IT Governance & Management for Smart City: Aligning COBIT 2019 with SPBE Policies for Traditional Market Digitalization Initiatives

The digitalization of traditional markets is a significant government initiative aimed at preserving market competitiveness in the digital era. However, the program’s success is closely tied to effective IT governance due to the complexity of needs and challenges faced by the government This study proposes an IT Governance and Management (ITGM) framework for traditional market digitalization, leveraging the COBIT 2019 framework in alignment with Indonesia’s Electronic-Based Government System (SPBE) policies. Using Yogyakarta City and Sleman Regency as case studies, this research identifies key challenges, including stakeholder engagement, digital literacy gaps, resource limitations, and policy shortcomings. By prioritizing 11 ITGM objectives that address these challenges and align with SPBE policies, the study offers a targeted framework for local governments to advance digitalization efforts within traditional markets, linking them to broader Smart City and SPBE initiatives. This approach offers practical guidance for local governments to effectively structure and sustain traditional market digitalization efforts. Future research could explore its adaptability to other Smart City programs, particularly those lacking robust regulatory and governance frameworks.