Jakarta, INTI - Jerry Mangansas Swandy, Chairman of the APJATEL, stated that industry players remain committed to expanding fiber optic networks despite rising costs triggered by geopolitical tensions involving the United States, Israel, and Iran in the Middle East.
“We, as an industry, will continue to build. Based on Ministerial Regulation No. 5 of 2021, there is a clear commitment that network operators must deploy infrastructure,” Jerry said during a media interview in South Jakarta on Thursday.
“However, network deployment is no longer happening under normal conditions due to various influencing factors,” he added.
Material Price Surge and Deployment Challenges
Jerry explained that key raw materials used in fiber optic deployment, such as corning (optical fiber glass) and high-density polyethylene (HDPE), have experienced price increases as a result of the conflict.
According to him, corning prices have risen not only due to demand from the telecommunications sector but also because the material is used in weapons manufacturing.
Meanwhile, HDPE, used as protective casing for fiber optic cables, has also seen a significant price increase.
“HDPE is the outer layer of fiber optic cables. You can see it in the field in green, red, or orange colors. That’s HDPE, and its price has gone up,” he explained.
“This means that, technically speaking, deployment costs will certainly be affected,” Jerry added, referring to the overall cost of fiber optic expansion.
APJATEL estimates that fiber optic deployment costs could increase by around 15 to 17 percent compared to normal conditions due to rising material prices.
Despite these challenges, Jerry emphasized that APJATEL members remain committed to continuing network expansion, although actual deployment may fall short of initial targets.
“For example, if a company initially planned to deploy 50 kilometers of fiber in a year, it may only achieve 10 kilometers under current conditions,” he said.
If the situation worsens, APJATEL plans to request government incentives to ensure that fiberization programs can continue.
“If conditions become uncontrollable, potentially leading to an economic blackout, then we may have no choice,” Jerry noted.
He added that a similar situation occurred during the COVID-19 pandemic, when the industry sought government incentives while still maintaining its obligations to expand network infrastructure.
Conclusion
APJATEL’s continued commitment to expanding fiber optic networks highlights the sector’s critical role in supporting Indonesia’s digital infrastructure, even amid rising global uncertainties. While increasing material costs pose significant challenges, collaboration between industry and government, particularly through potential incentives, will be key to ensuring that national connectivity targets remain on track.
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