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Jakarta’s Smart City vision A megacity on a mission
EMERGENCY
A GovLab report March 2016
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.
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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
Vision
Jakarta as a safe, comfortable, prosperous, productive, sustainable, and globally competitive capital of Indonesia
Strategic objectives
Missions
Basic guiding principles
Increased competitiveness and improved public service delivery to support public welfare
Enhanced infrastructure quality
Strengthened economy
Social and cultural cohesion
Robust environment and efficient utilisation of natural resources
Enhanced government performance
Strengthened innovation and creativity
Good governance, Leadership, and Collaboration
Source: RPJD Provinsi Daerah Khusus Ibukota Jakarta 2005-2025, RPMJD Provinsi DKI Jakarta
Jakarta’s Smart City vision A megacity on a mission 3
The journey towards becoming a Smart City 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
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1
3
Define a Smart City for Jakarta
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Define Target States
Identify key gap areas
Next steps Propose solution themes
Step 1: Define a Smart City for Jakarta A 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 States To 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").
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Figure 3: Six inter-connected Smart categories
Smart Living
Smart Mobility
Smart Governance
Smart Environment
Smart Economy
Smart People
Step 3: Identify key gap areas By 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 themes With 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.
The future is in the cards Earlier 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 Card The 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 Card The 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 Jakarta’s Smart City vision A megacity on a mission 5
Measurable targets for Jakarta’s Smart City in 2025
Smart Living
Liquid waste and sewerage
Human waste
• 50% of • 100% waste liquid-based water treatment waste, including facility pollution in implemented rivers, properly within all processed commercial and government buildings
Smart Mobility
Smart Governance
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Electricity • 100% access to electricity with minimal pilferage or leakage
Water supply
Flood prevention
Citizen safety
• 100% access to potable water • Integrated geographical information system and hydraulic modelling system with 100% basic water metering and Smart demand sensors
• Access to • 75% reduction in affordable housing for all flooding across the • Presence of community city centre or park within 30 minutes from any home
Housing
• 50% reduction in crimes
Public transportation
Parking management
ICT for traffic management
• 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
Government finance management
Administration
Project management
Procurement
Public services
• 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
• 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
anywhere at any time on public transportation • Less than 10 minutes waiting time in any terminal at any time with organised queuing lines
Smart Governance
Smart Governance
Smart Environment
congestion
Government finance management
Administration
Project management
Procurement
Public services
• Formalised annual, mid-term, and long-term financial planning
• 100% Rukun Warga participation in the Musrembang process Administration
• Citizen visibility on current status of all ongoing public projects • Formalised and centralised Project Management Office Project management function at Governor’s office for oversight of all major public on project • Citizen visibility activities 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
• Centralised management to control spending for capital and operating expenditures Procurement • Efficient, automated, and transparent procurement process • Centralised for all public projects 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 Public services delivery of public services • Guaranteed response Internet-based to citizen complaints platforms for billing within 72 hours and payment • Use of open data platforms for improved quality and delivery of public services • Guaranteed response to citizen complaints within 72 hours
Government finance management • Formalised annual, mid-term, and long-term financial planning
Smart Environment
implemented
• 100% Rukun Warga participation in the Musrembang process
Pollution
Waste management
Sustainable waste resource management
• At least 80% of companies in compliance with industry emissions standards and regulations
• 100% collection and proper disposal of solid waste, with at least 40% recycled
• 50% of all commercial and government buildings Green-certified
Pollution
Waste management
Sustainable waste resource management
• At least 80% of companies in compliance with industry emissions standards and regulations
• 100% collection and proper disposal of solid waste, with at least 40% recycled
• 50% of all commercial and government buildings Green-certified
Smart Economy
Smart Economy
Smart People
Smart People
Labour market
Poverty management
Tourism
• 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
• Zero poverty
• 100% increase in tourist visits
Labour market
Poverty management
Tourism
• 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
• Zero poverty
• 100% increase in tourist visits
Education
Health
Participation in communities
Family planning
• 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
Education
Health
• 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 in forcommunities Musrembang Participation
• Distribution of Kartu Pintar to 80% of eligible students
• 100% access to basic health care through better implementation of Kartu Sehat
• 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
• Total fertility rate at 2.1 per family
Family planning
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Key gap areas
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 highestscoring 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 (see Figure 5). To address the 18 gap areas, 16 core solution themes were identified and validated in consultation with stakeholders 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
Basic Enablers (Average score: 2.52/4.00)
Smart Governance 2.75
Smart Living 2.39 5 4 3 2 1 0
Smart Economy 3.00
Smart Enablers (Average score: 2.12/4.00)
Smart People 3.22
Smart Mobility 2.50 Smart Environment 1.29
Smart Governance 2.17
Smart Living 2.33 5 4 3 2 1 0
Smart Economy 2.50
Smart People 2.71
Smart Mobility 2.00 Smart Environment 1.00
Current State Target State
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Figure 5: Top 18 enablers to become a Smart City
Availability of flood prevention infrastructure
Rivers and canals management
Enablers
Smart Living
Subsidised housing development
Public information on safe routes
Availability of public transportation
Public transportation safety
Use of technology in public transportation facilities
Smart Governance
Smart Mobility
CCTV deployment for traffic control
Centralised online system connected to a smartphone application
Enablers
Enablers
Cloud computing for data sharing
Enablers
Open data
Recycling programme
Smart Environment
Energy efficient buildings
Integrated waste monitoring solution
Enablers
Number of people living below poverty line
Smart Economy
Enablers
Integrated tourism app
Availability of proper health programme
Smart People
Smartphone application
Jakarta’s Smart City vision A megacity on a mission 9
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.
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About GovLab
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 Fellows The 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 Saheman Consultant, Consulting Deloitte 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 Prasodjo Consultant, Consulting Deloitte 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.
Jakarta’s Smart City vision A megacity on a mission 11
Contact us
Lee Chew Chiat Executive Director Consulting +65 6232 7108
[email protected]
Anand Nandakumar Director Consulting +65 6232 7301
[email protected]
Pradi Wigianto Saheman Consultant Consulting +62 21 2992 3100
[email protected]
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and highquality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 225,000 professionals are committed to making an impact that matters. Deloitte serves 4 out of 5 Fortune Global 500® companies. About Deloitte Southeast Asia Deloitte Southeast Asia Ltd – a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises. Comprising 270 partners and over 7,300 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region. All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities. © 2016 Deloitte Southeast Asia Ltd
