Indonesia’s Internet Struggles Compared to ASEAN Peers

Indonesia is still lagging behind its Southeast Asian neighbors in terms of internet speed. According to the Speedtest Global Index (December 2024), Indonesia ranks ninth in the ASEAN region with an average fixed broadband download speed of 32.07 Mbps. Countries like Singapore (330.98 Mbps), Thailand (235.86 Mbps), and Vietnam (159.32 Mbps) have significantly faster internet services.

To bridge this gap, the Ministry of Communication and Digital (Komdigi) is implementing a plan to enhance Indonesia’s broadband infrastructure by providing 100 Mbps internet at an affordable cost.

1.4 GHz Frequency Auction: A Game Changer for Broadband

A crucial step in this initiative is the auction of the 1.4 GHz spectrum, scheduled for Q1 2025. This spectrum will be dedicated to Broadband Wireless Access (BWA), ensuring improved internet connectivity across Indonesia.

Komdigi aims to keep internet prices between Rp100,000 and Rp150,000 per month, making high-speed broadband more accessible. However, this initiative does not cover mobile networks, as the frequency is reserved for fixed broadband services using packet-switched technology.

The Indonesian government hopes this move will encourage competition among broadband providers, pushing them to offer better services at lower prices.

What This Means for Indonesia’s Digital Future

The auction of the 1.4 GHz frequency band aligns with Indonesia’s broader goal of digital transformation. By providing faster and more affordable internet, Komdigi aims to:

• Enhance digital literacy and connectivity across urban and rural areas
• Support businesses, particularly small and medium enterprises (SMEs), in adopting digital solutions
• Improve access to education by ensuring students can benefit from e-learning resources
• Boost Indonesia’s global internet ranking by closing the gap with other ASEAN countries

Komdigi expects that by 2025, Indonesia will experience a surge in broadband adoption, helping the country achieve its vision of digital inclusivity.