LAUSR

This paper attempts to review the features of power relationship between central and local governments in Indonesia since the early independence up to the post Suharto regime. Its central aims are to cast light on the issue of why Indonesia thought that decentralisation is necessary; and how the controversy between the so-called ideological vs technical orientation has emerged since the very beginning (early independent). Overall, I would like to argue that even though the answer to the question of whether the Indonesian decentralisation and regional autonomy policies have actually managed to save the nation-state is still contested, the introduction of both concept and policy reforms in the post Suharto's period have, to some extent, reduced the region dissatisfaction upon the centre, and have opened up the political space for citizen participation in policy making process, and in governing their own communities. What the Indonesia should do in the near future is to put decentralisation on the right track and to prevent that of on-going democratic decentralisation process from the central government desire "to bring the centralised power back in".