Indonesia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

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Last updated: 20 Oct 2026 Update History

Report Status: Current

Report Pages: 208

Indonesia concludes 700MHz and 2.6GHz spectrum auctions

Comprising the world’s largest archipelago, Indonesia faces considerable topographical obstacles to providing nationwide access to quality telecom services. Social, political, and economic problems have exacerbated these geographical challenges over the years.

Deployment of fixed-line infrastructure to many sparsely populated islands is largely impractical. Fixed infrastructure remains concentrated around major urban centres, though its reach has been gradually expanded. The relatively low broadband penetration rate is partly due to underinvestment by the previously state-owned incumbent Telkom, although in recent years more effort has been made to address poor connectivity in outlying areas, where a good proportion of the population resides. In recent years, more fibre cables have been laid, though again these are mostly concentrated in built-up areas where the return on investment is more secure. For all that, Indonesia’s telecom sector is largely focused on mobile connectivity.

With the availability of LTE being near universal, the mobile operators have focused on expanding the reach of 5G services. Telkomsel was the first to provide a commercial 5G service (in Jakarta in May 2021) followed by IOH in Solo shortly afterwards. However, the rollout of 5G was hampered by the lack of available spectrum. Telkomsel was obliged to launch services using limited spectrum in the 2.3-2.4GHz band, which initially was only supported by a small number of handsets. Much of the LTE spectrum has had to be re-farmed from broadcasting services. Telkomsel was able to alleviate pressure on its limited spectrum holdings after having secured 20MHz of spectrum in the 2.1GHz band at auction in November 2022. Some relief from the poor availability of suitable spectrum resulted from the award of spectrum in the 700MHz and 2.6GHz bands in mid-2026.

Key Developments

  • Komdigi concludes 700MHz and 2.6GHz spectrum auctions.
  • The first of three National Data Centres is opened to consolidate government data.
  • Telkom increases its data centre capacity from 42MW to 55MW.
  • Report update includes the regulator's recent market data releases and annual market report for 2025, telcos' operating and financial data to Q2 2026, 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, TelkomNet, Link Net, MNC Kabel Mediacom, Biznet Networks, MyRepublic

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