There are three challenges in building a "smart city": technology, human resources, and government. A collaborative climate must be created to meet these challenges. The policy direction and the application of collaborative governance in developing a "smart city" in Balikpapan City, East Kalimantan, Indonesia, are described here. This study used the "collaborative governance" approach to dissect this research. This type of research is qualitative, and descriptive methods are used. Information is obtained based on the "smart city policy plan" adjusted to the regional Medium-Term Development Plan and the draft document for the "smart city master plan for the" city of Balikpapan. Researchers conducted in-depth interviews with several parties from the local government involved in the "smart city implementation council." Meanwhile, research supporting data was conducted based on searching various information from online sources, scientific articles, research journals, and several literary sources. The focus of the development of the "smart city of" Balikpapan City is directed at developing a livable city based on a sustainable environment. "Collaboration with Pentahelix," which is interdependent, is a prerequisite for the successful development of a "smart city" in which the vision of the mission of the City of Balikpapan is supported.