Currently humans can not be separated from using of technology. The more complex the problem, the need for technology continues to be sought. Unfortunately, even though technology is needed, digital divide still occurs. Digital divide occurs at all levels including at the local level. Villages in Indonesia require the penetration of information and communication technology in an effort to improve the quality of life. This study aims to explain the relationship and dynamics that occur with the presence of ICT at the government level with rural communities in Banyuwangi district. Furthermore, this study seeks to illustrate the impact on the development of ICT at the village level. The results showed that internet penetration was still a deterministic technology rather than a deterministic socioculture. The internet and rural e-government as its derivatives are like goals, not tools to achieve goals. The digital divide still seems clear. This is due to five main dimensions, namely the technical dimension, economic inequality, skills inequality, inequality of use, and inequality of social support. The impact then occurs technology alienation. For the village, digital inequality is not merely a matter of these five dimensions, but also means social, economic, political and cultural inequality. Technology plays an important role in providing intelligent and friendly public services to the community. There is a power relationship in the digitalization of technology in the field of public services in the form of domination of power over the community. Technology is a must to be accepted and applied by society.