The paper investigates the variation and the distribution of development expenditure among regions and provinces in Indonesia By using data from Statistical Year Book of Indonesia 1996 published by the Central Bureau of Statistics, using Theil's Coefficient as the tool. The analyses show that the Ievel of development expenditure relate to the variation of potency and allocation of resources and the stage of development in each region. In Java, the variation of development cxpenditure is higher than other regions in Indonesia, this is due to the variation of potency of resource among provinces in this region is also higher