The injection of new state apparatus through the Government Employees with Employment Agreements (PPPK) scheme is assumed to close the skill gap and enhance public sector performance. However, empirical reality indicates that the integration of such human resources frequently collides with established work cultures. This study aims to analyze the dynamics of competence adaptation, work culture clash, and the impact of internal regulations on the performance effectiveness of the apparatus in the Water Resources Division of the Public Works and Spatial Planning (PUTR) Agency of Indragiri Hilir Regency. Employing a qualitative method with a case study approach, data were collected through in-depth interviews, participant observation, and documentation studies, and were subsequently analyzed using the Miles and Huberman interactive model. The findings reveal that the enhancement of human capital quality is not directly proportional to performance effectiveness due to a phenomenon of "performance compromise." Three main findings emerged: (1) a technical competence adaptation shock among new apparatus in the extreme peatland ecosystem; (2) a culture clash driven by the status quo resistance of senior civil servants, which restricts innovation; and (3) internal bureaucratic rigidity that hinders field execution. This study concludes that the linear assumption of Human Capital Theory in the public sector will not be optimal without managerial interventions, specifically cultural unfreezing and the debureaucratization of technical procedures.
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