Decentralization and good governance have the potential to increase significantly the responsiveness and accountability of government officials, a major benefit of moving the government closer to the people. Locally elected officials generally know their constituents’ needs better than central government officials and are therefore in a better position to provide the public services their citizens’ want and need. Additionally, physical proximity makes it easier for citizens to hold local government officials accountable for their performance. Accountability will ensure that the policies adopted by the government are supported by their citizens and have the optimum chance to achieve their desired effect. Osana’s Legal Specialist prepared a report concerning the implications of good governance on projects being implemented by Indonesia’s kabupaten and kota governments under Laws No. 22 and 25 of Year 1999 and Presidential Decrees No. 17 and 18 of Year 2000.