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Innovation in public service is needed as one of the efforts towards better service or good governanced and also to meet the needs of the community. Innovation of E-Government transaction services in licensing areas in Malang City that aims to improve and improve the service that is easy, efficient, transparent and accountable and anticipates a long queue system only for Have a simple service. The results of this research show that the innovation in E-Government transaction service is done by efforts and cooperation. Then there are some obstacle factors, this is the challenge to the government in the creation of E-Government transaction service innovations so that the realization of good governance.
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