Digital Governance and Innovation in Indonesia: Transformation Strategy Towards Governance Smart and Inclusive

Abstract

The development of digital technology has driven significant transformations in governance, demanding fast, transparent, participatory, and accountable public services. In Indonesia, the implementation of digital transformation faces challenges related to geography, infrastructure inequality, digital literacy of civil servants, and inter-agency system integration. This study aims to identify the dynamics of digital governance, examine the role of public innovation in strengthening its effectiveness, and formulate strategies for strengthening innovation-based digital governance. Using a descriptive qualitative approach, data were obtained through semi-structured interviews, digital observations, and policy document studies at the Ministry of Administrative and Bureaucratic Reform (PANRB), the Ministry of Communication and Informatics (Kominfo), local governments that are Smart City pioneers, and civil society organizations. The results show that the integration of public innovation technological, managerial, and social is a key driver of digital governance effectiveness. The success of digital transformation is determined not only by the availability of technology, but also by transformational leadership, an innovative organizational culture, digital literacy of civil servants, and multiactor collaboration. The findings emphasize the importance of a holistic strategy that combines technological, institutional, human, and collaborative aspects to build a smart, adaptive, inclusive, and equitable government. This study concludes that public innovation acts as a transformative medium that connects technological modernization with managerial reform for effective and responsive public services.