Indonesia’s urban poor face myriads of challenges in their daily lives, from environmental degradation and health hazards to social marginalization and economic exclusion. Common pool resources which are rival and excludable in nature such as land, water, air, potable water, sewerage and drainage systems are far from being accessible for the urban poor. Government policies for the provision of urban infrastructure and amenities are highly subsidized and dependent on grants and funding from the government. Public private partnership, a key element for sustainable infrastructure provision, requires the corporate governance approach to project management which incorporates life-cycle management, competitive pricing, risk management and a lesser focus on patron-client political relations for infrastructure financing. As well, the need to empower urban dwellers, especially the urban poor, through land reforms and inclusive social and economic policies become imminent for the sustainable governance of Indonesia’s developing cities.