Digital Transformation in the Public Sector : Dynamics, Challenges, and Its Impact on Local Government Governance in Indonesia

Digital transformation has emerged as one of the primary agendas in Indonesia’s public sector reform, particularly in enhancing the efficiency, transparency, and responsiveness of public services. This study aims to understand how digital transformation unfolds in the public sector, focusing on the implementation of digital systems at the local government level, specifically in Bengkulu Province. Using a qualitative approach, the study was conducted in three local governments that have implemented digital service and management systems, such as e-planning, e-budgeting, and regional financial information systems (SIKD). Data were collected through in-depth interviews, observations, and policy document analysis. The findings reveal that digital transformation significantly changes administrative processes and decision-making, although it still faces obstacles such as limited technological infrastructure, lack of digital competence among civil servants, and resistance to change. The study confirms that successful digital transformation is not only determined by technology but also by organizational readiness, visionary leadership, and adaptive policy support. These findings provide insights for governments in designing more inclusive and sustainable digital transformation strategies