Author(s): Bernadetha Nadeak, Sasmoko, Elferida Sormin, Yasinta Indrianti, Abu Yazid Abu Bakar,
Education in overcoming industry 4.0 challenges requires education governance as well as human resources to be able to deal with complex systems. Principals in educational institutions have an important role in realizing these educational products both in terms of inputs, processes and outcomes so that the performance of the principal is not just a to do list, not just managerial innovation, but the principal must be able to produce a performance that is good. its capacity to change the paradigm of community thinking which is also called the capacity to transform all resources. Furthermore, in this research it is called transformational capacity performance. This study aims to find empirically about the trends in the conditions of the Transformational Capacity Performance of school principals in Indonesia. Research methods with mixed methods, the Neuroresearch approach includes exploratory, explanatory and confirmatory research. The study population was all principals of SD, SMP, SMA and SMK throughout Indonesia. Sampling technique with Multistage Sampling. The data collection technique used a Semantic Differential Scale questionnaire, ranging from 1 to 7. The number of research samples was 964 school principals consisting of 2 regions of Indonesia, 12 provinces and 36 districts/cities. The results of the study are (1) principals throughout Indonesia tend to have high performance with a significant transformation capacity at α <0.05; (2) Adaptive Performance (APR) and Innovation Capacity (INN) together are the Most Significantly Dominant Determinants in Forming Transformational Capacity Performance for Principals throughout Indonesia who are able to increase 363,568 times from current performance conditions, and (3) the effectiveness of the Improvement Transformational Capacity Performance for Principals throughout Indonesia is determined when reforms of school principals in clusters of each province (PROVINCE) have an impact of an increase of 9,558 times the current performance conditions of school principals.