Success and Failure of Local Government in Digital Transformation: An Indonesian Experience

Abstract

The digital transformation of government is a crucial aspect of Indonesia’s bureaucratic reform, designed to improve efficiency, transparency, and responsiveness. The execution of the Electronic- Based Government System (SPBE) at the local level is inconsistent. This study analyzes strategic elements affecting SPBE in three places with differing conditions: Banyuwangi Regency, Metro City, and Ternate City. Employing a constructivist paradigm and qualitative case study methodology, data were gathered via interviews, focus group discussions, observations, and document analysis, which were then thematically analyzed using NVivo 12 Plus. The findings delineate seven interconnected elements influencing digital transformation: leadership commitment, policy support, budgeting, digital literacy, application responsiveness, infrastructure, and collaborations. Banyuwangi exemplifies best practices through robust leadership and coherent rules; Metro advantages from considerable budgeting however encounters challenges in application integration; conversely, Ternate confronts large obstacles stemming from inadequate leadership, limited budget allocation, and deficient infrastructure. The paper indicates that effective SPBE implementation relies on the interplay of these strategic determinants and necessitates asymmetrical policy responses customized to local settings. These findings offer pragmatic insights for expediting adaptable and service-oriented digital governance in Indonesia.