Strengthening Local Governance Capacity through Digital Government Transformation at the City Level: A Case Study of Balikpapan, Indonesia

Abstract

Digital government transformation has become a strategic approach to strengthening local governance, particularly in regions experiencing rapid administrative and demographic changes. As the gateway to Indonesia’s New Capital (Nusantara), Balikpapan faces increasing demands for efficient, integrated, and citizen-centered public services. This study examines the role of digital government transformation in strengthening local governance capacity in Balikpapan City using a qualitative case study approach. Data were collected through in-depth interviews, observations, and document analysis and analyzed using thematic analysis. The findings indicate that digital government has improved administrative efficiency, service integration, transparency, and interagency coordination. However, challenges remain, including uneven digital infrastructure, limited interoperability among information systems, disparities in civil servants’ digital competencies, and varying levels of citizens’ digital literacy. The study concludes that strengthening local governance requires not only technological innovation but also institutional capacity building, human resource development, and collaborative governance. These findings provide empirical evidence for advancing digital government implementation in local governments undergoing institutional transformation