Rapid urbanization in Indonesia is causing resource scarcity, infrastructure issues, and social segregation. The country aims to create 100 “smart cities” by 2045 to address these issues. However, challenges remain in data management, city readiness, community adaptation, and application development. This study examines the challenges of smart economy implementation in Bandung City Government using library research, literature reviews, and internet searches. Smart cities use technology to improve life and service quality by enhancing resource utilization, output generation, and energy conservation. By creating an ecosystem, Bandung City aims to boost local businesses and strengthen the regional economy. However, the city’s smart economy faces threats due to poor internet service, a lack of digital skills, a lack of innovation, and a lack of MSMEs’ apps. Internal factors like lack of resources, infrastructure, human resource expertise, and regulatory frameworks also hinder intelligent urban development. The government plans to rebrand the city, improve public transportation, and implement digital payment systems. The Bandung City Culture and Tourism Office also assists MSMEs with halal certification and IP management. The government has created a mobile app to promote entrepreneurship and improve residents’ lives