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Jakarta’s Smart City vision A megacity on a mission

A GovLab reportMarch 2016

abGovSingapore

EMERGENCY

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Foreword

The capital city of Indonesia, Jakarta, has one of the highest rates of urbanisation in the world and possesses one of the highest incomes per capita in the country. But while urbanisation can be economically desirable, it also presents its own unique host of challenges. With the rapid population influx, Jakarta will need to become more adept and efficient at delivering public services, solving traffic congestion problems, managing waste and pollution, and ensuring citizen health and safety – all while attempting to build a cohesive, participative community.

It is a daunting task. Nevertheless, the integrated use of information and communication technology across all domains of the public sector has the potential to enable Jakarta to do more with less, and to enhance living standards while generating economic prosperity. In short, Jakarta will need to become a Smart City.

With the next decade likely to herald a new generation of urban citizens, a global populace that emphasises – if not demands – Smart solutions in every aspect of their lives, meeting these expectations of a Smart City will require leveraging traditional and modern enablers to fuel sustainable economic development, that is, the ability to achieve the desired standards of living while ensuring responsible management of natural resources.

In this publication, we explore ways to accelerate Jakarta’s momentum in its Smart City journey. While the city has achieved significant progress in some areas, a number of key gap areas remain. With the effective and seamless implementation of the right solution themes identified in this study, these gaps may well form valuable stepping stones on Jakarta's journey towards becoming a Smart City.

Jakarta’s Smart City vision A megacity on a mission 3

Jakarta's Smart City vision

To facilitate its ambition of becoming a Smart City, Jakarta’s leaders established the Unit Pengelola Teknis Smart City in 2014. This unit supports the implementation of six missions identified in the 2005-2025 DKI Jakarta RPJD Vision and Mission Statement (see Figure 1).

With that in mind, the road to becoming a Smart City is a unique journey for any city, depending on its maturity level and distinctive challenges. Cities can be classified into the following three stages of growth: the Legacy City with a stable population and well-established infrastructure (such as London, New York City, and Tokyo); the New City that has seen recent development marked by substantial planning (such as Dubai, Putrajaya, and Songdo); and the Transitioning City that is characterised by significant population growth and urbanisation, leading to challenges in infrastructure (such as Bangkok, Jakarta, and Ho Chi Minh City).

As a Transitioning City, Jakarta faces similar implementation challenges as its peers at a similar maturity level, such as Bangkok and Ho Chi Minh City. These cities (including Jakarta) typically need to address multiple areas of significant complexity – for example, the issues related to long-term strategic planning and good governance; the unenviable task of meeting the ever-increasing needs and demands of a diverse population (from those demanding first world facilities, to a large proportion still bereft of basic day-to-day amenities); the challenges – as well as opportunities – of balancing the delivery of basic and Smart infrastructure and services simultaneously; and the constant demand to find adequate financial resources to fund any plans.

Addressing these challenges will require a systematic approach that sets clear and appropriate time-bound Target States for the city’s development; identifies key gap areas between Current and Target States; and finally, develops and implements a set of practical solution themes to address these gaps in an integrated and coordinated manner.

Figure 1: 2005-2025 DKI Jakarta RPJD Vision and Mission Statement

Good governance, Leadership, and Collaboration

Vision

Strategicobjectives

Missions

Basic guidingprinciples

Jakarta as a safe, comfortable, prosperous,

productive, sustainable, and globally competitive capital of Indonesia

Increased competitiveness and improved public service delivery to support public welfare

Enhanced infrastructure

quality

Strengthened economy

Social and cultural

cohesion

Enhanced government performance

Strengthened innovation

and creativity

Robust environment and efficient utilisation of

natural resources

Source: RPJD Provinsi Daerah Khusus Ibukota Jakarta 2005-2025, RPMJD Provinsi DKI Jakarta

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To enable Jakarta to take the first stride in its journey towards becoming a Smart City, a structured process (see Figure 2) was used to define some of the Target States that Jakarta needs to and is able to achieve, identify the major gap areas, and suggest relevant solution themes to address these gap areas. During this process, stakeholders across the spectrum have been consulted and closely engaged for their inputs. It is hoped that, through this exercise, we will be able to catalyse the debate, decisions and, ultimately, actions for Jakarta to build the momentum towards achieving its Smart City vision.

Figure 2: A roadmap for Jakarta’s Smart City journey

Step 1: Define a Smart City for JakartaA number of Smart programmes supporting Jakarta’s Smart City ambition are already in place (see “The future is in the cards”). But in order to undertake a comprehensive transition to a Smart City, Jakarta will need to have a clear vision of a Smart City that it is working towards, along with related goals and metrics that are tangible, measurable and actionable.

Step 2: Define Target StatesTo facilitate this, the Smart City Wheel Framework1, a widely practiced methodology – as well as peer benchmarking against existing Smart Cities – was used to define the Target State goals for Jakarta’s transition into a Smart City by 2025. A set of goals related to six inter-connected Smart categories (see Figure 3) – Smart Living, Smart Mobility, Smart Governance, Smart Environment, Smart Economy, and Smart People – were set and translated into specific metrics for 25 sub-categories and 108 related key enablers that are ambitious, relevant, measurable, and achievable (see "Measurable targets for Jakarta’s Smart City in 2025").

The journey towards becoming a Smart City

Define a Smart City for Jakarta1

Define Target States2

Identify key gap areas3

Propose solution themes4

Next steps


The future is in the cardsEarlier in 2014, President Joko Widodo launched the Indonesia Smart Card and Indonesia Health Card, similar to the Jakarta Smart Card (Kartu Jakarta Pintar) and Jakarta Health Card (Kartu Jakarta Sehat) that were implemented when he was governor of the capital1.

The programmes aim to reach tens of millions of Indonesians and provide numerous benefits to its holders, including free insurance for the poor; 12 years of guaranteed free education; coverage of educational expenses; and free higher education for poor students who pass the university entrance exams.

Indonesia Smart CardThe Indonesia Smart Card enables 24 million poor students – including students eligible for scholarships and those who are unable to attend school because of financial difficulties – to receive financial aid through the state-run lender Bank Mandiri and other appointed outlets. Elementary students receive IDR 225,000 per semester, with junior high students receiving IDR 375,000 and senior high or vocational school students receiving IDR 500,000.

Indonesia Health CardThe Indonesia Health Card is expected to benefit 88.1 million Indonesians who struggle with basic needs. These include those below the food poverty line, set at 2,100 kilocalories per day, and those below the non-food poverty line, defined by 51 commodities in urban areas and 47 commodities in rural areas. Food commodities include rice, eggs, chicken meat, instant noodles and sugar, while non-food commodities include housing, education, clothes, electricity and fuel. Medical costs will also be covered by the government and managed by the Social Security Organising Body.

1 “Jokowi Launches Indonesia Health Card and Smart Card”. Jakarta Globe. 3 November 2014. http://jakartaglobe.beritasatu.com/news/jokowi-launches-indonesia-health-card-smart-card

Figure 3: Six inter-connected Smart categories

Step 3: Identify key gap areasBy comparing Jakarta’s Current States to its Target States, key gaps were identified in each of the six categories that will need to be addressed in order for the city to achieve its Smart City vision (see “Key gap areas”).

Step 4: Propose solution themesWith an understanding of the various gaps between Jakarta’s Current States and Target States, solution themes were proposed to help bridge the chasm. To ensure that Jakarta reaches its goals, comprehensive blueprints and roadmaps will also need to be developed to guide their implementation.

Smart Living Smart Mobility Smart Economy Smart PeopleSmart Governance

Smart Environment

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Smart Living

Smart Mobility

Smart Governance

SmartEnvironment

Smart Economy

Smart People

Liquid wasteand sewerage

Public transportation

Government financemanagement

Administration Procurement Public servicesProject management

Pollution

Labour market

Education Health Participation in communities Family planning

Poverty management Tourism

Sustainable wasteresource managementWaste management

Parking management ICT for traffic management

Humanwaste Electricity

Watersupply

Floodprevention Housing

Citizensafety

• 50% of liquid-based waste, including pollution in rivers, properly processed

• Less than 75 minutes travel time to anywhere at any time on public transportation

• Less than 10 minutes waiting time in any terminal at any time with organised queuing lines

• Park and ride fully implemented

• 30% reduction in traffic congestion

• 100% waste water treatment facility implemented within all commercial and government buildings

• 100% access to potable water

• Integrated geographical information system and hydraulic modelling system with 100% basic water metering and Smart demand sensors

• Formalised annual, mid-term, and long-term financial planning

• 100% Rukun Warga participation in the Musrembang process

• Citizen visibility on current status of all ongoing public projects

• Formalised and centralised Project Management Office function at Governor’s office for oversight of all major public project activities

• At least 80% of companies in compliance with industry emissions standards and regulations

• Per capita income of USD 15,000 in 2025, up from USD 10,800 in 2015

• Reduction of Gini Coefficient, as a measure of income inequality, by 10% from 0.385 to 0.351

• Distribution of Kartu Pintar to 80% of eligible students

• 100% access to basic health care through better implementation of Kartu Sehat

• Total fertility rate at 2.1 per family

• Crowdsourced social media-based platforms available for citizen feedback and advocacy

• 50% increase in interactions between citizens and their respective Rukun Tetangga/Rukun Warga, in preparation for Musrembang

• Zero poverty • 100% increase in tourist visits

• 100% collection and proper disposal of solid waste, with at least 40% recycled

• 50% of all commercial and government buildings Green-certified

• Centralised management to control spending for capital and operating expenditures

• Efficient, automated, and transparent procurement process for all public projects

• Internet-based platforms for billing and payment

• Use of open data platforms for improved quality and delivery of public services

• Guaranteed response to citizen complaints within 72 hours

• Access to affordable housing for all

• Presence of community centre or park within 30 minutes from any home

• 100% access to electricity with minimal pilferage or leakage

• 75% reduction in flooding across the city

• 50% reduction in crimes

Measurable targets for Jakarta’s Smart City in 2025


Smart Living

Smart Mobility

Smart Governance

SmartEnvironment

Smart Economy

Smart People





Pollution

Labour market






Watersupply


Citizensafety


































Smart Living

Smart Mobility

Smart Governance

SmartEnvironment

Smart Economy

Smart People





Pollution

Labour market






Watersupply


Citizensafety


































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With Deloitte’s Smart City Preparedness Assessment Toolkit, a view of Jakarta's Current States was developed to identify key gap areas between the Current States and the Target States. This was achieved through an analysis of all the six categories of the Smart City Wheel Framework, as well as their 25 related sub-categories and 108 underlying enablers.

The good news, based on our findings, is that Jakarta is already a little more than halfway towards meeting the identified Target State goals for its Smart City transformation (see Figure 4). While Jakarta has not yet achieved the Target State in any of the Smart City categories, the city is doing relatively better on indicators related to Smart People and Smart Economy; with more room for improvement for indicators related to Smart Environment. As the highest-scoring Smart category for both Basic and Smart enablers, Smart People has benefited from city-driven actions in health and education (see “The future is in the cards”).

Further, our analysis revealed 18 areas with the largest gaps between the Current States and the Target States (seeFigure 5). To address the 18 gap areas, 16 core solution themes were identified and validated in consultation withstakeholders through a group workshop and a series of one-on-one meetings. A survey with 503 citizens in Jakarta was subsequently conducted for respondents to rate the level of importance for each solution theme.

Figure 4: Current State vs. Target State, for Basic and Smart Enablers

0123

45

Smart Living2.39

SmartPeople3.22

SmartMobility2.50

SmartEnvironment

1.29

SmartEconomy

3.00

SmartGovernance

2.75

Smart Living2.33

SmartPeople2.71

SmartMobility2.00

SmartEnvironment

1.00

012345

Current State

Target State

SmartEconomy

2.50

SmartGovernance

2.17

Basic Enablers (Average score: 2.52/4.00)

Smart Enablers (Average score: 2.12/4.00)

Key gap areas


Figure 5: Top 18 enablers to become a Smart City

EnablersAvailability of flood

prevention infrastructure

Rivers and canals

management Subsidised housing

development


safety

Public information

on safe routes

Enablers

Recycling programme

Integrated waste

monitoring solution

Energy efficient buildings

Enablers

Cloud computing

for data sharing

Open data

Enablers

Number of people living

below poverty line

Integrated tourism app

Enablers

Availability of proper health programme

Smartphone application

EnablersAvailability of public

transportation

Use of technology in

public transportation

facilities

Centralised online system

connected to a smartphone application

CCTV deployment

for traffic control

Smart Living

Smart Governance

Smart Economy Smart People

Smart Environment

Smart Mobility

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A megacity on a mission

Jakarta’s journey towards becoming a Smart City is increasingly gaining attention and momentum. While the government has initiated a number of programmes to build the momentum, follow-up and supplemental actions are required to ensure that Jakarta achieves its Smart City vision.

In this study, we identified 16 solution themes that we believe, if acted upon, have the potential to enable Jakarta to sustain its momentum. Nevertheless, implementing these themes will still require much effort: comprehensive blueprints and roadmaps must be developed to guide their implementation; and stakeholders must manage the multiple risks, including but not limited to challenges such as technological risks, social acceptance, and environmental sustainability, that such an endeavour entails.

To facilitate effective and seamless implementation of these solution themes, it is essential to identify an ecosystem of partners comprising the government, private sector players, non-governmental organisations, development agencies and civil society. These stakeholders will need to collaboratively develop implementation plans and obtain funding from the public and private sectors, and bring together the hard infrastructure, social capital and digital technologies to fuel sustainable economic development.

More importantly, every solution theme will need a programme owner who will be responsible for driving and executing the solution themes, addressing the gap areas and catalysing future actions that translate to actual solutions and results.

Indeed, these next steps are crucial as a whole host of actions and should be accompanied by milestones to accelerate the momentum towards becoming a Smart City. With the successful implementation of these solution themes, Jakarta will be one step closer to turning its Smart City dream into a reality.


GovLab Singapore (GovLab) is a Centre of Excellence that works closely with senior government executives and thought leaders in Southeast Asia and globally to nurture innovative yet practical ways for governments to transform the way they deliver their services. Through its fellowship programme, GovLab conducts research into key issues and emerging ideas shaping the public, private, and non-profit sectors to provide governments with the right knowledge and tools to convert challenges that governments today and of the future may face into opportunities.

About our GovLab FellowsThe following GovLab Fellows were specially selected from a pool of high-performing Deloitte Southeast Asia practitioners with diverse disciplines, experiences and backgrounds to explore ways to accelerate Jakarta's momentum in its Smart City journey during their full-time, four month fellowship.

Pradi SahemanConsultant, ConsultingDeloitte Southeast Asia

Pradi is a Strategy & Operations Consultant. Based in Indonesia, Pradi has more than five years of experience serving clients Energy & Resources industry. In his previous role, he has also developed a number of whitepapers on the oil and gas as well as mining sectors in Indonesia and Southeast Asia.

Yogiswara PrasodjoConsultant, ConsultingDeloitte Southeast Asia

Yogi is a Strategy & Operations Consultant. He has over four years of experience in project management, process improvement, implementation consulting and change management in various industries, including agribusiness, fnance and banking, oil and gas, telecommunications, as well as logistics.

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Contact us

Pradi Wigianto SahemanConsultantConsulting+62 21 2992 [email protected]

Lee Chew ChiatExecutive DirectorConsulting+65 6232 [email protected]

Anand NandakumarDirectorConsulting+65 6232 [email protected]

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