Data-driven decision-making challenges of local government in Indonesia

Abstract

Purpose This study aims to identify and outline the critical challenges affecting the inclination of executives to use data as the basis for making decisions at a local government level. Design/methodology/approach The study conducted in-depth interviews with 21 public officials comprising middle- and top-level executives from 18 agencies and offices at the Bojonegoro Regency, one of Indonesia’s most progressive regencies in pursuing open government and smart cities. Findings The findings demonstrate that ensuring a good quality data architecture, nurturing data culture and developing analytics capability are essential in the case of a developing country such as Indonesia. However, insufficient policies and regulations, a nonexistent evaluative framework for data quality, disruptive local tradition and the ingrained autocratic administration represent significant and unique challenges to implementing data-driven decision-making in the local government in Indonesia. Research limitations/implications The chosen research approach may result in a need for more generalizability beyond Indonesia, accentuating the necessity for the geographical objects to include other developing countries in future research. Practical implications The findings showcase that lack of awareness and acceptance from public officials and the general public of the importance of a data-driven approach; as such, a better understanding of the change in attitudes and mindsets of public officials is invariably one of the critical practical determinants. Originality/value The findings signify the importance of creating robust accountability systems and evaluative frameworks that consider the many variables influencing decisions that capture the significance of organizational and local culture.