Indonesia to Introduce Affordable High-Speed Internet in 2026, Boosting Market Competition

Government Initiative to Enhance Digital Infrastructure

The Indonesian government, through the Ministry of Communication and Digital (Komdigi), is set to launch an affordable 100 Mbps internet service in 2026. This initiative follows the successful auction of the 1.4 GHz frequency band for Broadband Wireless Access (BWA) in October 2025. The auction saw PT Solusi Sinergi Digital Tbk (WIFI), through its subsidiary PT Telemedia Komunikasi Pratama, winning the bid for Regional I, while PT Dian Swastatika Sentosa Tbk (DSSA) emerged victorious in Regional II and III.

Increased Competition in the ISP Market

The introduction of this high-speed, affordable internet is expected to significantly increase competition among Internet Service Providers (ISPs) in Indonesia. PT Supra Primatama Nusantara (Biznet), a major ISP, has acknowledged that the upcoming development will lead to tighter price competition in the market. The government's initiative is part of a broader strategy to enhance digital infrastructure and connectivity across the country.

Implications for the Telecom Sector

The new internet service is likely to have far-reaching implications for the telecom sector. With major players like WIFI and DSSA already positioned through the recent auction, the stage is set for intensified competition and potentially better services for consumers. The government's focus on affordability is expected to drive ISPs to innovate and improve their offerings to remain competitive in the market.