The role of regional government in poverty reduction has become increasingly important since the implementation of regional autonomy in 2001. Since then, a number of public policies that directly influence the lives of the community have been devolved to the district governments. The demand for the active involvement of regional government in poverty reduction efforts became increasingly evident with the central government’s launch of the National Poverty Reduction Strategy (SNPK) in 2005, which states the need for all stakeholders, including regional governments, to unite in a combined effort to reduce poverty.

In reality, the institutional capacity for poverty reduction differs in each region as a result of, among others, the level of involvement of local organizations, and varying poverty conditions and geographic characteristics. In view of these differences, in 2005 and 2006, The SMERU Research Institute conducted the study “Strengthening the Poverty Reduction Capacity of Local Governments through Participatory Poverty Assessment.” The study was carried out in Kabupaten Bima in the Province of Nusa Tenggara Barat (NTB) and Kabupaten Tapanuli Tengah in the Province of Sumatra Utara to help improve the capacity of district governments to implement participatory poverty assessments and provide input for the development of a regional government development plan.

Based on the results of this study and opinions of several stakeholders, this edition highlights the issue of institutions in the regions that deal with poverty. Two aspects must be stressed in relation to this issue: the importance of the participation of various layers and elements of the community in these institutions, and the need for other regions to learn from the different regional experiences of poverty reduction efforts.