push their interests through donation, project bid, or all sorts of facility. This has caused budget inefficiency, with the company as direct victim. Second one related to consumer as direct victim, in which they are charged more than they have to pay. Facing this, PLN director signed MoU with Transparency International Indonesia to collaborate in fighting this rampant corruption.
About You
Organization:
Transparansi Internasional Indonesia
About You
First Name

Dedi

Last Name

Haryadi

LinkedIn URL
About Your Organization
Organization Name

Transparansi Internasional Indonesia

Organization Country

, JK, Jakarta

Country where this project is creating social impact

The information you provide here will be used to fill in any parts of your profile that have been left blank, such as interests, organization information, and website. No contact information will be made public. Please uncheck here if you do not want this to happen..

Impact
Full Impact Potential: What are the main spread strategies moving forward? (Please consider geographic spread, policy reform, and independent replication/adoption of the idea or other mechanisms.)

Transparency International Indonesia is in discussion with Ministry of State Owned Enterprise to upscale this program into "Clean State Owned Enterprise", and has currently two prospective state owned enterprises to adopt this model.

Barriers: What barriers might hinder the success of your project and how do you plan to overcome them?

Commitment from board of director is crucial on this issue.

Sustainability
Partnerships: Tell us about your partnerships.

In this project, Transparency International Indonesia is working in partnership with Consumer Watch, independent consultants, and PLN (State eElectricity Company) itself.

Closing the Loop
How does your project primarily ensure that feedback delivers results?

Help funders, governments, and other organizations to listen to and act on feedback.

Please elaborate on your answer to the above question.

This project put in place a new customers feedback mechanism, that previously not existed. With active feedback on cases of bribe or illegal charge in service, PLN can track down corruption and improve service delivery.

Languages: In what languages are you able to read and write fluently?

English.

2nd Round Questions
Thinking about your feedback loop; what information are you trying to get from whom, to whom, and to bring about what change?

From Call Back Center, customers were asked data on method of applying/ reporting for installation/ repair, time span between payment and service delivery, tipping for staff, additional charge for service, and customer’s satisfaction. From the survey on February 2014 for example, we learn that the case of technician receiving/ asking for tip is 4.16% on new electricity installation, 3.61% on power upgrade, and 2.79% on repair.

The feedback helps PLN to investigate and tackle bribery and improve service for customer toward better corporate governance and customers satisfaction.

What is the purpose of your feedback loop?

Improve quality of programs

If other, please specify
What mediums or mechanisms do you use to collect feedback? (check all that apply)

SMS, Phone or voice.

If other, please specify
Could you briefly describe the way you collect the feedback?

This feedback loop is part of the new system called PLN123 integrated contact center. Previously the main channel for electricity installation application or complain is consumer calling or coming to the unit office. With PLN123, we open new channel: phone, sms, website, facebook, and twitter, and try to be more proactive in detecting problems through regular call back center and survey on customer satisfaction.

Contact center is backed by integrated customer service/ complain management application, which will send request to unit and generate work order for technician. After installation/ repair order is done, Call Back Center recheck whether the order is conducted according to standard procedure. By default a sample of 20% customer is surveyed from the database of customer applying/ complaining, but in some areas call back is conducted to all respondents. Customer satisfaction survey is conducted 1-2 times a year involving both new and old customer.

On violation of standard procedure (in terms of time, personnel attitude, or integrity), a back check is performed by visiting the customer for verification. Follow-up is conducted by report to management, starting from local level, area management, until general manager if necessary. This also determines performance of local management and has in some cases ended up in dismissal local manager and supervisor due to ignorance to complain. In case of integrity violation, report is followed-up by employee disciplinary verification team or vendor of outsourcing staff.

What mechanisms are in place to protect people from retribution?

Secured protection on information

If other, please specify
What are the immediate benefits or incentives for people to provide feedback?

None

If other, please specify
How do you ensure new and marginalized voices are heard?

None

If other, please specify
What are the incentives for the intended recipient to act on the feedback?

I am collecting the feedback for myself!

If other, please specify
How does the feedback mechanism close the loop with those who provided feedback in the first place?

Other

If other, please specify

Inform consumers about follow up of cases they reported

How is feedback published/transparent?

On a website

If other, please specify
Give two concrete examples of how feedback loops have brought a program or policy more in line with citizens’ desires.

The feedback helps PLN to "spot the crook" and take any measure to eliminate bribery and all sorts of corruption on the service. Disciplinary measure for employee is implemented to the extend of replacement of a number of local managers and supervisors for low performance due to ignoring complain.

PLN also use callback survey to inform customer about standard procedure and fee for its services. As the information spread, it has been proven to reduce the flock of "middle-men" who usually offer customer extra service for extra money when dealing with PLN (e.g. to apply for electricity subscription plan/ other services).

If there was one thing you could change to increase the impact of your feedback loop, what would it be?

Disclosure and coverage by media. If this mechanism is widely covered in media, we expect the public to get more awareness and more state owned enterprise to replicate this program. As this year PLN sets a target for nation-wide adoption, we’re planning to start media campaign/ advocacy in the near future

What are your biggest challenges or barriers in “closing the feedback loop”?

Ensuring the quality of the data provided

If other, please specify
Are you aware of The Feedback Store?

What are the main uses you can envision for the Feedback Store?
What is the one thing you would most like to see changed to improve the competition process?
What are you doing to make sure that feedback providers know that they are empowered by the information they can give and that they know exactly what the information they are providing?