Governance and Poverty: The Governance Crisis of The Local Government

This paper departs from the problem that poverty and corruption are still the biggest problems in the governance of local government in Indonesia. Since the reformation in 1998, the government has carried out various agendas to encourage the transformation of local governance both through changes in institutional models of local governance from institutional models that are rich in poor structure functions to a more streamlined institutional model. Local governments also through legislation products on local government, have been encouraged to carry out bureaucratic reform and even the Permenpan No.11 of 2015 concerning the Road Map of Bureaucratic Reform has explicitly had a road map for bureaucratic reform as a key agenda for improving local governance, but so far the results have not had an impact on reducing corruption which impedes the realization of public welfare. Poverty remains a ghost that surrounds the administration of local government in Indonesia. The question posed in this paper is "how are local governance in Indonesia? To what extent does the influence of local governance in Indonesia affect poverty and corruption reduction? The results of the study show that local governance has not been fully implemented in accordance with the 1998 reform agenda, especially in combating corruption and poverty. These findings indicate that our local governance is still facing a crisis, has not been able to eradicate poverty and corruption.