This book, entitled: “Indonesia’s Sustainable Development in a Decentralization Era“ contains thirteen papers presented at the 3rd Indonesian Regional Science Association (IRSA) International Conference in Jakarta, March 20-21, 2001. Indonesia has moved from a centralized to a decentralized form of government. Many institutional adjustments are needed to be able to perform well in this new era and problems have emerged that require a proper solution. It seems that in 2001, Indonesia was entering a process of economic recovery from the 1997 economic crisis. In 2000, the real GDP growth reached approximately 4 percent, compared to approximately -13.7% in 1998. Inflation had been kept low and the exchange rate had been relatively stable in the range of Rp 8,000 to Rp 9,000 per one USD. Of major concern was whether or not Indonesia was entering a recovery process that would lead to sustainable development. This book therefore aimed to stimulate researchers and policy makers to investigate theoretical as well as practical approaches developed in the fields of economics and regional science to formulate policies to promote such development.