<![CDATA[Purpose: Digital transformation has become a key agenda in public sector reform, particularly at the local government level where public services are delivered directly to citizens. However, the effectiveness of digital initiatives is often constrained by limited digital capacity, including human resource readiness, institutional coordination, and technological integration. This study examines strategies for improving digital capacity within the local government of Palopo City. Subjects and Methods: This study employs a qualitative descriptive approach. Data were collected through in-depth interviews with local government officials, document analysis of digital governance policies, and direct observation of digital system implementation. The research focuses on human resources, institutional arrangements, and technological infrastructure as key dimensions of digital capacity building. Data were analyzed thematically to identify patterns and strategic issues shaping digital transformation at the local level. Results: The findings indicate that digital capacity building in Palopo City is progressing unevenly across government units. Basic digital skills are generally present, yet advanced competencies remain limited. Institutional support and leadership commitment vary, leading to fragmented implementation of digital initiatives. Although digital systems have been developed, limited integration and underutilization persist due to capacity and governance constraints. Conclusions: The study concludes that strengthening digital capacity in local government requires a holistic and sustained strategy that integrates human resource development, institutional alignment, and technological governance. Digital transformation should be approached as an organizational learning process to ensure its contribution to effective and sustainable local governance.]]>
