Jakarta, INTI – The equitable distribution of 5G access across Indonesia is still considered to be hampered by the limited frequency spectrum available to operators. Executive Director of the ICT Institute, Heru Sutadi, emphasized that accelerating the auction of frequency spectrum, particularly in the 700 MHz and 3,500 MHz bands, is a crucial step the government must urgently take. By optimizing existing infrastructure and supporting operators through spectrum pricing incentives, Indonesia has the potential to catch up in the development of a nationwide 5G network. In addition to the auction, the utilization of shared infrastructure, such as the Multi-Operator Core Network (MOCN) model and the use of PLN’s utility poles for fiber optic deployment, is also seen as an effective strategy to expedite network expansion across the country.
Limited Spectrum Hinders Equitable 5G Access
Currently, the development of 5G services in Indonesia remains suboptimal. According to Heru Sutadi, telecommunications operators face major challenges regarding their primary production tool: the frequency spectrum. Without the addition of new spectrum, 5G services will remain inaccessible to many, particularly in areas outside major cities.
“Availability of spectrum is the key. Without it, operators cannot expand 5G services nationwide,” Heru stated. He highlighted the urgent need to auction the 700 MHz and 3,500 MHz bands, which had been planned since last year but have yet to be realized.
Spectrum Pricing Incentives to Support Operator Expansion
In addition to accelerating the auction process, Heru also advocated for the introduction of spectrum pricing incentives. Currently, high regulatory costs—including licensing fees, frequency usage fees, and regional levies—have increased operators’ business expenses by around 12 percent.
“The current regulatory cost structure makes investing in 5G services expensive. Operators need support in the form of more competitive spectrum pricing,” Heru explained. These incentives are seen as crucial to encourage operators to expand their networks into underserved areas.
Focus 5G Deployment on Industry and Residential Areas
Regarding the initial implementation of 5G services, Heru suggested prioritizing industrial zones, such as manufacturing areas, as well as individual users in residential neighborhoods via Wi-Fi networks.
Meanwhile, for the education and healthcare sectors, Heru believes that Low Earth Orbit (LEO) satellites, such as Starlink and Satria from Bakti Kemenkomdigi, are sufficient to meet connectivity needs. “The right segments for 5G are factories and individuals. For education and healthcare, satellite connections, which are now readily available, can be relied upon,” he said.
Shared Infrastructure and Utilization of PLN Utility Poles
To accelerate network expansion, the government, through Kemenkomdigi, has also proposed adopting the Multi-Operator Core Network (MOCN) model. This scheme allows multiple operators to share a single core infrastructure, reducing investment costs and speeding up network development.
Additionally, leveraging PLN’s utility poles for fiber optic deployment is considered another effective strategy. This approach can reduce network rollout costs by up to 67 percent compared to building new infrastructure from scratch.
Conclusion
Achieving equitable 5G service across Indonesia requires a combination of accelerated frequency auctions, spectrum pricing incentives, and shared infrastructure utilization. With these strategic measures, Indonesia stands a strong chance of expanding high-speed internet access to all layers of society, driving digital economic growth, and strengthening competitiveness in the era of Industry 4.0.
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