Digital Transformation of Public Services in Improving Community Satisfaction: A Case Study of Local Government Institutions

Abstract

Digital transformation in public services has become a key agenda worldwide to improve efficiency, transparency, and citizen satisfaction. In Indonesia, it is part of bureaucratic reform aimed at reducing corruption, enhancing accountability, and increasing public participation. This study aims to analyze the implementation of digital transformation in local government services and evaluate its impact on public satisfaction, while identifying supporting and inhibiting factors. A qualitative literature review method was employed, drawing from peer-reviewed articles, government policy documents, and official reports published between 2019 and 2024. Data collection followed PRISMA principles, and thematic content analysis was applied to identify key themes. Results indicate that digital transformation—when supported by strong leadership, adequate infrastructure, human resource capacity, and third-party collaboration—significantly enhances service efficiency and public satisfaction. Fully integrated digital systems reduce processing times, improve accessibility, and foster trust. However, challenges such as the digital divide, resistance to change, budget constraints, and poor system interoperability remain. A strong positive correlation (r > 0.6) was found between the maturity level of digital implementation and public satisfaction. Strategic recommendations include strengthening infrastructure, improving digital literacy, integrating services, implementing real-time feedback mechanisms, and adopting a hybrid digital-offline approach. These findings highlight that successful digital transformation requires not only technological adoption but also institutional readiness and citizen-centric design to achieve equitable and sustainable improvements in public service quality.