Last updated: 20 Oct 2026 Update History
Report Status: Current
Report Pages: 208
Analyst: Henry Lancaster
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.
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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