US grant of $2.49 million strengthens Nusantara Capital smart city project
Penajam Paser Utara – A grant of approximately US$2.49 million from the United States is strengthening the Nusantara Capital (IKN) smart city project across parts of North Penajam Paser Regency and Kutai Kartanegara Regency in East Kalimantan Province.
“Digital transformation is the primary foundation for developing Indonesia’s new capital city,” stated IKN Authority Head Basuki Hadimuljono in Penajam Paser Utara on Friday.
The IKN Authority has entered into a cooperation agreement with the United States Government regarding technical assistance for smart city solutions to strengthen the planning and blueprint of the IKN smart city.
The project funds originate from the United States Trade and Development Agency (USTDA), an independent agency of the United States Government, which aims to promote economic development in developing countries whilst strengthening trade partnerships and investment.
The United States Government’s grant support represents international confidence in the development of IKN as a technology-based and sustainable future city. The IKN Authority is ensuring that Indonesia’s new capital city is not only constructed physically but also designed with a mature, secure, and future-oriented digital system through the USTDA grant and cross-sector collaboration.
“IKN must become a city that is green, sustainable and fundamentally smart,” said Basuki Hadimuljono.
The initiative involves a consortium comprising Eficens Systems Inc as technical implementer, alongside Frost & Sullivan (USA and Indonesia), ASECH Indonesia Centre of Excellence on Smart City, Mirekel, and PT Searce Technologies Indonesia (Google Cloud Platform Partner).
Technical assistance will develop documentation for strategic and technical components designed to ensure the implementation of IKN’s smart city is conducted in a structured and transparent manner, aligned with Environmental, Social, and Governance (ESG) principles.
According to Frost & Sullivan America board member and project director Subhranshu Sekhar, IKN has potential beyond that of a conventional smart city, with the capacity to evolve into a cognitive city. As global knowledge industry transformation progresses, cities must transition from static digital infrastructure towards adaptive intelligence systems, and Indonesia’s new capital has the potential to become a reference model for global urban development paradigms based on intelligence.
“The blueprint produced is expected to form the foundation for concrete smart city implementation whilst serving as a pilot model for smart city development in Indonesia and globally,” said Subhranshu Sekhar.