E-governance was priviosly as the domain of technology advanced countires , Due to the advancement of Information and Communications Technologies and the plummeting price of these technologies, more and more third world countries has recently adopted the use of e-government. Indonesia is not and exception . However , Indonesia is such a vast and complex country, and no single e-government model should be expected to succeed in all its regions. The paper shows that e-government holds veru potential role to provide service for citizen , businesses, and government agencies throughout Indonesia. The putfalls that may hinder its development include a complex local governemnt structure , the introduction of decetralization , a misguided government mindset, an eraly stage of information technology culture , the absence of a good e-leadership , the lack of information technology culture infrastructure , an inadequate regulatory infrastructure , minimum allocated budget , and the lack of human resources. Futhermore , development should start from an integration service followed by an integration of regions.