Indonesian Service Sector Review: Telecommunications

Ibrahim Kholilul Rohman, Mohammad Marza Naufal and Ibrahim Naufal
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Ibrahim Kholilul Rohman: Indonesia Financial Group Progress (IFG Progress) and School of Strategic and Global Studies, Universitas Indonesia
Mohammad Marza Naufal: Faculty of Economics and Business, Universitas Indonesia
Ibrahim Naufal: Faculty of Economics and Business, Universitas Indonesia

No DP-2025-06, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper aims to assess ongoing advancements in the telecommunications sector in Indonesia, elucidating strengths and weaknesses and offering policy recommendations. The telecommunications industry continues to grapple with challenges such as heavy reliance on imported equipment; pricing issues, particularly at the wholesale level; spectrum management concerns; and ensuring equitable access in addressing the digital divide. To address these challenges, it is imperative to formulate policies that guarantee equitable access and utilisation at affordable pricing, requiring enhanced market conduct and pricing mechanisms. Furthermore, incentivising operators to extend coverage to underserved areas is crucial, given the existing supply constraints in such regions.

Keywords: Telecommunications; ICT for development; digital divide (search for similar items in EconPapers)
JEL-codes: L96 N75 O14 (search for similar items in EconPapers)
Date: 2025-08-27
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