Decentralization System And Application Of Smart City Concept In Increasing Level Of Competitiveness And Ease Of Doing Business In Indonesian Urban Area

Indonesia is one of countries implement decentralized system to regulate its governance system. Each region is required to be self-reliant and able to overcome problems faced by the region, including problems in increasing the value of regional competitiveness. This means that local authorities must be creative and innovative to provide society needs. However, low level of Global Competitiveness Index and Ease of Doing Business indicates that regional competitiveness of the urban area need to be improved. To improve the regional competitiveness, the adaption of concept of smart city for Indonesian urban area is considered. This paper is meant to relate the decentralization system with the concept of smart city model in achieving sustainable development and improving the quality of life of its citizens. Qualitative method with secondary data was used in this work. Significant improvement was found in several cities in Europe and Asia. Therefore adaptation of this concept to cities in Indonesia is very encouraged since it offers better solution to the improvement of the local government services. This indicates that role of society, city leaders and partnership between the private sector, government, and campus to actively initiate transformation of their city to be a smart city is important.