This paper examines the recent decentralization of governance in Indonesia and its impact on local infrastructure provision. The decentralization of decision-making power to local authorities in Indonesia has created the dependency of local public infrastructures on local resources. However, due to the difference in initial endowments, this may result in the divergence in local public infrastructures. The divergence may also happen due to differences in preference
within communities. Using a village-level survey conducted in 1996, 2000, and 2006, this paper finds that (i) though local public infrastructure depends on local resources and preferences, (ii) decentralization has improved the availability of local public infrastructures, and (iii) communities are converging to a similar level of local public infrastructures.