Fri, 14 Mar 2025 15:19 | Internet and Telecommunication | Editorial INTI
Jakarta, INTI – The Ministry of Communication and Digital (Komdigi) has sought support from Danantara, the national sovereign wealth fund (SWF), to expedite the expansion of 5G internet coverage in Indonesia. Danantara's strategic role is considered crucial in strengthening the telecommunications and digital ecosystem to accelerate the adoption of this next-generation network.
As an initial step, the government plans to release the 2.6 GHz frequency band in 2025 to support the nationwide expansion of 5G. Meanwhile, the 3.5 GHz band— the primary spectrum for global 5G implementation—remains allocated for satellite services until 2034. Minister of Communication and Digital Meutya Hafid emphasized the importance of a comprehensive and well-coordinated spectrum migration strategy to ensure a smooth transition.
In a meeting with the Minister of Investment and Downstreaming/BKPM and Danantara CEO, Rosan Roeslani, at the BKPM Office in South Jakarta, Meutya Hafid highlighted that three out of four national satellite operators utilizing the 3.5 GHz band—Telkom, Telkom Satellite Indonesia, and BRI—are under Danantara’s portfolio. With investment support from this SWF, spectrum migration is expected to proceed more swiftly and efficiently.
Additionally, Meutya emphasized that optimizing state-owned enterprise (SOE) assets is key to building an equitable and inclusive digital infrastructure. One of the innovative approaches to be implemented is the Unsolicited Public-Private Partnership (PPP) scheme, which aims to drive massive digital investments and accelerate internet penetration in Indonesia.
Komdigi has noted that 5G implementation in Indonesia continues to progress with various innovative strategies. To accelerate network development, Komdigi has proposed adopting the Multi-Operator Core Network (MOCN) model, which enables operators to share radio access network (RAN) infrastructure. This model has been successfully implemented in several countries and can help expand service coverage more efficiently without requiring separate infrastructure development.
To drive digital transformation, Komdigi is collaborating with the Ministry of Investment/BKPM to attract more investments in the telecommunications and digital sectors. A key focus is improving connectivity in education, healthcare, and government sectors. The government is actively working to expand internet access, including the development of fixed broadband services to support more stable and widespread connectivity.
Fixed broadband refers to wired internet services utilizing physical infrastructure such as fiber optics, Digital Subscriber Line (DSL), or coaxial cables. Minister Meutya stressed that ensuring equitable internet access is a priority to ensure that the benefits of the digital economy are widely distributed. Therefore, innovative strategies are essential in developing telecommunications infrastructure to secure more efficient and inclusive investments.
One of Komdigi's strategic solutions is utilizing PLN’s infrastructure to expand telecommunications networks, particularly in areas with limited internet access. By using PLN’s utility poles for fiber optic distribution, investment costs can be reduced by up to 67%, enabling faster and more cost-effective internet penetration.
The government also aims to achieve an internet speed of 100 Mbps by 2029. According to Meutya Hafid, optimal 5G implementation can reduce the Total Cost of Ownership (TCO) by up to 54% compared to 4G networks. With the right strategies in place, faster and more reliable networks can meet the needs of industries, businesses, and the public at large.
Komdigi, the Ministry of Investment, Danantara, and industry stakeholders are committed to establishing a digital infrastructure that is equitable, innovative, and sustainable. Accelerating digital transformation remains a top priority in supporting national economic growth, which is targeted to reach 7% - 8% in line with the Indonesia Digital 2045 Vision.
With strong investment backing and an integrated strategy, Indonesia continues to develop a globally competitive digital ecosystem.
Accelerating 5G network implementation in Indonesia requires synergy between the government, private sector, and strategic investors such as Danantara. Through innovative strategies like MOCN, SOE asset optimization, and PLN infrastructure utilization, Indonesia can establish a more equitable and inclusive digital ecosystem. The government remains optimistic that these initiatives will enable Indonesia to compete on a global scale and achieve sustainable digital economic targets in line with the Indonesia Digital 2045 Vision.
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