Korean electronics and industrial conglomerate LG Corporation has been engaged to draw up a plan for smart urban transport in Indonesia’s new capital city, set to be built in the province of East Kalimantan on the island of Borneo, The Korean Economic Daily reports.
The city, which is to be called Nusantara, is expected to cost around $38bn to build. It will be based on smart city principles, including autonomous electric vehicles, telemedicine, smart education and drone deliveries.
LG subsidiary LG CNS is will propose systems for public transportation and electric vehicles.
Korea hopes LG’s role in Nusantara will help other Korean contractors win work on the new city. Business Korea notes that Indonesian President Joko Widodo visited Korea on 28 July and held a meeting with Hyundai Motor Group chairman Chung Eui-sun.
South Korea has emerged in recent years as a world leader in smart city developments. The island of Songdo in Incheon was a pioneer in the sector, other schemes are under way in Sejong and Busan, and Seoul has established a Smart City Department to coordinate projects in the fields of urban redevelopment, mobility and e-government.
In May, LG CNS was named preferred bidder to provide the digital systems for the $4.2bn Busan Eco Delta Smart City (see further reading).
An industry source told Economic Daily: “The smart city sector will boost overall exports as it needs not only the IT business but also others such as the mobility, construction and healthcare industries.”
The global interest in the smart city sector is growing, with the market forecast to nearly double to $870bn by 2026 from $457bn in 2021, according to research company MarketsandMarkets.