Telecommunications in Indonesia

A Hot Tip about IT and Telecommunications in Indonesia

Posted on: 3 Mar 2010


Since 2002, the country’s telecommunications sector underwent major regulatory restructuring to liberalize the telecommunications sector. The monopoly of major operators in Indonesia - PT Telkom, PT Indosat, and PT Satelindo was terminated. PT Telkom’s exclusive right in operating domestic and long-distance fixed lines were terminated. PT Indosat and PT Satelindo lost their exclusive rights to operate international services. At present Indonesia has around 9 million fixed-lines telephones, representing a teledensity of around four lines per 100 people. To stimulate the development of country’s teledensity rate, PT Telkom, PT Indosat PT Bakerie, and PT Smart Telecom deployed CDMA fixed-wireless service.


The Indonesian cellular market is heating up and potentially lucrative as demand for mobile phones continues to increase. With around 124 million postpaid and prepaid subscribers (cellular and fixed-wireless) in early 2009, a penetration of 53% indicates there is still room for growth. The number of subscribers is forecasted to grow by around 30-35 million in 2008. CAPEX for nine operators (GSM and CDMA) is expected to reach $7 billion in 2009. The shape of the market is expected to undergo change as a number of new operators, with foreign partners, like Singapore Telecommunications Limited (Singtel), SingaporeTechnologies Telemedia (STT), Telecom Malaysia, Maxis, and Hutchinson, Qatar telecom enter the market.


Best Products/Services

Base transceiver stations, switching, ancillary and transmission equipment, and cellular handsets, content providers, broadband wireless access, 3G/UMTS base stations and terminals



Indonesia’s telecommunication infrastructure market has good potential for wireless equipment, services and content provider companies. The rapid expansion of the country’s cellular and fixed-wireless networks has driven increased spending for telecom infrastructure. The entry of international firms as investors poses opportunities for American firms to parlay their relations with international firms into business to improve the equipment and infrastructure in Indonesia.



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Posted: 03 March 2010

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