Indonesia Accelerates Digital Infrastructure Development

Comprehensive Digital Roadmap Unveiled

The Indonesian government has launched a comprehensive initiative to accelerate digital infrastructure development, aiming to boost economic growth to 8% and enhance development equity, particularly in underdeveloped regions. With Indonesia being the third-largest user of artificial intelligence (AI) globally, the need for robust digital infrastructure has become increasingly pressing.

Key Infrastructure Components

The government's digital infrastructure roadmap encompasses several critical components:

1. Submarine cables and fiber optics: Enhancing connectivity and data transmission capacity
2. Data centers: Supporting growing data storage and processing needs
3. Mobile broadband expansion: Improving internet accessibility across the nation

Denny Setiawan, Director of Strategy and Policy for Digital Infrastructure at the Ministry of Communication and Digital, emphasized that the government is working on regulatory adjustments to facilitate faster implementation. The key principles guiding these changes include open access and competitive access regulation.

Spectrum Allocation and 5G Expansion

In addition to the infrastructure roadmap, the government is preparing to auction the 700 MHz and 2.6 GHz frequency bands, which are crucial for supporting 5G deployment. The acceleration of 5G network expansion is seen as vital for developing AI and Internet of Things (IoT) ecosystems.

Sarwoto Atmosutarno, Chairman of the Indonesian Telematics Society (Mastel), highlighted that 5G networks and fiber backbone are fundamental to AI and IoT development. He estimated that 100 kilometers of national fiber network is needed for major cities and industrial areas.

Current State of Internet Penetration

As of now, Indonesia's national internet penetration has reached 80.66%. However, Syahrial Syarif, Head of Regulation at the Indonesian Internet Service Providers Association (APJII), noted that many local Internet Service Providers (ISPs) operate with limited capacity. He stressed the importance of collaboration and open infrastructure at reasonable prices to address this issue.

Challenges and Opportunities

While significant progress has been made in internet penetration, challenges persist in terms of infrastructure capacity and pricing. The government's initiatives aim to address these challenges through comprehensive infrastructure development and regulatory reforms. The successful implementation of these plans could significantly enhance Indonesia's digital economy and support sustainable economic growth.