Alternative Financing Model for Smart Cities Initiatives in Indonesia

Currently Indonesia is working actively in the implementation of the Smart Cities initiative program. However, to be able to apply the concept, there are three main elements that must be prepared as the basic foundation. These elements are structure, infrastructure, and superstructure. In this study we focused on the problem of the high cost of funding needed to finance these three elements. Therefore, we are of the opinion that the government must create new investment opportunities outside the stock exchange whose impacts can also be directly used for financing programs. In this study, we conducted an investigation of the interest of urban people to invest in online channels. The aim is to determine the decisionmaking behavior of the Indonesian people in non-consumptive capital expenditure activities when the government creates and publishes financing instruments on the market. The hope is to be able to create a national development financing strategy that is in accordance with the characteristics of the Indonesian people and right on target.