Accelerating Indonesia’s digital economy
Since the start of the century, the mobile sector in Indonesia has experienced years of growth and development. But for the country to take the next step, vital spectrum must be allocated, in particular 700 MHz.
This latest report from GSMA Intelligence shows that despite progress made, internet access remains a key barrier for citizens’ full participation in Indonesia’s digital society. While 3G (at 900 MHz) has been successful in extending basic mobile broadband to the unconnected, the technology will not be able to cope with the significant traffic growth expected over the next decade.
To meet this demand, 4G take-up is beginning to increase, albeit later than some neighbouring countries. Smartphone adoption is rising in both urban and rural areas. Combined with an expanding middle class and a tech-savvy youth population, Indonesia is strongly positioned to become a digital economy powerhouse. Access to more spectrum is key for the country to realise this potential.
Today, mobile operators are predominantly using 1800 MHz spectrum for their 4G rollouts. Allocating the 700 MHz band quickly and in sufficient quantity would support their efforts to expand coverage, despite the geographical challenges, and help reduce the prevailing digital divide. This report shows how assigning 700 MHz to mobile broadband would deliver economic benefits of $11 billion (IDR161 trillion) to the Indonesian economy over the period 2020–2030.