Digital Population Identity (IKD) is an Indonesian government policy supporting digital transformation of population administration services under Minister of Home Affairs Regulation No. 72 of 2022. This study analyzes IKD policy implementation at the Department of Population and Civil Registration (Disdukcapil) of Magetan Regency and identifies its supporting and inhibiting factors. A qualitative descriptive approach was employed, grounded in Van Meter and Van Horn's six-variable implementation model: policy standards and objectives, resources, characteristics of the implementing agency, inter-organizational communication, implementer disposition, and economic, social, and political conditions. Data were collected through in-depth interviews with 13 informants, observation, and documentation, analyzed using Miles, Huberman, and Saldana's interactive model. Findings show implementation has generally proceeded well, with clear standards, competent human resources, adequate facilities, and effective inter-agency communication as principal supporting factors. Nonetheless, IKD activation declined sharply, from 79,870 in 2022-2023 to 21,537 in 2024 and 5,276 in 2025, yielding a cumulative rate of only 19.22 percent against a 30 percent national target. This decline stems from a national budget-efficiency policy curtailing outreach (jemput bola) and socialization, compounded by low digital literacy, limited smartphone ownership, data-security concerns following impersonation fraud, and persistent preference for physical documents. The study concludes that despite strong institutional readiness, translating that readiness into sustained public uptake requires a stronger regulatory framework, restored outreach funding, targeted education, and expanded utilization of the IKD application.