ABSTRACT
This paper is intended to illustrate the challenges that Indonesia faced in formulating the agenda of development in the country. One will need to grasp the complex agendas after the Indonesian Reformasi (democratic reform) in 1998. In line with all the complexities, democracy will be held accountable for the progress in the living standards of the people. Within the framework of government decentralization, the paper analyses on the performance of local provincial government on three governance indicators, namely (i) investment, (ii) ecological management, and (iii) human investment. The score variation among the 34 provinces will shed light on the prospect of the long term improvements in addressing poverty and inequality in Indonesia.
