Indonesia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: April 2024

Report Pages: 151

Analyst: Henry Lancaster

Contact BuddeComm

Purchase this Report

Summary
Table Of Contents

Progress continues on Indonesia’s expanding satellite and submarine cable platforms

Indonesia comprises the world’s largest archipelago, and as such the country faces a range of obstacles in terms of enabling widespread access to quality telecom services covering its population. Geographical challenges have been exacerbated by a variety of social, political, and economic problems over the years, which have kept the country’s wealth distributed very thinly.

Many islands are sparsely populated, which has rendered the deployment of fixed-line infrastructure on a broad scale largely impractical. What fixed infrastructure does exist remains concentrated around major urban centres. The relatively low broadband penetration rate is partly due to under-investment by the previously state-owned incumbent Telkom, though in recent years more effort has been made to address poor connectivity in outlying areas, where a good proportion of the population resides with limited internet coverage. There has been renewed activity in laying out fibre cables (though mostly again concentrated in built-up areas, where the return on investment is more secure), but the bundling of fixed-line telephony with TV and internet services will see the country’s teledensity stabilise for the near future. For all that, Indonesia’s telecom sector is largely focussed on mobile connectivity. In what has become a highly competitive market, mobile penetration reached 140% and is projected to exceed continued to increase at a steady, though slow, rate over the next five years.

With LTE being practically universally available, the major mobile operators have been busy trialling and launching 5G services in selected areas. Telkomsel was the first to go live, in Jakarta in May 2021, followed by IOH launch in Solo shortly afterwards. However, the rollout of 5G is being hampered by the lack of available suitable spectrum. Telkomsel was obliged to launch services using limited spectrum in the 2.3-2.4GHz band, which is only supported by a small number of handsets. Much of the LTE spectrum had to be re-farmed from broadcasting services. Telkomsel was able to alleviate some of the pressure on its limited spectrum holdings after having secured 20MHz of spectrum in the 2.1GHz band at auction in November 2022. The same refarming process is likely to be considered in order for the operators to expand 5G into its core frequency bands (3.3-4.2GHz).

Key Developments

Telkomsel and Indosat Ooredoo expand 5G services, signs agreement to merge with IndiHome.
Indonesia preps for the launch of the SATRIA-1 satellite.
Mitratel sets aside IDR1 trillion for new towers in underdeveloped and regional areas of the country.
Progress continues on the Bifrost cable system connecting the US West Coast with Indonesia, the Philippines, and Singapore.
Telkom starts to build its second Hyperscale Data Center (HDC).
Telkomsel secures 20MHz of spectrum in the 2.1GHz band at auction.
Ooredoo and CK Hutchison complete the merger of their respective Indonesian mobile operations, forming Indosat Ooredoo Hutchison (IOH).
IOH contracts ZTE to develop a 5G transport network.
Report update includes the regulator's market data for 2021, telcos' operating and financial data to Q4 2022, updated Telecom Maturity Index charts and analyses, recent market developments.

Key companies mentioned in this report:

Telkom, Indosat Ooredoo, Bakrie Telecom, Telkomsel, XL Axiata, 3 Indonesia, Smartfren, STI, Internux (Bolt!), TelkomNet, Link Net, MNC Kabel Mediacom, Biznet Networks, MyRepublic.

Key statistics
Regional Asia market comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market
Regulatory environment

Regulatory authority

Ministry of Communication and Informatics (MoCI)

Fixed-line developments

Telecommunications Law 1989
Telecommunications Law 2000
Badan Regulasi Telekomunikasi Indonesia (BRTI)
Foreign ownership
Access
Universal Service Obligation (USO)

Mobile network developments

Spectrum auctions
Mobile Number Portability (MNP)

Mobile market

Mobile statistics
Mobile infrastructure

5G
4G / LTE
Other infrastructure developments
Mobile broadband

Major mobile operators

Telkomsel
Indosat Ooredoo Hutchison (IOH)
XL Axiata
Hutchison 3 Indonesia
Smartfren Telecom
Bakrie Telecom
Sampoerna Telekomunikasi Indonesia (STI) / Net1 Indonesia
Internux (Bolt!)

Fixed-line broadband market

Fixed broadband service providers

TelkomNet
Link Net
MNC Kabel Mediacom
Biznet Networks
XL Axiata
MyRepublic (Indonesia)

Fixed-line broadband technologies

Fixed wireless (Wi-Fi and WiMAX)

Fixed network market

Major network operator

Telkom Indonesia

Telecommunications infrastructure

National telecom network

Fibre networks

International infrastructure

International gateway exchanges
Submarine cable networks
Satellite networks

Data centres

Major data centre providers

Smart infrastructure

Smart cities and IoT

Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top level country statistics and telco authorities – 2023 (e)
Table 2 – Growth in telecom sector revenue – 2011 – 2023
Table 3 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 4 – Change in the number of prepaid and contract mobile subscribers – 2015 – 2020
Table 6 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Table 7 – Growth in the number of Telkomsel’s mobile broadband subscribers – 2012 – 2022
Table 8 – Change in the number of Telkomsel’s mobile subscribers (million) – 2011 – 2022
Table 9 – Development of Telkomsel’s mobile revenue – 2013 – 2022
Table 10 – Development of Telkomsel’s mobile blended ARPU – 2013 – 2022
Table 11 – Change in the number of IOH’s mobile subscribers (million) – 2011 – 2022
Table 12 – Development of IOH’s mobile ARPU (IDR thousand / month) – 2011 – 2022
Table 13 – Development of Indosat Ooredoo’s financial data (QAR million) – 2009 – 2021
Table 14 – Development of IOH’s mobile ARPU (QAR per month) – 2015 – 2021
Table 15 – Development of IOH’s financial data (IDR billion) – 2017 – 2022
Table 16 – Development of IOH’s revenue by type (IDR billion) – 2018 – 2022
Table 18 – Increase in IOH’s mobile data traffic – 2017 – 2022
Table 19 – Change in the number of XL Axiata’s mobile base stations by technology – 2011 – 2022
Table 20 – Change in the number of XL Axiata’s mobile subscribers – 2011 – 2022
Table 21 – Change in XL Axiata’s mobile ARPU (IDR thousand / month) – 2013 – 2022
Table 22 – Development of XL Axiata’s financial data (IDR billion) – 2011 – 2022
Table 23 – Change in the number of 3 Indonesia’s subscribers – 2011 – 2022
Table 24 – Development of 3 Indonesia’s mobile revenue (HK$ million) – 2017 – 2021
Table 25 – Change in the number of Smartfren’s mobile subscribers (million) – 2010 – 2021
Table 26 – Development of Smartfren’s financial data (IDR billion) – 2011 – 2022
Table 27 – Growth in the number of fixed broadband subscribers, penetration – 2012 – 2027
Table 28 – Growth in the number of Telkom’s fixed broadband subscribers – 2015 – 2022
Table 29 – Change in the number of Link Net's broadband subscribers – 2014 – 2020
Table 30 – Development of PT Telkom’s financial data (IDR billion) – 2010 – 2022
Table 31 – Change in fixed-line and mobile contribution to PT Telkom’s revenue – 2018 – 2022
Table 32 – Change in the number of fixed lines and penetration – 2012 – 2027
Table 33 – Growth in international internet bandwidth – 2011 – 2021
Table 34 – Growth in internet bandwidth per user– 2011 – 2021
Table 35 – Historic - Mobile subscribers – 1995 – 2010
Table 36 – Historic - Frequency spectrum overview - major mobile operators (2015)
Table 37 – Historic - XL Axiata mobile subscribers – 2007 – 2010
Table 38 – Historic - Telkomsel mobile subscribers (million) – 2007 – 2010
Table 39 – Historic - Telkom’s fixed broadband subscribers – 2004 – 2010
Table 40 – Historic - Indosat Ooredoo - mobile subscribers (million) – 2007 – 2010
Table 41 – Historic - 3 Indonesia subscribers – 2007 – 2010
Table 42 – Historic - Major mobile operators by system - 2010
Table 43 – Historic - Decline in mobile voice traffic (million minutes) – 2014 – 2018
Table 44 – Historic - Decline in SMS traffic (million) – 2014 – 2018
Table 45 – Historic - Fixed broadband subscribers and penetration – 2005 – 2010
Table 46 – Historic - DSL subscribers – 2001 – 2010
Table 47 – Historic - International internet bandwidth – 2005 – 2010
Table 48 – Historic - Internet users – 1998 – 2006
Table 49 – Historic - Bakrie Telecom mobile subscribers – 2007 – 2015

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – South East Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – South East Asia – Fixed and mobile broadband penetration
Chart 8 – Growth in telecom sector revenue – 2011 – 2023
Chart 9 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 10 – Change in the number of prepaid and contract mobile subscribers – 2015 – 2020
Chart 11 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 12 – Growth in the number of Telkomsel’s mobile broadband subscribers – 2012 – 2022
Chart 13 – Change in the number of Telkomsel’s mobile subscribers – 2011 – 2022
Chart 14 – Development of Telkomsel’s mobile revenue – 2013 – 2022
Chart 15 – Change in the number of IOH’s mobile subscribers – 2011 – 2022
Chart 16 – Development of IOH’s mobile ARPU – 2011 – 2022
Chart 17 – Development of Indosat Ooredoo’s financial data – 2009 – 2021
Chart 18 – Development of IOH’s mobile ARPU (QAR per month) – 2015 – 2021
Chart 19 – Development of IOH’s financial data (IDR billion) – 2017 – 2022
Chart 20 – Development of IOH’s revenue by type (IDR billion) – 2018 – 2022
Chart 21 – Change in the number of IOH’s mobile base stations by type – 2017 – 2022
Chart 22 – Change in the number of XL Axiata’s mobile base stations by technology – 2011 – 2022
Chart 23 – Change in the number of XL Axiata’s mobile subscribers – 2011 – 2022
Chart 24 – Change in XL Axiata’s mobile ARPU – 2013 – 2022
Chart 25 – Development of XL Axiata’s financial data (IDR trillion) – 2011 – 2022
Chart 26 – Change in the number of 3 Indonesia’s subscribers – 2011 – 2022
Chart 27 – Development of 3 Indonesia’s mobile revenue – 2017 – 2021
Chart 28 – Change in the number of Smartfren’s mobile subscribers (million) – 2010 – 2021
Chart 29 – Development of Smartfren’s financial data (IDR billion) – 2011 – 2022
Chart 30 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Chart 31 – Growth in the number of Telkom’s fixed broadband subscribers – 2015 – 2021
Chart 32 – Change in the number of Link Net's broadband subscribers – 2014 – 2020
Chart 33 – Development of PT Telkom’s financial data (IDR trillion) – 2010 – 2022
Chart 34 – Change in fixed-line and mobile contribution to PT Telkom’s revenue – 2018 – 2022
Chart 35 – Change in the number of fixed lines and penetration – 2012 – 2027
Chart 36 – Growth in international internet bandwidth (Gb/s) – 2011 – 2021

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – Major shareholders in Telkom
Exhibit 7 – Palapa Ring Project – specification of rings

Related Reports

Purchase this Report

Contact BuddeComm

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Monitor critical insights with our AI-powered Market Intelligence Platform gathering and analyzing intelligence in real time. With AI trained to spot emerging trends and detect new strategic opportunities, our clients use TMT Intelligence to accelerate their growth.

If you want to know more about it, please see:

TMT Intelligence Platform

Research Methodology

BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

For more details, please see:

Research Methodology

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

Hot Topics

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to BuddeComm's weekly newsletter.

Unsubscribe

Indonesia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Progress continues on Indonesia’s expanding satellite and submarine cable platforms

Key Developments

Key companies mentioned in this report:

Key statistics

Regional Asia market comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network market

Telecommunications infrastructure

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views