Consumer buying behavior in Indonesia’s mobile services market is evolving rapidly, with a clear shift towards data-centric usage and flexible prepaid options. Mobile users are increasingly prioritizing affordable, high-speed internet access, leading to a strong rise in mobile data service adoption.
The shift away from traditional mobile voice services is evident, as consumers prefer OTT apps like WhatsApp and Telegram for communication. As a result, mobile voice revenue is declining, while data revenue is on the rise, fueled by the growing demand for video streaming and social media on smartphones, Sarwat Zeeshan, Telecom Analyst at GlobalData, said.
Smartphone users are opting for prepaid plans that offer flexible pricing, with packages starting as low as IDR 5,000 ($0.30). These plans often come bundled with generous data allowances and value-added services, catering to the price-sensitive yet digitally engaged consumer base.
4G remains the dominant mobile technology due to widespread coverage, but consumers are gradually embracing 5G where available. With mobile data usage projected to grow from 12.1 GB/month in 2024 to 17.2 GB/month by 2029, Indonesian consumers are increasingly seeking faster and more reliable connections, driving demand for 5G-enabled devices and services.
Overall, Indonesian consumers show a clear preference for cost-effective, data-heavy mobile plans, with prepaid offerings and 4G/5G access being key decision factors in their purchasing choices.
Investment trends
Telkomsel has made investments in network capabilities, enterprise solutions, AI, sustainability, and startup funding. In 2025, Telkomsel and Huawei earned the Global TD‑LTE Initiative (GTI) Award for their Hyper 5G innovation at Bali’s Benoa Port, where they piloted 5G Standalone (SA) to power a Smart Port solution using cloud, AI-based surveillance, and dual massive MIMO.
Telkomsel and Ericsson launched Hyper 5G in Batam, with 112 5G base stations delivering over 610 Mbps downlink, 100 Mbps uplink, 14 ms latency, and AI‑driven autonomous network optimization, demonstrating stable connectivity in urban and industrial zones ericsson.com.
These initiatives reinforce Telkomsel’s market leadership: it continues to operate more than 1,000 5G base stations across 56+ cities and regencies, augment Hyper 5G presence in key areas like Jakarta, Bali, Batam, and Makassar, and monetize both consumer and enterprise segments.
Indosat Ooredoo Hutchison (IOH) is scaling its 4G and 5G networks. Through an agreement with Nokia, IOH is expanding 4G/5G coverage and deploying fixed wireless access (FWA) across underserved regions. By late 2024, it operated around 179,000 4G BTS (up ~30 percent), resulting in 12.05 EB of data usage and an ARPU increase to IDR37,700.
In 2025, IOH partnered with Ericsson and Google Cloud to migrate its Business Support System (BSS) to a cloud-native, AI-driven model — boosting agility, reducing complexity, and enabling dynamic offerings . IOH is also a significant investor in rural connectivity, dedicating over 50 percent of its ~US$700 million annual capex to remote areas.
Following a December 2024 agreement (anticipated closing by mid‑2025), XL Axiata merged with Smartfren to create XLSmart — a larger #3 operator with ~94.5 million subscribers and combined spectrum of ~152 MH. The merger is expected to unlock IDR4–6 trillion annual synergies through integrated network, IT, and procurement functions. XLSmart will invest in 5G expansion and digital services like AI, cloud, and cybersecurity.
TelecomLead.com News Desk
