PwC: Indonesia's telecommunications industry enters strategic transformation phase

Jakarta (ANTARA) - PwC Indonesia has stated that the national telecommunications industry has now entered a phase of strategic transformation and sustainable development, underpinned by strong consumption fundamentals, even within Southeast Asia. “Based on findings in our latest publication, ‘Indonesia Telecommunications Sector Overview and Market Update’, the greatest opportunity lies in how this industry evolves to drive and capture value from the broader digital ecosystem,” said PwC Indonesia Telecommunications, Media, and Technology Leader Abdullah Azis in a statement in Jakarta on Tuesday. He noted that total telecommunications service revenue is estimated to reach $17-18 billion by 2025, with mobile services remaining the main contributor, accounting for nearly 60 per cent of total industry revenue. This condition is supported by more than 350 million active mobile connections as of early 2025, equivalent to a penetration rate above 120 per cent, reflecting the high usage of multi-SIM cards in society. Going forward, the sector is projected to continue recording a mid-single-digit Compound Annual Growth Rate (CAGR) until 2030. This growth is driven by continuous network expansion, increased data usage per subscriber, and the widening penetration of fixed broadband. “Strengthening domestic capabilities and aligning with the evolving regulatory landscape will be key to unlocking sustainable long-term growth,” Abdullah said. From a fiscal perspective, the issuance of Minister of Finance Regulation No. 1 of 2026 provides tax certainty for business restructuring through fiscal book value facilities. This makes it easier for operators to consolidate and manage assets more efficiently. Against this backdrop, Abdullah continued, the next growth phase demands that the telecommunications sector not only focus on connectivity but also take a more strategic role in creating and leveraging value within the digital ecosystem. This includes accelerating the development of value-added digital services such as cloud, cybersecurity, AI, and the Internet of Things (IoT), while simultaneously driving fixed broadband expansion, strengthening the integration of fixed and mobile services, and improving network quality nationwide. “Furthermore, it is important for Indonesia to strengthen domestic technological capabilities, gradually shifting from merely being a technology user towards a more active role in the development, ownership, and innovation of digital platforms,” he said.