The competition in the home internet market is expected to escalate in 2025, driven by aggressive pricing strategies and rapid expansion by internet service providers. PT Solusi Sinergi Digital Tbk. (WIFI) has ignited a price war by introducing a 200 Mbps home internet plan for just Rp100,000, significantly undercutting the typical market price for 100 Mbps, which usually exceeds Rp300,000.

According to a survey conducted by the Indonesian Internet Service Providers Association (APJII), the most competitive price range in the home internet segment is between Rp100,000 and Rp300,000. This pricing range accounts for 67.40% of all fixed broadband customers in Indonesia. Additionally, 42.42% of respondents reported that they preferred internet speeds between 10 Mbps and 30 Mbps, indicating a strong demand for affordable yet reliable home internet services.

Government Initiatives and Industry Challenges

Analysts from Mirae Asset Securities, Daniel Widjaja and Wilbert Arifin, have highlighted that the government's push for "Affordable Internet" is pressuring service providers to maintain low pricing while competing for market share. As pricing competition intensifies, there is an increasing risk of profit erosion in an already challenging industry.

Despite these risks, WIFI has set ambitious growth targets, aiming to reach 5 million home internet subscribers by the end of 2025. This would represent a massive increase from its current customer base of 200,000 as of March 2025. To achieve this goal, WIFI is launching ultra-affordable internet packages with speeds of 200 Mbps at an industry-low price of Rp100,000.

With Indonesia's internet user base reaching 220 million and home broadband penetration still at just 15%, there remains an enormous untapped market. WIFI's CEO, Yune Marketatmo, emphasized the company's focus on catering to lower-income households, which are largely underserved by current providers.

Established Players Respond with Expansion Strategies

While new entrants like WIFI aggressively pursue market share, established providers such as IndiHome (Telkom), MyRepublic (DSSA), and Link Net (LINK) are not standing still. These providers continue to expand their network coverage and introduce competitive pricing strategies.

IndiHome, Indonesia’s dominant fixed broadband provider, had 9.4 million subscribers as of Q3 2024, adding 682,000 new customers year-over-year. The company recorded a revenue surge of 200% YoY, reaching Rp19.84 trillion in Q3 2024, following its integration with Telkomsel.

MyRepublic, part of the Sinar Mas Group, has also been expanding aggressively. The company added over 3 million new homepass connections in 2024, bringing its total reach to 6.41 million homepass connections by the end of the year—an impressive 90.9% increase from 2023.

Meanwhile, Link Net, now affiliated with XL Axiata, aims to add 1 million to 1.5 million homepass connections in 2025. However, financial challenges persist, with Link Net reporting a net loss of Rp801.5 billion in the first nine months of 2024, marking a 192.5% increase from the previous year. Despite these losses, Link Net remains committed to network expansion, anticipating profitability between 2027 and 2028.

Price Comparison of 100 Mbps Home Internet Plans

Several internet providers have unveiled their latest pricing structures for 100 Mbps broadband plans as of March 2025:

1. WIFI (Surge) – Rp100,000 per month for 100 Mbps, including unlimited data, free modem rental, and a free first month.
2. Biznet Home – Rp375,000 per month for 100 Mbps internet only, or Rp575,000 per month for internet plus TV with 200 channels.
3. MyRepublic – Rp482,000 per month for the Nova plan, featuring unlimited data, Wi-Fi modem, access to over 76 TV channels, and optimized gaming latency.
4. Oxygen Stream – Rp576,000 per month for unlimited 100 Mbps broadband, with an optional TV bundle offering 89 channels.
5. XL Home (XL Satu Biz) – Rp419,000 per month for unlimited 100 Mbps fiber internet, including 50 GB of mobile data shared across five XL numbers.
6. IndiHome (Telkom) – Rp425,000 per month for standalone internet or Rp485,000 per month for a bundle with TV and telephone services, including 107 UseeTV channels and free Disney+ Hotstar access.

With increasing competition, price wars, and government initiatives driving affordability, the home internet market in Indonesia is undergoing a major transformation in 2025. The battle for dominance among providers is expected to intensify as companies push for market expansion while maintaining profitability.

PHOTO: DAILY

This article was created with AI assistance.