Digital Transformation in Village Financial Governance: A Case Study of Village Financial System Implementation in Rural Indonesia

Digital financial governance has become increasingly important in strengthening administrative accountability and financial management practices at the village level. However, the implementation of digital financial systems in rural administrations remains constrained by infrastructural limitations and varying levels of institutional capacity. This study explores the implementation of the Village Financial System (SISKEUDES) in Lempang Village, Barru Regency, Indonesia, with particular attention to its administrative functions and the challenges encountered by village officials. Employing a descriptive qualitative approach, data were collected through direct observation, semi-structured interviews with purposively selected village officials, and document analysis. The findings reveal that SISKEUDES facilitates the integration of financial planning, transaction recording, financial reporting, and document management within a more structured administrative process. Its implementation supports the organization and traceability of financial records, although the available evidence does not establish measurable improvements in operational efficiency or public financial transparency. Two major challenges emerged: unreliable internet connectivity, which disrupts data processing, and disparities in officials' technical competencies, which influence the consistency of system utilization. These findings highlight the interdependence of technological infrastructure, human resource capacity, and administrative practices in implementing digital financial governance at the village level. The study contributes contextual evidence to discussions of digital governance in rural public administration, emphasizing that technological adoption alone is insufficient to ensure effective financial management without adequate institutional and infrastructural support.