The main questions of the present research are how have administration system reforms influenced economic indicators in Mie Prefecture? And what were the preconditions in Mie Prefecture for conducting the administration system reform, which might be relevant to local governments in Indonesia? Hence, the objectives of this research arc to analyze the influence of administration system reform on transparency and economic indicators in Mie Prefecture and to identify the preconditions of Mie Prefecture administration system reform which arc relevant to local governments in Indonesia.