Modern organizational resources are no longer based on economic capital, natural resources, or labor, but on knowledge as a major asset. Therefore, for an organization to have competitive advantages it is necessary to apply the concept of Knowledge Management (KM). By implementing KM in local government institutions, especially rural and island areas, it can successfully produce regional excellence by capturing, organizing, sharing and creating a new knowledge. The local governments are required to implement KM since the bureaucracy reform program was rolled out through Presidential Decree No. 81, 2010 concerning the Grand Design of Bureaucratic Reform and Ministerial Regulation on PAN and RB in 2011 concerning the application of KM in Government Organizations. In this study, the level of readiness of KM in the local government of South Halmahera is carried out using a qualitative approach. Direct interviews at the structural leadership level at the Department of Communication and Information in the District Government of South Halmahera, North Maluku were conducted, and validation tests were conducted through expert judgments (local academics) who interacted directly with a relevant government institution. The analysis results show that the level of readiness of the KM process in the Local Government of South Halmahera is 1.75 still in not ready level. The presentation of KM readiness is only 34% of the KMCSF factors from the assessment carried out, meaning that it still requires careful planning and a better strategy in the future.