The digital transformation of population administration through Digital Population Identity (IKD) offers more efficient public services, but its implementation at the local level still faces a gap between institutional readiness and the community’s digital environment. This study aims to analyze the implementation of IKD and identify its supporting and hindering factors in East Tanjung Jabung Regency. The study employed a descriptive qualitative approach with six informants representing government and community stakeholders. Data were collected through in-depth interviews, observations, and documentation, then analyzed using an interactive model involving data collection, data condensation, data presentation, and drawing conclusions. The results indicate that IKD implementation is underway but has not yet reached its full potential. The competence and commitment of government officials, division of tasks, coordination, service procedures, and integration with the SIAK system are the main supporting factors. Conversely, limited budgets and facilities, uneven internet coverage, low digital literacy and community readiness, limited devices, and suboptimal integration with external services continue to hinder implementation. Key findings identify a gap between institutional readiness and digital environment readiness, indicating that government organizations’ readiness is insufficient without the support of infrastructure and public readiness. This study underscores the importance of aligning institutional capacity, digital infrastructure, public literacy, and service integration to achieve more inclusive and accessible digital identity services.