Keywords: civil servants, personnel management, bureaucratic reform60Abstract Indonesia has been facing challenges in managing state personnel which has currently reached to 4.2 million. Since pre-independence, the government has made some changes in policy in response to demand to have professional state bureaucracy. This includes the past decade when government has worked on so called bureaucratic reform in their attempt to enhance the quality of state bureaucracy. This paper highlights some strategies that had been employed by the government and some challenges arising from the institutionalization of bureaucratic reform. First, in implementing the merit system, this strategy is challenged by low understanding of state apparatus, budget constraints, and strong political pressures. Second, the moratorium strategy on recruiting civil servants has received criticism for limiting job opportunities. Third, the digitalization of the recruitment and selection process for state personnel faces issues related to standardizing quåestions and technical implementation. Fourth, the downsizing of the bureaucracy, in practice, has given rise to other issues in the form of limited abilities possessed by employees, which affect their effectiveness in carrying out their duties. Fifth, decentralization, in fact, remains problematic as it leads to the emergence of local burdens in managing salaries and benefits for state civil servants at the local level.
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