%T National Economic Development Policy and Local Government Capacity: Peri Urban Area as a Growth Machine of Metropolitan Area %A Eva Novianty %X As an adjacent region of Jakarta Metropolitan Area (JMA), Karawang district is facing a characteristics change from rural to urban area. Counting as a new peri urban area of Greater JMA, the local government of the Karawang district needs a strong capacity to both protect this area and support the economic development and urban growth of GJMA. This research attempts to identify government efforts on adapting characteristics transformation. The needs of institutional capacity will be seen as an indicator to reach a sustainable peri urban area. Using methodology of desk study, the data collection is compiled from written sources such as literatures, articles, websites, government reports and local regulations. Comprising the data used ATLAS.ti as a tool; the research finding shows how government programs depict government’s effort in achieving a sustainable peri urban area as a result of strong and equal institutional capacity. %L theses_frw2040 %D 2014