Vol 4, No 1 (2016)

Pro-Poor Corporate Governance Application in Hygiene Water Provision at Southeast Sulawesi Province

Syamsir Nur, M. Pudjihardjo, Moh. Khusaini, Wildan Syafitri

Abstract

Authority of hygiene water management and provision in Indonesia has been conducted by local government which managed generally through Local Company of Drinking Water (PDAM). Fulfilling the public need which involves the business entity have caused the practice of corporate governance become important to analyze for ensuring that the hygiene water service by PDAM can be accessed and reached by people especially for low income household group. This research analyzed an effect of corporate governance application within hygiene water management and provision toward pro-poor public service performance by using Partial Least Square (PLS) analysis. Analysis unit is the household of PDAM customer both located in urban or rural areas. This research found that corporate governance application on hygiene water management and provision has influenced public service performance, but it didn't give the pro-poor services. Therefore, application of corporate governance principle, especially accountability and transparency principles are important to defend consistently by PDAM (operator) to keep public service mission; while application of independence, responsibility and fairness principles are still imortant to increase for pro-poor public service. Controlling and assessment functions for application of those principles are absolutely important to conducted by local government (regulator) to prevent PDAM management hazard.

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Keywords

Pro-Poor Corporate Governance; Public Service; Hygiene Water.

Publication information

Volume 4, Issue 1
Year of Publication: 2016
ISSN: 1857 - 8721
Publisher: EDNOTERA

How to cite

Nur, S., Pudjihardjo M., Khusaini M., Syafitri W.: Pro-Poor Corporate Governance Application in Hygiene Water Provision at Southeast Sulawesi Province. Journal of Applied Economics and Business, Vol 4, No. 1, 13-25. (2016)