The convergence issue has been attracted a great deal of attention of so many economists as well as policy makers for many years not only in the country level but also in the regional level. In the past two decades, a huge amount of research has been conducted in this subject. Baumol (1986), Barro and Sala-i-Martin (1991, 1992), Bernard and Durlauf (1995), Quah (1996), Villaverde (2004) are only a few mentioned of many interesting works in this area. Unfortunately, given so many research in the subject, the test of convergence still receives a little attention in less developed country such as Indonesia. This book, therefore, provides an investigation of the process of convergence across Indonesian provinces with refers to convergence as a reduction of inequality. The investigation covers several periods of development in Indonesia including periods during economic crisis and recovery.