Jakarta, INTI - APJATEL has proposed the establishment of an Operating Vehicle Company (OVC) as a solution to improve the efficiency and sustainability of fiber optic network deployment in Indonesia, which is currently considered costly.
The OVC is envisioned as a neutral entity responsible for jointly managing passive telecommunications infrastructure while fostering collaboration between industry players and the government to better coordinate deployment efforts.
“Telecommunications infrastructure is the backbone of the digital economy and modern public services. Therefore, strong synergy between the government and industry is essential to ensure that its management is not only efficient but also aligned with public interest,” said Jerry Mangasas Swandy during a discussion event in South Jakarta.
Open Access Model and Government Support
The OVC concept adopts an open-access approach, allowing physical network infrastructure to be utilized by multiple telecommunications service providers.
Through this model, investment costs for fiber optic deployment are expected to decrease significantly, with potential efficiency gains estimated between 40% and 60%.
In addition, the presence of OVC is expected to accelerate the expansion of network coverage across regions.
The Ministry of Communication and Digital Affairs has welcomed the proposal put forward by APJATEL.
Director of Digital Infrastructure Acceleration, Mulyadi, stated that the government is ready to collaborate in realizing the establishment of OVC in Indonesia.
To support this initiative, collaboration will focus on developing technical standards for infrastructure sharing, promoting the implementation of open-access systems, and defining qualifications for contractors and installers to ensure more organized fiber deployment that does not disrupt urban aesthetics.
“OVC must uphold the principles of open access, non-discrimination, and fair competition,” Mulyadi emphasized.
“It must not become a new form of hidden monopoly in telecommunications infrastructure deployment that could hinder fiber optic expansion in regions,” he added.
Most importantly, according to Mulyadi, the OVC should enhance transparency in fiber optic network deployment for all industry stakeholders.
Conclusion
APJATEL’s proposal to establish an Operating Vehicle Company (OVC) reflects a strategic shift toward a more collaborative and cost-efficient fiber optic deployment model in Indonesia. By promoting open access, shared infrastructure, and stronger coordination between stakeholders, the initiative has the potential to accelerate network expansion while ensuring fair competition and long-term sustainability in the digital infrastructure sector.
Read more: APJATEL Remains Committed to Expanding Fiber Optic Networks Despite Rising Costs