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Indonesian Service Sector Review: Telecommunications

Author

Listed:
  • 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)

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.

Suggested Citation

  • Ibrahim Kholilul Rohman & Mohammad Marza Naufal & Ibrahim Naufal, 2025. "Indonesian Service Sector Review: Telecommunications," Working Papers DP-2025-06, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2025-06
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    Keywords

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    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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