“…Agency is defined as a set of institution, or structure, for delivering public services proposed by government actors (James, 2001) and has certain degree of autonomy from their respective ministry in policy decision making and over personnel, financial and managerial matters (Christensen et al, 2008) including business plan and budget (Waluyo, 2006a), accounting system (Waluyo, 2006b), costing system (Biswan and Waluyo, 2014) and organization structure (Overman and Van Thiel, 2015). Many have claimed that the idea of agencification would trigger the agency to be more professional, their management would be more business-like, and they would offer higher quality services compared to traditional government bureaucracy (Osborne and Gaebler, 1992;Pollitt et al, 2001) as they have a minimum standard of service delivery (Waluyo, 2007).…”