Center for Transportation and Logistics Studies (PUSTRAL), Gadjah Mada University

The implementation of the Law No. 32 year 2004 about local government has provided new perspective for area development model in Indonesia. The Law provides larger freedom for regions in cultivating its own area with the expectation of achieving optimum development based on each region’s characteristics and specialization.

One of the advantages of the regulation is that regions will compete in deciding what the best for their region is and is not ‘dictated’ by the central authority on how to govern their own region. The practices of region expansion are one of the consequences, on the light of the logical thinking that the smaller region will be easier to be developed than the bigger and unnaccessible ones. Far from the political and cultural reasons, such regional development will give the optimum result of regional development.

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