More capital investments needed for the Indonesian telecom sector finds Idem Est Research


Idem Est Research & Advisory

1 June 2023, 16:00 AEST

Indonesia Telecom Industry Market Report forecasts 418m mobile and fixed broadband subscribers by 2030


More capital investments are needed for the Indonesian telecom sector, as revealed by Idem Est Research, a leading provider of TMT market intelligence and advisory. Today, the company announces its in-depth analysis of the dynamic and burgeoning telecommunications market in Indonesia. This report aims to shed light on the rapid growth, emerging trends, and future prospects of the telecom industry in the country.

By 2030, 5G mobile subscribers in Indonesia are projected to represent 76% of all subscriptions, with major players like IOH and Telkomsel already offering 5G services. The Indonesian market is expected to have nearly 300 million 5G subscribers by 2030.

The telecom market in Indonesia is mobile-centric, with four major network operators and a dominant fixed-line provider. The country’s strong economic fundamentals position it as one of the fastest-growing telecom markets globally. Both mobile and fixed broadband subscriptions are driving growth, but more investments are needed to accelerate FTTH (Fiber to the Home) take-up. Indonesia has a vibrant independent mobile tower market with large local and foreign investors. The same needs to happen with FTTH, and the government should facilitate access rights and subsidize uneconomic areas outside of Java, Bali, and Sumatra islands. Idem Est Research estimates that another 20 million premises are yet to receive FTTH, requiring an estimated USD 8 billion in investments.

Lack of spectrum in the low and mid bands is hampering upgrade efforts to 4G. The government needs to accelerate the release of spectrum in the 700MHz and 3500Mhz bands and also require operators to accelerate the 3G shutdown across all operators. Idem Est Research predicts strong overall growth in the telecoms market until 2030, with more investments required outside of Java and the nationwide phasing out of 3G.

Capital expenditure investments in expanding 4G coverage and capacity are a priority for telecommunications operators. The report projects an average Capex spending growth of 4.4% between 2023 and 2030.

Key findings from Idem Est Research’s analysis include:

  1. Rapid Growth: The Indonesian telecom market has experienced remarkable growth, with an average annual increase in revenue of over 5.2% in the past five years. This growth is expected to continue as more rural areas gain access to reliable and affordable mobile services.
  2. Data Dominance: The increasing popularity of social media platforms, online gaming, and streaming services has fueled the demand for data services in the country. Idem Est Research recorded over 365 million mobile and fixed broadband subscribers.
  3. Infrastructure: Idem Est Research indicates that the Indonesian telecom operators should invest more heavily in both fiber and tower infrastructure, closer to 0.4% to 0.5% of GDP, to lift the country into the top half rankings in terms of speed, coverage, and capacity.
  4. Government Support: The Indonesian government has implemented various initiatives to foster the growth of the telecom sector, but to set up a reporting framework that is measurable and benchmarked, it also needs to release more spectrum. These measures should facilitate infrastructure development, encourage investment, and improve connectivity in underserved areas outside of Java.
  5. Future Prospects: Idem Est Research’s analysis forecasts a positive outlook for the Indonesian telecom market despite a tapering Capex cycle. Telecom operators should focus on lower-income households for fixed broadband. Additionally, progress in 5G rollout, “fiberization” of mobile towers, increased focus on cybersecurity, and the integration of artificial intelligence are anticipated to shape the industry’s future landscape.

“Idem Est Research forecasts that mobile subscribers will reach 397 million by 2030, while the fixed broadband market penetration continues to remain below that of neighboring countries. The telecommunications industry is expected to maintain revenue growth momentum, with an average growth rate of 3.4% from 2023 to 2030,” says Landry Fevre, Director of Idem Est Research & Advisory.

Idem Est Research and Advisory’s report on the Indonesia telecom market serves as a valuable resource for industry stakeholders, investors, and policymakers looking to gain a comprehensive understanding of the sector. The analysis highlights the immense potential and opportunities for both local and international players to contribute to the development and innovation of the telecom industry in Indonesia.

Download the full report:


BizNet, Centratama, DigitalBridge, EdgePoint, FiberStar, Gihon, GoJek, IBS Towers, IndiHome, Indosat, Kabel MNC Play, Link Net, Mitratel, MyRepublic, Protelindo, Smartfren, Telkom, Telkomsel, Tokopedia, Tower Bersama, Tri Indonesia, XL Axiata.

Contact Information:
For media inquiries, please contact:
Landry Fevre

About Idem Est Research Advisory
Idem Est Research and Advisory is a boutique telecommunications and digital infrastructure market research and advisory. Idem Est Research provides leading telecoms research helping our clients stay updated on the latest telecoms sector and digital infrastructure developments. The reports provide analyses of mobile and broadband markets, capital expenditure, forecasts, key telecom trends and thematic such as 5G and telecoms digital infrastructure, as well as other statistics of the telco industry.

Our independent approach allows us to place the trends and drivers fully into context and analyse the industry from different, unbiased perspectives. Alongside the facts and figures, Idem Est Research draws on three decades of experience to provide incisive commentary and analysis. This brings visibility to the business drivers, challenges, decision-making and future direction of the telecoms sector.
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SOURCE: Idem Est Research & Advisory

This release was published on openPR

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