Sony Pixel Power calrec Sony

INDONESIA MUST ACCELERATE DELIVERY OF DIGITAL STRATEGY TO ACHIEVE GOVERNMENT'S TOP 10 GLOBAL ECONOMY BY 2030 AMBITIONS, SAYS GSMA REPORT

08/12/2023

The new report from the GSMA, published at its Indonesia Digital Nations Summit in Jakarta, evaluates Indonesia's progress to becoming a digital nation and recommends action points to accelerate progress

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...

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...

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...

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...

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...

07/09/2023

GSMA M360 APAC

M360 GSMA 2023 9 7 , : GSMA M360 APAC . KT . ...

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...