What's Happening?
The GSMA, a mobile industry association, has called for Indonesia to intensify its digital investment efforts to drive innovation and economic growth. The association highlighted findings from its GSMA Digital
Nations 2025 and ASEAN Consumer Scam 2025 reports, emphasizing the need for private capital to support the deployment of 5G spectrum, fiber backhaul, and AI-ready data centers. The GSMA believes that Indonesia has a strong appetite for digital transformation, with potential to unlock an additional $41 billion in GDP through 5G investments between 2024 and 2030. However, challenges such as delays in mid-band spectrum allocation, uneven rural coverage, and limited AI-ready capacity could hinder progress. The GSMA suggests several actions, including setting measurable targets for rural 4G/5G coverage and AI-ready data centers, using subsidies to support rural sites, and confirming multiband timelines for spectrum allocation.
Why It's Important?
Accelerating digital investment in Indonesia is crucial for enhancing the country's economic growth and competitiveness in the region. The GSMA's recommendations aim to address existing challenges and capitalize on Indonesia's strengths in digital skills and cybersecurity. By improving infrastructure and expanding digital capabilities, Indonesia can attract more investment, boost innovation, and increase its GDP significantly. The focus on rural coverage and AI-ready capacity is particularly important for ensuring equitable access to digital services and fostering inclusive growth. Additionally, addressing consumer trust issues related to mobile-led scams and frauds is vital for maintaining confidence in digital platforms and services.
What's Next?
Indonesia is expected to take steps to implement the GSMA's recommendations, which may include setting measurable targets for digital infrastructure development and adopting policies that prioritize long-term investment over short-term gains. The government and industry stakeholders may collaborate to enhance rural coverage and AI-ready capacity, potentially using subsidies and blended finance vehicles to support these efforts. Furthermore, Indonesia may work on harmonizing data flows, cybersecurity, and digital trade rules to reduce compliance costs and expand market opportunities for local innovators. These actions could pave the way for a more robust digital economy in Indonesia.
