The competency-based (CB) 1994 (Supplement 1999) curriculum is a milestone of an efforts to improve the Indonesian education quality. Regarding this matter, this study wanst to reveal the CB development of language skills and literary abilities in the primary school (PS) and the influencing factors. This ethnographic study was carried out in the fifth grade of PS in Surakarta from 2004 to 2015. The phenomenon of literacy learning (LL) in the classroom as a source of evidence was explored through cases, interviewees, archives. The evidence is collected through an observation, question-answer, content analysis. The evidence legality is checked through adding participation, careful observation, triangulation, checking key informant techniques. The data are analyzed using domain analysis, taxonomy, and theme. In conclusion, literary subject is a part of Indonesian language (IL) lessons. Its achievements are integrated through listening, speaking, reading, and writing as well as understanding and using linguistic elements using various forms of literary works (LW). The verball and writing students’ skills of IL can be fostered and developed nicely. However, LL has not optimally introduced students to the various values of LW through literary appreciations, expressions, and creations. These result are influenced by the teachers, students, learning techniques, learning materials, evaluation systems, facilities, environments, and socio-cultural factors.