“Jempol Boss” Innovation Expands Business Licensing Access in Bangkalan but Faces Key Challenges

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FORMOSA NEWS - East Java - A 2026 study published in the Formosa Journal of Multidisciplinary Research highlights how the “Jempol Boss” innovation has improved access to business licensing services in Bangkalan Regency, East Java, Indonesia. The research, conducted by Holidya Manggalou, an academic specializing in public administration, shows that a proactive outreach model can significantly increase business legality among local entrepreneurs, while also identifying persistent challenges that limit its full effectiveness.

The study focuses on the Department of Investment and One-Stop Integrated Services (DPMPTSP) of Bangkalan Regency, which introduced “Jempol Boss” (an acronym for a proactive, outreach-based licensing service integrated with the Online Single Submission system). The initiative brings licensing services directly to communities, reducing barriers for small business owners who often struggle with access, information, and administrative complexity.

Addressing Longstanding Barriers to Business Licensing

Business licensing in many regions of Indonesia has historically been associated with bureaucratic complexity, long processing times, and limited accessibility. In Bangkalan Regency, these issues have contributed to low levels of business formalization, particularly among micro, small, and medium enterprises (MSMEs).

Without proper licensing, many businesses face difficulties accessing financing, government support programs, and broader markets. This creates a cycle where informal businesses remain small and vulnerable. The “Jempol Boss” initiative was introduced as a practical solution to bridge this gap by bringing services closer to the community.

Research Approach and Methodology

Holidya Manggalou applied a qualitative case study approach to analyze how the “Jempol Boss” innovation operates in practice. The research draws on field observations, interviews with government officials and service users, and analysis of policy documents.

This approach allows for an in-depth understanding of both the operational strengths and the real-world challenges of the program, focusing on how public service innovation can be implemented effectively at the local government level.

Key Findings: Improved Access and Faster Services

The study reports that “Jempol Boss” has delivered measurable improvements in business licensing services across Bangkalan Regency. Key findings include:

1. Expanded service access
Licensing services are now available directly in districts and villages, eliminating the need for business owners to travel to central offices.
2. Faster processing times
On-site assistance helps applicants complete requirements more efficiently, reducing delays.
3. Increased business legalization
More entrepreneurs have obtained official permits, improving their legal status and opportunities for growth.
4. Inclusive service delivery
The outreach model reaches communities that previously had limited access to digital or centralized services.

The research also highlights that the innovation is supported by a clear legal framework, structured governance, and an adaptive organizational culture within DPMPTSP. These factors have contributed to the program’s initial success.

Persistent Challenges in Implementation

Despite its positive impact, the study finds that the implementation of “Jempol Boss” is not yet fully optimized. Several obstacles continue to affect its performance:

1. Budget limitations
Financial constraints result in uneven service coverage across regions.
2. Limited public awareness
Not all communities are informed about the availability of the service.
3. Low awareness among business actors
Some entrepreneurs still underestimate the importance of licensing.
4. Technical constraints
Issues such as unstable internet connections, electricity disruptions, and limited staff resources hinder operations.
5. Accessibility and perception issues
Queues, travel distances, and public perceptions about service complexity still influence participation.

In addition, the study notes inconsistencies in implementation and a lack of responsiveness to diverse community needs in certain areas.

Real-World Impact and Policy Implications

The findings underline the importance of proactive public service delivery in improving governance outcomes. By adopting a “jemput bola” (pick-up service) approach, local governments can significantly enhance accessibility and efficiency, particularly in regions with infrastructure and digital limitations.

For business owners, easier access to licensing translates into greater opportunities for expansion, eligibility for financing, and participation in formal economic systems. For local governments, increased business formalization can lead to stronger economic growth and improved local revenue.

The study also provides actionable recommendations for policymakers. These include increasing budget allocation, strengthening coordination with business associations such as HIPMI and KADIN, and expanding public outreach efforts to raise awareness about licensing benefits.

Holidya Manggalou emphasizes that continuous evaluation and resource strengthening are essential. The research suggests that without sustained support, the long-term impact of the innovation may remain limited.

Author Insight

Holidya Manggalou notes that the “Jempol Boss” innovation demonstrates how adaptive governance and community-oriented service design can improve public service delivery. According to the study, the program reflects a shift toward more responsive and inclusive government practices, although further improvements are needed to ensure sustainability and equitable access.

Author Profile

Holidya Manggalou is a researcher in public administration with a focus on public service innovation, governance systems, and community-based policy implementation. Her work examines how government institutions can improve service delivery through adaptive strategies and citizen-centered approaches.

Source

Manggalou, Holidya. “Innovation of Jempol Boss in Improving Business Licensing Services in Bangkalan Regency.” Formosa Journal of Multidisciplinary Research (FJMR), Vol. 5 No. 5, 2026, pp. 1321–1332. URL: https://journalfjmr.my.id/index.php/fjmr

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