Ilidža is widely considered a unique city, but is also thought of as an almost fully incorporated suburb of Sarajevo. As far as its own government goes, cities in Bosnia and Herzegovina typically do not have a normal "city government". Instead, the municipalities (Such as Ilidža Municipality) are based on major settlements and their surroundings. Thus the Ilidža Municipality government is the de facto government of Ilidža.

The current mayor of Ilidža is Amer Ćenanović. Through the municipality government, Ilidža also has its own legislative bodies.

Economy

Prior to the war, Ilidža municipality was one of the five strongest in Bosnia and Herzegovina, and one of the ten strongest in the whole of Yugoslavia. The war had a devastating effect on the city's economy, but today it is slowly starting to recover. Several important local companies are based in Ilidža. The city's economy is based on food processing, electronics, and manufacturing.

One of the most important parts of Ilidža economy is its tourism. The natural beauty of the area is used to the city's advantage, attracting many tourists from both abroad and as near as neighboring Sarajevo. There are plans for future development to enhance tourism, including hotels and a cable railway line to Mt. Igman.