Asean Secondary Cities

ASEAN SECONDARY CITIES Are they ready for the digital era ?

Regional Report The Smart Secondary City (SSC) Project Lee Kuan Yew School of Public Policy National University of Singapore

What this project is about The Smart Secondary City (SSC) Project is a research project coordinated by faculty members at the Lee Kuan Yew School of Public Policy, National University of Singapore (NUS) in collaboration with over 15 academic and professional institutions spread out in Indonesia, Vietnam, Philippines, and Thailand. This 3 years project (2014-2016) is funded generously from Microsoft Corporation.

Its aim is to capture a snapshot of the level of advancement of city-level local governments in Southeast Asia in terms of information communication technology (ICT) in the areas of governance and public services. The study uncovers how some cities are l e v e ra g i ng t h e ra p id c h a n ge i n technology and are embracing the digital era at a swift pace. While some of the cities are at a starting stage to adopt effective use of ICT. Our researchers acknowledge that the concept of 'smart

city' encompasses many aspects such as smart people, smart economy, smart facilities, and many more. However, we have chosen to study the use of ICT by city governments, which gives this research project a sharper focus.

As the rate of urbanisation is expanding rapidly for many secondary cities in Southeast Asia, the lead researchers of this project have immense hope that secondary cities will continue to be vital engines for equitable and sustainable growth in these countries. Thus understanding the opportunities and challenges that these cities are facing, will help stakeholders and interested parties to collaborate on the most needed aspects. We trust that this report will be of use for all those interested in secondary cities of Southeast Asia and its capacity of ICT utility.

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44 14

41 47

13 18 28 19

48

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23

42 27

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46 40 26 6

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24 45 15

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9 10 11 12

INDONESIA 1 Ambon 2 Bandung 3 Denpasar 4 Jayapura 5 Makassar 6 Medan 7 Palembang 8 Samarinda 9 Semarang 10 Surabaya 11 Surakarta 12 Yogyakarta

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THAILAND 13 14 15 16 17 18 19 20 21 22 23 24

Chiangmai Chiangrai Hat Yai Khon Kaen Ko Samui Lampang Maesot Nakhon Si Thammarat Nakhonratchasriman Nakhonsawa Phitsanulok Phuket

25 26 27 28

Songkhla Surat Tha Ubonratc Udonthan

Southeast Asian Cities Studied 32

The secondary cities chosen for this study are considered on average more advance in the respective four countries. They are cities that mostly are somewhat economically and logistically independent from major capital metropolitans of Bangkok, Jakarta, Manila, and Hanoi. These secondary cities act as hubs for country-level and, in some cases, regional-level logistics, trade, agriculturerelated industries, and tourism, including cultural-related services. In total 48 cities were surveyed.

29 35 34

36 33 30

31 37 38

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1

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a ani chathani ni

PHILIPPINES 29 30 31 32 33 34 35 36 37 38

Angeles Bacolod Cagayan de Oro Dagupan Iloilo Naga San Fernando Tacloban Tagum Zamboanga

VIETNAM 39 40 41 42 43 44 45 46 47 48

Biên Hòa Đà Lạt Hạ Long Hà Tĩnh Huế Lào Cai Mỹ Tho Nha Trang Thanh Hóa Vinh

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What was observed

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ICT & Governance and Administration

ICT & Public Services

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ICT & Related Challenges

ICT & Economic Competitiveness

Following a series of workshops by academic experts, city mayors and a peer review process between 2014 and 2015, a framework for the Smart Secondary City Index (SSCI) was developed with four components, namely: 1) ICT and Governance & Administration; 2) ICT and Public Services; 3) ICT and Competitiveness; and 4) ICT-related challenges.

Smart Secondary City Index (SSCI) The survey questionnaire builds on a number of past and existing research projects on secondary cities. These include the 1) The World Economic ForumGlobal Technology Report 2012; 2) WEF City Competitiveness Index; 3) Maxwell School of Syracuse University – Government Performance Project; 4) ISO 19801; 5) the World Bank Cost of Doing Business; 6) Local Government Performance Management System of the Philippine Department of Interior and Local Government; 7) the USAID City Competitiveness Project - The Philippines; and 8 ) a c a d e m i c l i t e ra t u r e s o n Secondary Cities and ICT.

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The core of the survey focuses on two dimensions – 1) ICT and city governance & administration and 2) ICT and public services. In addition, the survey also documented each city's profile – such as population, and infrastructure, including length of road, number of hospitals, number of schools, land area, major economic products and services, level of revenue, employment, and distance from the capital city.

Lastly, the survey also identifies key constraints to adopting ICT solutions in these emerging secondary cities. For this report, the focus will be on the two main dimensions of city governance & administration and public services.

Accompanying the survey, depending on the country researchers, other various methods ranging from interview, online and offline perception survey, focus group discussion (FGD), observation, and secondary data collection were also used. In general the participants/informants of this research are city mayors, bureaucrats, academic community, netizens, local start-ups, and leading community members (See more details in the Indonesia and Vietnam country reports

ICT and City Governance

ICT and Public Services

The first dimension looks at how the city leaders and administrators use ICT for governance channels and basic public administration functions. The list of questions include:

The second dimension focuses on the extension the city uses ICT for public services often expected in urban settings. These include the following.

1. Whether the city has an ICT master plan, ICT council, and chief ICT office.

2. The extent the city mayor, senior administrators, street-level bureaucrats, city parliament members, and council members use ICT for work and social media for communicating with the public.

3. The estimated city budget allotted to ICT development.

4. Volume of information provided on t h e c i t y 's w e b s i te re l ate d to procurement, staff hiring, regulations, budget, investment, city branding, and small-medium enterprises.

5. Whether there is specific legislation that regulates the use of social media in the city.

6. The extent ICT is used for revenue collection, expenditure management, record management, and performance management.

1. Support for SMEs (i.e. SME master plan, communication with SMEs) 2. Public safety and emergency management (i.e. intelligence / surveillance, emergency, disaster, pandemic) 3. Health management (i.e. primary health care, social benefits and administration) 4. Education (i.e. access to ICT in schools, ratio of computers to students) 5. Real estate management (i.e. urban planning)

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Penetration Level Indonesia 140 120 100 80 60 40 20 0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Thailand

2G

3G

4G

140 120 100 80 60 2G+3G+4G 40 20 0

Overall Trend of the Region Prior to reporting the key findings, this section outlines the overall trend of urbanisation and ICT penetration in Southeast Asia. Cities have been functioning as the engine of growth, not to mention in developing countries in Asia. This premise is considerably true especially with the recent massive influx of people into cities which evidently has generated more productivity through more and varied economic activities. However, along with its potential to boost growth, urbanisation may leave serious problems for the receiving cities.

Reports predict that in less than two decades from now, more than 90 million people in ASEAN member states will migrate and live in the cities. Hence, discussions

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

have been evolving around how to maximise the positive side of urbanisation such as economic growth and minimise the negative side as such the problems arise in the city as impact of urbanisation.

In the midst of urbanisation wave, Asian cities—which mostly developing cities, inarguably, are facing complex challenges, ranging from poor city planning, neglected infrastructure development, environmental degradation, poor social development policy, some crime rates, and the rising cost of living.

Thus, wiser cities development scenario is deemed imperative, especially developing countries of which tendency is to develop only its one or two major cities. Secondary city development is thus seen as one promising strategy both to anticipate massive

of 2G, 3G & 4G Philippines 140 120 100 80 60 40 20 0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Vietnam 140 120 100 80 60 40 20 0 urbanisation in the coming years by diverting destination to secondary cities and, at the same time, to encourage more even distribution of both economic and human development. Escalating development of secondary cities in the concept of “smart city”—with its elements of effectiveness, environment consideration, and innovation—is considerably a smart and necessary move. A smart government uses ICT for improving the quality and accessibility of public services delivery in order to increase quality of the city and quality of life in the city per se.

The table above depicts the penetration level of 2G, 3G, and 4G in the four countries of this study. Year by year, technology progress and becomes more modern, from the

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

conventional one 2G until the newest one 4G. Every ASEAN countries have different development and penetration level of technologies. The wider gap could be seen between ASEAN countries and selected advanced economic country, especially on the lateness to imply newest technology. The average time gap for the newest technology entering ASEAN countries can take up to 3-6 years right after the technology was introduced in the global market. As for citizens, it can take 3-10 years before the average citizen is accustomed with the latest mobile technologies. This is however, based on the average citizen, and not the average educated, middle to upper income people, who usually live in large urban settings of Asia.

These citizens would, naturally, take shorter time to adopt and learn new technologies.

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ICT Use by Individuals and Business

ICT Usage by Individuals and business tend to improve over 2013-2015 in all ASEAN Countries with the exception of Cambodia’s Business.

ISource: World Economics Forum

In the business realm, there is fast growing pace to use ICT, social media and applications for doing businesses. The figure above shows the increase of ICT used by individual and business purpose in Southeast Asian countries, comparing years 2013 and 2015. The phenomena that businesses and individuals are embracing ICT rapidly are not unique to Southeast Asia. It is perhaps another important push factor for city and local governments to move more quickly to provide and support the necessary platforms for ICT growth and usage to catch-up with the business sector. In certain cities, governments' extensive use of technology would help the smaller indigenous industries to compete in the region and become more competitive. Lastly, in addition to business and government, the ICT literacy and capacity of civil society is also an important factor for embracing the idea of smart city or digital city. The three pillars of any society – private sector, public sector, and civil society – must all evenly embrace ICT and learn to harness its power and usefulness for the advancement of societies' together.

The following sections of the report will be on major findings from the SSCI study. It is organized as follows.

City Profile Population density across cities in the four countries averages close to 4,000 people per square kilometer (ppl/ sq km). Indonesian cities seem to be the most congested with an average of almost 7,000 ppl/sq km, double that of the next most congested nation of Thailand which has a population density of 3,500. Cities of Bandung, Surakarta and Yogyakarta alone have about 13,000 individuals per sq km. Thus, Thailand, Philippines, and Vietnam enjoy much lower population densities ranging from 3,500 to 2,300.

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Population density averages *people/square kilometres

Indonesia cities averages

4000

Four countries averages

7000 13000

Yogyakarta, Surakarta and Bandung alone averages

ASEAN’s ICT Penetration : ASEAN vs Asia

Source: Vu Minh Khuong, “The Dynamics of ICT Development in ASEAN and Policy Challenges” presentation at the Joint Qualcomm-LKY School Research Conference on Socio-Economic Impacts of Mobile Communications for ASEAN, at LKY School, NUS, Singapore. 22-23 April 2016.

The graph above demonstrates that Thailand, Indonesia, Philippines, and Vietnam are considered to be in the middle group of countries that have medium level of users of Internet, Facebook, and social media in Asia. It is needless to say that ICT is exponentially influencing how people communicate with each other and also with government entities. There is continuous demand for governments to be more efficient, to provide faster public services, and to be more transparent. This forces governments to apply technology for simplifying administrative processes such as by installing e-government systems.

Moreover, the development of technology is directly proportional with the growth of

people using social media. The usage of social media is no longer a new trend, where billions of people in the world use it on a regular basis. What is ne w is how governments can tap on to this form of communication for enhancing public services and effective policy deliberation with citizens and beyond. Social media changes of how the society interacts: peopleto-people, people-to-government, and government-to-government interactions.

This trend also stimulates technology developers to innovate for betterment of societies, E-Commerce, E-Government, ELearning, and many more are some products of technology outcome, which is now wellapplied in everywhere.

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Urban Challenges Moving on to challenges, generally weak government capacity is seen to be a problem (especially in the Philippines) accompanied by social problems, weak tax collection efforts, inefficient utility provision and peace and order. Promise can be seen however when looking at efforts to solve traffic, slums, garbage and sewage and flooding

Basic Infrastructure People in these Southeast Asian cities enjoy very comprehensive data connectivity. All cities report to have at either 3G or 4G broadband capacity. In comparison, Thailand has the most number of cities with 4G broadband capacities.

Looking at other, more basic, infrastructure, all households in the 48 cities enjoy connection to an electric grid with 24-hour supply. As for piped water supply most households also have access. Exceptions are such as Angeles city, which has about 60% of its population connected to an electric grid, and cities of Iloilo and Zamboanga, where almost half of all households have no connection to an electric grid. The same cities also have an even lower percentage of households with piped water supply, with the city of Iloilo having only 14 hours per day, and Tagum having only 7 percent of its households having piped water supply. This does not mean, however, that citizens do not have access to clean water. Some places use underground water and local reservoirs.

However, as urbanization intensifies, cities

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do need to plan for and build systematic infrastructures such as electricity and piped water.

While in providing for healthcare, cities in Indonesia, Philippines and Vietnam generally seem to have their resources thinly stretched with each hospital serving between 43,000 and 50,500 people.

Thailand however has the lowest hospital to people ratio with each hospital serving an average of 15,500 people.

2G 3G

4G

ICT and City Governance Based on the SSCI, these are the top cities in the four countries for ICT and government administration.

Yogyakarta

Palembang

SAMARINDA

HAT YAI

SURAT THANI

SURAKARTA

BANDUNG

SEMARANG

SONGKHLA

DENPASAR

Lampang MEDAN

Udonthani Lampang

Lampang Maesot

Lampang

PHITSANULOK Lampang

SURABAYA

Lampang Ha Long

Most cities have an ICT master plan which generally is followed by the presence of a Chief ICT officer and ICT Council. Vietnam is the most impressive in institutionalising ICT with every city having an ICT Master Plan, ICT Council and Chief ICT Officer. The remaining three countries are observed to be playing catch-up, with Thailand lagging significantly behind Philippines and Indonesia.

48 35 27 28

Total Cities

Cities have ICT master plans

Cities have ICT Council

“Of all the 48 cities, 35 cities have ICT master plans; 27 cities have ICT Council to govern ICT matters; and 28 have designated an ICT Officers. “

Cities have designated of ICT Officers

“Cities spend anywhere between 1% to as high as 34% from their annual budget on building ICT facilities and infrastructure. Of the 48 cities 17 cities did not have budget set aside for ICT or it has been set but not identified clearly. For cities that had data available, on average they spend 23% of their budget on ICT.”

23% N/A 17 CITIES DID NOT HAVE BUDGET SET FOR ICT OR NOT IDENTIFIED CLEARLY

OPTION 02

AVERAGE OF 31 CITIES SPENDING FOR ICT

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Interestingly though, despite its strong presence of ICT administrative bodies, Vietnamese cities fall behind the Philippines, Indonesia, and Thailand when it comes to ICT use amongst its City Mayors and Administration. Perhaps, this is due to the nature of the centralised administrative system that Vietnam has, which allows for efficient top-down policies such as mandating every city to have the ICT administrative bodies.

In the area of actual use of ICT for administrative functions, almost all cities in Thailand and Indonesia, and about half of Philippines' cities have functioning egovernment systems that includes e-billing payment, taxpayers database, revenue transfers, and grants management system.

Cities in Vietnam are all at the preparation stage to setup these e-government systems.

All of the cities surveyed that was responsible for revenue collection used some level of ICT. 28 cities use ICT frequently to always in revenue collection, while the rest rarely used ICT or moderately used ICT in revenue collection Indonesia and Thailand cities are leaders in demonstrating the use of ICT for government administration. In terms of ranking Yogyakarta in Indonesia comes first in extensively using ICT for government administrative matters. In this smart secondary cities framework there are four components in the category of government administration - revenue collection; expenditure management; record management; and performance management. The top city for Thailand is Hat Yai, for Vietnam is Ha Long, and for the Philippines is Dagupan

The cities that are most advanced would have almost all of these administrative areas in digital format with proper database systems. It is highly recommended that cities put resources and efforts to set up these systems that talk to each other. For instance, for expenditure payment, cities should use ATM or electronic payrolls that link with human resource management systems; or for record management, business registration records should be linked with business tax payment systems

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Cities across all 4 countries seem to have more or less adopted ICT when it comes to revenue collection. For Indonesia and Thailand, ICT is used or there is a plan to use it in the future with respect to activities such as revenue collection, business regulation and tax collection amongst others. The use of ICT for similar purposes is sporadic in the Philippines while in Vietnam there generally is a use of ICT or plan to use it in the future. The same general use of ICT in expenditure management is observed. However, apart from Indonesia, the use of ICT when looking at expenditure management is found to be lacking in cities from the remaining Thailand, Philippines and Vietnam.

When it comes to record management, again ICT is seen to be generally taken up quite well by the cities. However, when looking at particular variables such as business

1. Revenue mapping & forecasting 2. Tax mapping using GIS / Bing Maps / Google Earth 3. Electric business registration / licensing 4. Electronic tax payment 5. Electronic billing and payment 6. Taxpayers database 7. Revenue transfers from central government 8. Grants management 9. Electronic / ATM payrolls 10. Credit card transactions

regulation, personnel records and tax records (amongst others), the Philippines finds itself significantly falling behind the other three nations. However, in measuring performance ICT use generally is relatively lower across the countries considered. Worth noting that Vietnam has future plans to take up ICT use in measuring performance through the use of a dashboard and financial KPIs

Here are the 23 list of areas that were observed 11. Online purchase 12. Electronic bidding / procurement 13. Business registration 14. Personnel records 15. Tax records 16. Land records 17. Expenditure records 18. Assets owned by the city 19. Birth records 20. Death records 21. Marriage records 22. Overall city's dashboard / KPIs 23. Financial KPIs

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Social Media & ICT use among officials When asked what kind of communication media that is usually used by people in the city to communicate with the City Government, the most frequently used method is still the good old convention of direct meetings with government officials.

This is followed by telephoning in and using social media. The only exception is in Indonesia where, the frequency to telephone in was slightly higher than meeting officials face-to-face.

In today's digital era, in communicating with the public, social media seems to be a good alternative form compared to communicating through the telephone or direct meetings. There is much more potential for increasing the use of social media across government leaders and agencies. The Philippines and Thailand are observed to be performing well with respect to social media use by government leaders

These are the top cities for usage of social media and ICT by public leaders.

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Hat Yai

Ko SAMUI

Phuket

NAKHON SI THAMMARAT

SONGKHLA

CHIANGRAI

SURAT THANI

YOGYAKARTA

ILOILO CITY

DAGUPAN

BACOLOD

Lampang

Udonthani

NAGA CITY

BANDUNG

Khon KAEN

PHITSANULOK

CHIANGMAI

Indonesia and Vietnam have regulations pertaining social media use in the city.

Thailand also has but is less implemented and Philippines is developing its regulation framework As for ICT in general, there is generally decent use of ICT amongst City Mayors,

administrators and the ICT Council. In all four countries the leaders including the Mayor and city administrators actively use ICT to communicate internally. However, room for improvement does exist in increasing ICT usage amongst public officials

ICT use by City Mayors on scale of 1-5 :

Thailand Indonesia Philippines Vietnam 4.69 3.92 4.4 3.3

Information on City Website In providing information through their respective websites, cities across all four countries have a certain level of important information on their respective websites. Thailand has the most information on their city websites regarding information related to procurement; staff hiring; new regulations; budget; investment; city branding; and SMEs. In Thailand information such as hiring news and procurement news are made mandatory to announcement on city websites. Indonesia and the Philippines has some information, while Vietnam cities mostly do not have information related to procurement and staff hiring on their websites.

official site of Surabaya government

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City Branding and Networking The use of ICT for networking purposes seems to be present across some cities. Among the 48 cities, 17 cities do not have any formal sister city collaborations. Cities that do have collaborations with other cities are more likely to use ICT for fostering effective collaborations for problems related to environmental pollution and garbage management.

Tacloban city view

Cities that have many sister city agreements are cities in the Philippines such as Tagum Angeles, Iloilo, Bacold, and Naga. These sister city agreements are platforms for various types of exchanges and learning. This can cover a range of policy areas such as natural resource management, disaster management, education policies, enhancement of businesses, to others such as knowledge transfer on technologies and know-hows.

Whereas in Thailand and Indonesia the most active cities would have about 5-7 sister city agreements. They include Ha Long, Phuket , Songkhla, Depasar, Makassar, and Semarang. This points to the fact that some of these cities are tapping into the benefits of collaborating with other cities in the region and beyond. Such collaborations, if managed well, can bring numerous benefits in the form of knowledge and policy transfer, in addition to helping to promote the city's brand name in other parts of the world.

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In sum, the study found that the use of ICT to support cooperation across issues of environmental policy, garbage management, security management and disaster management is observed to be generally falling short from where it should ideally be. This is especially the case with Vietnam, which has no such cooperation or collaboration across the above mentioned issues.

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5-7

cities do not have any formal sister city collaborations sister city agreements, in Thailand and Indonesia most active cities They include : Ha Long, Phuket, Songkhla, Denpasar, Makassar & Semarang

ICT and Economic Development In the ASEAN context and the rise of China's influence in the Southeast Asian's economy, it is in the interest of secondary cities to take this opportunity to provide the best platform for SMEs to strive and compete in the regional and global market.

SMEs not only play an important role as engines of growth for secondary cities, they can also be protectors of wealth for the local population against large scale capital that tends to dominate mega cities' economies.

In this study, we found that Vietnamese cities have a master plan for SMEs. However, this is not followed up with any institution or agency that promotes the use of ICT in supporting SMEs. Cities in the

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cities use ICT to support SME and use ICT to communicate with SME’s

products of SME in Indonesia

remaining countries generally lack the presence of such a master plan, with the exception of Dagupan, Hat Yai, Pelambang, and Palembang. However, despite not having SME master plans, almost all of the cities (except in Vietnam) have Chamber of Commerce that supports SMEs. Only 16 cities use ICT to support SMEs and use ICT to communicate with SMEs. There is much more room for cities to leverage on this opportunity.

SME

Small and Medium Size Enterprise Add to the above, the cities selected for this survey are not generally considered active with respect to manufacturing activities.

Indonesia may be considered the exception to this statement. Worth noting that there does seem to be promise when it comes to acting as hub for providing health, education, tourism services, and financial services to neighbouring areas.

In sum, we find that there is much more room for cities and national governments to focus on the role of SMEs, especially by using ICT in enhancing ease of doing business, communicating with SME actors openly and efficiently, and providing realtime information that can help foster clean and fair competition in the market.

Thailand SME Expo

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ICT and Public Services The public services that were investigated were as follows.

1. Population health management 2. Solutions used for health management (GIS, Google Earth, Bing Maps, Microsoft Sharepoint, and cloud-based solutions) 3. Primar y health care (health record management, patient administration, digital imaging, communication, referrals and responses, medication management , laboratory information management) 4. Social benefits and administration (beneficiary database management, fraud detection, complaints, garbage management) 5. Education (access to ICT by schools, extent of ICT used in classrooms, ratio of computers to students, inclusiveness of access to internet, qualification of ICT teachers, qualification of ICT professionals, access to ICT training centres) 6. Real property management (availability of housing database - price, rent, location of homes for sale or rent, property management, urban planning) 7. Transportation (real time traffic information system, CCTV usage, Grab taxi application, traffic management, lighting system, parking management)

These are the cities that uses a fairly good level of ICT in providing public services.

Songkhla Dagupan Phuket Bandung Hat Yai

Use of ICT in intelligence and surveillance activities across cities is observed to be pretty low, especially in Thailand. In emergency response activities the use of ICT (current or future plan to use) is observed to be prevalent across cities in Indonesia, Thailand and Vietnam.

However, such use of ICT is sporadic in the Philippine cities when focusing specifically on record management, 1st responder communications and unified communication solutions.

In the field of disaster management, apart from Vietnam, all three nations seem to have some level of preparedness. However, upon looking a bit deeper, cities in Thailand, Philippines and Vietnam do not seem to fare well and would seem ill-prepared when measured according to the criteria considered.

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ICT use in population health management is low across all cities. The same trend is evident when it comes to ICT use in social benefits, especially when focusing on fraud detection and having a beneficiary database. However, improvements can be seen when it comes to ICT use in primary healthcare, especially in Thailand.

In the field of education, the use of ICT seems to be prevalent across all cities surveyed with high general usage observed in classrooms. With that said, room for improvement does exist when considering inclusiveness to ICT in terms of income. And big improvements need to be made in general with regard to ICT use in real property management and transport.

Bandros, one of public transportation in Bandung

Potrait of Dagupan city education & sports learning process

Thailand SME Expo

Public Hospital in Songkhla

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Challenges to ICT Development Although with different priority scale and & Recommendations pace, almost all cities are committed in In general, secondary cities of these four countries have integrated the use of ICT towards smarter cities. Each government has demonstrated commitment, with variation of degree, to integrate ICT solutions in its public service delivery and the upheld of good governance. This i n c l u d e s a w i d e ra n ge o f s o c i a l components covering the whole city system, which includes issues of urbanisation, slum areas, utilities inadequacy (water, electricity, sanitation), peace and order, human resources, environment, water supply, sewage/drainage, tax collection, financial resources, garbage traffic, housing, as well as social problems.

As for governance issues, ICT development has contributed to more effectiveness in the public service delivery as well as has helped to improve good governance in general. Cities with better infrastructure are deemed to be more competitive, as most of the cities function as hub and center for value chain activities for it's surrounding region.

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improving the implementation of ICT in their government activities as a means to improve its public service delivery and to provide twoway communication means to the people.

ICT and public services are also observed in the subsequent subsection of the report of each city. City government uses ICT to improve its public administration − digitalised tax collection, revenue transfer and other expenditure management, key performance indicators, etc.

Among the list of challenges that cities face regarding ICT development, the top three are lack of funding, lack of awareness, and the lack of qualified staff. The other problems were not as pressing are no interest, lack of vendors, prohibitive costs, poor access, legacy old regimes. All in all, the findings in each city yield different stage each city has achieved in terms of its ICT usage. Some cities are considerably more advanced in using ICT to support its activities for good governance, while others vary, from moderate to poor/minimum. However, despite the variation of the degree of ICT usage, commitment to improve is shown by each city

Best Practices Bandung Smart City Council and City Command Centre To support its plan of becoming a smart city, Bandung has a plan to create Smart City Council, be the first city council in Indonesia who specifically focuses on the actualisation of smart city. As being said by Sri Diandini, the Head of Telematics Department of Bandung, this Smart City Council would consist of ICT and urban planning experts and they will create a detailed policy plan for Bandung smart city. For the infrastructure, Bandung has already built City Command Centre. This modern and futuristic facility is located within the city hall complex and was officially opened for media on January 19, 2015. This command centre currently is still on its initial development. The government targeted that by the end of 2015, around 150 applications will be finished and half of it will be able to be used by public. Some of the services that will be able to be used by the public are data information access and real-time traffic situation.

source : portal.bandung.go.id

Surabaya Single Window In managing licensing administration, government of Surabaya has been introducing Surabaya Single Window (SSW). It is an online portal provided for the citizens to process the licensing administrative procedures with more efficient and transparent way. This portal integrates multiple licensing services which makes the citizens easier to process any types of license they wish to get in a single way.

With a user-friendly interface, the website provides a complete guidance on how to pass the procedures online. The users/citizens are also able to monitor the process of the licensing which gives the guarantee of satisfaction. Besides, the government officials are also tied with certain procedures which require them to process any documents as soon as possible. Any unnecessary delays cause the bureaucrats to get certain consequences such as the delay of promotion or the cancellation of rewards

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Makassar Smart Card The government of Makassar city has smart card innovation as one of its flagship programs.

Smart card is a multifunction card which almost the same as ATM card, but combines individual identity with 18 issues such as banking identity and record, health record, education record, and so on. Smart cards are given in stages with a total target of 1 million cards. In terms of readiness, content, design, and networking, the smart card program is in progress of production, in cooperation with Bank Rakyat Indonesia or People's Bank of Indonesia. Smart card will perform plenty of functions. Economically, it will perform two important functions, saving and transaction. In Smart Card, there is no minimum deposit requirement, as it will also be provided to the needy. Socially and politically, it performs the functions of recording, archieving, organizing people, and surveilance. Even for city officials, their smart card will contain scores over their work performances.

Jogja Digital Valley Jogja Digital Valley is a part of Telkom Indigo (Indonesia Digital Community). Jogja Digital Valley was officially launched in 21 August 2013 as the second incubation center set by Telkom (the first one was Bandung Digital Valley). Yogyakarta was picked among other secondary cities in Indonesia as this city is best known for thriving youth with ICT competence. Jogja Digital Valley is managed by MIKTI (Masyarakat Industri Kreatif Indonesia), a nonprofit organization with the mission to boost the growth of creative digital industry in Indonesia. Jogja Digital Valley envisions encouraging and excelling ICT sustenance, especially for content and application. Hopefully, in the long run, demand of applications as well as software may be supplied from local developer. Furthermore, these local developers are encouraged to compete on a regional and international scale. As for the short term, Jogja Digital Valley aims to provide business as well as technical tutorial to develop content-based solution as well as useful applications for the people and for the industry.

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Hat Yai City This City is proud to have all computers with proper licences from Microsoft. The Mayor recognises the need to institutionalise the use of legal softwares to uphold the City's good governance ideals. The City, therefore, is a good role-model for other cities in Asia that is willing to invest in higher cost for its ICT expenditure for better development in the long-run.

Hat Yai City Hotline This hotline has been set in order to service the people around the clock

Hat Yai Municipality created the website under the support of ACCCRN (Asian Cities Climate Change Resilient Network) to inform the local people the realtime flood situation via http://hatyaicityclimate.org/flood

One-Stop Service of Songkhla Municipality SongkhlaService in Southern Thailand hasMunicipality ambitious plans to introduce One-Stop of Songkhla single window service to the city, in an effort to improve the efficiency of local government and to make routine administrative processes to be more user-friendly. The one-stop service counter has been conducted and it can serve the local people as breaking through the bureaucratic red-tape.

Nakhon Si Thammarat : The City of Safety

Thailand SME Expo

CCTV and Traffic monitoring system This system is to support the municipal security service task. The real-time monitoring system use the 50 CCTVs to monitor the traffic and the situations at the certain points. It also connects to the Police Station in order to monitor the accidents and emergency cases. The local people can also access the municipal website to check the traffic congestion at http://hospital.nakhoncity.org/cctv.php

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Surat Thani Bureau of Sanitation and Environment Webpage Social media is used to promote the activities of the Sanitation and Environmental Bureau. This is the space the community people share and receive information regarding the municipality services.

This City also has an On-line Monthly Environmental Monitoring System.

The On-line Monthly Environmental Monitoring System is used to report the environmental condition for the Regional Environmental Office. Surat Thani Municipality, like many other local government authorities, has to report the amount of solid waste generated in their areas to this office. The data will then link to the website of Pollution Control Department (PCD), Thailand.

Surat Thani City

GIS for Water Resource Management on Samui Island Since 2008, the water shortage of Samui City has been addressed. The situation of main reservoirs of Samui Island has become increasingly critical. The waterways have been blocked by the new buildings, meanwhile, the rain waters have not yet managed properly since it rapidly drains to the sea.

This, therefore, has led to the water shortage and floods. In order to set the guidelines for water resource management in Samui, the database, the base map, and the GIS have been developed. This program aims at supporting the municipality in monitoring and managing the water resource for both short and long term.

Phuket City Management Programme ICT has been used as base map for urban management in Phuket. This system will show the city perspective in 3D. The landuse map, the land-use analysis, GIS and the Google 3D warehouse will be the supporting data for the decision makers to develop the Phuket City.

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Udon City and CCTV Thailand is presently witnessing an unprecedented level of urbanism. Despite its transformative effects on local communities, rapid urbanization can be cumbersome for the local government officials who are often unprepared and ill-equipped to manage the massive movement of people from rural areas to urban areas. Real-time information about inner-city traffic flow and criminal activities are necessary for modern city management.

Yet, the information can come at a high cost for cash-strapped localities in Thailand. Several city governments, however, have made substantial investments in ICT infrastructure. As a case in point, the City of Udon Thani has developed an elaborate a city-wide surveillance system, which features several CCTVs at major intersections in the municipality. With this system in place, the city government can now provide the provincial government and provincial city bureau with security-related information.

preview of Udon Thani City Website

Nakorn Ratchasima: Good Shepherd of Local Business Enterprises in Thailand Small and medium-sized enterprises (SMEs) serve an integral role in local economic growth. Yet, SMEs in most developing countries are in their early stages of development. Government assistance is required to enable these young SMEs to compete One-Stop Service of Songkhla Municipality effectively in the marketplace.

In Thailand, the “One Tambon, One Product� (OTOP) program represents an effort by the central government agencies to help local SMEs gain access to financing and develop marketing strategy. The program, however, has been complicated by a lack of interagency coordination in the Thai government sector. Resources and responsibilities for SME promotion are currently scattered among government ministries (Ministry of Interior and Ministry of Industry), the SME promotion committee, and the government-owned SME bank.

Local governments have a greater advantage over higher-level public agencies in Nakhon Si Thammarat : The City ofonSafety strengthening the SMEs' capabilities and in developing a comprehensive database local products. Nonetheless, under the existing laws in Thailand, the local governments' role in SME promotion remains unclear. Nakorn Ratchasima Metropolitan Municipality offers an example of how information technology can provide a simple and cost-effective tool for local governments to support their local businesses. The municipal government has created a section on its official website specifically for OTOP advertisement. Information on the local SMEs and their products can be found in this section, but no interactive features are available, such as an electronic purchasing system and online customer support services.

Even though more efforts are still necessary to make this online OTOP catalog more customer-friendly, the City of Nakorn Ratchasima is one of the few local governments in Thailand that assume a major role in local business development.

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Business Permits and Licensing System (BPLS) Automation in Cagayan De Oro City It only takes a few minutes to register your business or renew your business permit in Cagayan de Oro City, Philippines! The city's efforts to streamline its Business Permits and Licensing System (BPLS) began as early as 1995 with a BPLS and Real Property Tax System (RPTS) authored in-house by organic personnel.

Due to speed and ease of use, both systems were replicated in over 136 local government units (LGUs) in Regions 10, 11, 12, 13, and the Autonomous Region in Muslim Mindanao (ARMM) from 1999 to 2004. With technical assistance from the USAID under the Local Implementation of National Competitiveness for Economic Growth project in 2009, the Cagayan de Oro Business One-Stop Shop (CDO BOSS) was established.

Under the USAID's subsequent Investment Enabling Environment or Invest Project, the e-signature, one-step payment of business taxes and fees, and “no repeat� filing of application at renewal were incorporated into the system. In 2014, such efforts culminated with the introduction of user-friendly touchscreen billing and queuing kiosks designed and constructed in-house by organic personnel with a grant from the Department of Science and Technology (DOST). This reduced the processing time to less than an hour for both new and permit renewal applications.

The first of its kind in the country, the kiosks are linked with the city's BPLS, RPTS, traffic citation records and billing, as well as applications for community tax certificates (CTC, i.e. cedula), and professional tax receipts (PTR). Later that year, the city government launched the mobile money payment system that enables Globe/TM subscribers to pay taxes and fees through their Globe GCash account anytime and anywhere.

In 2015, mobile phone alerts were introduced, such that taxpayers could receive billing notices as well as acknowledgment and thanks for payments made. This year, wall-mounted tablets were integrated into the sytem for CTC applications, and the city unveiled its online application system, which streamlines the process even further.

In February of this year, Cagayan de Oro pulled off another coup with the launch of the country's first eBuilding Permit Management System (eBPMS). A dry run to work out the kinks in the system is being undertaken by the City Building Office with the assistance of the Mindanao University of Science and Technology (MUST), USAID's Strengthening Urban Resilience through Growth with Equity (SURGE) project, and the professionals and stakeholders that stand to benefit from the implementation of the system.

The eBPMS takes the guesswork out of building permit application with single online application, simultaneous evaluation at the City Building Office, two-way document tracking, online billing, and mobile payment.

As a result of these efforts, revenues have doubled and Cagayan de Oro topped the DOST's eReadiness Survey in 2014 and awarded the Blue Certificate from the Office of the Ombudsman for Ease of Doing Business. The city earned the top score for having passed the most categories in the standards set by the Office of the Ombudsman, whose mandate is to promote integrity, efficiency and high ethical standards in public service.

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San Fernando's Innovative Practices in Good Governance Pampanga's capital city, San Fernando adopted and instituted innovative practices in good governance in collaboration with the private sector. The city government has put in place ITenabled processes and systems to improve delivery of services to the people. For instance, in 2006, it installed a document retrieval and archiving system, which is used by the Sangguniang Panlungsod (i.e., City Council) in retrieving and monitoring of ordinances and resolutions passed by local legislators for the period 1945-2009 and by the local civil registry office in retrieving records of birth certificate, marriage certificate and death certificate. The said system ensures non-duplication of ordinances and resolutions, which in turn enables legislators to use more quality time in crafting new ones. In 2010 and 2013, the City Council had been heralded as the National Best Sangguniang Panlungsod in the country, with the City being a Regional Hall of Fame Awardee in 2013.

The city government developed and installed a streamlined Business Permit and Licensing System (BPLS) in 2003 to address the inconvenience of securing a business permit. In 2007, the BPLS was redeveloped with the automation of the assessment and collection of business tax that shortened the process required for the issuance of a business permit from two days to approximately 19-20 minutes provided the applicants have the complete requirements. With the automated system, tax collection increased from 157 million in 2008 to 215 million in 2009. In 2015, the BPLS was further enhanced to integrate the policy changes in the process, which include advocacies on the G2B (Government to Business) and G2G (Government to Government) initiatives. The integration of the Geographic Information System (GIS) to the BPLS is a recent development in the use of information technology (IT) to enhance and improve the business processes and it is considered as one major step in realizing the goals of the City on IT development.

The of citySongkhla government also initiated a Business One-Stop Shop (BOSS) system, One-Stop Service Municipality which enables the taxpayers to secure clearance and compliance certificates that are required in the BPLS. This is made possible as all regulatory offices have their own information systems. A web-based business permit application process is already in place to make the process more convenient for clients. However, there is no existing integrated system on the BOSS. Plans on linking all systems and offices to centralize all applications are underway.

San Fernando's innovative practices in good governance made the city government a hall of famer in 2011 for bagging the Philippine Chamber of Commerce and Industry (PCCI)'s Most Nakhon Si Thammarat : The Citycities of Safety Business-Friendly Local Government Unit (LGU) Award among the many component in the country in three straight years. The city government had been conferred the same award in 2013 and 2014, which reflects its continued efforts to create conducive environment for business and to deliver quality services to the people. The award is based on five criteria such as trade, investments and tourism promotions; public-private sector partnership; micro, small and medium enterprises development; quality management system, innovations, and human resources development; and inter-local government relations. In 2015, the city government was named as the second most competitive city in the country by the National Competitiveness Council.

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Angeles City's Electronic Business One-Stop Shop (eBOSS) The Electronic Business One-Stop Shop (eBoss), the first in Central Luzon, is a computerbased system that was developed in 2003 to facilitate the processing and issuance of business permits in the city government of Angeles, Pampanga. It has been ISO-9001-2008 certified for its utmost efficiency in facilitating the processing of business permits. It facilitates online business permit and license application through the city government's Business Permit and Licensing System (BPLS) on BOSS, which provides simple, effective, transparent, and fast delivery of services and thus, benefiting investors and business applicants.

Recently, Angeles City has been named as the 9th most efficient government unit in the country under the Highly Urbanized City category by the National Competitiveness Council.

The parameters that were considered for the award include capacity of health services, capacity of schools, police to population ratio, business registration efficiency, investment promotion, compliance to national directives, local government unit (LGU) tax, transparency, economic governance and the number of awards acquired by the LGU. In sum, these parameters are indicative of improved delivery of basic services to its constituents.

Iloilo City's Computerized Taxation System and Business Permit and Licensing System (BPLS)

The computerized taxation system in Iloilo City, with funding assistance from the Department of Finance and the World Bank, has two components such as the Real Property Tax Administration System (RPTAS) that includes appraisal and assessment and land tax payment and collection, and the Business Permit and License Tax Administration System (BPLTAS) that includes business tax, regulatory fees, charges assessment, business permit application and payment and collection. The said system is aimed at increasing tax revenues and investments through efficient tax collection and fast business processing. To provide hassle-free and convenient tax assessment, the city government has made available an Online Business Tax Assessment through its official website.

In addition, the city government set up the Business Permit and Licensing System (BPLS) to hasten the processing of business permits and licenses. In 2014, the city adopted a new streamlined BPLS, which enables the processing of business permits and licenses in less than 15 minutes. The BPLS was further enhanced with the introduction of real mobile payment services for the business tax. The Department of Interior and Local Government (DILG) commended the city government for being a model for other local government units due to its improved BPLS.

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San Fernando's Innovative Practices in Good Governance

One-Stop Service of Songkhla Municipality

Nakhon Si Thammarat : The City of Safety

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