As in many Asian, African, and Latin American countries, democratization and devolution reforms have characterized the recent development of public management in Indonesia. This article analyses the current development of good governance in Indonesian local government. The main objective is to assess the level of transparency, the mechanisms for hiding, and the extent of corruption in district budgeting and accounting. The empirical data consists of 200 in-depth interviews with members of the executive, legislative and civil society institutions in six districts. The article concludes that national systems and traditions of politics and bureaucracy have a strong negative impact on local administrative procedures, leaving only marginal space for regional variance and improvements. There is a remarkable lack of transparency, and checks and balances in public financial affairs are largely absent in all districts. © 2009 ISEAS.