Bureaucratic reform is essential for the successful development of the nation and state. According to Presidential Regulation No. 81 of 2010, Indonesia already has a grand design for bureaucratic reform aimed at achieving a world-class bureaucracy by 2025.

A world-class bureaucracy is characterized by high-quality public services, accountable governance free from corruption, collusion, and nepotism (KKN), as well as efficiency and effectiveness in government operations.

However, the results indicate that the bureaucratic reform (RB) program has not yet met expectations. Indonesia’s bureaucratic practices remain unchanged, marked by strong sectoral egos and a low-performance orientation. Corrupt behavior persists, as reflected by the Corruption Perceptions Index, which has shown no significant improvement over the past 20 years.

Therefore, the vision and commitment of the newly elected president to the RB program will be crucial to the success of national development efforts. This article outlines several priorities for bureaucratic reform for the incoming president.

Weaknesses in Bureaucratic Reform

The weaknesses of the RB program—if not considered a failure—stem from several factors.

First, various RB programs (also known as areas of change) are often not integrated. For instance, human resource management reform is disconnected from institutional restructuring, planning and budgeting improvements, and public service quality enhancements.

Second, RB programs are often understood as formal changes focused on producing documents and paperwork. This emphasis on formality overlooks the broader societal impacts that should result from reform, such as poverty alleviation and facilitating investment.

Additionally, the RB program has not become a national movement where every government institution leader, civil servant (ASN), and the public actively implement and oversee progress. In short, the program remains “elitist.”

Third, the bureaucracy faces substantial and complex challenges, including political intervention, a culture of corruption, bloated and inefficient organizational structures, a lack of performance orientation, and weak human resource competencies. Current reform efforts have failed to address these systemic issues, resulting in the persistence of outdated bureaucratic culture and systems.

Fourth, the RB program is often perceived as a means to increase civil servants’ performance allowances rather than achieving meaningful reform. This has led to competition for higher allowances rather than substantive changes.

Fifth, RB programs have not been uniformly implemented across regional governments. Many districts and municipalities have yet to adopt reforms, even though they are the front line of public service delivery.

These issues require serious attention from presidential candidates in the 2024 election.

Bureaucratic reform has been pursued since the administrations of President Susilo Bambang Yudhoyono (SBY) and President Joko Widodo, but there is a continuing need to improve both the substance and the implementation of these reforms.

The author proposes four focal areas for RB, aligned with the changing demands of the modern environment. These areas are interconnected and must be implemented simultaneously.

Bureaucracy for Generations Y, Z, and Post-Z

The first focus of RB is to create opportunities for Generations Y, Z, and Post-Z—who currently make up 63% of Indonesia’s population—to develop their careers and innovate within the bureaucracy.

The year 2025 marks a generational shift in Indonesia’s bureaucracy. According to data from the National Civil Service Agency in 2023, baby boomers make up only 4% of the bureaucracy and will retire by next year.

Generation X represents 40% of the bureaucracy, with many occupying senior leadership positions. Generations Y and Z account for 55%, and with the recruitment of 2.3 million new civil servants in 2024, their proportion will rise to about 70% by next year.

These younger generations seek rapid career advancement, personal development, work-life balance, recognition for achievements, and the use of advanced technology in their work.

This generational shift demands a cultural transformation within the bureaucracy toward greater flexibility, a focus on work-life balance, and network-based collaboration.

However, Indonesia’s bureaucratic work style remains hierarchical, authority-driven, and procedurally rigid, limiting innovation and creativity. This makes the bureaucracy unattractive to young professionals.

RB programs must therefore promote flexible work arrangements and a squad model to allow mobility across government institutions. There must also be clear performance metrics and career development opportunities for civil servants. Competitive salaries should be maintained through more accountable government spending.

Collaboration Across Institutions

The second focus of RB is strengthening collaboration among central government institutions and between central, provincial, and local governments.

Indonesia’s bureaucracy remains fragmented, duplicative, siloed, and plagued by sectoral egos. Many development programs lack measurable outcomes and societal impacts.

A 2023 review by the Financial and Development Supervisory Agency (BPKP) found that only 23 of 77 national priority performance indicators were achieved, while 37 were not met, and 17 were untraceable.

This reveals a significant misalignment between government programs and national development goals. The Ministry of Administrative and Bureaucratic Reform estimates that improving the Government Performance Accountability System (SAKIP) could save Rp 121.9 trillion annually.

To address these inefficiencies, there is an urgent need to reform planning, budgeting, treasury, financial reporting, and performance monitoring across government sectors. Additionally, the National Development Planning Agency (Bappenas) must conduct impact analyses of all proposed programs and activities.

In Australia, for instance, around 3,000 development programs are analyzed annually by the Office of Impact Analysis, but only 80 to 90 programs are approved and funded. Indonesia could benefit from adopting a similar approach.

Accelerating Digital Transformation

The third focus of RB is accelerating digital transformation. Advances in technology—such as artificial intelligence, the Internet of Things, and robotics—necessitate rapid digital adaptation within government.

Current challenges include integrating data across government agencies despite the One Data Indonesia policy, achieving system interoperability, ensuring cybersecurity, improving digital literacy, and expanding internet access nationwide.

Under Presidential Regulation No. 82 of 2023, the government has prioritized digital transformation in nine areas, including education, health, civil registration, social welfare, state finances, and public services.

A key challenge for the incoming administration will be redesigning cross-ministry business processes, as each sector operates under distinct legal frameworks and regulations, compounded by sectoral egos.

Anti-Corruption Culture and Systems

The fourth focus of RB is fostering an anti-corruption culture and implementing robust oversight systems. The RB program has failed to reduce corruption cases, as Indonesia’s Corruption Perceptions Index remains at 34 in 2023.

The number of civil servants and political officials implicated in corruption continues to rise. To combat this, the new president must strengthen internal government oversight to detect potential abuses and inefficiencies.

A draft bill on the Government Internal Control System was completed in 2014 but has yet to be discussed with Parliament. Prioritizing this legislation in the next administration is crucial.

By focusing on these four areas, Indonesia can achieve better governance and accelerate the realization of its national development goals.