Digital Transformation in Financial Management of Medan Amplas District Government: Challenges and Solutions

Objective: This study explores the obstacles and opportunities in applying digital technology in government financial management in the Medan Amplas sub-district. Theoretical framework: This study refers to the theory of technology adoption, especially the TAM (Technology Acceptance Model) model, which explains the factors that influence the acceptance of technology by users. Literature review: Digital Transformation in Local Government, Financial Management in Local Bureaucracy. Methods: This study uses a qualitative research approach with field observation techniques, in-depth interviews, and document analysis to collect data from sub-district officials and the community. Results: This study shows that the main challenges in digital transformation are the decline in budget commitment to the digitalization sector, which has the potential to hinder the improvement of the quality of digital services at the sub-district level, and the limitations of technological infrastructure. However, some solutions that can be applied include increasing digital training for government staff, providing better infrastructure, and integrating financial management systems with more user-friendly digital platforms. Implications: The importance of sustainable fiscal support as a prerequisite for the success of digital transformation at the local level, and the importance of policies that support the development of digital skills of government officials and investment in adequate technological infrastructure to support the success of digital transformation. Novelty: This research is based on a contextual analysis of the implementation of digital transformation at the sub-district level, which is still rarely done in government financial management studies in Indonesia.