IT Enabled Extended Organization in the Integrated Trade Licensing System

Abstract

In order to improve the business climate, the Indonesian government focuses on carrying out a fundamental reform program. One part of the program is issuing online business licenses. As a form of compliance, the Ministry of Trade (MoT) needs to implement the Integrated Trade Licensing System (ITLS), where the system’s values will be made possible through a collaboration between government agencies. This condition illustrates a self-organizing network of organizations where each agency will be able to contribute its values and result in a new set of values. This concept is aligned with the extended organization. This paper aims to examine how ITLS can successfully work through government agencies’ collaboration in an extended organization. The research methodology used a qualitative approach by collecting data through documentation study, observation, and interviews. The study found that trade licenses can only be issued if the value given by the extended organization is sent to ITLS with the assistance of information technology (IT). This research is expected to be a lesson learned of extended organization concept in government agencies.