Abstract
Abstract Local government law changes in Indonesia have brought a significant change in terms of authority management in particular kelurahan government as the lowest bureaucracy. Previously, some Kelurahans have the authority to manage and develop funds to improve the community welfare. However, they just recently conduct the administrative functions to implement some duties from the upper government level. This change negatively influences the performance level of Kelurahans. Using some kelurahans in Wonosobo Regency Central Java with a qualitative method, this research tries to explore what consequences may occur as the result of local governance law changes. The results suggest that there should be various efforts to strengthen the institutional capacity of Kelurahans instead of letting them have poor performance. This research provides the theoretical and practical knowledge on the semi autonomous model of lowest bureaucracy for strengthening institutional capacity. Implication of findings from this research is the lowest governmental institution needs to be empowered with more authorities and development budgets in order to improve their actions for the community welfare.
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