GSMA: Indonesia Must Accelerate Digital Investment To Become ASEAN Digital Economy Leader

JAKARTA - The latest GSMA Digital Nations 2025 and ASEAN Consumer Scam 2025 reports from GSMA reveal that companies in Indonesia are expected to allocate an average of 10 percent of their revenue for digital transformation between 2025 and 2030.

Of the total, two-thirds of respondents in Indonesia place AI in the top three of their expenditure areas, while more than half consider 5G-based IoT as an important factor for future growth.

Head of Asia Pacific at GSMA, Julian Gorman, assessed that Indonesia has a strong momentum to become the leader of the Southeast Asian digital economy, supported by the young population, the spirit of entrepreneurship, and the increasing adoption of technology.

However, these opportunities require accelerating the construction of 5G spectrum, expansion of fiber backhaul, strengthening data centers capable of handling AI's computing burdens, as well as strong policy signals and cross-section executions.

According to the report, the allocation of mid-band spectra, uneven rural coverage, and limited AI prepared data center capacities pose a risk of slowing down momentum as demand continues to rise.

"The current priority is targeted investment: affordable and predictable spectrum, a tough backhaul, and a sustainable AI ready-to-date data center and supported by clear consumer protection," Julian said in his presentation on Wednesday, December 10.

"With strong policy signals and cross-sectoral executions, Indonesia can innovate by attracting private capital, strengthening defense against fraud, and accelerating inclusive growth throughout the archipelago," he added.

According to GSMA Intelligence, the next wave of 5G investment in Indonesia has the potential to generate an additional 41 billion US dollars (Rp683.6 trillion) worth of national gross domestic product (GDP) between 2024 and 2030.

Mobile operators have also invested nearly $29 billion in network infrastructure and services in Indonesia since 2015. With the right investment landscape, the industry including operators and ecosystem partners is expected to provide an additional US$16 billion (Rp266.7 trillion) between 2024 and 2030, with a strong focus on expanding 5G networks.