Review of E-government Policy as the Foundation for Smart City Transformation in Indonesia: Opportunities and Challenges

Since the issuance of Presidential Instruction No. 3 of 2003 on the National Policy and Strategy for E-Government Development, Indonesia has progressively integrated information technology into its governance structures. This study aims to identify the challenges that hinder this transformation and to propose strategies that can enhance public service delivery, promote transparency, and support economic growth, thereby strengthening national competitiveness. The adoption of e-government and the smart city concept are critical technological instruments for improving public service delivery, necessitating adequate regulation. This study reviews the current state of e-government in Indonesia, identifies challenges to its implementation, and proposes strategies for transforming traditional governance into digital governance as part of the smart city transformation. Key challenges include the slow adoption of technological changes, the digital divide, a lack of data integration, inadequate Information and Communication Technology (ICT) competence, and regulatory gaps. By addressing these challenges, through enhancing public service delivery, promoting transparency, facilitating economic growth, supporting smart city development, and strengthening national competitiveness, Indonesia can improve the effectiveness of e-government and implement a digitally empowered government. The findings provide insights for policymakers and contribute to strategies for optimizing e-government to support smart city initiatives in Indonesia.