Indonesia still faces some big challenges if it is to successfully continue the building of the telecommunications infrastructure required to support a large population spread over what is a uniquely complex geography. Continued progress in the development of the telecom sector will need further government action on restructuring the industry.
Compared to other Asian nations, Indonesia has very low fixed line and fixed broadband penetration, high mobile penetration and moderate mobile broadband penetration.
Whilst broadband users have grown on back of a surge in mobile broadband subscriptions and smartphone sales, fixed broadband connections remain relatively low, despite broadband development having accelerated.
The Indonesian data centre market has experienced significant growth over the past two decades. In particular growth has been very strong over the past few years, as Indonesia seeks to bridge the gap with its more advanced neighbours such as Singapore and Malaysia. Indonesia is attracting investments from hyperscale cloud providers such as Google, Alibaba and Amazon, reflecting a growing interest in Indonesia as an alternative to Singapore, for cloud and data centre services.
The construction of a broadband network in the eastern part of the country under the Palapa Ring Project II, has been completed. The project was the second part of a project designed to link Indonesian cities through an integrated fibre optic network.
PT Telkom; PT Indosat; Bakrie Telecom; PT Satelindo; ThaiCom. PT Telkomsel, Temasek;
Table of Contents
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Number of pages 67
Last updated 2 Dec 2019
Analyst: Phil Harpur
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