Indonesian Government Chooses Smart Cities as Answer to Overpopulation and Urbanization Challenges

With the relocation of the new capital 'Nusantara' as an opportunity, spurring smart city and expanding participation of Korean companies

population overcrowding urbanization to the problem About as an answer smart city selected indonesian government

Smart city is a project field that has received the most attention over the past decade and is a project field that has received the most attention over the past decade by incorporating new technologies such as ICT and big data into cities to improve the quality of life of citizens, improve the efficiency of urban management, and develop cities sustainably. It is an industry field where technologies and products appeared.

As the population density of major cities becomes excessive, urbanization problems such as traffic congestion, crime, environmental destruction, and excessive resource consumption occur, and various countries including Korea, the United States, Germany, Japan, the United Kingdom, and China are developing smart cities. Adopted as the direction of the new city operation. In addition, related policy development initiatives were promoted and institutional support was spared for the development of the industrial sector. The Korean Ministry of Land, Infrastructure, and Transport also announced smart city comprehensive plans such as the '3rd Smart City Comprehensive Plan (2019-2022)' and created regional base smart cities in 2023 locations nationwide by 16, contributing to the spread of smart cities. is leading

 

Indonesia is also a country that cannot be free from the problems of overpopulation and urbanization. In Indonesia, the fourth most populous country in the world with more than 2 million people, about 7000% of the total population lives on Java Island. In particular, in the case of Greater Jakarta, which is centered on Jakarta, the capital of Indonesia, about 4 million people live in a densely populated area, which has the second largest population after Tokyo among metropolitan areas in the world. As a result, power outages, increased crime rates, energy shortages, air and water pollution, and serious traffic congestion are considered chronic social problems in the vicinity of Jakarta, and these problems are spreading to other major cities in Indonesia, such as Surabaya and Bandung.

 

In response to the deepening urbanization problem, the Indonesian government also presented a policy vision called 'Smart Nation' by President Joko Widodo, and started promoting smart cities in earnest. In 2017, it announced the 'Gerakan Menuju 100 Smart city' initiative, fostering 100 smart cities in Indonesia by 2045 and proclaiming the national smart city master plan.

 

 

And in 2019, 25 smart city base promotion areas were designated and a smart city promotion MOU was signed between the Ministry of Information and Communication of Indonesia and local governments in the base promotion area. At the MOU signing ceremony, Minister Rudiantara of the Ministry of Information and Communication at the time said that the policy of 'conversion to 100 smart cities' and the direction Indonesia's smart city should go is not simply technology shopping such as the indiscriminate introduction of various innovative technologies that are nice to look at, but the life of the people. He emphasized that quality improvement and modernization and smartization of public services for the people should be the focus.

Based on this, Indonesia's Ministry of Information and Communication announced that Indonesia's smart city will not imitate the development path of many excellent cities, but will consider the environment, economic development level, infrastructure situation, industrial characteristics, and population density of each region in Indonesia. . In addition, he said that the central government will present guidelines for major directions and provide policy support, but that each local government will transform and apply Smartist initiatives suitable for their own circumstances and develop them in the direction of promotion.

 

100 to smart city 전환(Gerakan Menuju 100 Smart city) main Contents

 

Taking a closer look at the 'Transition to 100 Smart Cities' policy, which serves as a master plan for the development of Indonesia's smart cities, the policy was implemented in 2017 by the Indonesian Ministry of Information and Communication in collaboration with the Indonesian Ministry of Home Affairs, National Development Planning Department, Finance Ministry, and the Office of the President. It was established to establish a city development plan and to promote and support smart city regional policies that fit the unique environment of each local government.

 

The policy first presents the six principles that Indonesia's smart city should pursue and the direction of future development.

In this policy, the smart city promoted to solve social problems caused by urbanization does not spread to other social problems such as widening the development gap between regions, accelerating income polarization, and occurrence of the digital/technological underprivileged. The application of the principles was emphasized.

 

In addition, the policy categorizes the focus areas of smart city development in Indonesia into six categories and presents them as follows. This field is an extension of the 6 areas that must be focused on for the promotion and development of smart cities in Jakarta Smart City*, a public institution. Success cases of smart city policies that were first promoted in Jakarta, the leading region of smart cities in Indonesia, are introduced into the country. The intention to spread it to the whole is implied.

Note*: Public institution established in 2014 to promote smart city in Jakarta

 

focus By fostering field hopefulness market entry 분야

 

Looking at the market demand and promising participation areas for the six key fostering areas presented in Indonesia's 100 smart city transformation policies, there is a high demand for government projects and procurement related to digital government establishment in the first area, smart governance. In particular, since the implementation of this policy, many local governments in Indonesia have pursued a transition to digital government by making public services online, establishing a homepage, providing real-time remote consultation, and expanding data centers to provide real-time public services and strengthen administrative transparency. are doing

Furthermore, by incorporating AI and smart ICT into social overhead capital for traffic lights, CCTVs, and streetlights, the government plans to strengthen and enhance the role of the control system to improve quality of life and strengthen governance for citizens such as crime prevention and traffic management. Therefore, the demand for digital administrative system establishment, big data utilization, and smart ICT will increase.

 

In the field of smart economy, innovation in logistics and distribution through the use of e-commerce, online P2P services, digitization of services throughout society, and improvement of data accessibility for SMEs are being emphasized. In terms of smart living, the demand for telemedicine services, smart homes, overcoming physical distance using ICT and strengthening real-time communication is increasing, so companies with related tech technologies or smart products are expected to participate.

In the case of smart environment, the Indonesian central government and each local government are promoting various PPP projects to focus on energy saving and urban aesthetic improvement through smart lighting/street lighting systems, urban development and use of renewable energy, and strengthening of air purification infrastructure. are giving out In the case of smart people, the government, education system, and private companies are introducing education and support programs to cultivate digital literacy skills of public officials, students, and employees and apply them in work and life, so related edutech or software companies Opportunities to participate in the market are expected to expand.

 

인도네시아 main of cities Smart city Promotion case

 

Indonesia's 'Conversion to 100 Smart Cities' policy is that Indonesian smart cities move forward with a single direction led by the state, and at the same time, each local government considers their local environment, economic development level, infrastructure situation, industrial characteristics, and population density. Emphasize the establishment and implementation of individual regional smart city plans. This is because the central government's comprehensive policy application can be rather poisonous because the key industries, economies, and infrastructure development levels are so different between regions. Accordingly, major Indonesian cities reflected the policy and carried out the following projects in the smart city field.

 

new capital 'Nusantaraprevious on occasion Smart city spur And Korean companies 참여 enlargement

 

Jakarta, the capital of Indonesia, is currently in a state of land subsidence and population density saturation, and the capital is being moved to Nusantara on the island of Kalimantan according to the 2045-step development plan by 5. The Indonesian government plans to apply a smart city to the urban planning stage from the beginning of Nusantara, the new capital, to prevent various urbanization problems that have occurred in Jakarta. This project will be accompanied by a large-scale infrastructure project worth 40 trillion won, so it is the largest among several smart city projects being promoted in Indonesia.

 

In the Korean government, many Korean companies, including our smart city companies, have joined together to form Team Korea with government ministries such as MOLIT and various related public institutions and private companies to expand participation opportunities and support for entry into the new capital relocation project in Indonesia. In August of last year, the two countries signed an MOU for technological cooperation in the development of the capital relocation between Korea and Indonesia, paving the way for Korean companies to enter Indonesia. etc., and created many opportunities for Korean companies to win Indonesian smart city projects through B8B partnering.

 

implication

 

인도네시아의 스마트시티 시장은 2023년부터 2030년까지 연평균 25.8% 성장해 2030년에는 6조9652억 규모까지 성장할 것으로 예상되는 매우 유망한 스마트시티 진출지역이다.(글로벌 조사연구기업 Grand view Research) 인도네시아 정부에서도 여러가지 도시화 문제 해결 및 스마트시티 인프라 개발을 통한 성장동력 확보를 위해 100대 스마트시티로의 전환 등의 지원정책을 수립해 국가 차원에서 스마트시티 발전을 주도하고 있으며, 개별 지자체들도 해당 정책을 이행하기 위해 지역별 스마트시티 이행계획을 수립해 각자 환경에 맞는 스마트시티 사업을 추진 중에 있다.

 

In particular, since the capital city to be relocated is planning to actively reflect smart city infrastructure and technology from the beginning, the Indonesian smart city market is expected to grow rapidly in the future. The Indonesian government chose Korea's Sejong City as a benchmarking model for Shinsudo at the meeting between Korea's MOLIT and Indonesia's Ministry of Public Works and Housing, and stated that it wanted to reflect Korea's smart city and balanced development, so we have excellent smart city technology and products. We expect more companies to enter the Indonesian smart city market.

 

Source: Indonesia Ministry of Information and Communication, Ministry of Public Works and Housing, Korea Ministry of Land, Infrastructure, and Transport, Indonesia Statistics Korea, Grand view research, Jakarta Smart City, YCP Solidance, KOTRA data, KOTRA Surabaya Trade Center data synthesis

 

Source: KOTRA