Policy analysis is a key capability for modern policymaking bureaucracies. As policymakers grapple with increasingly complex issues, their need for systematic evaluation of evidence from a range of sources and sound assessment of policy alternatives grows. The authors of this chapter examine the nature of policy analysis within the Indonesian bureaucracy, exploring the role and functions of policy analysis units in synthesising and translating knowledge and the challenges they face in producing relevant, quality and timely policy analysis in response to policymakers’ information needs. In addition to departmental research and development units (Balitbangs) and internal ‘think-tanks’ such as the Ministry of National Development Planning’s Centre for Policy Analysis, this chapter considers other ways in which policy analysis is undertaken in the public sector. The creation of a new functional position of ‘policy analyst’ by ministerial decree in 2013 and the 2014 Law on Civil Service represent important steps toward the professionalisation of policy analysis. The chapter reflects on the motivations underlying these developments and their implications for evidence-informed policymaking.