Indonesia's Ministry of Communications and Informatics Opens Broadband Technology Investment Opportunities

DUBAI, UAE, January 10, 2022 /EINPresswire.com/ -- The Government of the Republic of Indonesia has prepared digital transformation in every aspect of life. Indonesia's Ministry of Communications and Informatics has developed telecommunications infrastructure and opened up new technology investment opportunities in Indonesia. According to the Director-General of Resources and Equipment of Post and Information Technology, Ismail, Indonesia, needs equal access to digital connectivity due to natural conditions and the increasing needs of citizens.

"Indonesia is without a doubt a large developing country with 17,000 islands that requires equitable access to connectivity, especially for industrial and household consumption," he explained during a virtual presence at the "5G Connectivity for Making Indonesia 4.0 discussion taking place in Indonesia Pavilion at Expo 2020 Dubai, Friday (24/12/2021).

According to the Director-General of SDPPI, the Government has implemented digital infrastructure development, including building a 5G network. Indonesia has carried out trials since 2017 and implemented the commercialization of 5G networks through the construction of three cellular telecommunications operators in 13 cities since 27 May 2021.

"As a matter of fact, it has been implemented to Industry 4.0 in Batam since June 7, 2021, for additional needs and the automotive industry in Indonesia," he explained. Following President Joko Widodo's direction, Director General Ismail said that the Ministry of Communications and Informatics had been implementing the acceleration of digital transformation in Indonesia. In a similar report, the President's main direction to the Minister of Communications and Informatics is to improve communications and information technology, strengthening cyber security from cybercrimes and data sovereignty.
"Kominfo takes its course comprehensively from upstream to downstream to realize a more digitally connected and prosperous Indonesia," he said in an interview.

Roadmap and Strategy

The Director-General of SDPPI of the Ministry of Communications and Informatics stated that the Ministry is preparing a holistic approach by implementing priority programs to accelerate economic recovery.

"Preparing our nation towards Industry 4.0 era and the Covid-19 economic recovery, we are creating several initiatives in the digital infrastructure sector that synergize with the digital economy, digital government, and digital society," he replied.

According to Director-General Ismail, the Roadmap for Digital Indonesia 2021-2024 provides direction for national digital transformation in the Industry 4.0 Revolution and supports national economic recovery.

“This roadmap is designed to be implemented collaboratively between the government, business actors, and the general public," he continued.
Meanwhile, the strategy implemented by the Ministry of Communications and Informatics includes accelerating the provision of telecommunications infrastructure and strengthening data governance, which provides for cross-border data exchange. "This includes strengthening the Government's digital infrastructure and strengthening public communications, including through digital platforms," explained the Director-General of SDPPI, Ministry of Communication and Information Technology.

In particular, Director General Ismail further described the initiatives focused on the Ministry of Communications and Informatics program. In 2021, the Ministry of Communications and Informatics will focus on four areas to increase access to 4G networks in disadvantaged areas by accelerating the construction of BTS and the use of the Palapa Ring. Furthermore, the Ministry will also encourage the use of infrastructure among telecommunication providers, launching 5G networks which include fiberization and digitalization in urban and rural areas to support economic growth.

"In 2022, the Ministry of Communications and Informatics will continue to expand its local start-up development program. In 2023, Indonesia will be developed into a Southeast Asia Fintech Hub. And in 2024, Indonesia will encourage the adoption of digital tourism for marketing needs and customer experience," explained the Director-General of SDPPI, Ministry of Communications and Informatics.

Potential Investment Opportunity

Director-General Ismail stated that digital transformation requires collective efforts to bridge the digital divide by connecting the unconnected and building resilience and empowerment of digital ecosystems and inclusive economic growth. According to the Director-General of SDPPI of the Ministry of Communications and Informatics, currently, Indonesia faces three challenges in increasing change in the digital sector, namely connectivity, the digital divide during the pandemic, and the expansion of digital infrastructure networks.

"The problems Indonesia is currently facing during the pandemic highlight an effective digital infrastructure to support productivity. In addition, there is a gap between those who can afford internet services for productivity and those who have to reduce internet access as an economic impact. And third, there is a shift in ensuring capacity, competition, and affordability while encouraging investment," he explained.

Therefore, the Ministry of Communications and Informatics seeks to realize the 2025 ITU Broadband Commission Advocacy target. "By 2025, all countries are expected to provide universal broadband policies, affordability of broadband services, encourage everyone to have online access, digital literacy, and skills, digital financial services, as well as e-commerce and gender equality in accessing services," explained Director General Ismail.

The Director-General of SDPPI of the Ministry of Communications and Informatics explained how a broadband network should exist with the country's prosperity. According to him, the higher the penetration of Fixed Broadband and Mobile Broadband in a country, the better the country's ability to mitigate the risk of economic damage due to the Covid-19 pandemic.

"Fixed broadband plays a bigger role in developed countries for the return to scale effect and mobile broadband recreates a bigger role in developing countries for accessibility aspects," he said.

Director-General Ismail stated that all available 5G network frequency spectrum by the end of 2021 is expected to spur GDP growth to Rp 2,874 trillion and reach Rp 3,549 trillion in 2035. "Productivity will increase, accumulating a total of 9.7 million/capita in 2030 and by 11.6 million /capita in 2035," he continued.
Even the implementation of the 5G network in Indonesia, according to the Director-General of SDPPI, Ministry of Communications and Informatics, is estimated to increase investment by IDR 591 trillion in 2030 and IDR 719 trillion in 2035.

"Thus, it is estimated that there will be an additional 4.6 million job opportunities in 2030 and 5.1 million job opportunities in 2035," he continued.
Seeing economic opportunities and the impact of 5G implementation, Director General Ismail invited the private sector to increase investment in Indonesia.

"I am thrilled to be able to present the achievements of Indonesia's digital infrastructure development. Indonesia has been preparing for digital transformation in every aspect of life. Allowing me to proudly introduce Indonesia's achievements and new open technology investment opportunities to the world," he concluded.

From December 24, 2021, to January 6, 2022, the Ministry of Communications and Informatics will enliven the Indonesia Pavilion at EXPO 2020 DUBAI. In addition to exhibiting the latest achievements of digital development, with the theme Indonesia Digital Opportunity, the Ministry of Communications and Informatics open investment opportunities in the digital technology sector in Indonesia.

Media Liaison Officer
Indonesia Pavilion
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