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Universitas Terbuka (UT) was founded in 1984. It utilised the same learning mode as any other distance learning institutions. However, since 1987, UT has changed its mode to the certification model of learning with: 1) no admission test; 2) no course books given to students; 3) no tutorials and academic counselling; and 4) no mid-term tests. UT only requires students to perform three tasks: 1) register and pay tuition fees; 2) complete Tasks Independently (TM); and 3) take exams at the end of semester. With the certification model in place, UT transformed itself into a distance learning institution that provides limited support to aid students' learning process. In the early 1990s, the government urged UT to hold an in-service training programme for elementary school teachers (PGSD) nationwide with provisions to manage the student learning process.In 2004, the government provided UT with a license to conduct a postgraduate programme of studies (PPS) based on conventional distance learning standards. Since 1987, UT has developed the institution and its employees as a certifying agency according to the needs of the government as stipulated in the law. Considering the new initiatives implemented by the government, UT faces both theoretical and practical dilemma in implementing the initiatives set by the government in line with the change in its learning mode to the certification model since 1987. UT faces a series of challenges in its learning management system, institutional development and career planning for lecturers to successfully implement the stipulated provision by the government and at the same time abide by the law.