The Indonesian Local Level Institutions studies, carried out in 1996 (LLI1) and 2000/2001 (LLI2), sought to identify the preconditions for and constraints on local capacity (defined as the ability to solve common problems collectively) and the extent to which state structures complemented or impeded villagers’ problem-solving efforts. In 2012, the research team returned to the same study areas in Jambi, Central Java, and NTT, combining updated versions of the qualitative and quantitative research instruments used in LLI2. The primary objective of the third round of the study (LLI3) was to trace developments in local capacity since LLI2 and evaluate these changes in light of decentralization, democratization, and expansion of participatory programs since 2001. The LLI3 findings seek to inform the Indonesian government’s sub-national governance strategy, particularly the redesign of
the Program Nasional Pemberdayaan Masyarakat (PNPM).