<![CDATA[General Background State-owned enterprises often undergo structural organizational modernization to improve institutional performance and rebuild public confidence in public transport sectors. Specific Background This study investigates the comprehensive organizational transformation of PT Kereta Api Indonesia (KAI) since 2009, specifically focusing on service modernization, human resource development, and recruitment system reforms from the pre-reform era to the present. Knowledge Gap Prior studies regarding recruitment and human resource development generally examine general management aspects without specifically analyzing the systematic human resource restructuring and continuous service evolution of PT KAI from past to present. Aims This study aims to analyze the transformation process of PT KAI in terms of service improvement, human resource development, and recruitment system reform. Results Utilizing a qualitative case study approach with documentary data evaluated through interactive analysis, the results show that PT KAI successfully enhanced service quality via digital ticketing and station facility upgrades, strengthened human resources through the AKHLAK core values and merit-based training, and reformed recruitment using transparent competency-based selection aligned with Good Corporate Governance. Novelty This work demonstrates that PT KAI's organizational success is driven by the dynamic integration of service innovation, professional recruitment, and continuous human resource development. Implications These findings establish that sustainable corporate restructuring requires a synchronized combination of digital service enhancements, fair recruitment systems, and effective personnel management. Highlights: PT KAI modernized railway services through digital innovations such as online ticketing, e-boarding passes, and upgraded station facilities. Human resource capacity was strengthened by implementing the AKHLAK core values, ongoing professional training, and objective performance evaluations. Recruitment reform was achieved through transparent, competency-based merit systems aligned with Good Corporate Governance principles. Keywords: Organizational Transformation, State-Owned Enterprises, Service Innovation, Human Resources, Recruitment System]]>
