Indonesia reviews telecom deregulation and data center investment

The Indonesian government is reviewing the deregulation of the telecommunications industry to stimulate investment, improve service quality, and expand internet access. Deputy Minister of Communication and Digital Angga Raka Prabowo stated that current regulatory burdens account for approximately 13–14 percent of operator revenue. The goal is to create a more competitive ecosystem and lower costs for the public, noting that fixed broadband costs currently represent 4.86 percent of gross national income per capita, exceeding the 2 percent affordability benchmark.

Simultaneously, members of the Indonesian House of Representatives (DPR RI) are calling for rigorous feasibility studies regarding data center investments. Commission VI member Khilmi emphasized the need to evaluate electricity and water requirements, as well as customer certainty, to prevent state losses. The lawmaker cautioned that rapid data center expansion without guaranteed occupancy rates could pose financial risks, particularly if funded through state-owned banks.