Transforming administration – strengthening innovation (TRANSFORMASI)

Programme description

Title: Transforming administration – strengthening innovation (TRANSFORMASI)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Indonesia
Lead executing agency: Indonesian Ministry of Administrative Reform (KemPAN-RB)
Overall term: 2014 to 2016

• Indonesia. Feedback meeting with a citizen after the development of a prototype for process optimisation in issuing Indonesian identity cards as part of the East Java innovation platform. © GIZ


The low performance capacity of Indonesia's public administration is constraining the country's social and economic development. The productivity of the public service is usually low: not all civil servants are well trained, act in a professional manner and work transparently. On the whole, administrative processes are not geared towards performance. Government and administrative structures are characterised by unclear competences, a competitive attitude and political power struggles, which result in a large number of conflicting provisions, regulations and laws.

The Indonesian Government is pursuing a holistic approach to administrative reform with a view to monitoring cost-effectiveness, encouraging performance orientation and ensuring appropriate human resources development in public administration.


The public administration acts more effectively and efficiently with a greater focus on accountability and is more citizen-centred.


The programme Transforming Administration – Strengthening Innovation (TRANSFORMASI) pursues an approach based on knowledge management, supporting the main players in bureaucracy reform in developing joint proposals and identifying successful practices. The programme cooperates with a large number of players at international, national and subnational level. These include the Ministry of Administrative Reform, the Ministry of Finance, the Ministry of Home Affairs, the National Institute for Public Administration, the National Development Planning Agency, the National Civil Service Agency and the Association of Indonesian Municipalities. TRANSFORMASI benefits from the lessons learned by other development partners, above all in the Local Governance Service Improvement Program (Kinerja) of the United States Agency for International Development (USAID) and in the Reform the Reformers Continuation Project, supported by Australia's Department of Foreign Affairs and Trade (DFAT).

TRANSFORMASI strengthens the planning and monitoring competence of the partner institutions and selected local governments with a view to improving the overall coherence of administrative reform and to accelerating implementation. One important issue is the division of competences in the field of steering and monitoring between the institutions. TRANSFORMASI supports the Ministry of Administrative Reform as the main political decision-maker in assuming a leading role, particularly in the field of integrity management.

Public service reform in the areas of remuneration, human resources management and human resources development is designed to achieve greater performance orientation and to improve services. In this context, TRANSFORMASI is promoting closer cooperation between the institutions involved in line with the provisions of the new public service law. Among other things, a new, standardised competence model for managers has been developed.

As administrative reform requires financial flexibility, TRANSFORMASI, in collaboration with the Ministry of Finance, makes the fiscal impact of the bureaucracy reform transparent to the main players. The intended aim is to resolve conflicts of objectives, such as maintaining financial flexibility on the one hand while ensuring appropriate remuneration of employees on the other. In conjunction with the partners, the programme is developing models to reform remuneration and pensions. It is also overhauling the in-service training systems for staff at subnational level with support from the consultancy company Particip GmbH.

In East Java and North Sumatra, TRANSFORMASI is helping to involve non-governmental organisations (NGOs) in government work on the topic of citizen-centred reform. In both regions, NGO coalitions, the local government and GIZ have organised training on the forthcoming reforms and have identified scope for action by NGOs (for example to inform citizens more promptly and efficiently about the issuing of birth certificates).

• Indonesia. Discussion about implementation of administrative reform with members of civil society in Banyuwangi. © GIZ

In East Java and West Kalimantan, stakeholders at local level are using innovation platforms to share good practices in service delivery. They provide feedback to national decision-makers, thus helping to shape the reform process. New instruments are being introduced for exchanging knowledge and improving service delivery with strong citizen participation. TRANSFORMASI has also supported the inclusion of Indonesian innovations in the Observatory of Public Service Innovation (OPSI), of the Organsiation for Economic Cooperation and Development (OECD).

Further information