The Indonesia-based Sukarno Centre revealed the news through the daughter of former Indonesian President Sukarno for whom the centre is named.
Rachmawati Soekarnoputri announced the award: “We will give the award to President Kim Jong-un because he has been consistent in carrying out the ideals of the great leader, Kim Il Sung, which is to fight imperialism.
“So this will be a sequel, where we give the award to Kim Jong-un for his persistence in fighting neo-colonialism.”
The Sukarno Prize, which traditionally recognises contributions to world peace and development, has previously been given to luminaries such as Burmese peace activist Aung San Suu Kyi and India's Mahatma Gandhi.
North Korea’s people are currently dealing with a major famine, with the UN reporting at least 10.5 million people facing starvation.
Ms Sukarnoputri rejected claims of abuses by the North Korean regime.
“The allegations about human rights abuses are untrue,” Ms Sukarnoputri said. “That’s all just Western propaganda. Those Western governments like to put ugly labels on North Korea," she told AFP.
Rachmawati drew parallels between Kim Jong-Un and her own father, the leader of Indonesia’s independence struggle until he was overthrown in 1965.
“Sukarno was also accused of being an evil dictator who violated human rights, but this was proven otherwise over time."