Digital Transformation in Treasury Reform in Indonesia: A Mixed Methods Approach

Abstract

What happens when a state treasury institution attempts to modernise its operations through digital technology while simultaneously restructuring its organisation? This study explores that question within the context of Indonesia's Treasury. The study's originality lies in analysing digital transformation and organisational reform together within a developing-country treasury, which prior studies have rarely done. Employing a mixed-methods approach that combines in-depth interviews, policy document analysis coded in NVivo, and regression modelling using RStudio, the research examines how technology adoption and institutional reform interact in shaping fiscal efficiency and transparency. The findings show that big data and artificial intelligence have noticeably accelerated decision-making and improved accuracy, yet transparency turned out to be the strongest driver of reform outcomes, surpassing efficiency gains, structural changes, and digital initiatives. Fragmented system integration, slow capital expenditure cycles, and the limited reach of the treasury information system remain serious constraints. The study puts forward a dual-pathway reform framework connecting technological change with organisational restructuring along three dimensions: institutional structure, workforce capability, and business processes. Other developing countries facing comparable fiscal and institutional pressures may find this experience useful as a practical reference.