Depok, April 10, 2025 – Striking the right balance between agility and stability in the bureaucracy is essential to building an innovative public sector.

In light of this, the Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), in collaboration with the Ministry of State Apparatus Empowerment and Bureaucratic Reform (KemenPANRB) and FIA UI Adjunct Professor Prof. Wolfgang Drechsler, held a discussion session to mark the launch of the Indonesian edition of the book How to Build an Entrepreneurial State: Why Innovation Needs Bureaucracy at the EDISI 2020 Auditorium, 4th Floor, Building M, FIA UI.

This book is the Indonesian translation of How to Make an Entrepreneurial State: Why Innovation Needs Bureaucracy, written by Wolfgang Drechsler along with co-authors Rainer Kattel and Erkki Karo.

The event began with opening remarks from the Dean of FIA UI, Prof. Dr. Retno Kusumastuti Hardjono, M.Si., who stated that the event was part of FIA UI’s 10th Anniversary (Dies Natalis) celebration. She emphasized that the event aligns strongly with the field of administrative sciences, particularly in encouraging innovative governance.

“The theme of this event is highly relevant not only for the public sector but also for those of us in the private sector. It is a valuable opportunity to understand how bureaucracy can act as a driver of innovation,” said Prof. Retno.

The next speech was delivered by Prof. Dr. Erwan Agus Purwanto, M.Si., Deputy for Bureaucratic Reform, Apparatus Accountability, and Supervision. He explained that the collaboration between KemenPANRB and FIA UI has been long-standing, and today’s discussion serves as an important platform for deepening our understanding of how bureaucracy can play a key role in driving innovation.

“We express our deepest appreciation to FIA UI for their willingness to collaborate and for the dedication shown in organizing this forum. This event provides a valuable space for all of us to gain deeper insight into the concept of an innovative bureaucracy. This discussion also aligns with the government’s mission to enhance the quality of bureaucratic reform,” said Prof. Erwan.

He also stated that, in line with the direction of the current government, bureaucracy is expected to be more professional, responsive to public needs, efficient in budget management, and capable of implementing policy effectively. To achieve this, public services must be transformed through digital approaches, integrated interactions, and strengthened civil service (ASN) management. Within this context, innovation must be at the heart of every bureaucratic reform effort.

Prof. Wolfgang Drechsler, Adjunct Professor at FIA UI and an international governance expert, emphasized that innovation policies must go beyond theory—they must be implemented effectively. A modern bureaucracy, he said, must be capable of playing a strategic role as an innovation agent. This requires a fusion of stability and agility—two traits often seen as opposites, but which are in fact complementary in tackling challenges such as digitalization and artificial intelligence.

“An innovative bureaucracy is one that remains stable when necessary, yet agile in responding to contemporary dynamics. This concept, known as ‘stability-agility,’ has gained international recognition and underpins the book, which has received a prestigious award from the Academy of Management, the world’s largest management organization,” explained Prof. Wolfgang.

The discussion was moderated by Zuliansyah P.Z., S.Sos., M.Si., Executive Director of UI-CSGAR, and featured Prof. Wolfgang Drechsler as the lead author. Also participating as discussants were Prof. Dr. Eko Prasojo, Mag.rer.publ., a senior professor at UI, and Prof. Dr. Erwan Agus Purwanto, M.Si.

All three highlighted that a country’s success in building an innovation ecosystem relies heavily on its ability to maintain a balance between stability and agility. While some organizations serve as anchors of stability, others—such as innovation laboratories (I-Labs)—encourage experimentation and exploration. This duality allows the ecosystem to grow and innovate sustainably.

The national bureaucracy plays a crucial role in fostering innovation across economic sectors. To perform this role effectively, it must balance stability—through established rules, relationships, and procedures that ensure the consistent delivery of public services and the achievement of state goals—with agility, which enables it to adapt, respond creatively, and address complex policy challenges in a rapidly changing environment.

“We call this strategy ‘Agile Stability.’ Through this approach, bureaucracy is expected not only to implement policies but also to act as a generator of innovative and transformative solutions. This way, it can remain relevant, responsive, and a catalyst for change in an increasingly uncertain world,” said Prof. Eko.

The event was highly interactive and attended by more than 500 participants, both in person and online. Attendees included representatives from ministries, agencies, and local governments, as well as lecturers and students from Universitas Indonesia and various universities across Indonesia and abroad. The event concluded with a book presentation to participants who actively contributed to the discussion.