This study examines the performance of decentralized health and education service delivery in Indonesia. Results show that education outcomes improved with decentralization, and that local governments are responding to local needs for education services. Decentralization also brings improvement to health services, as mortality rates and life expectancy are significantly improved with decentralization. However, results indicate that decentralization does not improve availability of health services, as only small percentage of municipalities in Indonesia have access to health facilities. The empirical study on the performance of proliferated municipalities provides similar conclusions to those obtained in the examination of general decentralization performance. Proliferated municipalities experience improvement in education outcomes but not so for health outcomes; these results are consistent with the previous examination. Therefore, from the result of this study, there is no evidence to reject proliferation as it does not hurt health and education service delivery outcomes.