The chapter explores the concept of digital social innovation as a channel of transformational services that improve the quality of life in the community in emerging economies with specific reference to Indonesia. With the inclusion of service-dominant logic, transformative service research, and social innovation theory, we come up with a complete model of how digital platforms and participatory service systems generate multi-level social value. The chapter follows the metamorphosis of transactional to transformational services with the accent on changing the firm-based efficiency indicators into community-based well-being results. When used in conjunction with the gotong royong culture of communal cooperation, which is rooted in Indonesia, in which we place communities as co-designers, rather than merely receiving outputs of the design process, we demonstrate how participatory design collaboration allows the creation of locally relevant and sustainable innovations. By evaluating Indonesian examples, such as village information systems, inclusive mobile apps to support micro-enterprises owned by persons with disabilities, community tourism branding platforms, and food-waste recovery programs, we demonstrate how digital social innovations can be made to deal with social and environmental issues to pave the way to green economy development. Three interlinked principles of design are adopted as critical to inclusive service platforms: integrating digital and non-digital pathways to overcome infrastructure constraints, adopting empowerment-oriented divergent design, enabling enhanced capabilities, and participatory learning that leads to the development of long-term community capacity. We illustrate that technology is an enabling but not defining factor and that technology can only yield transformational results when it is incorporated together with human facilitation, capacity building, and institutional arrangements. The chapter progresses frameworks of approaching social impact to go beyond other conventional KPIs, suggesting multilevel assessment methodologies that would involve individual, organizational, community, and societal performance outcomes in an economic, social, and environmental context. Among the critical future directions that we identify are integration of service science, sustainability science, and social innovation research across disciplines; the development of hybrid forms of governance within community-based service ecosystems; policy environments that can support the process of participatory digital social innovation. The Indonesian case offers empirical support and, at the same time, opportunities to create green employment and enact sustainable development of the community based on carefully developed digital social innovations.