An institutional is a process and interaction of a community which is involving an organization as implementor in achieving its goals. Purpose of Urban Community Empowerment National Program (UCENP/PNPM-MP) Institutional is for effectiveness in impementing poverty alleviation by local Institutional (Community Self-Reliance Board/BKM). The research problem is “how Institutional Of Local Public Sector In Semarang City, Central Java, Indonesiarelating poverty alleviation. The Research approach deploying is qualitative phenomenological; that is in-depth interview, observation, FGD, and documentation. Analysis technical has been used by interactive model, the technical analysis is as integral cyclus among data collecting, data reduction, data display and conclusing. The main variable in this study is leadership, doctrine, resources, internal structural. Research findings included institutional of local public sector in village and basic (BKM) was ineffectively making bounded horizontally and vertically, and it was assumed as a programmed product and yet institutionalized in poverty reduction
