Universitas Gadjah Mada
Faculty of Economics and Business

Yogyakarta, October 11, 2024 - The Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), through the Center for Information Systems Studies (PKSI), has launched the Gadjah Mada Digital Transformation Governance Index (GM-DTGI). This tool aims to facilitate the assessment of digital transformation performance in district and city local governments.

The GM-DTGI launch was held on Friday, October 11, 2024, at the Ranuwihardjo Auditorium, MM FEB UGM. The event was attended by the Vice Minister of Communication and Informatics, Nezar Patria, S.Fil., M.Sc., M.B.A., UGM, and FEB UGM leadership, the GM-DTGI research team, students, representatives from 22 local governments across Indonesia, and various other stakeholders.

The lead researcher of GM-DTGI, Prof. Syaiful Ali, MIS., Ph.D., Ak., CA., explained that GM-DTGI is an innovative index designed to assess the digital transformation performance of district and city local governments. This tool was developed to evaluate the implementation of the electronic-based government system (SPBE) and other digital innovations adopted by local governments across Indonesia.

"GM-DTGI is here to measure and optimize IT investments in local governments as they strive to achieve their strategic goals," he explained on Friday (11/10).

Ali emphasized that the approach to digital transformation is holistic, focusing not only on technology but also human resources, business processes, and organizational aspects. He, therefore, urged local governments to participate actively in this measurement. The aim is to promote better governance that is transparent and competitive in the future.

He further explained that the GM-DTGI provides a comprehensive overview of local government practices in adopting digital technologies and transforming business processes. It also helps local governments identify areas of digital transformation that need improvement. The GM-DTGI is a powerful tool for encouraging innovation and continuous improvement in digital transformation.

The index calculation is based on local government data collected from official district and city government websites and other credible public Internet sources. The GM-DTGI comprises seven pillars: Governance and Leadership, Regulations and Policies, Public Administration Reform and Change Management, Data Governance, Digital Ecosystem, User-centric Platform Design, and Cybersecurity and Privacy.

Ali explained that the index development process involved several stages. It began with data collection from credible local government websites and regulations that contain relevant information on digital transformation, in line with the rating requirements. Researchers and academics ensured that the data collected was representative and accurate through a quality control process.

The Vice Minister of Communication and Informatics of the Republic of Indonesia, Nezar Patria, S.Fil., M.Sc., M.B.A., welcomed the launch of the GM-DTGI developed by FEB UGM. According to him, the index is a diagnostic tool to assess the maturity level of digital technology adoption in transforming public services at the district and city levels. Until now, most indices have focused on the provincial level and have not been extended to smaller administrative units, such as districts and cities that interact directly with the public.

"Thank you to FEB UGM for initiating the development of the GM-DTGI. This index will greatly help everyone in the digital transformation ecosystem in Indonesia to assess the maturity level and implement digital transformation," he stated.

The Rector of UGM, Prof. dr. Ova Emilia, M.Med., Sp.OG (K), Ph.D., represented by the Director of Business Development at UGM, Dr. Hargo Utomo, noted that the launch of GM-DTGI is significant for UGM and local governments as part of efforts to improve the quality of public services. He expressed the hope that the index developed by PKSI UGM will usher in a new era for local governments, providing efficient, transparent, and accountable services and adopting the seven pillars of digital transformation to improve governance.

The Dean of FEB UGM, Prof. Dr. Didi Achjari, M.Com., Ak., CA., stated that the GM-DTGI is a critical step initiated by FEB UGM through PKSI to provide a more comprehensive assessment of local government digitization performance. The development of the index involved academics and practitioners and was based on data from credible sources, including official local government websites.

Didi hoped the index would foster better synergy between central and local governments in achieving inclusive and sustainable digital transformation. He encouraged stakeholders to innovate and work together to create a more advanced digital ecosystem.

"Thank you to PKSI FEB UGM for their hard work in developing the GM-DTGI, and to everyone here today, especially the Vice Minister of Communications and Informatics, for his tremendous support of this initiative," he concluded.

GM-DTGI Award

Meanwhile, PKSI FEB UGM Coordinator Dr. Fitri Amalia added that digital transformation is crucial for local governments to meet public service expectations for speed and efficiency. GM-DTGI is expected to become a digital governance assessment tool to support improving public service quality.

To encourage local governments in Indonesia to improve their digital governance continuously, PKSI presented the GM-DTGI Award to district and city governments in Indonesia. The GM-DTGI Award aims to motivate local governments to optimize their digital transformation governance. With effective governance, IT investments can support the achievement of each region's vision, mission, and goals, ultimately improving the welfare of the entire Indonesian population.

Fitri explained that the assessment for the GM-DTGI Award is based on global best practices in digital governance, with seven pillars forming the basis of the GM-DTGI Index. These pillars include technology, human resources, business processes, and organizational aspects and are continuously updated to remain relevant to current developments. The data used in the assessment is sourced from official local government websites and other credible sources, with a cut-off date of December 31, 2023.

The GM-DTGI Award 2024 evaluation used data from 429 county and city governments, divided into district, city, and inter-district and inter-city evaluations within a province. The top performers in each category were announced. For the GM-DTGI Award 2024, Semarang City secured first place in the city category, while Banyuwangi Regency won first place in the district category.

In addition to the awards, PKSI allowed the winners to share their best practices in digital government through a panel session. This session included presentations from five local governments: Semarang City, Banyuwangi Regency, Yogyakarta City, Sragen Regency, and Banjarmasin City.

With the release of the GM-DTGI, PKSI FEB UGM hopes to inspire local governments to continue innovating and improving public services through technology. The index will serve as a tool to measure progress and as a means to encourage collaboration and knowledge sharing among regions. PKSI invites all stakeholders to participate actively in the digital transformation process to create a more efficient, transparent, and responsive government that meets public needs.

Reportage: Kurnia Ekaptiningrum 

Sustainable Development Goals