INDONESIA MUST ACCELERATE DELIVERY OF DIGITAL STRATEGY TO ACHIEVE GOVERNMENT'S TOP 10 GLOBAL ECONOMY BY 2030 AMBITIONS, SAYS GSMA REPORT
08/12/2023
6 December 2023, Jakarta: The Indonesian government has made strong steps towards becoming a leading digital nation, according to a report published today at the GSMA's Indonesia Digital Nations Summit in Jakarta. However, the country needs to adopt a whole-government approach and be more joined-up around critical policy requirements, if Indonesia is to achieve its goals of digitally transforming society and becoming a top 10 global economy by 2030.
By doing so, Indonesia stands to unlock circa $18 billion in investment from the mobile industry between 2024 and 2030, mostly on 5G networks. This, in turn, is expected to contribute $41 billion to GDP over the next six years.
As part of its key recommendations, the GSMA report, entitled Forging a resilient digital nation: Proposals for Indonesia's future , analyses Indonesia's journey to becoming a digital nation and recommends action points the government and industry must expedite to achieve this transition. Above all, the report outlines opportunities to improve and accelerate progress in each of the five pillars - Infrastructure, Innovation, Data Governance, Security and People that will help it meet its ambition to becoming one of the world's top digital nations.
Digital nations incorporate digital technologies and services into all sectors of the economy, with the aim to drive productivity and improve the livelihoods of citizens. 5G is a key component of the infrastructure required to power future digital nations, given its ability to deliver reliable network-based services and enable the emerging technology that will help to reshape the local economy and modernise industries.
Julian Gorman, Head of APAC at the GSMA, said: While Indonesia has achieved notable success in its journey to become a digital nation, transforming the country's digital ecosystem won't be possible without the necessary investment from the private sector. To unlock this, a whole-government approach is needed to ensure the right measures are in place which encourage this, including incentivising infrastructure investment, simplifying sector-specific fees, and cutting red tape.
Despite the country consisting of over 18,000 islands, Indonesia has achieved an expansive network of digital infrastructure with 96% of the population now covered by 4G networks. However, 5G mobile connectivity will be crucial to achieving new economic targets and investment will require policy imperatives to accelerate the rollout of 5G infrastructure, where it is needed the most. These recommendations include:
Ensuring sustainable investments in digital networks
The rollout of 5G is set to drive an increase in smartphone demand and data traffic. In Indonesia, shipments of 5G models grew 54% in Q3 2023 and accounted for 19% of the total. However, operators' ability to expand network capacity and coverage is often hindered by regulatory constraints, market structures and excessive tax burdens. This has created an investment gap where market conditions for private investment in telecoms networks are not favourable enough to meet ambitious national and regional digital policy targets.
Therefore, the GSMA report calls on all parts of government to work together with industry stakeholders to:
Encourage voluntary infrastructure sharing (passive and active) to reduce the cost of network rollout, particularly in difficult terrains.
Reduce red tape for obtaining the necessary permits and right-of-way (RoW) for cell-site location and fibre deployment to ease network rollout, particularly 5G densification. For example, the amendment of RoW rules in India in 2022 has been credited for the rapid rollout of 5G and fibre infrastructure in the ensuing months.
Reduce and simplify sector-specific taxes and fees (including tower taxes and tower building permission fees, and various fees imposed by municipal authorities) to ease the cost burden of network rollout and operations and ensure the financial sustainability of the mobile industry.
Provide policy incentives to encourage investment in infrastructure. In South Korea, government incentives in the form of tax credits and tax reductions for operators announced in 2020 helped unlock investment of around KRW25.7 trillion ($22 billion) in 5G networks.
Allow further consolidation in the telecoms sector to drive synergies and the scale required for expansive infrastructure rollout.
Achieving sustainable spectrum pricing
As recently warned by the GSMA, Indonesia also risks a $14 billion (IDR 216 trillion) productivity loss to its economy, unless it focused on ensuring future mobile spectrum prices are sustainable. It therefore recommends that:
Reserve prices are set conservatively below estimates of market value to enable price discovery and reduce the risk of unsold spectrum.
Government reviews the formula for calculating annual spectrum fees (BHP IPFR) and consider adjustments to the parameters to provide the right long-term incentives and avoid disproportionate increases in costs that are not aligned with evolving market conditions.
A clear spectrum roadmap is laid-out that considers not only current bands being planned but also the longer term needs for Indonesia, especially for mid-bands in the 2025-2030 timeframe. Greater certainty around the availability of spectrum and associated conditions is crucial for operators to prepare investment plans, secure financing and develop strategies for network deployment and service delivery.
The Indonesia Digital Nations Summit
The report findings were published as the GSMA hosted its Indonesia Digital Nations Summit at The Westin Jakart
LINK: | https://www.gsma.com/newsroom/press-release/indonesia-must-accelerate-... |
See more stories from gsma |
More from GSMA
26/03/2024
China's Leading Mobile Operators First To Commercially Launch New Fraud Reducing Password Service, After Receiving GSMA Open Gateway Certification
GSMA welcomes CITIC Telecom, Huawei and ZTE as Channel Partners 26 March 2024, Beijing: China's three leading mobile operators - China Mobile, China Telec...
26/03/2024
China's 5G market is set to add almost $260 billion to the Chinese economy in 2030 with connections set to top 1 billion this year
At the Post-MWC Sharing Event in Beijing, leaders from the GSMA contextualised t...
20/03/2024
European Mobile Operators and GSMA Unveil a Pioneering Manifesto for Europe's Digital Future
A new digital infrastructure framework that fosters investment, innovation, and ...
19/03/2024
Maturing Global Mobile Money Market Hits $1.4tn in Transaction Value
New GSMA report finds mobile money is fueling economic growth and expansion of financial services in Sub-Saharan Africa. 19 March 2024, London: Mobile money ...
12/03/2024
Women in the Digital Economy Fund: USAID, the Bill & Melinda Gates Foundation, and Partners Launch WiDEF
NEW YORK, MARCH 12, 2024 - The Women in the Digital Economy Fund (WiDEF), a five...
04/03/2024
GSMA MWC Barcelona 2024 Closes with Over 101,000 Attendees
MWC Barcelona brought together connectivity leaders from 205 countries and territories, exploring industry topics including AI, the usage gap, GSMA Open Gateway...
28/02/2024
5G Momentum Continues with 1.6 Billion Connections Worldwide, Rising to 5.5 Billion by 2030, According to GSMA Intelligence
Industry opportunities driven by developments in 5G Standalone, 5G-Advanced, ent...
27/02/2024
GSMA and Shields Unveil New Commerce Platform to Help Telecoms Industry Meet Environmental and Financial Sustainability Targets
The GSMA Equipment Marketplace cloud-based platform will help telecommunication ...
27/02/2024
European Networks Leading Race to Net Zero with North America, MENA & LATAM Accelerating, New GSMA Climate Report Reveals
The GSMA's 2024 Mobile Net Zero report spotlights regional leaders in cuttin...
27/02/2024
Asisat Oshoala Calls on Governments to Improve Digital Literacy Initiatives and Close the Usage Gap
Six-time and reigning African Women's Footballer of the Year uses MWC Barcel...
26/02/2024
GSMA Open Gateway Launch in Germany: Mobile Operators Open up New Business Models with Network API Launch
Deutsche Telekom, O2 Telef nica and Vodafone are launching SIM Swap and Number V...
26/02/2024
GSMA Open Gateway Goes From Strength-to-Strength with Worldwide Commercial Launches, More Operators and New Go-to-Market Channels
More than 40 mobile operator networks across five continents have now commercial...
26/02/2024
GSMA MWC Barcelona Brings Industries Together for Four Days of Discussion and Debate on the Future of Connectivity
MWC Barcelona 2024 welcomes the most iconic names in connectivity for nine keyno...
26/02/2024
GSMA and UK FCDO Deepen their Commitment to Digital Development Through Renewed 37.3M Funding Partnership
New phase of the strategic partnership to support GSMA Mobile for Development...
22/02/2024
South African mobile operators announce new services to combat fraud, as part of GSMA Open Gateway initiative
Telecommunications operators Cell C, MTN, and Telkom welcome launch of two unive...
22/02/2024
Enhancing Security and Customer Experience, Indonesian Telecom Operators to Launch Three Service APIs Through the GSMA Open Gateway Initiative
Jakarta, 22 February 2024. As part of the global GSMA Open Gateway initiative, f...
06/02/2024
SPANISH MOBILE INDUSTRY TO LAUNCH ONLINE ANTI-FRAUD AND IDENTITY SERVICES THROUGH GSMA OPEN GATEWAY INITIATIVE
Orange, Telefonica, and Vodafone will open their mobile networks to developers w...
25/01/2024
GSMA unveils new keynote speakers and features for MWC Barcelona 2024
Speakers include leaders from Accenture, Dell Technologies, Microsoft and the United Nations; as well as Nobel Prize laureate, Sir Konstantin Sergeevich Novosel...
15/12/2023
GSMA HAILS GROUNDBREAKING SPECTRUM DECISIONS AT WRC-23
Spectrum decisions at the ITU's World Radiocommunication Conference 2023 clear the path for a bright digital future for billions worldwide 15th December 2...
11/12/2023
THE GSMA LAUNCHES ITS NEWEST INNOVATION FUND TO ADDRESS HUMANITARIAN CHALLENGES
Applications for the GSMA's Humanitarian Innovation Fund, which has distributed over £5 million since 2017, are now open to start-ups, SMEs and social enter...
08/12/2023
INDONESIA MUST ACCELERATE DELIVERY OF DIGITAL STRATEGY TO ACHIEVE GOVERNMENT'S TOP 10 GLOBAL ECONOMY BY 2030 AMBITIONS, SAYS GSMA REPORT
The new report from the GSMA, published at its Indonesia Digital Nations Summit ...
05/12/2023
GSMA M360 MENA COMMENCES IN RIYADH AS NEW REPORT CONFIRMS 5G IS DRIVING GDP GROWTH IN THE REGION
The GSMA celebrates the start of proceedings with the publication of its annual ...
28/11/2023
BRAZILIAN MOBILE INDUSTRY LAUNCHES THREE ANTI-FRAUD NETWORK SERVICES AND BECOMES PIONEER FOR GSMA OPEN GATEWAY
With this initiative, Claro, TIM, and Vivo will open their networks to developer...
23/11/2023
EUROPEAN MOBILE DATA TRAFFIC WILL TRIPLE IN NEXT FIVE YEARS, DRIVING CONTINUED PRESSURE ON NETWORK INVESTMENT, NEW GSMA REPORT PREDICTS
The GSMA's annual European Mobile Economy Report shows that mobile contribut...
09/11/2023
GSMA WARNS OF $14BN (IDR 216TN) PRODUCTIVITY LOSS TO INDONESIAN ECONOMY UNLESS FUTURE MOBILE SPECTRUM PRICES ARE SUSTAINABLE
New GSMA Intelligence research reveals mobile spectrum costs in Indonesia have r...
17/10/2023
GSMA MWC KIGALI OPENS ITS DOORS AS MOBILE OPERATORS AND POLICYMAKERS CONVENE TO ENABLE INVESTMENT AND CLOSE THE MOBILE USAGE GAP ACROSS AFRICA
The GSMA shared the findings of its annual Mobile Economy Sub-Saharan Africa Rep...
11/10/2023
SMARTPHONE OWNERS ARE NOW THE GLOBAL MAJORITY, NEW GSMA REPORT REVEALS
The GSMA's sixth annual State of Mobile Internet Connectivity Report includes several first-time pieces of global and regional analysis, including the numbe...
09/10/2023
HIS EXCELLENCY PRESIDENT PAUL KAGAME TO OPEN MWC KIGALI 2023
Secure your spot and register today to attend MWC Kigali, 17-19 October 2023 9 October 2023, London: The GSMA is delighted to announce that His Excellency Pau...
29/09/2023
A Lively MWC Las Vegas in Partnership With CTIA Lit Up Debate Across the Mobile Ecosystem, Vertical Industries and Start-ups
The 2023 edition of GSMA MWC Las Vegas saw a rise in attendees from vertical ind...
26/09/2023
MWC LAS VEGAS IN PARTNERSHIP WITH CTIA KICKS OFF WITH A SPOTLIGHT ON 5G ACCELERATION, ENTERPRISE MOBILITY, AGE OF AI AND DIGITAL EVERYTHING
5G set to become the dominant mobile technology in North America by the end of 2...
18/09/2023
MWC BARCELONA 2023 EXCEEDS PRE-EVENT EXPECTATIONS TO GENERATE 461mn FOR BARCELONA'S ECONOMY
World's largest and most influential connectivity event also exceeded pre-ev...
16/09/2023
IMPROVEMENTS IN MOBILE CONNECTIVITY CORRELATE TO GREATER IMPACT TOWARDS SUSTAINABLE DEVELOPMENT GOALS, ACCORDING TO GSMA REPORT
The GSMA's eighth SDG impact report, published at the halfway point to the 2...
07/09/2023
GSMA M360 APAC RETURNS WITH DEBUT EDITION IN SEOUL SOUTH KOREA
The annual conference opens with the launch of the GSMA's Digital Societies in Asia Pacific Report 7 September 2023, Seoul: The GSMA M360 APAC event return...
27/07/2023
GSMA MWC LAS VEGAS IN PARTNERSHIP WITH CTIA: THE MUST-ATTEND EVENT FOR MOBILE AND TECHNOLOGY INDUSTRIES
Registration is open for MWC Las Vegas press passes 27 July 2023, London: The G...
25/07/2023
ASIA PACIFIC TO SEE TENFOLD RISE IN 5G MOBILE CONNECTIONS BY 2030 AS DIGITAL TRANSFORMATION GATHERS PACE, GSMA REPORT REVEALS
However, despite 96% mobile broadband coverage across the region, barriers in ce...
24/07/2023
THE MOBILE ECONOMY ASIA PACIFIC REPORT
Asia Pacific to see tenfold rise in 5G mobile connections by 2030 as digital transformation gathers pace, GSMA report reveals However, despite 96% mobile broad...
12/07/2023
GSMA AND EUROPEAN SPACE AGENCY LAUNCH NEW COMMUNICATIONS INNOVATION PARTNERSHIP
New Collaboration Will Look to Accelerate Advancements in Satellite and Terrestrial Communications Network Integration 12 July 2023, OXFORDSHIRE: The GSMA and ...
30/06/2023
MWC SHANGHAI 2023 WRAPS UP 10TH ANNIVERSARY EVENT AFTER THREE DAYS OF COLLABORATION, INSIGHTS AND INNOVATION
MWC Shanghai 2023 welcomed nearly 37,000 delegates from 115 countries and territ...
28/06/2023
GSMA MWC SHANGHAI OPENS ITS DOORS FOR 10th ANNIVERSARY EDITION
MWC Shanghai convenes global leaders from the mobile ecosystem at the SNIEC to celebrate the first fully in-person iteration of the event since 2019 28 June 20...
27/06/2023
MOBILE INDUSTRY EYES FIVE BILLION DORMANT' PHONES SITTING IN DESK DRAWERS FOR REUSE OR RECYCLING
12 leading global operators and the GSMA agree pace-setting ambitions in the ind...
26/06/2023
CHINA'S THREE LARGEST MOBILE OPERATORS JOIN GSMA OPEN GATEWAY INITIATIVE
Global initiative to help mobile industry, developers and cloud providers collaborate on development of universal network APIs now supported across all continen...
25/06/2023
GSMA WELCOMES LEADING CHINESE OPERATORS TO GLOBAL OPEN GATEWAY INITIATIVE AHEAD OF MWC SHANGHAI
25 June 2023, Shanghai: The GSMA today hosted a press conference ahead of MWC Sh...
31/05/2023
100 MILLION WOMEN PER YEAR WILL NEED TO ADOPT MOBILE INTERNET TO CLOSE THE GENDER GAP BY 2030, GSMA REPORT REVEALS
The sixth annual Mobile Gender Gap Report evaluates mobile ownership and mobile ...
19/05/2023
Telecom sector joins forces in call for new policies to drive EU connectivity leadership
Brussels, London, 19 May 2023 - The GSMA and ETNO, industry associations represe...