Jakarta, INTI - Such support can be realized through the implementation of reasonable rental rates for regionally owned assets, along with regulatory certainty that does not place excessive burdens on the industry.
This was conveyed by Deputy Minister of Communication and Digital Affairs Nezar Patria during the Meeting on the Implementation of the Regional Asset Rental Concept in accordance with Ministry of Home Affairs Regulation No. 7 of 2024, held at the Ministry of Home Affairs office in Central Jakarta on Tuesday, January 20, 2026.
High Regulatory Cost Threaten Industry Sustainability
Deputy Minister Nezar highlighted the high regulatory cost borne by Indonesia’s telecommunications industry, which reaches around 12 percent, one of the highest levels globally.
This condition is considered unhealthy for the sustainability of the industry and may hinder national digital transformation.
“Digital transformation is no longer an option, but a fundamental prerequisite to achieving the 8 percent economic growth target set by President Prabowo and Vice President Gibran. This agenda is highly dependent on the smooth deployment of digital infrastructure in the regions,” Nezar stated.
Policy Misalignment Slows Digital Expansion
According to him, there are still regional policies that are not aligned with national regulations regarding the imposition of fees for digital infrastructure deployment at the local level.
“In fact, the regulation is clear. Article 128B of Ministry of Home Affairs Regulation No. 7 of 2024 on Guidelines for the Management of Regional Assets stipulates that adjustments to digital infrastructure rental fees should be set at 0 percent when Integrated Utility Network Facilities (SJUT) are not yet available. This provision is designed to maintain a balance between optimizing regional assets and ensuring investment feasibility,” he emphasized.
Deputy Minister Nezar also stressed that the telecommunications industry does not reject contributing to regional revenue.
Telecommunications as a Cross-Sector Economic Enabler
However, the industry requires policy certainty, fairness, and consistency.
Unpredictable regulatory cost and frequent changes resulting from unilateral interpretations risk discouraging investment and slowing the expansion of internet networks into remote areas.
According to Deputy Minister Nezar, telecommunications infrastructure serves as a cross-sector enabler that supports public services, education, healthcare, and regional government transaction systems.
If the industry climate is not healthy, the expected digital economic impact or multiplier effect will not be fully realized.
“We view collaboration and policy harmonization between the central and regional governments as essential. The objective is simple yet strategic: to create a regulatory environment that is fair, transparent, and pro-growth,” Nezar explained.
The Ministry of Communication and Digital Affairs is calling on the Ministry of Home Affairs and regional governments to strengthen governance synergies. With strong collaboration, tariff regulations can be managed as instruments of good governance rather than obstacles to national economic growth.
Conclusion
Ensuring fair, transparent, and consistent regulations is essential to sustaining a healthy telecommunications industry and accelerating national digital transformation. Through stronger collaboration and policy harmonization between the central and regional governments, digital infrastructure development can proceed more effectively, unlocking broader economic benefits and supporting inclusive growth across Indonesia.
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