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Wednesday, 31.12.2025
Transforming Government since 2001

Korean electronics and industrial conglomerate LG Corporation has been engaged to draw up a plan for smart urban transport in Indonesia’s new capital city, set to be built in the province of East Kalimantan on the island of Borneo, The Korean Economic Daily reports.

The city, which is to be called Nusantara, is expected to cost around $38bn to build. It will be based on smart city principles, including autonomous electric vehicles, telemedicine, smart education and drone deliveries.

Read more: LG Corp to design smart transport systems for Indonesia’s new capital

Finance Minister Sri Mulyani Indrawati stressed the importance of the state budget as the foundation of Indonesia's digital transformation.

"Digitization has broad benefits, and the state budget is an essential instrument to continue to develop Indonesia's economic digitization transformation foundation," Indrawati stated at the "Digitization as Corruption Prevention Medium" webinar here, Wednesday.

Read more: ID: State budget essential to develop digital transformation: Minister

The Public Works and Public Housing (PUPR) Ministry ensured that development of the new capital Nusantara in East Kalimantan would achieve the three main targets of forest city, 10-minute city for pedestrians, and future-smart city.

"We will exert our efforts (to develop the new capital) in that direction, as we need to realise the key performance indicator (KPI) that has been set in the master plan," the ministry's Director General of Human Settlements, Diana Kusumastuti, stated here, Monday.

Read more: Indonesia's New Capital Must Be Realized as Forest City: Ministry

The island of Bali, which is known for its beaches and is a popular holiday destination, now has been enhanced with 5G services through Indosat Ooredoo Hutchinson (IOH). The mobile network operator launched the service in line with Indonesia’s digital transformation plans.

Bali is now the sixth city in Indonesia whereby IOH has launched 5G services. The other five cities are Surakarta, Jakarta, Surabaya, Makassar, and Balikpapan.

Read more: 5G services in Bali advances Indonesia’s digital transformation agenda

With Indonesia pushing ahead with an ambitious smart cities program, we look at the role Finland can play in guiding the Southeast Asian nation throughout the lifespan of its transformative initiative. The article also explores the opportunities emerging for Finnish businesses.

The Indonesian government has been wooing partners for its nationwide smart cities program – an ambitious digitization program bringing together multiple parts of the state apparatus and copious private sector partners. The President’s vision of turning Indonesia into a “smart nation” will be actualized by the country’s Smart City Master Plan, which despite being nearly a decade old, is still in its infancy. The smart city concept has been implemented in countries around the world and is touted as the solution for various urban problems, including connectivity, pollution, housing, traffic, water quality, etc.

Read more: ID: Smart Cities Cooperation: Indonesia and Finland

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