Abstract
Abstract
Central goverment intervention in regional development is an important element in both national as well as regional development. It is involve a series of mechanisms that enable local government to handle their region to be develop and to create welfare for their society. The structure of local government have been divided to provincial goverment and district/city, the efectiveness of development and public services at local level not very satisfy and not fulfill the needs of the people. It is realize that the central government has a large role to play not only in the national interest but also at provincial and district/city levels. This study will review the structure of local government in Indonesia, in order to find effective institutional arrangement at local level. This study will use qualitative approach through literature review from the experience of Indonesian since independent and the experience of others countries.