Efforts to govern Indonesia – one of the most ethnically diverse and far flung nations in the world with more than 14,000 islands – have historically aimed at building greater national unity through centralization. Although weak attempts at decentralization were made under President Suharto, they failed to take root.

Growing complaints from resource-rich provinces about an insufficient share in revenues created pressure for decentralization after the fall of Suharto in 1998. The following year decentralization legislation was passed that bypassed provincial governments and devolved power primarily to subprovincial governments (leaders feared that empowered provinces could fuel regional and ethnic strife, and lead to greater separatism).

The government revised its decentralization framework in 2004, leaving several key issues unresolved. Local capacity is deficient in many areas. The evolving democratic environment is a work in progress for citizens and government officials alike.

Local Survey: Majority of Indonesians See Public Services Improving After Decentralization Country Report: Decentralization in Indonesia News release: Making Local Government Work in Indonesia

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