Speedtest data reveals that Indonesia is addressing its lagging internet speed compared to neighboring countries, ranking 9th out of 11 ASEAN member nations.
Minister of Communication and Informatics, Budi Arie Setiadi, said the plan is to set minimum internet speed standards in Indonesia, which was at 24.96 Mbps for mobile internet, 27.87 Mbps for fixed broadband as of December.
Comparison of internet speeds (Mbps) in Indonesia versus other ASEAN nations based on databox:
- Singapore: 93.42;
- Brunei Darussalam: 91.87;
- Malaysia: 69.92;
- Vietnam: 49.12;
- Thailand: 42.14;
- Laos: 29.98;
- Philippines: 28.12;
- Cambodia: 26.64;
- Indonesia: 24.96;
- Myanmar: 21.29;
- Timor Leste: 4.16.
“We have collectively deliberated and found concrete solutions to address this issue,” said Budi Arie on Wednesday, January 24, 2024.
During a visit to Balmon SFR Class I in Palembang, South Sumatra, Budi Arie said the communication and informatics ministry plans to prohibit mobile operators from selling fixed broadband internet services with speeds below 100 Mbps.
The Minister intends to summon all mobile operators and the Indonesian Internet Service Providers Association (APJII) for discussions on optimizing internet speed.
“Internet is a basic necessity; why are we still selling 5 Mbps, 10 Mbps for fixed internet broadband? Why not directly offer 100 Mbps?” Budi Arie questioned.
Budi Arie emphasized three crucial aspects for improving internet access speed: industry health, service quality and expansion, and economic growth.
Data from the Directorate of Telecommunications, Ministry of Communication and Informatics in 2023, indicates a significant yearly decline of 17.72 percent in effective data service rates through mobile broadband from 2017 to 2023.
Regarding the economic aspect, Budi Arie highlighted the need for adequate capital expenditure (capex) investment to deploy 5G, which is several times higher than 4G.
To enhance service quality and expansion, Minister Budi Arie stressed the importance of sufficient capex investment. He mentioned that financing for capex depends on the profitability and other financing models that burden operators.
From an economic growth perspective, International Telecommunication Union (ITU) data in 2022 revealed that the percentage of internet tariffs to Gross National Income (GNI) per capita in Indonesia is 1.1 percent for mobile broadband (2GB priced at US$3.78 or IDR 59,854) and 6.13 percent for fixed broadband (20 Mbps sold at US$20.97 or IDR 332,052).
“This means that if the allocated cost for broadband services by the public increases in percentage, it becomes more challenging for the public to afford or access these services,” said Budi.
