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This research employs post-positivist paradigm and utilizes combined qualitative and quantitative methods. The research data were gathered through in-depth interviews, questionnaires, and document analysis. In 2010, Wang et al. devised five key elements that signal the preparedness of an organization for implementing innovation in its services. The five core elements include investment strategy, risk tolerance, success of innovation, IT experiences, and inter-organizational collaborations. This research demonstrates that the Center for Education and Training of Indonesian Ministry of Manpower, (Pusdiklat Kemnaker), which has made use of eLearning method (as the initial stage of innovation) in its trainings on the basics of manpower, has not been well-prepared in using such a method, notwithstanding the fact that the method is already in use. The implementation of e-Learning method is impeded by a string of challenges, such as unstable internet connection, leader’s role, and so forth. Innovation is a requisite for modernizing public administration, but it carries its own risks and does not guarantee a fruitful end. As such, it is of utmost importance to identify and prevent obstacles from hampering innovation. Innovation in public administration faces more complex challenges than that in private sectors. In part, it depends not only on the attitudes or traits of civil servants but also on their environments. According to Giedraiyte, innovation in public sector is generally hindered by such factors as inadequate funding and human resources, regulations, unsupportive management, insufficient incentives for staff, unpredictable response from users, differing risk culture, and resistance. This research concludes that there are two main factors hindering innovation in the Center for Education and Training of Indonesian Ministry of Manpower (Pusdiklat Kemenaker), namely inadequate human resources and budgeting.

Obstacles In Preparation For Innovation In The Government Case Study: Center For Education And Training Of Indonesian Ministry Of Manpower (Pusdiklat Kemenaker)