Indonesian Political, Business & Finance News

LAPI ITB Study: Economic Impact of Digital Infrastructure in Indonesia

| | Source: MEDIA_INDONESIA Translated from Indonesian | Infrastructure
LAPI ITB Study: Economic Impact of Digital Infrastructure in Indonesia
Image: MEDIA_INDONESIA

PT LAPI ITB has officially released a new study examining the socio-economic impact of digital connectivity in Indonesia. The study highlights Telkomsel’s strategic role in driving national economic growth, empowering micro, small, and medium enterprises (MSMEs), and ensuring equitable access to digital services across remote areas.

‘Digital connectivity is no longer merely viewed as a service but as an economic infrastructure directly linked to productivity, inclusion, and socio-economic growth across regions,’ said Yusmar Anggadinata, PT LAPI ITB’s Managing Director.

The study employed a methodology combining economic data analysis, regression models, and field surveys. Results revealed a significant positive correlation between telecommunications infrastructure development and increases in regional gross domestic product (PDRB).

According to the study’s estimates, each Base Transceiver Station (BTS) unit has a substantial economic impact on surrounding areas. Furthermore, the sector’s contribution to national revenue in rupiah is projected to reach significant levels by 2024.

In the MSME sector, particularly in non-urban areas, digitalisation has proven to be a growth engine. LAPI ITB’s survey found that digital service adoption correlates directly with a 32% average increase in business turnover. User satisfaction with these services also reached an impressive 92%.

Beyond turnover, this digital ecosystem has also become a major job creator. Activities in the sector are estimated to contribute to the creation of over 685,000 jobs, both direct and indirect, bolstering national economic sustainability.

The study also focused on frontier, outermost, and underdeveloped (3T) regions. By 2024, Telkomsel plays a pivotal role in reducing the digital divide through support for the BAKTI programme.

LAPI ITB’s Chief Expert, Dr. Ir. Ian Josef Matheus Edward, noted that while the figures indicate tangible contributions, the study’s findings should be interpreted proportionately.

‘This study provides a picture based on measurable indicators but is not intended to attribute all economic changes to a single entity,’ he explained.

LAPI ITB emphasised that the study focuses on understanding the role of connectivity within the broader national development ecosystem, without comparing operators, but rather how digital infrastructure serves as the lifeline of national progress. (Z-1)

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