Place-based policies target specificgeographic areas for special treatment. They attempt tostimulate growth and development in lagging regions by (1)attracting firms, (2) attracting workers and human capital,and (3) improving local public goods. This report conducts acritical review of place-based policies that have beenimplemented in Indonesia since Suharto's presidency. Itexamines the evolution of different policies and programs,aiming to understand whether these programs have increasedprosperity, improved livability, or promoted greaterinclusiveness for lagging regions. We begin by describingthe evolution of central and local policymaking inIndonesia, providing the context through which place-basedpolicies operate. We then review place-based policies thataffect firm location choices, improve schooling and healthfor workers, and provide social assistance for people inlagging areas, evaluating their strengths and weaknesses. Weconclude by offering recommendations to improve and redirectplace-based policymaking in the future.