The GSMA has unveiled new insights into how 5G and mobile technologies are driving progress in Indonesia’s key industries, at this year’s Digital Nations Summit in Jakarta, hosted in partnership with the Ministry of Communications and Informatics (KOMINFO). As Indonesia aspires to become one of the world’s top five economies within the next generation, driven by its burgeoning digital economy, the country’s Industry 4.0 vision stands as a cornerstone of this ambitious trajectory. The latest findings emphasize how these technologies are driving significant growth and innovation across manufacturing, mining, and fintech sectors.
5G and Mobile Technologies to Accelerate Industry Transformation
The GSMA’s latest Mobile Economy Asia Pacific 2024 Report highlights Indonesia’s rapid advancement in mobile technology and its substantial potential for future growth. By 2030, Indonesia is expected to become Asia Pacific’s second-largest smartphone market, with 387 million smartphone connections, unlocking a range of new digital services and enhancing economic productivity.
While 5G is at the start of its journey in Indonesia, the ambitious plans of the government and operators means that more than 32% of connections are expected to run over 5G by 2030, according to the GSMA Intelligence report. Some 67% of connections will be 4G by 2030, according to the forecast, with 94% of people using smartphones.
Dr Ir. Ismail, Director General of Resources Management and Equipment of Posts and Informatics, said: “In addition to the essential Indonesia IMT Spectrum Roadmap, which is central to our digital transformation strategy, focusing on the development and release of key frequency bands to enable advanced services such as 5G. Collaboration with stakeholders is one of the imperative strategies to establish a comprehensive framework for Indonesia’s digital vision in the development and use of digital technologies across Indonesia. By this, we are laying the foundation for the seamless rollout of 5G and beyond, positioning Indonesia as a leader in the global digital economy.”
At the Digital Nations Summit, KOMINFO signed a Memorandum of Understanding with the Indonesia Industrial Digital Transformation Council (WANTRII) to accelerate digital transformation across Indonesia’s industries. This will be achieved through 5G use cases, by connecting solution providers with users, and by fostering collaboration to grow the digital technology device ecosystem and support domestic industry development.
Julian Gorman, Head of APAC at the GSMA, said: “Indonesia has the largest economy in South East Asia and its industries must compete globally for exports and investment. Around the world, 5G is revolutionising how industry sectors that are core to Indonesia’s growth operate and can unlock strong gains in economic productivity. The transformative impact mobile technologies including 5G are having on industry underscores the imperative for Indonesia to nurture and encourage a vibrant ecosystem to drive economic growth and foster innovation.”
Teguh Prasetya, Chairman of the Indonesia Internet of Things Association (ASIOTI), stressed the need for a collaborative approach to achieving the digital transformation goals. He said: “The commitment from both the public and private sectors is not just important, it’s essential to realise a productive and digitally advanced Indonesia. Through collective efforts, we can harness the full potential of 5G and other mobile technologies to drive innovation, increase productivity, and create new economic opportunities for all.” Prasetya also highlighted that this digital transformation would provide enhanced solutions in industries like agriculture and health, ultimately improving the quality of life for all Indonesians.
Looking to the future, Teguh reiterated the long-term vision for Indonesia, stressing the importance of inclusivity in the digital revolution. “Our goal is to ensure that every region in Indonesia benefits from these advancements, from urban centres to the most remote areas. By doing so, we can create a more equitable and prosperous society, aligning with the vision of Indonesia Emas 2045.” The combined efforts of the regulator and industry will lay the foundation for Indonesia’s leadership in the global digital economy, ensuring a resilient and future-ready nation.
Investment and Economic Impact
The GSMA’s findings reveal that Indonesia stands to gain approximately $18 billion in mobile industry investment between 2024 and 2030, with a significant portion allocated to 5G networks. This investment is projected to contribute $41 billion to Indonesia’s GDP over the next six years, highlighting the economic importance of mobile technology.
During the event mobile operators and technology companies will highlight innovations that 5G, IoT and AI can combine to digitally transform industries, including showcasing Indonesia’s first 5G smart warehouse, that is bringing significant operational efficiency and logistics management improvements.
The mining sector is set to also benefit from mobile advancements. Internationally 5G technology is streamlining operations and improving safety protocols offering to boost Indonesia’s world class mining resources.
The Mobile Economy report also highlights how Indonesia’s four leading mobile operators – Telkomsel, Indosat Ooredoo Hutchison, XL Axiata, and Smartfren – have introduced new API services such as Number Verify, SIM Swap, and Device Location as a first step under the GSMA Open Gateway initiative which will enable a new era of innovation to enhance security and optimize the customer experience for online financial transactions and digital services.
Alongside 5G network deployment, advancements in satellite communications will play a crucial role in creating an inclusive society. These efforts are integral to ensuring that digital transformation benefits reach all corners of the archipelago. The Starlink internet service was formally launched in June 2024, with the expectation that it will deliver much-needed connectivity to the most remote islands in Indonesia. The country’s government and SpaceX has also signed an agreement on enhancing connectivity in the health and education sectors.
The Digital Nation Summit Jakarta
The Digital Nations Summit, hosted by KOMINFO, provided a platform to discuss Indonesia’s digital ambitions and the role of mobile technology in achieving these goals. The event featured keynotes, panel discussions, and sessions focused on the future of Indonesia’s digital landscape.
As Indonesia continues its digital journey, the GSMA remains committed to supporting the country’s efforts in achieving its vision for a digitally empowered future. In December 2023, the GSMA hosted its Indonesia Digital Nations Summit and published the Indonesia Digital Nations report, entitled “Forging a resilient digital nation: Proposals for Indonesia’s future”, evaluates Indonesia’s progress to becoming a digital nation and recommends action points to accelerate progress.
To sustain and accelerate this progress, the GSMA recommends a collaborative approach between government and industry to address regulatory and investment challenges. Key recommendations include fostering infrastructure sharing, simplifying regulatory processes, and providing policy incentives to support the expansion of 5G networks.
M360 Asia Pacific 2024, 1-2 October
Delegates attending this year’s edition of M360 Asia Pacific in Seoul will have a further opportunity to hear more about the GSMA’s Digital Nations report. They will also hear from thought leaders and attend keynotes and panel discussions covering key topics such as how AI is reshaping business services, 5G acceleration and IoT (Internet of Things).
M360 Asia Pacific is brought in partnership with Host Sponsor, KT and will convene leading industry figures and policymakers from across the region. The event welcomes members of the media to pre-register for M360 Asia Pacific, taking place at Westin Josun, Seoul.
Click here to learn more about the Digital Nations Summit 2024.
