The government in carrying out its function as a public administration servant is regulated in law of the Republic of Indonesia number 25/2009 on public services. Traditional government was identical with ineffective and inefficient bureaucracies, low transparency, and corruption issues which lead to proliferation of maladministration. E-government is required to improve the quality of public service by leveraging on efficiency, collaboration, and transparency. Indonesia e-government was still on early stage of adoption according E-government Development Index (EGDI) rank. However growing number of e-government applications is identified across the nation on multilevel governmental structures. This paper described and analyzed digital transformation in Indonesia public sector through e-government implementation and its impact on value added, agility and control, accountability and collaboration within the context of public service improvement. This paper used literature research methodology to identify and analyzed various e-government implementation. The results showed that the implementation of e-government that have been carried out so far had positive effects on public services. Some e-government applications covering Government to Citizen (G2C), Government to Business (G2B), and Government to Government (G2G) are presented as results of the transformation.