Telecommunication Infrastructure Index TII Human Capital Index HCI There is a conflict in the objectives and priorities of government The lack of independent decision-making by local government to Resistance and fear of change by e

183 Stage IV - Transactional: Governments begin to transform themselves by introducing two-way interactions between ‘citizen and government’. It includes options for paying taxes, applying for ID cards, birth certificates, passports and license renewals, as well as other similar G to C interactions, and allows the citizen to access these services online 247. All transactions are conducted online. Stage V - Connected: Governments transform themselves into a connected entity that responds to the needs of its citizens by developing an integrated back office infrastructure. This is the most sophisticated level of online e-government initiatives and is characterized by: 1. Horizontal connections among government agencies 2. Vertical connections central and local government agencies 3. Infrastructure connections interoperability issues 4. Connections between governments and citizens 5. Connections among stakeholders government, the private sector, academic institutions, NGOs and civil society. E-Government in Indonesia According to UN survey 2016, Indonesia was ranked at number 116 out of 196 countries with 0.4478 points on Index of e-government consisting of: 1. Online Service Index OSI Indonesia Online Service Index OSI is 0.3623 which assessed country’s national website, including the national portal, e-services portal and e-participation portal, as well as the websites of the related ministries of education, labor, social services, health, finance and environment as applicable.

2. Telecommunication Infrastructure Index TII

Indonesia Telecommunication Infrastructure Index TII is 0.3016 which is an arithmetic average composed by five indicators: i estimated internet users per 100 inhabitants; ii number of main fixed telephone lines per 100 inhabitants; iii number of mobile subscribers per 100 inhabitants; iv number of wireless broadband subscriptions per 100 inhabitants; and v number of fixed broadband subscriptions per 100 inhabitants.

3. Human Capital Index HCI

Indonesia Human Capital Index HCI is 0.6796 which consists of four components, namely: i adult literacy rate; ii the combined primary, 184 secondary and tertiary gross enrolment ratio; iii expected years of schooling; and iv average years of schooling. Local E- Government According to Capgemini 2007 in Robinah and Gilbert 2012 research related to e-government in general concentrate on the national level. As for the local government, level has a limited amount, it is caused by:

1. There is a conflict in the objectives and priorities of government

agencies at different levels that resulted in the implementation process and the adoption of local e-government Gronlund, 2004.

2. The lack of independent decision-making by local government to

implement new initiatives on e-government because of their reliance on funds and the budgets of the central government.

3. Resistance and fear of change by employees because they feel

threatened by new technology fear to be replaced. 4. The lacks of resources for invest on local e-government. 5. The Infrastructure of Information and Communication Technology ICT is limited, inadequate and erratic power supply in rural areas of most developing countries.

6. Digital divide Local e-Government in Bandung and Surabaya