ABSTRACT

Digital transformation of building permit services is expected to improve public compliance with construction regulations. This study aims to analyze the level of compliance with building permits for non-residential buildings and evaluate the role of digital governance in improving compliance during the transition from Building Construction Permit (IMB) to Building Approval (PBG). The research employed an explanatory quantitative approach using secondary data from the past five years and primary data from 100 respondents. Data were analyzed using descriptive statistics, Root Cause Analysis (RCA), and simple linear regression. The results reveal a very low level of compliance, where 97% of non-residential buildings are non-compliant and only 3% have valid permits. RCA identifies low regulatory literacy, perceived bureaucratic complexity, cost assumptions, and limited socialization as the main causes of non-compliance. Regression analysis shows that public knowledge has a positive and significant influence on compliance (Sig. 0.001 < 0.05). These findings indicate that the implementation of digital licensing services through the Surabaya Single Window system has not been fully accompanied by increased public compliance. Improving compliance requires integrated strategies, including targeted education, technical assistance, and incentive-based policies to encourage legalization of buildings. This study provides empirical contributions to the development of digital governance-based building permit policies and behavioral compliance strategies in public service management.