q102/random_k4/random_4.md

Accelerating
5G in Indonesia:
A spectrum roadmap
for success

Copyright © 2025 GSMA

The GSMA represents the interests of mobile
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new generation fixed and mobile technologies
including 5G, online service regulation,
competition policy and the app economy.

Published: March 2025

Contents

Summary

1.   Introduction

1.1  The Indonesia mobile market
1.2  A spectrum roadmap for 5G
1.3  The key role of mid-band spectrum for 5G

4

7
8
11
12

2  Progress on Indonesia’s spectrum plan for 5G
Indonesia’s 5G Spectrum planning
  2.1
  2.2   The digital dividend, the 700 MHz band and changes
to the applicable spectrum management law

14
15

17

3.   Key challenges and actions to secure sufficient

spectrum for 5G services in Indonesia
  3.1  Spectrum roadmap towards 2030
  3.2  Long-term financial sustainability in Indonesia

18
19
22

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

Summary

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

Communications, connectivity and digitisation
are central to achieving higher productivity and
broader socio-economic inclusion of Indonesia’s
broadly distributed and diverse population.
Devising effective pro-growth, pro-inclusion
communications and digitisation policies will
be key to Indonesia’s success in the new global
economic environment.

Broadband connectivity and digital services that
use spectrum play a vital role in how people live
and businesses operate. Digital transformation

is rapidly occurring in many sectors of the
Indonesian economy. The 5G era will help to
accelerate this process and boost economic
growth in the country in the years ahead.

In Indonesia, mobile data traffic per connection has
grown strongly in recent years, reaching over 16 GB
per connection in 2024. 5G is being implemented
with limited launches by operators using mainly
their existing legacy spectrum holdings. As of the
end of 2024, 5G network coverage is around 26%
of the population (see below).1

Figure 1
Indonesia mobile market – key indicators

Total spectrum assigned:
452 MHz;
Mid-band: 360 MHz

4G population coverage: 98%;
5G population coverage: 26.3%

Mobile data per connection
per month: 14.9 GB (2024)
vs 41.5 GB (2030)

Much work must be done to ensure adequate
spectrum resources to support 5G development
in Indonesia, especially in the crucial mid-band
range (1–7 GHz). The GSMA estimates that mid-
band 5G spectrum will drive an increase of
more than $610 billion in global GDP in 2030,
almost 65% of the overall socio-economic value
generated by 5G. In Southeast Asia, 5G mid-
bands will boost annual GDP by $35 billion by
2030, heavily driven by the large Indonesian
market, which will account for 41% of this
increment.

To secure these benefits, markets will need an
average of 2 GHz of mid-band spectrum during
this decade. In Indonesia, just 360 MHz of mid-
band spectrum is currently assigned for mobile
services. A clear spectrum roadmap setting
out the strategy and actions to make spectrum
available over the next few years will support

the long-term growth of 5G and its full socio-
economic benefits for citizens and enterprises
across all sectors of the economy.

The 5G era promises to unlock many new use
cases across different industries and accelerate
economic growth. To realise this, it is essential
to build on current plans by prioritising the
following actions for 5G development:

—   Refarm and auction the 2.6 GHz band for
IMT/5G in early 2025 following the expiry
of current satellite broadcasting licences
on 1 January 2025. The 2.6 GHz band should
be auctioned together with the
700 MHz spectrum. Reserve prices should
be set conservatively to allow mobile
operators to acquire sufficient spectrum
for high-speed 5G broadband services.

1.

  Refer to https://indonesiabusinesspost.com/risks-opportunities/gsma-warns-indonesia-of-potential-losses-urging-for-5g-spectrum-price-review/

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—   Accelerate the initial release of 200 to 300 MHz
of the 3.5 GHz band (from 3.4 GHz to 3.7 GHz),
especially in urban areas, including greater
Jakarta, Surabaya, Bandung and Medan, where
demand is currently highest.

•

•

 For 3.5 GHz, an unnecessarily large guard
band between mobile and fixed satellite
services (FSS) should be avoided. Instead,
appropriate coexistence measures, such
as site shielding, LNB replacement and
upgrading FSS receiver filters, can be
implemented to allow sufficient spectrum
for 5G services.

 In December 2024, the government
proposed the 3.5 GHz band as essential
for mobile broadband in the 2025–2029
Strategic Plan. The plan emphasised that
each operator would need at least
100 MHz of mid-band spectrum to meet
the 100 Mbps speed quality target.2
At least 80 MHz in the 3.3–3.4 GHz band
is cleared and should be auctioned earlier
if possible.

—   Work towards making at least 2 GHz3 of
mid-band spectrum available for IMT/5G
by developing a spectrum roadmap for
2025–2030, considering future IMT spectrum
supply, including the 4.8 GHz and upper
6 GHz bands.

—   For upcoming auctions of new spectrum

bands, reserve prices should be set
conservatively below estimates of market
value. This will allow room for price discovery
and reduce the risk of unsold spectrum.
Incentives in the form of reduced spectrum
payments in exchange for investment and
network commitments by operators should
also be considered.

—   Review the current formula for annual

spectrum fees to provide the right incentives for
efficient spectrum use. Avoid disproportionate
increases in costs that are not aligned with
evolving market conditions.

2.

  Refer to Adis Alifiawan, FGD-2, Rancangan Teknokratik Renstra Kominfo 2025-2029, Penyediaan Pita Frekuensi 3,5 GHz untuk Mobile Broadband, pages 4-5

3.  Refer to www.gsma.com/spectrum/wp-content/uploads/2021/07/5G-Mid-Band-Spectrum-Needs-Vision-2030.pdf

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

1.  Introduction

7 / 25
7 / 25

Communications, connectivity and digitisation
are central to achieving higher productivity
and broader social and economic inclusion of
Indonesia’s broadly distributed and diverse
population. Devising effective pro-growth,
pro-inclusion communications and digitisation
policies will be key to Indonesia’s success in the
new global economic environment.

Digital services, underpinned by high-speed,
high-performance networks, are set to become
more integral to the Indonesian economy and
society. Digital transformation is rapidly occurring
in many sectors of the economy. The 5G era will
help accelerate this process and boost economic
growth in the country in the years ahead.

The International Telecommunication Union
(ITU) World Radiocommunication Conference
2023 (WRC-23) completed the harmonisation
of the 3.5 GHz band to deploy 5G services and
identified additional mid-band spectrum in 6 GHz

for future expansion towards 2030. Spectrum
harmonisation is essential because it ensures
stronger mobile connectivity while achieving
economies of scale.

Increasing smartphone adoption and video
usage have driven mobile data traffic growth
over the last decade. This trend is set to continue
in the 5G era with more immersive media-rich
services, new online gaming technologies and
extended reality (XR) applications. 5G has been
the fastest mobile generation rollout, surpassing
2.1 connections by the end of 2024.4 As of
September 2024, 311 operators in 122 markets
have launched commercial 5G services.5

This report looks closer at the 5G spectrum
planning state in Indonesia. It discusses the
key issues and challenges in securing sufficient
spectrum resources for 5G, particularly
in the mid-bands. It then provides some
recommendations on the way forward.

1.1  The Indonesia mobile market

High-bandwidth internet connectivity
is increasingly important for enhancing
productivity, social welfare, and well-being.
It also supports Indonesia’s leading
entrepreneurial and technology scene.6

In many emerging markets, where fibre
penetration is typically low, there tends to be
a greater reliance on wireless technology –
both mobile and fixed wireless – to meet the

growing demand for affordable and expandable
connectivity. As of the end of 2024, mobile
broadband penetration in Indonesia stood
at 121 per 100 inhabitants, compared to fixed
broadband penetration of 5.3 per 100 inhabitants
(or 20.5 per 100 households).7 4G network
coverage was 98% of the national population.
However, it is estimated that 11% of populated
areas remain unserved as of 2023, with 12,548
villages not covered by 4G.8

4.

  Source: GSMA Intelligence

5.

  Source: GSMA Intelligence. 5G in Context, Q3 2024.

6.

7.

8.

 Source:  Bain & Co, Navigating High Winds: Southeast Asia Outlook 2024:2034, 1 August 2024.  Available at www.bain.com/globalassets/noindex/2024/bain_report_
navigating_high_winds_southeast_asia_outlook_2024_34.pdf page 16

Source: GSMA Intelligence.

 Refer to Dr Denny Setiawan, MCI, Country Case Study: Spectrum Pricing Methodology and Mechanisms in Indonesia, 10th APAC Spectrum Management Conference,
Jakarta, 23-24 April 2024, page 2

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSFigure 2
Competitiveness of access penetration and affordability of Indonesia’s mobile and
fixed broadband services

Mobile broadband

Access
4G+5G penetration
(% of population, 2023,
TeleGeography)

Affordability
Mobile broadband basket
(% of GNI per capita,
2022, ITU)

Fixed broadband

Access
Fixed broadband
penetration (% of
households, 2023,
TeleGeography)

Affordability
Fixed broadband basket
(% of GNI per capita,
2022, ITU)

164 0.2

0.3

0.4

88

93

123

1.4

143

0.3

Singapore

Brunei

Vietnam

Thailand

Malaysia

112 0.6

110 1.2

79

55

54

2.6

3.4

2.5

94

2.0

Philippines

28

113 4th

1.1

5th

Indonesia

19

7th

2.3

2.1

Cambodia

Lao PDR

16

13

99

53

45

11.3

6.1

6th

11.6

7.2

3.1

Myanmar

9

15.3

Singapore

Brunei

Vietnam

Thailand

Malaysia

Philippines

Indonesia

Cambodia

Lao PDR

Myanmar

Source: World Bank Group Study (Aug 2024), ITU Datahub

Indonesia’s broadband infrastructure lags behind
many Southeast Asia counterparts in terms of
access and affordability. In ASEAN, Indonesia
is ranked 4th for mobile broadband access
compared to 7th for fixed broadband. Regarding
affordability, mobile and fixed broadband services
are mid-ranked among ASEAN countries.9

The Indonesian mobile market comprises the
following main players as of 2024.

—   Telkomsel, the largest mobile operator by

subscriber base, has around 45% market share.

—   Indosat Ooredoo Hutchison was formed in
January 2022 following a merger between
Indosat Ooredoo and 3 (Hutchison). The two
entities have a combined market share of
around 28%.

—   XL Axiata has a market share of around

16%, while Smartfren has a market share of
around 11%. On 11 December 2024, the two
operators announced a proposed merger

to create a stronger local player to drive
investments in digital infrastructure, expand
service coverage, and foster innovation.10
The proposed merger has been conditionally
approved by the Ministry of Communication
and Digital Affairs.11

In Indonesia, 5G rollout is progressing, with
commercial services launched by Telkomsel,
Indosat Ooredoo and XL Axiata since 2021, utilising
existing spectrum holdings in the 1800 MHz,
2.1 GHz and 2.3 GHz bands. As of the end of
2024, 5G networks covered 26.3% of Indonesia’s
population, or around 15.7 million 5G connections.

Currently, 452 MHz of mobile spectrum is assigned
in Indonesia, as shown below. In the mid-band
range, only 360 MHz across the 1800 MHz, 2.1 GHz
and 2.3 GHz bands has been assigned, compared
to an average of 850 MHz in the Asia-Pacific
region today. Therefore, there is a clear need for
more mid-band spectrum to be made available
in the country as soon as possible to support the
development of high-speed 5G services.

9.

  Refer to Adis Alifiawan, FGD-2, Rancangan Teknokratik Renstra Kominfo 2025-2029, Penyediaan Pita Frekuensi 3,5 GHz untuk Mobile Broadband, pages 9-10

10.      Refer to www.xlaxiata.co.id/en/news/xl-axiata-and-smartfren-announce-idr-104-trillion

11.  Refer to https://www.cnbcindonesia.com/tech/20250307150750-37-616648/meutya-hafidz-restui-merger-xl-dan-smartfren-tapi-ada-syaratnya

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSTable 1
Current IMT spectrum assigned in Indonesia

Type of spectrum

Bandwidth assigned

Bands

Low band (sub-1 GHz)

92 MHz

850 MHz, 900 MHz

Mid-band (1–7 GHz)

360 MHz

1800 MHz, 2.1 GHz, 2.3 GHz

High band (above 24 GHz)

—

—

Source: GSMA, APT

Given the lack of spectrum, Indonesian mobile
operators have refarmed existing IMT spectrum
holdings from 3G services to 4G and 5G. Such
moves have already accelerated the switch-off
of legacy 2G and 3G services, with XL Axiata
switching off 3G services at the end of March
2022.12 Indosat Ooredoo Hutchison (IOH)
switched off 3G services at the end of 2022,
as did Telkomsel in May 2023.

Subject to the release of adequate mobile
spectrum, the pace of 5G deployment and
adoption is forecast to grow over the next three
years. By 2027, the number of 5G connections
is forecast to reach 70 million, with 5G networks
covering 59% of the population.13 While 4G will
continue to account for most mobile connections,
the share of 4G connections will begin to decline
from 2024 onward.

Figure 3
Connections by technology in Indonesia

2024

4.4%

3.6%

2030

0.3%

32.0%

67.7%

92.0%

2G

4G

5G

Source: GSMA Intelligence

In Indonesia, total mobile data traffic has grown
almost four-fold over 2019–2024, reaching
60.5 exabytes in 2024.14 The average monthly
mobile data per connection is forecast to increase
from 14.9 GB in 2024 to 41.5 GB in 2030.15

At the same time, 5G enterprise use cases are
also emerging across different industrial verticals,
which will drive growth in cellular IoT connections.

Across the Asia Pacific, operators use the scale
and utility of mobile networks and services to
facilitate innovative digital solutions for large
and small enterprises in line with Industry 4.0
objectives. In particular, 5G and IoT will play key
roles in implementing digital transformation
projects across different industries, further driving
demand for 5G connectivity and economic growth
for the rest of the decade.

12.      Refer to https://newsbeezer.com/indonesiaeng/xl-to-switch-off-all-3g-signals-at-the-end-of-march-2022-all/

13.      Source: GSMA Intelligence.

14.  Source: GSMA Intelligence.

15.  Source: GSMA Intelligence.

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS1.2  A spectrum roadmap for 5G

As with all previous generations of mobile services, the road to 5G in each country starts with the
release of spectrum to support the network rollout. A typical spectrum roadmap, as illustrated below,
involves the following steps.16

Figure 4
Spectrum roadmap and steps

1

Identification
of spectrum

2

Spectrum
clearance

3

Technology definition
and restrictions

Identification of spectrum
Spectrum is essential for the provi-
sion of mobile services, and 5G
needs significant amounts of new
harmonised spectrum.17 The first
step involves a planning process that
considers the outcomes of interna-
tional and regional harmonisation
decisions. Consultations provide a
forum for governments and industry
stakeholders to share views and
examine available options. Where
competing demands arise, a
cost-benefit analysis should also be
conducted to assess the impacts of
proposed changes in spectrum
allocation, ensure efficient use of
scarce spectrum and achieve
optimal outcomes for society.18

Spectrum clearance
Approaches to clearing
spectrum depend on factors
such as the density of use, the
ease of moving incumbents to
alternative frequency bands or
alternative technologies and the
impact on services and users.
In some cases, geographic
sharing with adequate
mitigation measures will address
interference concerns.

Technology definition
and restrictions
Technical licence obligations
should be clearly defined, along
with conditions of use and the
amount and geographic
availability of the spectrum. In
some cases, it may only be
necessary to realign band
assignments to provide
contiguous frequencies and
maximise spectrum efficiency
for mobile use.

4

Spectrum
valuation

5

Award
design

6

Award
implementation

Spectrum valuation
This step involves assessing the
value of spectrum guides upfront,
as well as annual fees. There are
different valuation approaches,
including benchmarking and
modelling analysis, and both
methods should be used to
improve accuracy and capture
local market factors. Costs related
to licensing obligations should be
considered when setting prices for
spectrum.

Award design
There are three main approaches
to awarding spectrum:
auctions, beauty contests and
direct award.19 The approach
adopted, and associated licence
obligations, must consider policy
objectives, available spectrum
and market specifics (for
example, the number of MNOs
or current spectrum holdings).
Depending on the availability
timeline of different frequency
bands and award design, it may
be appropriate to have a single
multiband award or several
separate ones.

Award implementation
The final step is the actual
award. This will normally be
underpinned by documentation
that provides all the necessary
details of the award process,
spectrum on offer, licence
obligations and other essential
information for potential
licensees.

16.      Refer to GSMA. Roadmaps for awarding 5G spectrum in the APAC region. April 2022. www.gsma.com/spectrum/resources/5g-spectrum-in-the-apac-region-

roadmaps-for-success/.

17.      The key frequency bands to prioritise for 5G are outlined in section 1.3.

18.

 Refer to GSMA. Maximising the socio-economic value of spectrum. A best practice guide for the cost-benefit analysis of 5G spectrum assignment. January 2022.
www.gsma.com/spectrum/wp-content/uploads/2022/01/mobile-spectrum-maximising-socio-economic-value.pdf.

19.  Refer to GSMA auction best practice position www.gsma.com/spectrum/wp-content/uploads/2021/09/Auction-Best-Practice.pdf.

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS1.3   The key role of mid-band spectrum for 5G

Mid-band spectrum resources include both lower
mid-bands (i.e. 1500 MHz, 1800 MHz, 2.1 GHz,
2.3 GHz and 2.6 GHz) and upper mid-bands (i.e.
3.3–4.2 GHz, 4.5–5.0 GHz and 5.925–7.125 GHz).
To launch 5G services that are consistent with the
ITU’s IMT-2020 requirements,22 each operator
needs access to at least 100 MHz of contiguous
mid-band spectrum for initial service launch.
As adoption grows, more mid-band spectrum
will be required.

To get the most out of 5G, spectrum is needed
across low, mid- and high bands to deliver
widespread coverage and support all use cases.
Mid-band frequencies are especially crucial
because they offer the balance of capacity and
coverage that enables mobile networks to
provide reliable performance that meets the
ITU IMT-2020 requirements20 across densely
populated urban areas.

New 5G use cases from enhanced mobile
broadband (eMBB), fixed wireless access (FWA),
and enterprise and Industry 4.0 applications will
enable digital transformation and drive economic
growth in Indonesia. Over 2024–2030, 5G
is forecast to contribute more than $41 bn
(IDR 650 tn) in GDP to the Indonesian economy.
By 2030, 5G will add 0.6% to Indonesia’s GDP,
representing over $11 bn (IDR 172 tn) annually.21

Figure 5
Mid-band spectrum

1.8 GHz
1.7/1.8 GHz

2.3 GHz
2.3–2.4 GHz

1.5 GHz
1.4–1.5 GHz

2.1 GHz
1.9/2.1 GHz

2.6 GHz
2.5–2.7 GHz

Lower 3.5 GHz
3.3–3.8 GHz

4.8 GHz
4.8–5 GHz

Upper 6 GHz
6.4–7.1 GHz

AWS
1.7/2.1 GHz

PCS
1.8/1.9 GHz

Source: GSMA Intelligence

Upper 3.5 GHz
3.8–4.2 GHz

Lower 6 GHz
5.9–6.4 GHz

It is estimated that MNOs will need an average of
2 GHz of mid-bands during this decade.23
Research by GSMAi on the socio-economic
benefits of mid-band 5G services indicates that
mid-band 5G spectrum will drive an increase of
more than $610 billion in global GDP in 2030,

accounting for almost 65% of the overall socio-
economic value generated by 5G.24 In Southeast
Asia, 5G mid-band services will generate an
additional GDP contribution of $35 billion (which
represents 0.64% of GDP), with Indonesia
accounting for 41% of this increment.

20.     Refer to ITU. Minimum requirements related to technical performance for IMT-2020 radio interface(s). Report ITU-R M.2410-0 , November 2017.

https://www.itu.int/pub/R-REP-M.2410-2017

21.      GSMA. Sustainable spectrum pricing to boost Indonesia’s digital economy, November 2023. https://www.gsma.com/connectivity-for-good/spectrum/wp-content/

uploads/2023/11/GSMA_Sustainable-spectrum-pricing-to-boost-Indonesias-digital-economy.pdf

22.

 User experience of 100 Mbps DL, 50 Mbps UL rates.

23.  GSMA. (8 July 2021). 5G Mid-Band Spectrum Needs: Vision 2030.

24.  GSMA. (February 2022). The Socio-Economic Benefits of Mid-Band 5G Services.

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS2.6 GHz and 3.5 GHz bands as the springboard for 5G

The 3.5 GHz band (3.3–4.2 GHz) n77/78, which
is widely harmonised for 5G, has been the basis
for the first phase of 5G rollouts in many markets.
To date, 3.5 GHz accounts for most global
5G network launches,25 driving the wider
ecosystem26, device diversity and competition.
It has been deployed for eMBB, enabling faster
data speeds and greater capacity required in
urban, densely populated areas and for FWA in
suburban and rural areas where fixed broadband
availability tends to be limited.

The 2.6 GHz band, particularly the n41 Time
Division Duplexing (TDD) version, has been
widely deployed for 5G, including in China, the

Philippines, Saudi Arabia, South Africa, Thailand,
Vietnam and the United States. According to the
GSA, 5G deployments in the 2.6 GHz band are
the equal fourth most supported globally. Of the
announced 5G device models supporting key 5G
spectrum bands, 2.6 GHz (n41)  had the second
strongest ecosystem after 3.5 GHz with over
1,800 device models.27

According to GSMAi, 5G deployments in the
2.6 GHz band are the fourth most supported
globally, and of the announced 5G device models
supporting key 5G spectrum bands, 2.6 GHz
(n41) had the second strongest ecosystem after
3.5 GHz with more than 1,800 device models.

Figure 6
5G network launches by spectrum frequency (up to Q3 2024)

High band
(>24 GHz)

Mid-band
(1-7 GHz)

Low band
(<1 GHz)

39 GHz

28 GHz

26 GHz

4.8 GHz

3.5 GHz

2.6 GHz

2.3 GHz

2.1 GHz

1900 MHz

1800 MHz

1700/2100 MHz

1400 MHz

900 MHz

850 MHz

800 MHz

700 MHz

600 MHz

Not reported

15

26

11

28

32

20

4

4

1

5

1

2

5

3

67

9

162

233

Source: GSMA Intelligence.

Note: Figures refer to launches, not individual operators. A range of operators have launched their 5G networks on more than one frequency. If an operator has
launched both mobile and fixed wireless 5G networks, it is counted twice. 3.5 GHz band = 3.3–3.8 GHz range. 2.6 GHz band = 2.5–2.6 GHz range.

25.      Excluding frequencies not reported..

26.     Of the announced 5G device models supporting key 5G spectrum bands (end March 2024), n78 (3.4-3.8 GHz) 5G devices had the strongest ecosystem with nearly

2,000 device models while n77 (3.3-4.2 GHz) had over 1,600 device models and was the fourth strongest.  n41 (2.6 GHz) had the second strongest ecosystem with over
1,800 device models.  Refer to GSA, 5G Market Snapshot, May 2024, page 4.

27.  Refer to GSA, 5G Market Snapshot, May 2024, page 4

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

2.   Progress on Indonesia’s
spectrum plan for 5G

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS2.1  Indonesia’s 5G spectrum planning

The new Ministry of Communication and
Digital Affairs (Komdigi) is responsible for
telecommunications policy, including spectrum
management. Inside Komdigi, the Directorate

General of Resources and Equipment for
Post and Information Technology (SDPPI)
regulates spectrum.

Current IMT spectrum roadmap for Indonesia

Indonesia’s provisional spectrum roadmap is
summarised below. The plan is for new spectrum
to be made available to support 5G deployment

in the near term in the priority bands of 700 MHz,
2.6 GHz, 3.5 GHz and 26 GHz.

Figure 7
Indonesia’s current provisional IMT spectrum roadmap

Indonesia's broadband spectrum provisional roadmap (2025–2029)

Ministry of
Communication
& Digital Affairs

2025

2026

2027

2028

2029

MBB 3.5 GHz

MBB 3.5 GHz

MBB 3.5 GHz

MBB 3.5 GHz

–    Issue ministerial

regulation on the use
of the 3.5 GHz band.

–   Auction the 3.5 GHz

band.

–   Determine the PPP

business partner as the
project management
team.

–   Conduct a pilot project of
5G deployment in 3.5 GHz
in several locations, for
example, big cities with
high traffic.

NTN

–   Issue ministerial

regulation on the
use of radio frequency
spectrum for NTN in
the IMT-MSS frequency
band.

WRC-27

•   Discuss the candidates

for the IMT & NTN
frequency bands.

–   Finalise the technical

–    Issue ministerial

decision on technical
guidelines for 5G FSS
coexistence in the
3.5 GHz band.

–   Issue ministerial

decision on the phased
refarming process in the
3.5 GHz band.

–   Finalise legal analysis
on the provision of the
3.5 GHz band for IMT.

–   Finalise financial

analysis for financing
scheme option(s) for the
provision of the 3.5 GHz
band for 5G.

–   Prepare a project

management team for
the migration of satellite
services from ext
C-Band and supervise
the phased deployment
of 5G in the 3.5 GHz
band.

assessment to mitigate
the impact on VSAT,
TT&C, and gateway
operations.

–   Prepare an evaluation of
the phased deployment
of city-based 5G using
the 3.5 GHz band.

MBB 2.6 GHz

–   Issue ministerial

regulation on the use of
the 2.6 GHz band.

–   Auction the 2.6 GHz band.

MBB 700 MHz & 26 GHz

–   Auction the 700 MHz and

26 GHz bands.

FWA 1.4 GHz & 3.3 GHz

–   Issue ministerial

regulation on FWA in
the 1.4 GHz and 3.3 GHz
bands.

–   Determine the license
holders for FWA in the
1.4 GHz band.

RLAN lower 6 GHz (WiFi-7)

–   Issue an amendment

of PM 2/2023 on Class
License.

–   Issue ministerial decision

on  RLAN  technical
standards.

–   Commencement of 5G
network deployment
using the 3.5 GHz band
(Phase 1).

MBB 3.5 GHz

–   Continue the

deployment of 5G
network using the
3.5 GHz band (Phase 2).

MBB Upper 6 GHz

NTN

–   Identify the Upper 6 GHz
band (6.425–7.125 GHz)
as Indonesia’s IMT band
at WRC-27.

–   Issue ministerial

regulation on the use of
radio spectrum for NTN
in the IMT terrestrial
frequency band.

5G private networks

–   Assess the

implementation of
5G private networks
in limited areas.

–   Evaluate the impact
of  the provision of
spectrum frequency
from 2025 to 2029.

–    Conduct a spectrum
demand analysis
to anticipate the
broadband services
needs for 2030 to 2034.

Disclaimer:

This roadmap is a draft plan for the provision of spectrum
frequencies for broadband services and may be subject to
changes based on the circumstances encountered during
its implementation.

Constructive input from stakeholders is welcomed.

Source: SDPPI, Penataan Spektrum Frekuensi Radio Dinas Tetap & Bergerak Darat (DTBD) Capaian Tahun 2024 Untuk Dilanjutkan di Periode Tahun 2025-2029, 20
December 2024 page 47. Translation by Retno W. Damajanti.

15 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSThe spectrum auction for the 700 MHz and
26 GHz bands planned for completion by July
2024 has been delayed to 2025 due to a lack of
clarity on demand for these particular bands and
the ongoing merger talks between XL Axiata
and Smartfren.28

Komdigi is planning to include mid-band spectrum
in the 2.6 GHz band to be auctioned in 2025
alongside the 700 MHz and 26 GHz bands. The
3.5 GHz band (3.4–3.7 GHz) is expected to be
further delayed until 2027.29 The remaining 80 MHz
of the 3.3–3.4 GHz band is still under consideration
and could be made available in 2025.

In September 2024, the government highlighted
the importance of 3.5 GHz for mobile broadband
in the 2025–2029 Strategic Plan and the need to
ensure that each operator has at least 100 MHz of
mid-band spectrum to meet the 100 Mbps wireless
broadband speed target.30 The 3.4–3.7 GHz band
is prioritised for IMT implementation, and the use
of this band for Fixed-Satellite Service (FSS) in the
Extended C-band (downlink) is being phased out.31
Two possible options are under consideration for
future 5G networks: either with a 100 MHz or
80 MHz guard band, as shown below.32

Figure 8
The state of the 3.5 GHz band: in the future

3.3 GHz 3.312,5 GHz 3.4 GHz

3.7 GHz

4.2 GHz

BWA

IMT

SATELLITE

Option 1

Option 2

MNO 1:  80 MHz (3.32 – 3.4 GHz)
MNO 2: 100 MHz (3.4 – 2.5 GHz)
MNO 3: 100 MHz (3.5 – 3.6 GHz)
Guard band: 100 MHz

MNO 1:  100 MHz (3.32 – 3.42 GHz)
MNO 2: 100 MHz (3.42 – 2.52 GHz)
MNO 3: 100 MHz (3.52 – 3.62 GHz)
Guard band: 80 MHz

Other spectrum bands which are the subject
of longer term planning by the SDPPI are
(i) L-Band (1427–1518 MHz) for supplementary
download (SDL) or TDD, (ii) upper 6 GHz
band (6.425–7.125 GHz recognising that

7.025–7.125 GHz was already identified for IMT at
WRC-23) and (iii) 28 GHz band (still under study
for 5G local network implementation in limited
areas of the country).

28.      Refer to www.thejakartapost.com/business/2024/07/29/govt-delays-5g-spectrum-auction-as-telcos-see-little-demand.html. See also Arah Kebijakan dan

Strategi Pengembangan Pitalebar Indonesia Periode Tahun 2025-2029, November 2024.

29.     SDPPI, Penataan Spektrum Frekuensi Radio Dinas Tetap & Bergerak Darat (DTBD) Capaian Tahun 2024 Untuk Dilanjutkan di Periode Tahun 2025-2029, 20 December

2024 page 47

30.  Refer to Adis Alifiawan, FGD-2, Rancangan Teknokratik Renstra Kominfo 2025-2029, Penyediaan Pita Frekuensi 3,5 GHz untuk Mobile Broadband, pages 4-5 .

31.

Ibid, page 16

32.  Ibid, page 12

16 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS2.2  Digital dividend, 700 MHz and

changes to the applicable spectrum
management law

In Indonesia, there were delays in securing the
release of the 700 MHz band (digital dividend)
after the switchover from analogue to digital
television. Following considerable internal
debate, the switchover was legislated in late
2020 by the Indonesian Parliament, with the
digital dividend spectrum in the 700 MHz band
cleared for assignment by late 2023.

The Omnibus Law, first passed in 2020, entailed
significant legislative changes to liberalise
Indonesia’s telecommunications sector and
support accelerating its digital economy –
especially by optimising spectrum use in the
5G era. While subject to constitutional
challenges, it was finally ratified in 2023.
Specifically, the Omnibus Law:

—   Permits spectrum sharing and transfer among

telecom operators.

—   Mandates the completion of the digital TV

migration within two years of the enactment
of the Law, freeing up the 700 MHz band.

—   Provides clarification on payment of annual

spectrum fee.

—   Allows spectrum licensees to transfer

spectrum rights to other network operators.

While such changes are welcome, additional
reforms can further improve the spectrum
management framework in Indonesia.
For example, these can include:

—   Flexibility in the licence period term, which

is currently fixed for 10 years. This should be
amended to provide a licence period of up to
15 years. A non-fixed longer period would give
flexibility in aligning spectrum band licence
period end-dates, as well as providing more
flexibility for future frequency band refarming.

—   Komdigi’s ability to terminate non-

compliant frequency licences should also be
strengthened as it remains challenging for
spectrum to be returned to the government
for reallocation on time.

—   Creation of a spectrum relocation fund. Given
the continuing challenges of the spectrum
being returned to the government for prompt
reallocation, one approach that can be
considered is creating a fund to pay the costs
of spectrum re-organisation and refarming.
This could be modelled on France’s ‘Fond
de Réaménagement de Spectre’ (FRS)33
or refarming fund, managed by Agence
Nationale des Fréquences (ANFR) or the
USA’s Spectrum Relocation Fund.34 The need
for such mechanisms is obvious, given the
proposed compensation to FSS users in the
C-band from the spectrum auction proceeds
with the refarming of the 3.5 GHz band to
IMT/5G use.35

33.      Refer to www.anfr.fr/planifier/le-fonds-de-reamenagement-du-spectre

34.     Refer to https://uscode.house.gov/view.xhtml?req=(title:47%20section:928%20edition:prelim)

35.  Refer to Adis Alifiawan, FGD-2, Rancangan Teknokratik Renstra Kominfo 2025-2029, Penyediaan Pita Frekuensi 3,5 GHz untuk Mobile Broadband, pages 16 and 21-24

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

3   Challenges and

recommendations for
Indonesia’s spectrum
roadmap

18 / 25
18 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSTimely access to IMT spectrum, particularly in the mid-band range, is essential for 5G and
future 6G development in Indonesia. The key challenges to securing spectrum access for IMT
are technical and financial. Below, we discuss the key issues and recommendations to secure
sufficient spectrum for 5G services in Indonesia.

3.1  Spectrum roadmap towards 2030

Assignment of the
700 MHz band

Refarming of the 2.6 GHz band
for IMT services

Following the successful analogue-to-digital
TV migration completed at the end of 2023,
additional harmonised spectrum below 1 GHz
should be made available via auction in 2025.

Low-band spectrum is a cornerstone of digital
equality and a driver of broad and affordable
connectivity. Ensuring the full availability of
2x45 MHz of the 700 MHz band is particularly
beneficial as it will help in the provision of
affordable mobile broadband coverage in 3T
(foremost, remote and disadvantaged) and rural
areas of the country, including Sumatra, Sulawesi,
Papua and Kalimantan. It will also improve
deep in-building coverage in urban areas. It will
facilitate future voice services and migration to
Voice over LTE (VoLTE) or Voice over 5G New
Radio (VoNR).

The 2.6 GHz band in Indonesia is currently
under-utilised. Following the expiry of current
satellite broadcasting licences on 1 January 2025,
ensuring that the full band is refarmed for mobile
is essential. It is understood that Indonesia has
plans to migrate the DTH services operating in
the 2.6 GHz band to the Ku-band.

The availability of the 2.6 GHz band in Indonesia,
especially using the full TDD band n41 across
2.5–2.69 GHz, would expand capacity in urban
centres, alleviate network congestion and improve
the quality of services. For example, the extensive
use of this band in Thailand, particularly in the
greater Bangkok area, is a key reason behind
Thailand’s successful 5G deployment. The 2.6 GHz
band was also successfully auctioned in Vietnam
and is forming a key part of market leader Viettel’s
5G national deployment.36

36.     GSMA, Accelerating 5G in Vietnam: A Spectrum Roadmap for Success, November 2024

19 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSSecuring the 3.5 GHz
band for 5G services

Given the continued role of satellite in the
Indonesian archipelago, it is crucial to optimise
the use of the 3.5 GHz band for 5G, particularly
in major cities and industrial complexes in
Indonesia. Four satellites are currently utilising
C-band, including extended C-band range in
3.4–3.7 GHz, which pose significant challenges
to refarming for 5G.  These are, namely:

—   BRIsat (C-band and Ku-band, expected

end date in 2031). This satellite is used by
Bank Rakyat Indonesia (BRI) to connect its
nationwide ATM network.37

—   Telkom-3S (C-band and Ku-band, expected

end date 2032).

—   Telkom-4 (C-band and Ku-band, expected

end date 2033).

—   Nusantara Satu (C-band and Ku-band,

expected end date 2034).

To free up 3.5 GHz for 5G before 2034 will likely
require a service migration plan and low-noise
block downconverter (LNB) replacement for
existing C-band FSS receivers.

Even then, only an initial 200 to 300 MHz of
spectrum in 3.4–3.7 GHz could be made available
for IMT/5G services. Notably, the 3.3–3.4 GHz
band, which was previously used for broadband
wireless access, is now vacant.

The government's proposal to allocate the
3.4–3.7 GHz range for future 5G networks marks
a positive step forward.38 However, the proposed
award in 2027 will place Indonesia behind its
ASEAN counterparts in terms of mid-band
spectrum supply and is likely to have negative
implications on 5G development.

Post-2034, additional 3.5 GHz band spectrum
should become available if current C-band
satellite services are moved to higher satellite
bands. While the C-band continues to be
necessary, there is a global trend towards the use
of higher bands for satellite. Satellite operators
are rapidly expanding Ku- and Ka-bands capacity
by developing advanced satellite modulation
techniques. For example, the SATRIA-1 High-
Throughput Satellite, which utilises the Ka-band
and is designed to address the digital divide, was
successfully launched in late 2023 and has been
used commercially since early 2024.39

37.    Refer to https://asia.nikkei.com/Business/BRI-pioneers-world-s-first-dedicated-satellite-to-regain-Indonesian-banking-lead and www.asiasat.com/system/

files/2019-12/GSC%20-%20C-band%20is%20critical%20for%20satellite%20servcies.pdf

38.  Refer to Adis Alifiawan, FGD-2, Rancangan Teknokratik Renstra Kominfo 2025-2029, Penyediaan Pita Frekuensi 3,5 GHz untuk Mobile Broadband, pages 12-13

39.  Refer to www.bcsatellite.net/blog/indonesias-satria-1-satellite-is-connected-and-set-for-2024/

20 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

Recommendations for 3.5 GHz

—   Adopt guard bands that maximise spectral

1.   Supply:

Ensure at least 300 MHz of 3.5 GHz spectrum
in the 3.3–3.7 GHz band should be made
available by 2026. If this is not possible, then
consistent with the phased approaches in
other markets, at least 200 MHz should be
released first. Additional 3.5 GHz spectrum
should be released in the future, subject
to clearance and/or the implementation of
adequate mitigation measures. If a phased
approach is taken, all the spectrum released
during such a process should be subject to a
condition that allows the band to reorganise to
create larger contiguous blocks of spectrum.
The aim is for all mobile operators to secure
at least 100 MHz of contiguous spectrum in
this band.

2.   Clearance and mitigation measures:

Indonesia should accelerate clearance or
introduce adequate mitigation measures to
ensure coexistence with incumbent users in
the band. Firstly, where alternatives to C-band
satellite (e.g. fibre, mobile) are available,
these should be used instead. Secondly,
in considering mitigation measures, the
recommended actions are:

efficiency. Studies and real-world regulatory
examples of the necessary guard band between
5G and FSS exist. For example, studies have
concluded that a guard band in the 1840 to
25 MHz range is needed.41 In Vietnam,42
Canada43 and the US,44 a guard band of 20 MHz
has been adopted. In Singapore, after initially
proposing a guard band of 100 MHz, a guard
band of 50 MHz was used instead.

—   Ensure improved filtering for FSS receivers by
installing LNBs where required. Other possible
measures to address coexistence issues, such
as earth station shielding, restriction zones or
detailed coordination, could also be considered.

3.   Phased introduction by geography:

Indonesia should consider whether to adopt
geographical separation for VSAT in regional
and rural areas while restricting the use of
satellite direct-to-home (DTH) and TVRO
in the 3.4–3.7 GHz in key urban areas, such
as Java and the top 10 urban areas of the
country.45 This approach would allow 5G
deployment of 3.5 GHz in urban areas where
demand is highest while permitting continued
access to the band for FSS services in more
rural parts of Indonesia, where satellite
connectivity still plays an important role.

mmWave band spectrum
availability

Future IMT spectrum and
planning towards 2030

While Indonesia has decided to allocate the
26 GHz bands for 5G, the spectrum auction in the
26 GHz band, which was planned for completion
by July 2024, has now been delayed to 2025.
Spectrum in high bands can be made available
regionally if industry demand exists, especially
for enterprise use.

As the mmWave ecosystem is relatively small and
use cases are still emerging, it will be necessary
for Komdigi to ensure licence conditions provide
appropriate incentives, including longer validity,
lower prices and flexible obligations.

Spectrum is central to mobile connectivity and
will underpin Indonesia’s digital transformation
and economic growth. Indonesia will need an
average of 2 GHz of mid-band spectrum by 2030
to ensure sufficient capacity as 5G expands and
to prepare for future 6G services.46 Policymakers
must adopt a long-term strategy to manage
spectrum demands, balancing various uses to
maximise economic and societal benefits. This
will allow businesses to prepare investment plans,
secure financing and develop arrangements for
deploying particular technologies.

40.    Refer to the Transfinite study in 2019 which concluded that an 18 MHz guard band is sufficient to mitigate co-frequency interference. Available at

www.transfinite.com/papers/Report_for_GSMA_on_3.4-3.8_GHz_Compatibility.pdf

41.     In Brazil, a guard band of 25 MHz was assessed to be adequate, though this was not needed as the decision was made to migrate existing TVRO services to the Ku-band.

Refer to https://www.gsma.com/connectivity-for-good/spectrum/brazil-multi-band-auction-one-of-the-largest-in-mobile-history/

42.    Guard band from 3980 to 4000 MHz.

43.    Refer to ISED. Decision on the Technical and Policy Framework for the 3650-4200 MHz Band and Changes to the Frequency Allocation of the 3500-3650 MHz Band. May

2021. Available at https://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf11699.html

44.    Refer to FCC. Expanding Flexible Use of the 3.7 to 4.2 GHz Band, 3 March 2020. Available at https://docs.fcc.gov/public/attachments/FCC-20-22A1.pdf

45.    Refer to Adis Alifiawan, FGD-2, Rancangan Teknokratik Renstra Kominfo 2025-2029, Penyediaan Pita Frekuensi 3,5 GHz untuk Mobile Broadband, pages 12-13.

46.   Refer to Coleago Consulting. Estimating the mid-band spectrum needs in the 2025-2030 time frame, July 2021. Available at www.gsma.com/spectrum/wp-content/

uploads/2021/07/Estimating-Mid-Band-Spectrum-Needs.pdf

21 / 25

Only around 360 MHz of mid-band spectrum has
been assigned for IMT in Indonesia. Even with the
inclusion of the 2.6 GHz and 3.5 GHz bands, the
total supply of mid-band spectrum will still be
significantly below the 2 GHz required for IMT by
2030. The following actions are recommended
for Indonesia:

—   Assess options for expanding spectrum

supply for 5G in the 2025–2030 timeframe,
particularly in the mid-bands. These can
include the release of unassigned spectrum in
existing mid-bands and the identification of
new spectrum in potential future bands.

—   Plan for the use of 4.8 GHz and the entire
upper 6 GHz (6.425–7.125 GHz)47 bands to
support further development of 5G. The
additional 700 MHz in the upper 6 GHz band
will go a long way to addressing Indonesia’s
mid-band needs.

—   Gather information on usage trends for FSS
in the 3.7–4.2 GHz band and assess possible
options for future 5G use in this range as
satellite capacity in other bands, such as Ku
and Ka, develops.

—   Explore options for other IMT candidate
bands, which can be used for 5G local
networks in limited areas.

Komdigi’s 2025–2029 Strategic Plan represents
an excellent start on a long-term spectrum
roadmap for Indonesia. This roadmap should
be updated annually to incorporate SDPPI’s
work, which releases different frequency bands
and information on evolving technology and
spectrum trends, including harmonisation and
standardisation activities.48

3.2   Long-term financial sustainability

in Indonesia

Indonesian mobile operators face financial
challenges despite significant mobile usage
and data traffic growth. Spectrum costs for
operators have risen substantially since 2010,
with annualised spectrum costs reaching 12.2%
of recurring revenue in 2023, above the APAC
median of 8.7%.49 Sustainable spectrum prices
are needed to facilitate 5G network investment
and accelerate digital transformation.

—   Indonesia has a relatively low total

IMT spectrum allocation and high unit
spectrum prices50 compared to other
countries. This adversely affects mobile
broadband quality of service and operational
expenditures. These twin pressures can
stifle the intensity of competition and crowd
out investment in wireless broadband
infrastructure.

There are several risks to the long-term
financial sustainability of the Indonesian
mobile market, namely:

—   Spectrum auction prices have risen to

unsustainable levels due to scarcity of IMT
spectrum and sub-optimal processes in
previous auctions involving individual spectrum
blocks in the 2.1 and 2.3 GHz bands being
auctioned separately over several years rather
than multiple blocks or a multi-band auction.

—   Additional costs of deployment and
operations across the Indonesian
archipelago. Deploying mobile broadband
infrastructure and services over 1.9 million
square kilometres scattered across thousands
of islands is geographically challenging. More
sites are needed, including towers, fibre and
costly submarine cables, meaning Indonesia
has higher capital expenditure intensity than
Asia's average.51

47.    GSMA. Mobile Evolution in 6 GHz: The impact of spectrum assignment options in 6.425–7.125 GHz, September 2024. Available at https://www.gsma.com/connectivity-

for-good/spectrum/wp-content/uploads/2024/09/GSMA_Mobile-Evolution-in-6-GHz.pdf

48.    Indonesia is planning to strengthen digital infrastructure by expanding coverage through preparations for Non-Terrestrial Network (NTN) under the second strategy of

Strengthening Indonesia’s Digital Foundation 2025-2029.

49.    GSMA. Sustainable spectrum pricing to boost Indonesia’s digital economy. October 2023. Available at https://www.gsma.com/connectivity-for-good/spectrum/wp-

content/uploads/2023/11/GSMA_Sustainable-spectrum-pricing-to-boost-Indonesias-digital-economy.pdf

50.    Indonesia’s current spectrum cost to revenue ratio for a majority of mobile operators is already above 10%. Based on Coleago study: annualised cost spectrum as a

percentage of revenue more than 10 percentage may not be sustainable.  Refer to Coleago, Spectrum pricing, make or break the 5G momentum, Shanghai, June 2019,
page 17

51.     To address these higher costs, sharing approaches are supported by Komdigi as part of the regulatory and policy elements of the Penta Helix Model. Source: Dr. Ir.
Ismail, M.T, MCI, Presentation, 5G and Telco Transformation: Indonesia’s Path to Ultra-Fast Connectivity, DTI-CX Conference2024, Jakarta, 31 July 2024, page 8

22 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS—   High regulatory costs hamper the broadband

sector from becoming an economic
development enabler.52 The increasing ratio
of regulatory costs to revenue has decreased
mobile operator funding capability to allocate
adequate resources for infrastructure roll-
out to boost coverage and quality of services
across the Indonesian archipelago.

The government has recognised such issues and
the need to provide spectrum fee incentives.
A positive development is the ‘Strengthening
Indonesia’s Digital Foundation 2025-2029 Plan’,
which highlights how price per MHz must be

adjusted to maintain a healthy ratio of regulatory
costs to gross revenue (approximately 5%). The
plan also outlines that, in addition to retaining the
spectrum fee-to-revenue ratio at a maximum of
10%, it is recommended that the 5G frequency fee
does not exceed 50% of the 4G frequency fee.53

The SDPPI is considering a reduction factor in
spectrum fees for operators at the upcoming
5G spectrum bands auction if they are given
obligations that create additional burdens
or costs (such as rollout obligations in non-
economic areas), as summarised below.54

Figure 9
Draft roadmap on frequency fee incentives (2025-2030)

Draft roadmap on frequency fee incentives (2025-2030)

Ministry of
Communication
& Digital Affairs

This roadmap on frequency fee adjustment is a draft concept that focuses primarily on the evaluation
of the K value (PM 9/2023) and the payment scheme for new frequency band auctions (PM 6/2024).

–   Adjustment of
the upfront fee
and annual fee
to be used in
the selection
process of a
radio frequency
band.

–   Payment of

the annual fee
for the 2025
selection result.
–   Adjustment of
the upfront fee
and annual fee
if a selection
process is
conducted.

–   Payment of the
annual fee for
the 2025 & 2026
selection results.

–   Adjustment of
the upfront fee
and annual fee
if a selection
process is
conducted.

–   Payment of the
annual fee for
the 2025, 2026
& 2027 selection
results.

–   Payment of

the annual fee
for the 2025 &
2026 selection
results.

–   Payment of the

annual fee of the
2025, 2026 &
2027 selection
results.

–   Adjustment of

upfront fee and
annual fee if a
selection process
is conducted.

2025

2026

2027

2028

2029

2030

Adjustment
of frequency
fee through
adjustment of
K value

Adjustment
of frequency
fee through
adjustment of
K value

Adjustment
of frequency
fee through
adjustment of
K value

Adjustment
of frequency
fee through
adjustment of
K value

Adjustment
of frequency
fee through
adjustment of
K value

Adjustment
of frequency
fee through
adjustment of
K value

Source: SDPPI, Penataan Spektrum Frekuensi Radio Dinas Tetap & Bergerak Darat (DTBD) Capaian Tahun 2024 Untuk Dilanjutkan di Periode Tahun 2025-2029, 20
December 2024 page 48. Translation by Retno W. Damajanti

52.    When deploying broadband infrastructure, the sector is subjected to permit and right of the way fees, which vary substantially across local government units, thus

increasing capital expenditures (CAPEX) of broadband infrastructure deployment and potentially lowering the coverage and the affordability of the mobile services.

53.    Refer to Arah Kebijakan dan Strategi Pengembangan Pitalebar Indonesia Periode Tahun 2025-2029, November 2024.

54.    SDPPI, Penataan Spektrum Frekuensi Radio Dinas Tetap & Bergerak Darat (DTBD) Capaian Tahun 2024 Untuk Dilanjutkan di Periode Tahun 2025-2029, 20 December

2024 page 48

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESSACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

Recommendations on
spectrum pricing

Industry revenue per MHz of spectrum has
declined in Indonesia while spectrum fees have
increased. Therefore, Indonesia must set modest
reserve prices for releasing any new IMT spectrum.

Spectrum should be licensed as soon as
needed. Artificial spectrum scarcity and
measures that increase risks for mobile
operators should be avoided.

In addition, the formula for calculating annual
spectrum fees (BHP IPFR), which has been
indexed to inflation and population, should also
be reviewed. Adjustments should be made to
provide the right long-run incentives and avoid
disproportionate cost increases that are not
aligned with evolving market conditions.

Lastly, incentive policies should be implemented
to accelerate infrastructure roll-out and boost
coverage and the quality of services in Indonesia.
This can be reduced spectrum fees in exchange
for operator’s investment and network rollout
commitments.

24 / 25

ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS

GSMA Head Office
1 Angel Lane
London
EC4R 3AB
United Kingdom
Tel: +44 (0)20 7356 0600

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ACCELERATING 5G IN INDONESIA: A SPECTRUM ROADMAP FOR SUCCESS