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5G Spectrum Auction Accelerated, Seen as Key to Closing the Gap in ASEAN

3 days ago | Network Infrastructure


Jakarta, INTI - The Ministry of Communication and Digital Affairs (Komdigi) is preparing to launch the auction of the 700 MHz and 2.6 GHz radio frequency bands to expand high-speed internet access and improve mobile service quality across Indonesia. The auction is widely seen as a critical step in helping the country catch up with neighboring nations that have already advanced in deploying 5G networks.

Heru Sutadi, Executive Director of the Information and Communication Technology (ICT) Institute, stated that the auction has been highly anticipated by telecom operators. “5G is expected to improve Indonesia’s internet speed so the country does not fall behind in Southeast Asia, where we are currently among the lower-ranked nations,” he said on Friday, April 10, 2026.

He explained that the 700 MHz and 2.6 GHz bands are key frequencies for 5G deployment, making them essential for operators. However, he highlighted spectrum pricing as a major concern.

“We hope the spectrum pricing will be affordable and that incentives will be provided to encourage wider 5G deployment, especially amid global economic pressures and the relatively high regulatory costs in Indonesia’s telecommunications sector,” he added.

In addition, the auction scheme must be carefully designed. The government needs to decide whether both frequency bands will be auctioned simultaneously or in phases, including determining the size and number of frequency blocks.

“This will influence pricing, the number of operators that can obtain spectrum, and whether the allocation is sufficient to deliver true 5G services, not just ‘4G-like 5G,’” Heru explained.

He emphasized that ideal frequency blocks should be wide and contiguous, for example at least 2×25 MHz for the 700 MHz band. With the right approach, not only can service quality improve, but the government could also generate up to IDR 2 trillion in additional revenue from the auction.

He also stressed that the auction process must be transparent and free from conflicts of interest.

Strategic Role of 5G Networks

From an industry perspective, Kamilov Sagala, Chairman of JK and Partner Law Firm with 15 years of experience in telecommunications, noted that spectrum ownership is a key factor in determining operators’ competitiveness in the digital era.

He explained that the 700 MHz band is crucial for improving mobile network signals and expanding broadband coverage, particularly in rural areas, due to its ability to penetrate buildings and cover wide areas efficiently.

Meanwhile, the 2.6 GHz band will serve as the backbone for delivering high-speed connectivity in densely populated urban areas with heavy data traffic.

However, Kamilov warned that 5G expansion should not overlap with infrastructure development in underserved (3T) regions, which are currently being handled by the Telecommunications and Information Accessibility Agency (BAKTI).

He added that countries such as China and Thailand have already utilized both frequency bands, highlighting the advantages of the 700 MHz band in providing wide coverage and efficient infrastructure deployment.

Previously, Minister of Communication and Digital Affairs Meutya Hafid stated that the auction is expected to expand 4G and 5G services to more remote areas across Indonesia. This aligns with the targets outlined in the National Medium-Term Development Plan (RPJMN) 2025–2029 and the ministry’s strategic plan.

“The auction process has officially begun, with the goal of expanding 4G and 5G services so that improved internet speeds can soon be experienced even in remote regions,” she said during a press conference on Thursday, April 9, 2026.

Meutya also confirmed that the ministry will soon announce the official auction schedule. To support the process, the Ministry has issued Ministerial Decree No. 175 of 2026 on the selection of users for the 700 MHz and 2.6 GHz frequency bands, as well as Decree No. 176 of 2026 establishing the selection committee responsible for the process.

Conclusion

The acceleration of the 700 MHz and 2.6 GHz spectrum auction marks a crucial step in strengthening Indonesia’s 5G ecosystem. With the right pricing, transparent process, and well-designed allocation scheme, the initiative is expected to enhance connectivity, improve service quality, and help Indonesia close the digital gap with other ASEAN countries.

Read more: The Impact of Rising Fiber Optic Material Costs on Indonesia’s Digitalization Acceleration

Indonesia Technology & Innovation
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