Rows of Constraints to be Faced by Indonesian Operators to Build 5G

Executive Director of the Indonesia ICT Institute, Heru Sutadi, stated that the Joko Widodo government must facilitate operators in adopting the 5G network . He said 5G will not be optimal and provide benefits if it is not done.

"The government should facilitate operators in adopting new technology," Heru told CNNIndonesia.com , Tuesday (6/4).

Heru said the government must also be firm in deciding which frequency to use by looking at developments in other countries or around the world. He asked the government not to think that it could be different from other countries because it could be costly and threatened to fail.

In the context of financing, Heru sees that the current business model of operators and vendors is more on paying for services or managing services. Thus, the operator only uses it.

"Meanwhile, technical matters are left to the vendor," he said.

He also agreed that there should be thoughts on the use of shared networks and frequencies in order to make adoption cheaper. With the presence of the Job Creation Law and PP No.46 / 2021 as its derivatives, he hopes that it will facilitate the implementation of 5G.

Heru views 2021 as a golden momentum for Presentation in Indonesia. The existence of the Covid-19 pandemic actually encourages people to carry out various digital-based activities and need high-speed internet.

In addition, President Joko Widodo firmly stated that there must be an acceleration of digital transformation, one of which is talking about internet infrastructure. However, the ecosystem must be prepared so that 5G is maximized and benefits all people and becomes the driver of Indonesia's digital economy.

"In addition, policies must also be ascertained, especially regarding which frequencies will be used and their standards. 5G has been around for 3 years, so hopefully we won't be left behind," Heru said.

Member of the Wantiknas Garuda Implementation Team, Sugardo, stated the need for commitment and understanding that 5G is part of the successful implementation of digital transformation. 5G, he said, was not intended for retail services.

With a specific niche and with Artificial Intelligent, Autonomous Car, Augmented Reality, Robotic, Controle and other advanced services, 5G will produce high ARPU. Gradually the market niche will expand.

"5G operators are required to have the ability to design business models and stimulate the market, so that their return on investment meets business principles," said Garuda.

Garuda added 5G is a challenge for operators in Indonesia. Ideally, Indonesia only needs 3 operators. The improving climate is that the tendency for consolidation among operators will make the cellular industry in Indonesia more competitive and in turn there will be national efficiency in the industry.

"President Jokowi has announced that domestic products are prioritized. The 5G system opens up opportunities by implementing the Open RAN so that TKDN can get a larger portion," he said.

More than that, he hopes that BUMN such as PT INTI will be given the opportunity to take part again as the leading telecommunications industry in the telecommunications sector, such as the strategic industries of PT Dirgantara Indonesia and Pindad which are all located in Bandung.