This study aims to fill the knowledge gap on the issues related to health status and functional capability of older persons aged 60 years and above at the district level where the policy making process is taken place and assess the relationship between the two. It describes an ecological study derived from 388 selected districts covered by the Indonesian 2005 Population Intercensal Survey. Descriptive analysis and a series of multiple regressions were employed. Sex, type of district, and location of the districts were also included in the analysis. The study found a wide range of older people reporting to be in good health, from 7 to 68 % across districts. The percentage of people reporting good health was generally lower among females, and those living in regencies and outside Java/Bali Islands. Functional self-reported capacity or (instrumental) activities of daily living (IADL) also varied across districts. The percentage of elderly reporting “no help needed” in functioning physical activities ranged from 30 to 96 %. This study also took into account different types of ADL (getting dressed, using the toilet, taking a bath, and eating) and IADL (preparing a meal). Regression analysis showed that a good self-reported health status (SRHS) was associated with good overall functional capacity. Good SRHS was statistically related to difficulty in bathing and eating, as well as with difficulties in preparing a meal, but not with getting dressed or using the toilet. Controlling for other variables, sex remained significant in analyses needing help in functional activities of daily living, and in needing help in taking a bath. Those living in rural regencies and on islands outside the Java/Bali districts may also need more support and governmental resources to reduce differences in functional capability.