When will Indonesia become a developed country?

Promoting Innovation: The Administrative Reform in Indonesia

initial situation

The poor efficiency of Indonesia's public administration is hampering the country's social and economic development. Despite the improvements in the legal framework for the professionalization of the public service, the administration is generally not very efficient. Unclear competencies, competitive thinking, corruption and political distribution struggles shape the government and administrative apparatus and lead to inadequate citizen service.

The Indonesian government is pursuing a holistic reform approach that promotes performance orientation in public administration, strengthens cost awareness and focuses on access to services and their quality.


The efficiency of the public administration for the continuous development of human resource management and in the field of public services has improved.


The project cooperates with the administrative reform and finance ministries as well as selected sub-national governments and supports them in their reform approaches in the areas of personnel reform (personnel resource management and development), service innovation and the introduction of a national complaint management system.

In the area of ​​personnel resource management, TRANSFORMASI supports the Ministry of Administrative Reform in testing a developed competence model for administrative positions and in building and using capacities for dissemination to other institutions in order to strengthen the performance orientation of administrative specialists nationwide.

In a second work area, a specialist career in finance is being developed and introduced in the Ministry of Finance, which is to be introduced at the sub-national level. This is intended to improve the quality of expenditure and the administrative units' own income.

The third work area is about transferring best practices in the field of public services (e.g. in registration offices and health centers) to other regions via innovation networks and introducing national complaint management for public services in selected regions.
An essential element is the exchange of knowledge between institutions and administrative levels in order to promote the formation of knowledge networks and to use the experience for evidence-based policy-making.


In the area of ​​personnel reform, standardized competence models for managers and administrative staff were developed with the help of TRANSFORMASI and tested together with the State Employment Agency (BKN) with around 3,000 public service employees.

Building on this experience, the Ministry of Administration was supported at the end of 2017 to simplify the central skills for administrative staff in the context of personnel management. As a result, recruitment and promotion procedures are regulated on the basis of verified competencies and performance of the civil servants. The new regulation is mandatory for the entire public sector in Indonesia. So far 122 employees have been tested. The results are used in performance management and the creation of career and promotion plans. A funding program accompanies the national implementation.

An innovation competition was introduced on the subject of public services. The Ministry of Administrative Reform conducts it independently every two years and receives more than 2,500 entries. In East Java, an innovation platform for public services was set up under the coordination of the provincial administration with a large number of stakeholders. These are used to awaken readiness for public initiatives and best practices are shared. This model is now being used in two other provinces, South Sulawesi and South Sumatera. At the request of the ministry and in cooperation with KOMPAK / DFAT, another province, Central Java, will receive accompanying support.

The project also supported Indonesia’s participation in the United Nations (UN) Public Service Awards, the most prestigious awards for public initiatives.

When implementing the national complaint system LAPOR! the program supports the administrative reform ministry in the provincial implementation of the national complaint system, as well as with an accompanying development of capacities at the provincial and district level. To date, 24 districts have participated in the program.