Telecommunications infrastructure in Indonesia
In the vast archipelago of Indonesia, the telecommunications infrastructure becomes a critical thread to connect diverse islands and regions with different geographical complexities. With over 100 thousand mobile towers throughout the country, the reach of 4G networks extends to over 94 percent of Indonesian cities. As cellular network providers gradually phase out 3G technology, 4G has emerged as Indonesia's primary mobile and internet network. The country is also beginning to introduce 5G technology, promising faster data speeds and improved network coverage.Expanding connectivity: 5G development in Indonesia
5G services are only available in some cities in Indonesia, marking the initial stages of its development. Leading telecommunications companies like Telkom and Indosat Ooredoo Hutchison have made significant moves to embrace 5G adoption in Indonesia over the past years, indicated by the increasing number of 5G base trasceiver station (BTS). Nevertheless, issues with spectrum shortage and rising spectrum costs threaten future telecommunications development, particularly for 5G technology. Indonesia’s 5G network development tends to possess slower growth compared to its neighboring countries. As of the end of 2023, although showcasing improved quality compared to 4G, Indonesia’s average 5G download speed stood the lowest among Singapore, Malaysia, Philippines, and Thailand, with Singapore's 5G download speed ranked the fastest.To deliver a larger network capacity, the government has implemented the Palapa Ring project to enable an extensive network through undersea and land across the archipelago, including its most remote regions. Projections indicate that by 2030, 5G is expected to contribute over 41 billion U.S. dollars to Indonesia’s gross domestic product (GDP). Along with the growth of internet usage and smartphone adoption in Indonesia, this indicates a lucrative economic future.
