DIFFUSION OF INNOVATION IN ELECTRONIC TRANSACTION SERVICES OF LOCAL GOVERNMENT (ETPD) IN MARKET AND MSME RETRIBUTION IN TANGERANG CITY

Abstract

This research is motivated by the urgency of digitizing public services through the Electronification of Regional Government Transactions (ETPD) to improve efficiency, transparency, and accountability of regional revenues. However, its dissemination to market levies and MSMEs in Tangerang City still faces various obstacles, such as the dominance of cash transactions, the ineffective role of implementing actors and the dissemination of ETPD at the operational level, and limited infrastructure. This study aims to analyze the diffusion process of ETPD innovation using a descriptive qualitative approach within Rogers' (2003) diffusion of innovation theory framework, which encompasses aspects of innovation, communication channels, time, and social systems. Data were collected through observation, interviews, and documentation with informants from local governments, market managers, and MSMEs. The results indicate that ETPD is capable of improving transaction efficiency and accountability, but its dissemination has not been optimal due to technical and social barriers. Therefore, strengthening digital literacy, improving infrastructure, and adapting communication strategies are needed to encourage wider adoption. These findings confirm that the success of ETPD depends not only on technological aspects but also on the social readiness of the community.