Digitalization has had an impact on changing various aspects of life, including the public sector. One of the adoptions of the use of information technology is carried out in the management of civil servants. This study aims to determine the role of e-government in improving the merit system in local government, with the locus of research in the Bali provincial government. This research uses a qualitative approach. The collection was conducted through interviews with the provincial governments of Bali, Indonesia, and studies of related documents. The results showed that the implementation of digital governance can improve the implementation of the merit system in local governments in Indonesia. The procurement of civil servants through an online selection mechanism has proven to cut the gap in the occurrence of nepotism in the procurement of civil servants. The quality of civil servants selected through the online selection mechanism is considered more competent. Information technology-based performance appraisals also make performance appraisals more transparent. The information technology-based competency development mechanism provides wider opportunities for employees to participate in competency development. Evaluation of competency development can be carried out directly by agencies through information technology. The personnel management information system, based on information technology, helps the implementation of the merit system. Through the integration of data and staffing processes, civil servant management based on the merit system is easier to do.