Decentralization is an important instrument for strengthening local government, improving public services, and promoting balanced regional development. However, decentralization in Indonesia and Timor-Leste has developed within different historical and institutional contexts. This study aims to analyze the development of decentralization in both countries from 2002 to 2025 by comparing policy foundations, distribution of authority, local government capacity, central-local relations, and implementation challenges. The study employs a descriptive-comparative approach using interviews, observation, and documentary analysis of regulations, policies, and relevant literature. Data were analyzed through data condensation, data display, and conclusion drawing and verification. The findings indicate that Indonesia has a more mature decentralization system but continues to face disparities in local capacity, fiscal dependence, corruption, and central-local coordination. Timor-Leste remains in the process of strengthening local government, with major challenges related to institutional capacity, human resources, fiscal capacity, and coordination. The novelty of this study lies in its comparative analysis linking the design of authority, implementation capacity, and intergovernmental coordination to explain the different trajectories of decentralization in Indonesia and Timor-Leste.
Copyrights © 2026