Jakarta, INTI - The Asosiasi Penyelenggara Jaringan Telekomunikasi (APJATEL) has raised concerns over soaring fiber optic raw material prices triggered by price increases from suppliers in China, despite distribution routes not being entirely dependent on the Strait of Hormuz. The situation is seen as a potential challenge to the development of Indonesia’s national telecommunications infrastructure.
APJATEL noted that Indonesia still relies heavily on imported fiber optic raw materials, with dependency levels reaching around 90%. This condition leaves the domestic industry highly vulnerable to global market fluctuations.
Global Supply Chain Disruptions Impact Telecom Industry
APJATEL Chairman Jerry Mangasas Siregar stated that prolonged global geopolitical conflicts have significantly affected industrial supply chains, including the telecommunications sector. He explained that corning, one of the key materials used in fiber optic production, has become increasingly scarce in the market.
“Corning is a primary raw material for fiber optics and is also used for other needs such as defense equipment,” he said in Jakarta on Thursday, April 9, 2026.
In addition, price hikes have also hit HDPE, the protective material used for fiber optic cables. According to Jerry, the material has experienced significant increases amid disruptions in global distribution channels.
“Global distribution routes, including those passing through the Strait of Hormuz at around 20–25%, have also contributed. Internally, we have seen increases reaching 15–17%, including for HDPE,” he explained.
However, Jerry believes the price hikes from China are also influenced by business strategy rather than purely distribution-related issues.
“From a global logistics perspective, shipments from China do not necessarily pass through the Strait of Hormuz. But this momentum is being utilized to raise prices. This is business, and naturally they seek profits,” he added.
Network Expansion Continues Amid Cost Pressures
Jerry revealed that Indonesia’s fiber optic network currently spans around 1 million kilometers and remains unevenly distributed across the country. He noted that coverage has only reached approximately 30% of Indonesia’s 514 regencies and cities across 38 provinces.
“Not all regions can be served because fiber optic investment costs remain very high,” he said.
Despite mounting cost pressures, APJATEL emphasized that network development projects will continue, although with adjusted targets. The association is urging the government to provide special support, including possible incentives and policy relaxation measures, to maintain the sustainability of network expansion.
“It’s not that development has stopped, but conditions are no longer normal. For example, if the target was 50 kilometers per year, it may now only reach 10 kilometers because material costs have increased,” he concluded.
Conclusion
The sharp increase in fiber optic raw material prices highlights the vulnerability of Indonesia’s telecommunications industry to global supply chain disruptions and import dependency. While infrastructure expansion continues, industry players are now facing tougher investment challenges, reinforcing the need for stronger domestic supply resilience and supportive government policies to sustain nationwide digital connectivity development.
Read more: Indonesia Establishes Strategic Partnership with the World’s Largest Physics Laboratory