Universitas Gadjah Mada
Faculty of Economics and Business

Digital transformation is critical to achieving Indonesia's Golden Vision 2045. This transformation goes beyond building internet infrastructure and includes digitizing governance, commonly known as e-government. Unfortunately, not all local governments in Indonesia have fully embraced digital transformation. This is reflected in Indonesia's low Networked Readiness Index (NRI) ranking of 59, behind Singapore, Malaysia, and Thailand.

To promote digital transformation in Indonesia's government, researchers from the Faculty of Economics and Business at Universitas Gadjah Mada (FEB UGM) have developed a new index called the Gadjah Mada Digital Transformation Governance Index (GM-DTGI). This index is designed to effectively drive digital transformation in local governments across Indonesia. The research findings were presented at the FEB Research Day event on Friday, December 13, 2024, on the 8th floor of the FEB UGM Learning Center.

The GM-DTGI development team, led by Prof. Syaiful Ali, MIS, Ph.D., Ak., CA., a lecturer at the Department of Accounting, explained that the GM-DTGI is an index created to measure the readiness and implementation level of digital transformation in second-tier governments such as regencies and municipalities. Developed in 2021 and officially launched on October 11, 2024, the GM-DTGI offers a more comprehensive scope than the Electronic-Based Government System Index (SPBE) issued by the Department of Administrative and Bureaucratic Reform (PANRB). While the SPBE index focuses solely on e-government, the GM-DTGI encompasses broader aspects, including technology, human resources, processes, and overall transformation.

Syaiful Ali hopes that the comprehensive measurements the GM-DTGI provides will highlight deficiencies and showcase successful examples of digital transformation from other local governments. This could encourage other regions to improve their digital readiness and implementation.

"Regency and municipal governments are the closest to the public, so if we can enhance digital transformation at this micro level, it will also contribute to macro-level improvements," Syaiful explained.

In its measurement process, Syaiful Ali noted that the GM-DTGI uses data collected directly from local governments, regulatory documents obtained from the internet, credible news sources, and other relevant materials. In its first year, data collection was successfully conducted for 428 of Indonesia's 514 regencies and municipalities, accounting for 83% of the total regions.

Looking ahead, Syaiful Ali mentioned plans to incorporate digital intelligence (Artificial Intelligence/AI) assessments into the GM-DTGI, making the index even more comprehensive in evaluating digital transformation readiness and implementation in Indonesia. This initiative is expected to enhance national digital readiness and accelerate the realization of digital transformation toward Indonesia's Golden Vision 2045.

Reportage: Najwah Ariella Puteri
Editor: Kurnia Ekaptiningrum

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