CONSTRUCTING A STRATEGY TO IMPROVE INDONESIAN REGENCY ROAD PERFORMANCE USING BALANCED SCORECARD

Abstract

According to its administrative status, Indonesian road network system can be classified into
national, provincial, and district (regency) roads. Although there has been continuous improvement of road
conditions in Indonesia, district (regency) roads in Indonesia show the worst condition within the Indonesian road
network system compared to that of provincial and national roads. As part of the effort to improve the condition,
this study is focussed on formulating a strategy to improve district road condition by using balanced scorecard
method (BSC). Analytical Hierarchy Process (AHP) was utilised in the weighting of strategic targets. Data was
collected through questionnaires distributed to respondents from stakeholders of Public Works Department in
seven districts in East Java Province, Indonesia. The result of this study indicates that, according the strategic
targets to improve district roads performance, road user (customer) perspective is ranked as highest priority
(34.4%); Followed by training and development (25.8%), financial (20.4%), and internal business process
perspectives (19.4%).