The research is conducted due to the reason that after the democratization in Indonesia since 1998, Indonesia still faces unclear certainly whether the demoncratization will bring a better quality of life to the population or it merely means a regular election and other aspects of procedural democracy. The paper will discus weather the procedural democracy in Indonesia has a connection to the welfare or quality of life of its people or not. There are several condition that need to be achieved to make the prosedural democracy make an effect to the sustainable development. This paper will analyze the democration in Indonesia since 1998 and the challenges in reaching the substantive democracy..