Objective - This research aims to investigate how e-customs innovation diffusion may take place focusing on the benefits that it can bring to potential stakeholders, for business companies and governments.Two research models have been developed based on a literature review on the diffusion of IT innovations as well as on value assessment methods used for IT innovations implemented in the private and public sector.The first part of research aims to illustrate the innovation-development of business-togovernment IT innovations, while the second aims to provide a guideline on important variables needed to conduct value assessment for such innovations as well as how to classify the identified benefits.

Methodology/Technique Multiple SEM analysis on e-customs have been carried out in order to test the proposed research models involving different business companies and governmental bodies.

Findings - Although the Indonesian e-customs regulation states the objectives of the envisioned common standardized e-customs system, functional and technical specifications areprovided only on a high level. Therefore, the adoption and diffusion process is relegated to each individual member state. Thus, the analysis on how such a system will be adopted and diffused is the particular interest for all government corporations.

Novelty - This conceptual research is an evidence of continuous improvement building in a struggling effort from the Indonesian government in reducing the poor living.The government has a strong and dominant role as an agent of change to innovate the way of doing business for living. View of research studying this correlations in Indonesian context.

Type of Paper - Conceptual

Keywords : Diffusion of Innovations, E-Customs, E-Government Services.