Abstract
This study focus on the dynamic relations between the process of decentralization (specifically the Special Autonomy for Papua) and the social exclusion processes experienced by local marginalized communities surrounding the development of The LNG Plant in The Bay of Bintuni Regency. Also the potential inclusive policies and programs of the local government and BP (Beyond Petroleum as MNC). This study use qualitative approach with specific emphasis on in-depth interviews, focus group discussions (FGD) and analysis of secondary data. The result show that decentralization processes in the context of this case study have not yet resulted in a more flexible and decentralized structural relations between the Central Government and the Local Governments (both Provincial and Regency Levels) generally, specifically in the Industrialization Strategy of Oil and Gas Sector (1999-2009). The triangular relations between State, Market, and Society are fluid and internally fragmented within each pillar and externally contested between the three pillars. On the micro level the processes of decentralization (special Autonomy for Papua) has relatively not decreased the social exclusion processes experienced by local marginalized communities surrounding the development of the LNG Plant in The Bay of Bintuni Regency, West Papua. Inclusive policies by the local governments and MNC (BP) Programs have not yet been effective and efficient in targetting the most marginalized and socially excluded members of the local communities. The relations between the local communities and the local government are not as strong nor as dependent on compared to the relations between the local communities (especially DAV) with the MNC (BP).