In Indonesia, like in several Southeast Asian countries, decentralization has been promoted by the 1999 decentralization laws (Law No.22/1999, Law No.25/1999). In 2004, these laws were revised into new ones (Law No.32/2004, Law No.33/2004). Also, in response to this trend of decentralization, a new law on the national development planning system (Law No.25/2004) was enacted in 2004. This paper reports on those changes in Indonesia's decentralization and development planning system. In this paper, first, the historical background of decentralization in Indonesia, decentralization by the 1999 laws and the revised points of the 2004 laws are explained. Then, the new development planning system by Law No.25/2004 is outlined.
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