Indonesian Political, Business & Finance News

Komdigi Spectrum Auction to Generate Rp 30 Trillion in State Revenue

| Source: CNBC Translated from Indonesian | Economy
Komdigi Spectrum Auction to Generate Rp 30 Trillion in State Revenue
Image: CNBC

The recently concluded auction of the 700 MHz and 2.6 GHz spectrum bands is set to make a significant contribution to Non-Tax State Revenue (PNBP). Minister of Communication and Digital Affairs (Komdigi) Meutya Hafid stated that the potential revenue could reach Rp 30 trillion over a 10-year period. “Among other things, the potential state revenue from this spectrum management will contribute to Non-Tax State Revenue, or PNBP, amounting to Rp 6 trillion in the initial phase, with total projected state revenue reaching Rp 30 trillion over 10 years,” Meutya explained in Jakarta on Tuesday. She added that this additional revenue would be allocated to programmes that meet the needs of the public. “So this added economic value for the country will certainly be returned for the development of pro-people programmes,” Meutya said. The two spectrum auctions were won by the three major mobile operators, with varying bandwidth allocations. For the 700 MHz band, XLSMART obtained 30 MHz, Telkomsel secured 20 MHz, and Indosat received 20 MHz. Meanwhile, for the 2.6 GHz band, Telkomsel won 80 MHz, Indosat obtained 60 MHz, and XLSMART secured 50 MHz. Following this process, the operators are required to provide quality 4G services to 538 villages and sub-districts, as well as to accelerate the development of 5G networks across the country.

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