IKN Receives US$2.49mn Grant from US for Smart City Planning

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February 27, 2026 | 12:38 pm

TEMPO.CO, Jakarta - The United States government is assisting the smart city planning of Nusantara Capital City (IKN) through a grant worth US$2.49 million, according to IKN Authority head Basuki Hadimuljono. 

“This grant reflects international confidence in IKN as a tech-based and sustainable future city," said Basuki Hadimuljono in IKN, East Kalimantan, on Thursday, February 26, 2026, as quoted from Antara.

The project is supported by a grant from the U.S. Trade and Development Agency (USTDA), an independent agency of the US Government, aimed at promoting economic development in developing countries while strengthening trade and investment partnerships.

A cooperation contract for the technical assistance was signed at the IKN Authority office a day earlier.

“This cooperation is a strategic step to strengthen planning of IKN’s integrated, investment-ready and implementable smart city blueprint, in order to accelerate Nusantara’s transformation into a smart, sustainable city that is attractive to global investors,” said Basuki.

According to him, this technical assistance will produce strategic and technical documents covering Smart City Enterprise Architecture, Procurement-Ready RFP Packages, Financial and Investment Model, ESG Compliant Framework (PESIA), Capacity Building Roadmap, and Implementation Phasing Plan.

All of these components are designed to ensure that the implementation of the IKN smart city runs in a structured and transparent manner, in line with the principles of Environmental, Social, and Governance (ESG).

The IKN Authority ensures that Indonesia's new capital city is designed with a mature, secure, and future-oriented digital system through USTDA grants and cross-sector collaboration. “IKN must become a green, sustainable, and fundamentally smart city,” said Basuki Hadimuljono.

This project involves a consortium consisting of Eficens Systems Inc as the technical implementer, together with Frost & Sullivan (USA & Indonesia), ASECH Indonesia (Center of Excellence on Smart City), Mirekel, and PT Searce Technologies Indonesia (Google Cloud Platform Partner).

“Digital transformation is the main foundation for the development of Indonesia's new capital city,” said Basuki.

Meanwhile, Frost & Sullivan America's advisory board member and project director of this initiative, Subhranshu Sekhar Das, outlined the long-term vision for the development of a cognitive city.

“Nusantara has the opportunity to become more than just a smart city—it can evolve into a Cognitive City. As the global knowledge industry undergoes transformation, cities must transition from static digital infrastructure to adaptive intelligence systems,” said Subhranshu.

Read: UAE Developer to Invest Rp4 Trillion in Nusantara Capital Mixed-Use Project

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