After the end of Suharto's rule, Indonesia embarked on a large-scale decentralization movement, resulting in significant changes to its territorial governance structure. As a key region for territorial research, Indonesia provides a valuable case study. This paper, grounded in a theoretical overview of decentralization and territorial evolution, examines the transformations in Indonesia's territorial governance under decentralization.The findings of this study are as follows: First, local governments in Indonesia have gained increased authority and responsibilities following decentralization, emerging as key actors in territorial governance. Second, territorial fragmentation, territorial autonomy, and territorial independence have become the three most prominent forms of governance in post-decentralization Indonesia. Third, territorial governance in Indonesia is dynamically evolving, shaped by the ongoing interplay between central and local governments. Together, these various forms of governance create a complex structure of territorial governance in the country. This paper contributes to a deeper, region-specific understanding of Indonesia. Its implications underscore the importance of fully understanding and respecting Indonesia's unique national context in the process of collaboration and communication between China and Indonesia. Moreover, it highlights the critical role of local governments in Indonesia's territorial governance.