The economic subject who particularly has responsibility and role for security in community life is a local government. However, the local government faces difficulty called the local public finance crisis. This article discusses the reform of the local government for security in community life. There is the essential factor of the local public finance crisis in the decision making system of the local government. To reform the decision making system, therefor, the important thing is to construct the system of administration and finance for public participation. The tool for public participation is public organization. The reform of the local government which considered the community realizes security in community life.