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Growing enthusiasm for collaborative planning and housing revitalization projects has instigated change in the institutional arena from government to multi-stakeholder domains for more democratic and sustainable outcomes. However, several projects, especially at the community level, failed to strengthen community power and voice, resulting in short-term community-driven activities. Amidst growing academic concerns over the efficacy of collaborative planning in housing revitalization projects and community empowerment, this paper presents two case studies from Indonesia – Laweyan (Surakarta) and Cibangkong (Bandung) – as counter-examples. The discussion is centred on the institutional capacity of urban poor communities, which has been historically perceived as weak and passive, to contribute ideas and initiatives in sustaining collaborative planning practices despite decreasing support from the government. The findings suggest that the relational resources, maintained through informal business networking within the poor community led by community leaders, are critical in reshaping their institutional capacity. [ABSTRACT FROM AUTHOR]