This publication is mainly concerned with the issue of privatisation of state-owned enterprises in Indonesia and the governance of this process. It examines the economic and political crises that have long created challenges in Indonesia`s efforts to successfully reform and restructure state enterprises.The historical overview found in this book provides some fresh analysis of these challenges, highlighting the key barriers and constrains faced by the Indonesian government in their attempts to implement privatisation programs. The development of a corporate governance framework, which seeks to guide the state enterprise reform process, is discussed in chapter three, while chapter four deals with Indonesia`s program on building greater regional autonomy. The case studies explored in this chapter consider the impact of decentralization on the processes of privatizing state-owned enterprises. Broader national-level governing issues are also considered in the remaining chapters, where the focus is to provide some indication of how the current state of play is expected to influence the future of Indonesia`s privatisation agenda.Part two of this publication reports on the development and implementation of a governance capacity building training program for state enterprise reform and privatisation. Implemented under the AusAID APEC Support Program, this small-scale project sought to strengthen the technical skills and administrative capacity of public sector officers responsible for managing the privatisation process in Indonesia. The section also provides recommendations for building future capacities in privatisation development in Indonesia.