In this paper I begin by briefly summarizing the effects on decentralization of new political laws passed by the House of Representatives (DPR) and promulgated in 1999. Secondly, I examine aspects of the "second wave" of reform consisting of constitutional amendments passed by the People's Consultative Assembly (MPR) in 2000 and 2001. Next I consider current proposals for amendment of the law on Regional Government (UU22/1999). Lastly, I will attempt to test some hypotheses about the relationships among administrative decentralization (deconcentration), political reform and decentralization using a district2 data set. Working Paper Number 02-26.