Indonesian digital and AI infrastructure development

In October 2026, Telkom Indonesia announced plans at Bali Tech Week to prioritize digital infrastructure development. The company aims to support government agendas and strengthen digital sovereignty to position Indonesia as a strategic Indo-Pacific digital hub.

By November 2026, efforts to expand the national digital ecosystem progressed through both Telkom Indonesia and Indosat Ooredoo Hutchison. Telkom Indonesia focused on developing data centers, a national Internet of Things platform, and cloud-based AI models to reduce technological dependency by integrating technologies from China, Europe, and the United States. Simultaneously, Indosat Ooredoo Hutchison reported significant financial growth and is accelerating its transformation into an AI TechCo, utilizing AI hyper-personalization to increase mobile revenue.

Financial reports for the first nine months of 2026 show strong momentum for both major providers. Telkom Indonesia recorded consolidated revenue of Rp113.5 trillion, a 3.5% year-on-year increase, driven largely by its Data, Internet, and IT Services segment, which saw an 8.3% rise. The company reported a net profit of Rp14.4 trillion. Indosat Ooredoo Hutchison reported revenue of Rp45.8 trillion, an 11% year-on-year increase, with net profit attributable to owners rising 37.2% to Rp4.9 trillion.

In response to the rapid rise of artificial intelligence, the Ministry of Communication and Digital (Komdigi) has urged telecommunications operators to collaborate through the “Indonesia Incorporated” strategy. Officials warned that without a unified approach, domestic operators risk becoming “mere business channels for global technology companies,” similar to the impact observed during the expansion of over-the-top services.