Does Remuneration Improve Indonesia’s Civil Service Performance?

There is a public anecdote that Indonesia’s Civil Service has low performance and also tends to abuse their power for their own benefit. This condition arose by bloat organization, low paid-salary system and un-professional its management. Though Indonesians agree that civil service should be reformed, unfortunately it was not executed comprehensively. Remuneration tried to replace a rigid Indonesia’s civil service payment system adopted on selected ministry choosing as a first step of civil service reformation in Indonesia recently. Salary adjustment viewed as a vital element which can improve civil service performance and also prevent government’s employee rent seeking from their work. However, remuneration it is only a small part of bureaucracy reform, salary increase was not the only way the bureaucracy reform could improve civil servants productivity and the government’s performance. The more important elements are to reform organization structure, business processes and human resources management. Salary adjustment was important as rewards for civil servants but not the key for the success of a comprehensive bureaucracy reform.   

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