Abstract
This study departs from the increasing inability of linear approaches to explain the complexity of contemporary local governance. This research aims to analyze how the interaction between formal, informal, and custom-based leadership shapes governance dynamics, as well as develop an integrative model based on a complex systems perspective that is more adaptive and contextual. The research uses a qualitative approach with a case study design to capture non-linear dynamics in local governance. Data was collected through semi-structured interviews, Focus Group Discussions (FGDs), and analysis of policy documents. The analysis process is carried out thematically and iteratively by integrating source triangulation and validation through member checking and trail audit to ensure the credibility of the findings. The results of the study show that local governance operates as an adaptive complex system characterized by dynamic and emergent interactions between actors. Key findings identify institutional misalignment between normative governance principles and empirical practices, which is reflected in the fragmentation of authority, limitations of formal leadership, and dysfunction of public services. Interestingly, informal and customary leadership serves as a "hidden infrastructure" that significantly affects the legitimacy and effectiveness of policies. In addition, institutional capacity is not static, but develops emergently through social relations and system adaptability. This research also shows that technocratic approaches, including digitalization, have not been able to answer structural and relational problems in governance. Overall, this study confirms the importance of a shift towards an integrative hybrid-complex governance model. The theoretical implications lie in the redefinition of institutional capacity and the expansion of the concept of complexity-based governance. Further research is suggested to test this model comparatively, develop more measurable operational indicators, and explore the longitudinal dynamics and dimensions of leaders' well-being in the context of governance.