In the last 15 years, Indonesia hasintroduced a comprehensive package of education reformsdesigned to expand access and improve quality. A keycomponent of the reform process has been the devolution ofresponsibility for basic education services to localgovernments and schools. The ability of local governments todeliver good quality basic education services variesconsiderably across Indonesia. Identifying the keydimensions of governance that underpin effective educationservice delivery can provide a starting point for addressingexisting weaknesses and raising education performance. Themain purpose of this report is to assess the state of localeducation governance in a sample of Indonesian districts andhow it affects education performance. The study uses aunique survey of 50 local governments conducted in 2009 and2012, coupled with district level information from householdsurveys, to identify patterns and explore trends in therelationship between governance and education outcomes. Thereport also explores the effects of a large donor supportedprogram that aimed to strengthen the capacity of localgovernments. The findings of the Indonesian Local EducationGovernance (ILEG) survey demonstrate the importance of thequality of local governance in improving district educationperformance. Recent governments have demonstrated acommitment to education that has been backed up bysubstantial increases in public investment. The challengefor the education sector is to translate this commitment andincreased investment into better education outcomes. Thereport has shown that strengthening the capacity of localgovernments to deliver good quality basic education servicesneeds to be at the heart of efforts to address this challenge.