Development of IKN: Prevailing Implementation of Urban Planning and Technology

by | Dec 8, 2022 | Study Insight | 0 comments

How is the current development of IKN? What are its future prospects of urban planning and technology?

Source: Portal Informasi Indonesia

Indonesia is currently doing construction on its new capital city, Nusantara, or widely known as IKN. The Indonesian government itself had increased its infrastructural needs by USD 429.7 billion, a 20% increase from 2015-2019. Indonesia has several key market trends on its infrastructure. Among them include an increase in the value of civil construction and government infrastructural development plans. 

With this huge infrastructure project, it provides huge opportunities for countries and private businesses to put in investments especially in the field of urban planning and technology. 

What do you think about the potential investment opportunities for urban planning and technology in IKN? Read more to find out!

Ibu Kota Negara Baru, an Investment Gem

The idea of moving the IKN to Palangkaraya was first proposed by President Soekarno from the basis of strategic location and geographical efficiency. The following President, Susilo Bambang Yudhoyono also coordinated the proposal of capital city movement  from Jakarta, which is finally realized by Indonesia’s current President, Mr. Joko Widodo back in 2019.

Sources say that the capital city is currently in the process of finding investors from private companies. In addition to that, the bright side is that the amount of investors trying to invest in the city have reached oversubscription, meaning that there are a lot of potential industries that investors would like to invest in, one of them being technology. Up till this day, Minister of Investment Bahlil Lahadalia said that the country had already received IDR 299.5 trillion for the funding of the capital city.

When building a capital city, it is important to also build the infrastructure and urban planning surrounding it. One of the plans of IKN is to become a smart city, with that comes big consideration and attention to detail towards the implementation of technology in the city. 

Important Sectors for Creating a Smart City

The Indonesian government had considered several factors for creating a smart city in IKN. Among them include:

  1. Governance
  2. Transportation and mobility
  3. Living and lifestyle
  4. Natural resources and energy
  5. Industry and human resources
  6. Infrastructure

A smart city should be dynamic, inclusive, technologically savvy, and ready to face adversities and challenges. This concerns the application of technology, starting from development planning to city management, which can increase the quality of life and productivity of people, as well as reduce the economical inequalities among Indonesian citizens.

Excellent Opportunities for Technological Investment

According to, the National Capital Authority of Nusantara announced that Hyundai will be doing a test drive in IKN Nusantara in 2024. Deputy of Digital Transformation for IKN stated that Hyundai has signed a Memorandum of Understanding to build a smart mobility ecosystem of Advanced Air Mobility in Indonesia.

Glancing from the news source above,  IKN has made itself a promising location for investing in smart technologies and transportation. England and Japan have been invited to give input towards the transportation system in the IKN which revolved around smart, integrated, and continuous transportation. 

Globally, the smart transportation market was valued at USD 96.6 billion in 2020 and is projected to increase continuously by 2030. Smart transportation itself is defined as transportation infrastructure that provides innovative traffic and transport management system services. 

Enter Indonesia’s New Capital City with BRIGHT Indonesia

It would take a lot of in-depth research about Indonesia’s new capital city. In order to enter the Indonesian market, you would need the right local partner to assist you. 

BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.

BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:

  1. Provide assistance for you in expanding and developing your business by identification of potential partners.
  2. Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
  3. Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
  4. Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.

For more information, email


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