Lessons from Meikarta: Paving the Path to Indonesia’s Smart City Future

Written by: Josephine Ang & Dehya Mohammad T. Fayyad
Designed by: Olivia Gratia T. Nababan

The digital era has sparked the creation of a city shaped by data and innovation, designed to enhance the lives of its citizens. How is that possible? Let us introduce you to the incredible potential of a smart city. A smart city is a city that integrates technology to improve citizens’ quality of life, enhance public services, and promote sustainability. Leveraging technologies like the Internet of Things (IoT), big data, and automation creates a more efficient transportation, energy, and security system. Many cities worldwide have successfully adopted this model, proving its potential to drive urban development, improve living standards, and support sustainable growth. However, the implementation of the smart city concept in Indonesia still faces some challenges.

Have you ever heard of Meikarta? An ambitious project that was expected to be the new face of the Cikarang and Bekasi area as a smart city in Indonesia ended up being a huge failure. Meikarta did not live up to expectations, making the promise of modern housing and advanced infrastructure not work and instead cost 10 trillion rupiah. Construction delays, unrealistic marketing plans, unclear land status, and other internal problems only add to the long list of project failures. Meikarta’s losses were felt by the developers and consumers, who lost 30 billion rupiah. 

The Meikarta project highlights that a significant investment does not guarantee success. A closer look reveals significant issues with technology integration and social inclusivity. The transportation planning for the project was flawed and unrealistic, resulting in limited accessibility and the collapse of the Grid System, which was designed to assist residents in navigating the city and avoiding traffic congestion. Despite heavy promotion, including the famous slogan “I want to move to Meikarta,” the promised technological infrastructure was not properly implemented. The planning process failed to account for cultural and economic diversity and social needs, which limited the benefits to only certain groups. This has led to low resident engagement despite the city’s development ideally requiring active and inclusive community participation. Furthermore, allegations of bribery in the licensing process and concerns over environmentally sustainable practices have further tarnished the Meikarta development.

In comparison, many cities in various worlds have still successfully realized the smart city concept. For example, the city of Xioang’an in China successfully built a smart city called Silicon Valley China. This city integrated various technology companies, built a 5G Network, and implemented AI-driven services. The city of Xioang’an has become one of the world’s leading futuristic and smart cities. Besides China, Singapore is also implementing a smart city system through transportation integration that will provide better mobility and green energy for sustainability. This implementation was successfully carried out in Singapore and had a positive impact, such as increased efficiency, quality of life, and economic productivity. Singapore’s GDP has also increased significantly since this smart city concept was implemented. In 2014, Singapore’s GDP was only 314.9 billion USD, and in 2023, Singapore’s GDP touched 501.4 billion USD.

The implementation of this smart city must certainly pay attention to the inclusiveness of the city. Learning from the failure of Meikarta, building a smart city is not only about presenting the latest technology or presenting homes that use solar panels. Instead, smart cities must integrate existing technologies, such as implementing the Internet of Things, 5G Networks, and AI-driven services. Furthermore, green energy is needed for future sustainability; transportation integration is necessary for better mobility and a strategic city layout is required for smart city development. In addition to the things mentioned, building a city is one important thing still often missing from planning a city worldwide. That is the participation of residents, who not only live but also have an awareness of what a smart city is, how residents can adjust to the services provided, and, of course, how the city can accommodate the diversity of its population.

The Meikarta failure can be a valuable lesson for Indonesia in building the next smart city. We also know that today, Indonesia has IKN (Ibu Kota Nusantara), Indonesia’s ambitious infrastructure development project that hits Rp51.35 trillion to move the capital from Jakarta to the island of Borneo. IKN is not only to solve the capital city’s problems, such as congestion and overcrowding. Instead, it is expected to be an example of a sustainable city of the future, using advanced technology and modern infrastructure. So, can Indonesia develop the largest infrastructure development project in Indonesia?

References:
Septianto, Galang. (2023, Mei 29). Analisis Kasus Meikarta: Pemikiran John Peter. Kompasiana. Retrieved November 15, 2024, from : https://www.kompasiana.com/gallangx1/647312204addee20cc6c0fc2/analisis-kasus-meikarta-pemikiran-john-peter?page=2

Indonesia Investments. (2018, November 8). Corruption & property: Where did it go wrong for the Meikarta project? Indonesia Investments. Retrieved November 15, 2024, from: https://www.indonesia-investments.com/news/news-columns/corruption-property-where-did-it-go-wrong-for-the-meikarta-project/item9026

China Daily. (2024, April 2). Xioang’an – Welcome to the city of future. Retrieved November 16, 2024, from: Xiong’an — Welcome to the city of the future

Algoritma. (2023, March 14). Internet of Things dan Smart City : Teknologi dibalik kota cerdas. Retrieved November 15, 2024, from: Internet of Things dan Smart City: Teknologi di Balik Kota Cerdas

PwC. (2024, Juni 7). Investment Value in IKN Hits Rp51.35 trillion. Retrieved November 15, 2024, from: https://www.pwc.com/id/en/media-centre/infrastructure-news/june-2024/investment-value-in-ikn-hits-rp51trillion.html

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