Jakarta, INTI - Indonesia’s ambition to accelerate equal internet access across the archipelago is now facing significant challenges. The Indonesian Telecommunication Network Providers Association (APJATEL) has reported a sharp increase in fiber optic raw material prices, an issue that could slow down the development of the country’s telecommunications infrastructure.
APJATEL Chairman Jerry Siregar stated that the industry is currently dealing with global supply chain uncertainty. The price surge is driven by major suppliers from China, compounded by the prolonged impact of global geopolitical conflicts.
“We are facing a perfect storm. On one hand, there is heavy reliance on external suppliers, while on the other, global geopolitical tensions have severely disrupted price stability and the availability of essential materials,” Jerry explained.
Heavy Import Dependence Reaches 90%
A key factor behind the industry’s vulnerability is its strong dependence on imported materials. APJATEL noted that around 90% of Indonesia’s fiber optic raw materials are still sourced from abroad.
“This 90% import figure is a wake-up call for our digital sovereignty. When disruptions occur in supplier countries like China, the entire infrastructure development chain in Indonesia is immediately affected. This is no longer just a business issue, but a matter of national digital resilience,” Jerry added.
One of the critical components now becoming scarce and expensive is corning, the core material used in fiber optic cables. The shortage is driven by rising global demand, as the material is not only used for internet networks but also plays an important role in the defense industry.
Rising Costs of Supporting Materials
In addition to core materials, prices of supporting components such as High-Density Polyethylene (HDPE), used for cable protection, have also increased. According to Jerry, the cost of these components has risen by around 15% to 17% within the industry.
Although distribution from China does not entirely pass through conflict-prone routes such as the Strait of Hormuz, APJATEL believes global suppliers are taking advantage of the situation. “From a global logistics perspective, shipments from China do not necessarily pass through the Strait of Hormuz. However, this momentum is being used to justify price increases. After all, this is business, they are seeking profit,” Jerry said in Jakarta on Thursday, April 9, 2026.
Network Coverage Still at 30%
The rising costs pose a serious challenge to Indonesia’s digital inclusion efforts. Currently, the country’s total fiber optic network spans approximately 1 million kilometers. Out of 514 regencies/cities across 38 provinces, service coverage has only reached about 30%.
Fiber optic investments, which were already capital-intensive, are now under greater pressure due to increasing raw material costs. As a result, many network providers are being forced to significantly adjust their expansion targets. “Development is not stopping, but it is no longer progressing under normal conditions. For example, a target of 50 km per year may now be reduced to just 10 km due to higher material costs,” Jerry noted.
Pushing for Government Support
In response to these abnormal conditions, APJATEL is urging the government to take concrete action. Proposed measures include providing incentives to ease operators’ capital expenditures (CapEx).
Equally important is regulatory relaxation to simplify the deployment of fiber optic networks across regions, as well as ensuring the continuity of national connectivity projects to maintain progress despite global economic pressures.
Conclusion
The surge in fiber optic material costs underscores a critical challenge for Indonesia’s digital transformation agenda. Heavy reliance on imports, combined with global supply chain disruptions, has exposed vulnerabilities in the nation’s infrastructure development. Without strategic intervention, ranging from government incentives to regulatory support, efforts to expand digital connectivity and achieve equitable access across regions risk slowing down. Strengthening domestic capacity and ensuring sustainable investment will be key to maintaining momentum in Indonesia’s digital future.
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