Good Governance, Management Policies, and Management Achievement Affecting the Sustainability of the Government Pension Fund (GPF)

Abstract

Sustainable development is a way of conducting business on the basis of economic, social and environmental responsibilities. All activities of the organization must be conducted on the principle of sustainability and with sustainable results in order to create value, recognition, and trust for all stakeholders. The Government Pension Fund is a large government fund with a large number of members. It used to be an organization that was considered by society and its members on the matter of good governance. In order to gain confidence and trust from all stakeholders and to achieve the ultimate goal of remaining sustainable, the Government Pension Fund has improved its organization in order to become an organization of good governance. It has also operated according to the principles of good governance until the present. The objectives of this research were to study: 1) the levels of good governance, management policies, management achievement, and sustainability of the Government Pension Fund; 2) the influences of good governance, management policies, and management achievement on the sustainability of the Government Pension Fund; and 3) develop a model for the sustainability of the Government Pension Fund. This research employed a mixed research methodology combining quantitative and qualitative methods. For the quantitative research part, the research sample consisted of 420 members of the Government Pension Fund. The sample size was determined based on the criterion of 20 times the observed variables. They were selected via stratified sampling. Data were collected with the use of a questionnaire and analyzed with a structural equation model. As for the qualitative research component, in-depth interviews were conducted with 20 key informants consisting of experts and members of the Government Pension Fund. The data were analyzed with content analysis. The findings showed that: 1) good governance, management policy, management achievement, and sustainability of the Government Pension Fund were rated at the highest level; 2)good governance, management policy, and management achievement had influence on the sustainability of the Government Pension Fund, with a .05 level of statistical significance, and all of these factors could predict the results by 95 percent; and 3) the model for the sustainability of the Government Pension Fund, developed by the researcher, was called the UCIP Model, consisting of U (referring to utility), C (referring to corporate governance), I (referring to internal process perspective), and P (referring to performance). These research findings can create sustainability for the organizations by integrating 3 key elements, namely good governance, management policies and management achievement, to drive concretely throughout the organizations under the legal business operation, morality and code of conduct, along with setting up appropriate organizational management policies, and create management achievement by using the balanced scorecard strategic management tool to measure the performance and decision-making.