This paper aims at describing the factors that inhibit transparency in local governance in Indonesia. The method used in this research is a qualitative method. The source of the data obtained from documentation and related archives. The informant in the interview was selected by purposive. The informants were the people who know the process of local governance in several areas in Indonesia. The validity of the data used in this paper was by triangulation of sources. It was comparing results of the observations and interviews, as well as comparing the results of the interview and the contents of the different documents. Analysis of the data used is interactive analysis models. The results of this research show that the implementation of local governance in Indonesia has not been fully transparent. Several factors cause it. First, the formulation of a policy of transparency in local governance is a multi-level interpretation. Second, the government officials are not obedient and very arrogant. Third, bureaucratic culture is still influenced by the authoritarian new order system. Fourth, communication in the socialization of policy has not been maximized. DOI: 10.5901/mjss.2015.v6n6s4p464
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