Submitted:
08 July 2024
Posted:
10 July 2024
You are already at the latest version
Abstract
Keywords:
1. Introduction
- monitor the fulfillment of bio-business business licenses,
- monitor the status of the fulfillment of bio-business licenses and
- support an easy and transparent licensing fulfillment process for actors or bio-business venture.
2. The Importance of Smart Governance For Collaboration In Government Services
- Smart City: by interconnecting elements within the city, such as government, society, and business, using sensor technology, computer networks, and decision-making. Government use applications for planning and governance, energy regulation, population mobility, and government services. Generally, the technology used is 5G, IoT, robotics, virtual and augmented reality (VR/AR), and AI.
- Smart home implements network communications to connect and remotely control devices and services such as air conditioning, air ventilation, lighting, household appliances, and security systems via cellular telephone devices and tablets. The goal is to improve the quality of life with the help of tools such as the IoT (Internet of Things).
- Smart Industry/Factory: In line with the implementation of Industry 4.0, how can the industry/factory personalize products and services according to customer needs? The technology used is the Cyber-Physical System (CPS), Internet of Things (IoT), personalization of products and services, and decentralization of decision-making.
- Smart Service System. The service system focuses on searching for concepts through a literature review. Text mining from many scientific papers and articles use machine learning algorithms.
- Generative AI: using systems like ChatGPT for content creation and process automation to improve the customer experience.
- Cloud-native: utilization of cloud computing technology, including its ability to provide services such as Data Lake SaaS and API-centric SaaS.
- Computer Vision: technology for extracting contextual information from capturing and analyzing images and videos. OCR is used to recognize text in an image.
3. Methodology for the Development of a Monitoring System for the Commitments of Bio-Business Licensing
- Identify the need for a bio-business license commitment monitoring system. While there are numerous potential solutions, we will focus on two specific approaches. The first solution involves [detailed description of the first solution], while the second solution [detailed description of the second solution]. We will compare these two solutions from the perspective of integration requirements between systems.
- Select documents as samples of bio-business business licenses. Based on the solution chosen, we will discuss what documents are prerequisites for the business license. Therefore, only two documents required for a business license were selected.
- Determine keywords for each type of document. These critical words chosen from several previously selected document examples. Later, these crucial words will determine the validity of the document.
- Design a smart governance tool to monitor bio-business license commitments. This design will discuss the user journey and Graphical User Interface (GUI) for accessing and uploading compliance with bio-business licensing documents. Besides that, there are also detailed technical specifications for developing the solution. Developing smart governance tools uses the SDLC (software development life cycle) method: system design, system development, system testing, and evaluation.
- The requirement’s gathering process has been carried out at points 1 and 4. The system testing method, which uses a black box approach, involves testing the main functions of the prototype system without considering its internal structure or implementation details. This approach ensures that the system is tested from a user's perspective, providing a comprehensive evaluation of its functionality and usability.
4. Results
4.1. Identify the Need for a Commitment Monitoring System
- Integration using a gateway (via API, file transfer, or others) to validate business actor data.
- Integration using a link to the application from the K/L system. Examples: Food and Drug Supervisory Agency (BPOM) distribution license, The Indonesian National Certificate (SNI),
- There is no integration, and the Business Identification Number (NIB) is the basis for the commitment process. Halal certificate (currently only an independent statement from MSME actors), SSO licensing, and the National Industrial Information System (SIINas) are examples.
- There is no integration because requirements are fulfilled already in OSS. Example: building approvals (PBG).
4.2. Select Documents as Samples for Fulfilling Business Licensing Documents
- NIB is issued by the OSS system (oss.go.id) at Capital Investment Coordinating Board (BKPM).
- Halal certification is issued by Halal Product Guarantee System (SPJH), which the Halal Product Guarantee Organizing Agency (BPJPH) organizes. For example, for MSEs that register their business through OSS, there is an independent statement that the business product is halal and must be registered as a halal product with no time limit [20]. Then, the business actor will process the halal certification of his product through Halal Product Guarantee System (halal.go.id) [21].
- The BPOM Distribution License is issued by the BPOM e-certification system (e-sertifikasi.pom.go.id). For example, to obtain Business Licensing to Support Business Activities (PB-UMKU) - Good Processed Food Production Methods (CPPOB), business actors apply for the license through OSS by selecting the appropriate KBLI, and the OSS system will direct them to the e-certification system [22].
- The National Standardization Body (BSN) issues SNI. For example, micro and small enterprises (UMK) with low risk will receive the SNI bina-UMK mark after committing to fulfill SNI through the OSS application. After receiving the NIB, the perpetrator applies for SNI certification via binaumk.bsn.go.id by fulfilling the required requirements (such as photo and video evidence). Of the 145,936 UMKM who are entitled to free SNI-UMK coaching, there are 1,100 UMKM who receive SNI coaching [23].
- Security, health, and environmental preservation (K3L) certificate issued by The Ministry of Trade of the Republic of Indonesia (Kemendag). Issuance of registration of goods related to K3L can now be done through the Ministry of Trade Licensing SSO Single Sign On's (SSO) application integrated with OSS [24]. Like the previous process, business actors can apply for registration of K3L-related goods via OSS by selecting the appropriate PB-UMKU and KBLI, and the OSS system will direct them to the simpktn.kemendag.go.id application [25]. After complying with all requirements, OSS will issue a digital signature and a printable goods registration [26].
- Industrial data is submitted to SIINas of The Ministry of Industry of the Republic of Indonesia (Kemenperin). Companies operating in the industrial sector must register at SIINas (siinas.kemenperin.go.id) and report their business periodically [27].
- PBG is issued by Building Management Information System (simbg.pu.go.id) from the Ministry of Public Works and Public Housing (Kementerian PUPR). As of February 2023, applications for PBG and Functional Eligibility Certificates (SLF) launched at OSS. Business actors must fill in building data correctly until the relevant parties contact them, and the license must be printable while issued[28].
4.3. Determine Keywords for Each Document
4.4. Design and Development of Monitoring System for Compliance with Business Licensing Documents
- Keywords from each required document represent embedded knowledge in the system.
- There is a response if the document is valid or by the stored knowledge.
- Communication between the user and the system is subject to the information received about whether the uploaded document is valid.
- System development.
- a.
- OS: MS Windows Server
- b.
- Server (VPS: https://my.idcloudhost.com)
- 1)
- CPU: 2 cores
- 2)
- Memory: 8 GB;
- 3)
- Storage: 20 GB
- c.
- OCR algorithm: Easyocr 1.7.1 Deep Learning using convolutional neural networks. Ref: https://pypi.org/project/easyocr/.
- d.
- Application:
- 1)
- Frontend template: Bootstrap 5
- 2)
- Apps: Python 3.12.2
- 3)
- Framework: Flask
- 4)
- API: Rest API
- 5)
- Database: MySQL
4.5. System Testing and Evaluation
- a)
- b)
- Using the Tesseract OCR (Optical et al.) package or library to get text summaries from documents (images).
- c)
- The text summary extraction results match the previously defined keywords.
- d)
- Keywords are defined early, so the system has no modules or functions to add, subtract, or change them.
- a)
- The system built stands alone (a stand-alone application); there is no integration process with the current system (OSS).
- b)
- These do not include email, SMS, or otherwise notifications to users.
- c)
- There has been no feedback from the officer (admin) if there is an incorrect document.
5. Discussion
6. Conclusions and Future Work
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A
| Abbreviation | Description |
|---|---|
| BKPM | “Badan Koordinasi Penanaman Modal” or Capital Investment Coordinating Board |
| BPJPH | “Badan Penyelenggara Jaminan Produk Halal” or Halal Product Guarantee Organizing Agency |
| BPOM | “Badan Pengawas Obat dan Makanan” or Food and Drug Supervisory Agency |
| BSN | “Badan Standardisasi Nasional” or the National Standardization Body |
| CPPOB | “Cara Produksi Pangan Olahan yang Baik” or Good Processed Food Production Methods |
| KBLI | “Klasifikasi Baku Lapangan Usaha Indonesia” or the Indonesian Business Field Standard Classification |
| Kemendag | “Kementerian Perdagangan Republik Indonesia” or The Ministry of Trade of the Republic of Indonesia |
| Kemenperin | “Kementerian Perindustrian Republik Indonesia” or The Ministry of Industry of the Republic of Indonesia |
| Kementerian PUPR | “Kementerian Pekerjaan Umum dan Perumahan Rakyat Republik Indonesia” or the Ministry of Public Works and Public Housing of the Republic of Indonesia |
| Kominfo | “Kementerian Komunikasi dan Informatika Republik Indonesia” or the Ministry of Communication and Information Technology of the Republic of Indonesia |
| K3L | “Keselamatan, Keamanan, Kesehatan dan pelestarian lingkungan” or safety, security, health, and environmental preservation |
| K/L | “Kementrian/Lembaga” or ministry/agency functions |
| LPPOM | “Lembaga Pengkajian Pangan, Obat-obatan dan Kosmetika” or Institute for the Study of Food, Drugs and Cosmetics MUI |
| MUI | “Majelis Ulama Indonesia” or Indonesian Council of Ulama |
| NIB | “Nomor Induk Berusaha” or the Business Identification Number |
| NIK | “Nomor Induk Kependudukan” or Identity Number |
| NPWP | “Nomor Pokok Wajib Pajak” or Tax Identity Number |
| PBG | “Persetujuan Bangunan Gedung” or building approvals |
| PB-UMKU | “Perizinan Berusaha Untuk Mendukung Kegiatan Usaha” or Business Licensing to Support Business Activities |
| SIINas | “Sistem Informasi Industri Nasional” or the National Industrial Information System |
| SLF | “Sertifikat Laik Fungsi” or Functional Eligibility Certificates |
| SIMBG | “Sistem Informasi Manajemen Bangunan Gedung” or the Building Management Information System |
| SNI | “Standar Nasional Indonesia” or The Indonesian National Certificate |
| SPBE | “Sistem Pemerintahan Berbasis Elektronik” or e-government |
| SPJH | “Sistem Jaminan Produk Halal” or Halal Product Guarantee System |
| UMK | “Usaha Mikro dan kecil” or micro and small enterprises |
| UMKM | “Usaha Mikro, Kecil dan Menengah” or micro, small and medium enterprises |
| Year | References | Title | General Summary | Keywords | Components* | ||
| 1 | 2 | 3 | |||||
| 2016 | [60] | Smart Governance: Using a Literature Review and Empirical Analysis to Build a Research Model | Produce a model for research on implementation strategies (ideas and actions), smart governance arrangements (organization, technology and innovation), and smart governance outcomes (organizational change and urban improvement) | Organization, technology, Innovation | √ | √ | - |
| [61] | Governing the smart city: a review of the literature on smart urban governance | Smart governance is not a technology issue: we must study smart governance as a complex process of institutional change and acknowledge the political nature of a compelling vision of socio-technical governance | Socio-technical, technological | √ | √ | - | |
| 2018 | [62] | Smart governance in the context of smart cities: A literature review | Provide a definition of 'smart city governance' and contribute to developing a framework to build new smart governance models in addressing society's digital challenges, collaborative governance, information sharing, citizen engagement, transparency and openness. | Model, collaborative, transparency | √ | √ | - |
| [63] | The governance of smart cities: A systematic literature review | A systematic literature review shows that various definitions of smart city governance exist. Also, the study uncovered substantial variances in contextual factors, measurement techniques and outcomes among smart city governance concepts | Contextual, metric, results | √ | √ | - | |
| 2019 | [64] | Modelling the smart governance performance to support smart city program in Indonesia | The proposed model produces 29 indicators in three different domains (public services, bureaucracy, public policy) and seven aspects of assessment (public administration services, basic needs facilities, service facilities, internal policies, bureaucratic governance, public aspirations and open access). This model can serve as a reference for smart governance performance evaluation to support smart cities initiatives in Indonesia. | Bureaucracy, public service, public policy | √ | √ | √ |
| [65] | Smart Governance For Sustainable Cities: Findings from a Systematic Literature Review | Empirical evidence for expected sustainability benefits is scant. In addition, the picture that emerges is ambiguous because it reports negative positive impacts on the achievement of smart governance sustainability. This study identifies the contextual condition of smart governance as important. Our paper points to the need for more empirical research and developing an agenda to examine the relationship between smart governance and sustainability outcomes. | Contextual, sustainable results | √ | √ | √ | |
| 2020 | [66] | Smart City Governance in Developing Countries: A Systematic Literature Review |
Tech-enabled smart cities in developing countries can only be realized when socioeconomic, human, legal, and regulatory reforms are instituted. The government needs to increase its efforts to meet people's basic infrastructure needs, increase income, establish a clear regulatory framework to mitigate the technological risks involved, develop human capital, ensure digital inclusivity, and promote environmental sustainability. | Technology, people, regulation | √ | - | √ |
| [67] | A Literature Review on Smart City and Smart Governance | Research on the theme of Smart City and Smart Governance and its implementation by the government is still very minimal in Asian countries and other countries outside Europe. Research on Smart Cities and Smart Governance was very high in 2016 and beyond. Urban communities are very important to be involved in the urban planning process because they are the ones who will be the beneficiaries of its implementation | Implementation, planning, community | √ | - | √ | |
| 2022 | [68] | A Systematic Literature Review of Smart Governance | Smart governance is the ability or capacity to carry out smart activities, whether using technology that supports collaboration to produce efficient decision making or not. There are three main characteristics of smart governance, namely participation and partnership, collaboration, and transparency. The study also found that there are still few models, frameworks, or architectures for smart governance. Most research has created models, frameworks, or architectures for smart cities. With this fact, research on the development of smart governance models, frameworks, or architectures is still open for further research | Technology, transparency, participation, models/ frameworks | √ | √ | √ |
| 2023 | [13] | Smart Governance Toolbox: A Systematic Literature Review | Certain parts of the 'smart governance toolbox' remain almost empty: there are very few tools to assess the context of smart collaborative governance, facilitating collaborative structure, addressing technology issues, and measuring the results of smart city practices. | Tools, collaborative, technology | √ | √ | - |



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| No | Processes | Domain | Smart System Technologies |
|---|---|---|---|
| 1 | Validation | Authentication & Authorization | Single Sign-on / OAuth |
| 2 | Integration | Integration & Partnership | RESTful OPEN API 2.0 |
| 3 | Licensing verification | Document verification | Blockchain |
| 4 | Data Governance | Big Data | Data Lake on SaaS |
| 5 | Data Security | Data Protection | Homomorphic encryption |
| 6 | Licensing Monitoring | Computer vision | Optical Character recognition (OCR) |
| 7 | Complaint Handling | Customer Service Support/ Chat/ FAQ | GenerativeAI |
| Approach | Pros | Cons |
|---|---|---|
|
|
|
|
|
|
| Bio-Business Licensing2 | Other Licensing | Ministries/Agencies |
|---|---|---|
| NIB | NIB | BKPM |
| Halal Certificate | - | BPJPH |
| BPOM Distribution License | - | BPOM |
| SNI | SNI | BSN |
| K3L | K3L | Kemendag |
| Comply to SIINas | Comply to SIINas | Kemenperin |
| PBG | PBG | Kementrian PUPR |
| - | IUP/IUPK | Local Government |
| KBLI 2020 (21 CATEGORIES)3 |
|---|
| A. Agriculture, Forestry, and Fisheries |
| B. Mining and Quarrying |
| C. Processing Industry |
| D. Procurement of Electricity, Gas, Steam/Hot Water, and Cold Air |
| E. Water Treatment, Waste Water Treatment, Waste Material Treatment and Recovery, and Remediation Activities |
| F. Construction |
| G. Transportation and Warehousing |
| H. Wholesale and Retail Trade; Car and Motorbike Repair and Maintenance |
| I. Provision of accommodation and provision of food and drink |
| J. Information and Communication |
| K. Financial and Insurance Activities |
| L. Real Estate |
| M. Professional, Scientific, and Technical Activities |
| N. Rental and leasing activities without options, employment, travel agents, and other business support |
| O. Government Administration, Defense, and Mandatory Social Security |
| P. Education |
| Q. Human Health Activities and Social Activities |
| R. Arts, Entertainment and Recreation |
| S. Other Service Activities |
| T. Household Activities as Employers; Activities that Produce Goods and Services by Households that are Used to Meet Their Own Needs |
| U. Activities of International Agencies and Extra International Agencies |
| Document1 | Keywords | Supporting Data |
|---|---|---|
| 1. Halal Certificate | Halal, MUI, LPPOM |
|
| 2. BPOM License | BPOM, Distribution License |
|
| No | Scenario | Success Criteria |
|---|---|---|
| 1 | User has successfully logged in | Pass |
| 2 | User failed to login | Fail |
| 3 | Users can upload valid halal certificate documents | Pass |
| 4 | Users can upload BPOM certificate documents – valid | Pass |
| 5 | User failed to upload certificate document – invalid | Fail |
| 6 | Users can submit valid halal certificate documents | Pass |
| 7 | The submitted data appears successfully | Pass |
| 8 | User has successfully logged out | Pass |
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