Purpose – The paper investigates the governance and administrative process in the Palembang Light Rail Train (LRT) project in Indonesia and gives suggestions on the strategic development of the LRT project for creating a desakota technopole in Palembang.

Design/methodology/approach – This paper adopts both STEEP (Social, Technological, Environmental, Economic, Political) analysis and desakota technopole theoretical framework. The STEEP analysis is used to explain the Palembang LRT project which is to meet one of the city’s high-tech urban transportation goals. The desakota technopole framework is used as a strategic urban planning guideline for the further development of Palembang.

Findings – This paper has three findings. First, based on STEEP analysis, Palembang needs smart urban transportation, such as LRT, to solve the present and future traffic problems. Second, the governance and administrative process in the LRT project is mandated to national companies as part of a national government infrastructure policy financed over multiple years through the national budget. Third, it is critical for national, provincial, and local governments to adopt a desakota technopole framework strategy to meet long-term targets

Originality/value – This paper highlights Indonesia experience towards making a desakota technopole, using the Palembang LRT project policy as the key driver under investigation.

Keywords Palembang LRT project, Governance, Administrative process, Desakota Technopole, Indonesia