Abstract
This study aims to outline the strengths of capacity building and the problems associated with the lack of capacity in the context of governance transformation and policy implementation in the digital era, and initiate an innovative and sustainable capacity-building strategy as a fundamental solution. This study uses a qualitative approach and document analysis to obtain a more detailed analysis. Data was obtained from the National Planning and Development Agency, namely the National Medium-Term Development Plan (RPJMN) 2020-2024. This data included human resource development and infrastructure development in terms of information and communication technology (ICT) related to digital transformation, as well as policies that support digital transformation. The findings of this research illustrate that in terms of the quality of human resources, there are still shortcomings in skills and collaboration between government, universities, and other stakeholders in the industry, and there are still inequalities in access to information in various regions. In addition, there are still obstacles to the implementation of digital transformation in Indonesia in the delivery of public services from the aspects of leadership and political commitment, budget availability, infrastructure readiness, and the digital divide. Thus, strategies are needed to deal with them effectively. It can then be concluded that the dimension of human resource development needs to increase worker skills and knowledge related to digital technology in the public sector. Likewise, the dimension of strengthening organizational capacity that changes in organizational culture are key to dealing with governance transformation in the digital era. In the institutional reform dimension, it is important to evaluate and make changes to the existing institutional structures and processes.
 Keywords: capacity building, transformation governance, digital governance
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