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22 Mar 2016

IDC Reports Increased Interest and Uptake in Indonesia Smart City Initiatives amidst Recent Socioeconomic Challenges

JAKARTA, March 23, 2016 – IDC Government Insights’ recently published report “Building Smart Cities in Indonesia - Embracing Digital Transformation and Innovation across Cities" (Doc #AP40984216) reveals that Indonesia is seeing increased interest and uptake in smart city initiatives to boost domestic productivity, quality of life and address the country’s pressing socioeconomic problems. IDC believes city government officials play a critical role in driving the development of Indonesia’s smart city roadmap 2025 by leveraging on digital and other technologies to boost government efficiency and productivity.

With increasing urbanization and trans-migration in Indonesia, there are a number of city sustainability challenges that needs to be addressed. To that effect, the Indonesian government plans to spend more than US$420 billion on infrastructure projects (e.g. telecommunications) over the next 5 years.

As most smart city initiatives focus on collaborations, there is a significant partnering opportunity for smart city government leaders to work closely with experienced solution providers. One evident domain for growth is in smart building solutions. Smart city initiatives can tap on the extensive capabilities from a wide diversity of vendors so as to boost existing smart building core capabilities and functionalities.

"Majority of Indonesian smart city projects have been initiated by local and regional government authorities. They include Telkom, the Department of Transport, and BPJS Kesehatan. However, many of these projects are funded in silos, and often times, they eventually face long-term operations sustainability issues,” shares Sudev Bangah, Country Manager, IDC Indonesia and Philippines. “We believe the federal government needs to step up and invest so as to spur the growing momentum of digital city transformations and ensure long-term progress is maintained for smart city initiatives."

"Cutting-edge technologies for smart city investments such as the Internet-of-Things (IoT), cognitive computing and mobility solutions are tracked in this research. Functionally, key pilots and projects are found in building administration, energy grids, public safety, transportation, and healthcare," says Shreyashi Pal, Asia Pacific Market Analyst, IDC Government Insights.

While the demand and interest in smart city transformations is notably growing, IDC Government Insights believes that ‘prudence considerations' for e-government procurement transparency and accountability and program management competencies need to be in place. This is notably recognized by the Indonesian government.

"The Indonesian government should focus on empowering city planners with sound and actionable investment advisories; build close partnerships with the global smart city solution providers; as well as ensuring competent operations governances are in place to drive effective return-on-investments and project accountability,” recommends Gerald Wang, Head, Asia Pacific Government and Education, IDC Government Insights.

IDC recommends vendors to partner with local governments to support smart city pilots and initiatives as another channel to showcase solution functionality, best practices and business benefits. Citizens or consumers are a driving force in the public and private sector adoption of sustainability initiatives. The more business and residential tenants understand the benefits of smart building technologies, the more pressure is on building owners to adopt these technologies. Vendors should consider partnering with city leaders on citizen messaging that is aligned to their own campaigns in those geographies where they are trying to grow.

The development of ICT in Indonesian cities has opened numerous opportunities and competition for the cities in ASEAN economic community. With Indonesia being a part of this community, we expect that there will be many opportunities for both governments, businesses and citizens alike. Government leaders and city planners that play a significant role in improving the management and operations of the smart city projects will be key towards the long-term success of these programs. Sustained innovations and investing in emerging ICTs must eventually meet the socioeconomic outcomes of public needs. 

For more information on obtaining this report, please contact Sudev Bangah at sbangah@idc.com, Gerald Wang at gwang@idc.com or Shreyashi Pal at spal@idc.com. For media inquiries or to set up an interview with the analyst, please contact Alvin Afuang at aafuang@idc.com or call +63917 797 4586.

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About IDC Government Insights

IDC Government Insights assists government policy, program, and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of government and IT industry experience, our global research analyzes and advises on business and technology issues facing the Federal/Central and local/provincial Governments. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-gi.com, email info@idc-gi.com, or call 571.296.8060. Visit the IDC Government Insights Community at http://idc-insights-community.com/government.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. Follow IDC on Twitter at @IDC.

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