Indonesia Smart Cities: Outlook for Potential Business Collaboration

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By 2045, it is estimated that about 83% of the Indonesian population will live in cities. The Indonesian government attempts to capitalize on this potential. One of the strategies is to build Indonesia smart cities. With this objective in mind, the government launched the “Movement Towards 100 Smart Cities” in 2017.

The Importance of Collaboration in Developing Smart Cities

If the potential that 100 smart cities Indonesia provide is to be fully utilized, collaboration among involved parties is a must. The most essential areas for collaboration are infrastructure, information, and implementation.


To develop a smart city, a strong hard and soft infrastructure foundation is required. This is where collaboration between parties, both governmental and private, is key.

Building the necessary infrastructure opens up business opportunities for several parties, such as urban planners, telecommunications companies, and contractors, to name a few.


Strategies implementation within smart cities cannot be done without information. Thus, involved parties need to have access to information that can provide as well as guide their plans.

The need for informed collaboration, in turn, provides the business opportunity for industry experts, marketing firms, and consultancy firms, among others.


For the development of the Indonesia smart cities 2045 project to succeed, all involved parties should act in line with the master plan, working in unison towards the same goals.

The implementation of the master plan provides various business opportunities for both technological and non-technological businesses. For instance, start-ups, IT consultancies, as well as media firms.

Role of Technological Advancement in the Development of Indonesia Smart Cities

Naturally, smart cities entail a significant dependence on technology as well as related digital solutions to improve the overall well-being of a city and tackle various urbanization-related issues.

The adoption of technology is expected to generate a significant impact in three main methods. Namely, integrated sensors, security and public safety, and data collection, and the Internet of Things.

If the role of technological advancement in Indonesia smart cities is emphasized, there will be an increase in the activity of both domestic and foreign enterprises that are interested in capitalizing on the potential business opportunities.

Drivers and Barriers

The most important drivers are the technology-engaged population and a large number of start-ups situated within the country.

As for barriers, the most significant ones are inadequate social coordination, surface-level regulation for smart city plans, and plans execution.

Building on Successful Smart City Development

The Indonesian government intends to use the transitions of Jakarta and Bandung to smart cities as a blueprint for other cities. The two cities manifested their transitions in different ways.

On one hand, Jakarta has a mobile app that enables its citizens to access public information and service freely, integration of e-commerce as well as unicorn startups to boost the economy, and a special body to ensure smart city implementation.

Bandung, on the other hand, has a command center that monitors major operations within the city, smart parking implementation, and projects meant to empower citizens, which include the construction of MSMEs center and a creative hub.

In upcoming years, the government will push the development of Indonesia smart cities across the country. This will provide business opportunities across different sectors and markets. Whether or not the project will succeed will depend on the collaborative effort of all involved stakeholders.

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