The Global System for Mobile Communications Association (GSMA) released new insights into the impact of 5G and mobile technologies on Indonesia’s key industries at the Digital Nations Summit in Jakarta.
Hosted in collaboration with the Ministry of Communications and Informatics (KOMINFO), the summit showcased how these technologies are accelerating the growth of the country’s manufacturing, mining, and fintech sectors, supporting Indonesia’s ambition to become one of the world’s top five economies through a robust digital economy.
The latest GSMA findings, detailed in the GSMA’s ‘Mobile Economy Asia Pacific 2024’ report, emphasize the transformative potential of mobile technology in Indonesia. By 2030, the country is expected to become the second-largest smartphone market in Asia Pacific, with 387 million smartphone connections. This surge is expected to enhance productivity and drive innovation in critical sectors.
While 5G deployment is still in its early stages, the GSMA predicts that over 32% of connections in Indonesia will be powered by 5G by 2030, with 67% remaining on 4G networks. Dr. Ir. Ismail, Director General of Resources Management and Equipment of Posts and Informatics, highlighted the importance of Indonesia’s IMT Spectrum Roadmap in advancing digital transformation, saying, “By laying the foundation for 5G, we are positioning Indonesia as a leader in the global digital economy.”
A key highlight of the summit was the signing of a Memorandum of Understanding between KOMINFO and the Indonesia Industrial Digital Transformation Council (WANTRII), aiming to boost digital transformation in industries through 5G use cases and collaboration.
GSMA’s Head of APAC, Julian Gorman, stressed that mobile technologies, including 5G, are critical to enhancing Indonesia’s competitiveness. “5G is revolutionizing industries that are key to Indonesia’s growth and economic productivity,” he said. This sentiment was echoed by Teguh Prasetya, Chairman of the Indonesia Internet of Things Association (ASIOTI), who emphasized the need for public-private collaboration to drive innovation and achieve the country’s digital transformation goals.
The GSMA estimates that Indonesia will attract $18 billion in mobile industry investment between 2024 and 2030, contributing $41 billion to the nation’s GDP. Innovations such as Indonesia’s first 5G smart warehouse, showcased at the summit, are expected to significantly enhance operational efficiency and drive growth in sectors like mining.
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The event also highlighted the potential for 5G to streamline operations in Indonesia’s world-class mining industry, improving safety and efficiency. Additionally, advancements in satellite communications, including SpaceX’s Starlink internet service, will ensure that even the most remote areas of Indonesia benefit from the country’s digital transformation.
The GSMA remains committed to supporting Indonesia’s digital ambitions and will continue these discussions at the upcoming M360 Asia Pacific 2024 event in Seoul, where further insights into the role of 5G and AI in shaping business services will be explored.
