Indonesia\u2019s telecommunications landscape is undergoing a strategic\nshift, moving from the initial phase of using AI solely for operational\nefficiency towards sustainable growth as part of a national AI strategic\nframework. The AI adoption rate among businesses and the Indonesian\npublic has reached a staggering 92 per cent and is projected to boost\nIndonesia\u2019s Gross Domestic Product (GDP) growth by up to 12 per cent,\nequivalent to USD 366 billion, by 2030. Seeing this opportunity, major\nplayers such as Telkomsel, Indosat, and XLSMART are now leveraging the\nAI ecosystem to unlock new revenue sources while enhancing customer\nservice through user-oriented AI solutions and strategic\npartnerships.<\/p>\n
As a national strategy, the government is moving tactically to\nprepare a friendly legal umbrella that still prioritises public\ninformation security. For Minister of Communication and Digital Affairs,\nMeutya Hafid, such public service innovation is tangible proof that\ntechnology must be grounded. \u201cDigital economy growth figures must be\nreflected in and have an impact on society. Technology must be a tool to\nimprove people\u2019s welfare, strengthen MSMEs, and ensure digital\ntransformation truly benefits all of Indonesia,\u201d she asserted. Vice\nMinister of Communication and Digital Affairs, Nezar Patria, outlined\nthe latest developments in regulatory initiatives that will ensure\nsustainable AI development. \u201cThe government is currently finalising two\nmain policy instruments: the National AI Roadmap and a Presidential\nRegulation on AI Ethics,\u201d Nezar explained. These progressively designed\nregulations will prioritise ten national strategic sectors, ranging from\nfood security, health, and bureaucratic reform to the creative economy,\nas the main drivers.<\/p>\n
The government is fully aware that this roadmap cannot be built in a\nvacuum but must balance the space for innovation with public protection.\n\u201cThe success of AI is not only determined by its technological\nsophistication but also by our ability to manage data securely,\nethically, and responsibly,\u201d said Meutya Hafid, adding an ethical\ndimension to the regulation. This regulatory innovation finds its best\nlaboratory in the national telecommunications industry. Meutya Hafid\nunderscored that the main prerequisite for leading this technology race\nis the readiness of basic infrastructure. \u201cTo be a leader in AI, data\ncentres must be strong. The talent must also be ready, must be\nexcellent,\u201d she stressed.<\/p>\n
However, this entire intelligence architecture cannot function\nwithout a smooth digital highway. This is where the acceleration of 5G\ninfrastructure becomes the main determinant. Amidst the Ministry of\nCommunication and Digital Affairs\u2019 move to auction the golden 700 MHz\nand 2.6 GHz frequency spectrums, a crucial chapter awaited by the mobile\nindustry in mid-2026, an optimistic view comes from the Chairman of the\nIndonesian Telematics Society (Mastel), Sarwoto Atmosutarno. He sees\nIndonesia\u2019s long waiting period to massively deploy 5G as a latecomer\nadvantage, where operators can now directly adopt mature technology\narchitecture without having to go through an expensive and\ntime-consuming trial-and-error phase. \u201cFor us who have not yet jumped to\n5G, it is also an opportunity. We are obtaining technology that is more\nmature than if we had adopted 5G four or five years ago when it was not\nyet mature,\u201d said Sarwoto. With the completion of the analogue\ntelevision switch-off, the golden frequency spectrum is now ready to be\noptimised to realise a \u2018true 5G\u2019 network, not just \u20185G that feels like\n4G\u2019, making the connectivity foundation for national artificial\nintelligence implementation increasingly robust and stable.<\/p>\n
Mobile operators in Indonesia are shifting from being mere data pipe\nconnectivity providers (telco) to comprehensive technology solution\ncompanies (techco). For analysts, this expansion of services into the AI\nrealm is a highly promising strategic driver for maintaining long-term\nprofitability. Fundamental analyst from BRI Danareksa Sekuritas, Abida\nMassi Armand, assesses this expansion move as a smart strategy for the\nstability of operator performance amidst a competitive market. \u201cThe\nutilisation of AI also has the potential to strengthen customer\nexperience and suppress churn rate, thus positively impacting revenue\nstability and medium-term profitability,\u201d Abida explained. By optimising\nthe big data flowing through their networks and utilising reliable data\ncentre infrastructure, mobile operators now have new monetisation\nopportunities based on data solutions. Seeing this potential,\nTelkomsel\u2019s President Director, Nugroho, affirmed his company\u2019s\ncommitment to being at the forefront of this transformation. \u201cTelkomsel\nwill continue to strengthen its role as a digital ecosystem enabler\nthrough the development of broadband connectivity, integrated digital\nservices, and the utilisation of AI-based technology to deliver a more\nseamless, relevant, and valuable customer experience,\u201d he stated,\noutlining the company\u2019s strategy. A similar step was taken by XLSMART,\nan integrated telecommunications entity born from the historic merger of\nXL Axiata and Smartfren. For XLSMART\u2019s President Director and CEO,\nRajeev Sethi, the birth of this new force is an important stepping stone\nto unite network strengths to serve their more than 94.5 million\ncustomers. \u201cThe formation of XLSMART is an important step in realising\nour goal: connecting every Indonesian for a better life,\u201d Rajeev said\nfirmly. He also believes that in modern competition, \u201cAI is no longer a\nfuture technology, but a present necessity.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/driving-telecommunications-innovation-through-artificial-intelligence-1784274914", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }