Abstract. The aim of the research is to analyze the process of negotiation or power sharing, between the stake
holders which entirely affects the reform process, and the bureaucracy restructuring in order to support the
reform process and public service in the Jembrana Regency, Bali - especially in health insurance policy. The
research is descriptive and uses qualitative approach with the method of field research. The result of the research
shows there are two factors that affect the local government reform in Jembrana Regency, i.e. the strong political
commitment from the Regent, and the establishment of a stable centripetal democracy model.
