Indonesia is experiencing steady broadband growth, supported by increased investment strategies and a strong focus on enhancing customer experience.
Consumer spending on fixed communication services in Indonesia is growing, with revenues projected to grow from $3 billion in 2024 to $3.7 billion by 2029, according to GlobalData. This 4 percent CAGR is fueled by rising demand for fixed broadband services, particularly high-speed fiber internet, as Indonesians increasingly prioritize reliable home connectivity.
The fixed broadband segment in Indonesia is forecast to grow at 4.3 percent CAGR, due to government initiatives aimed at expanding broadband household penetration. Programs targeting affordable, high-speed home internet — up to 100 Mbps — are central to national digital inclusion and transformation goals, pushing more consumers toward digital services and increasing broadband-related spending, Neha Mishra, Telecom Analyst at GlobalData, said.
As fixed voice service revenues decline — driven by consumer migration to OTT communication apps — operators are refocusing on broadband. Fiber already accounts for over 83 percent of total broadband lines, and its dominance is expected to continue, supported by nationwide rollout plans and growing consumer preference for high-speed, stable internet.
Increased competition in the market is prompting operators to go beyond basic access, emphasizing differentiated services, bundled value, network quality, and superior customer experience. Infrastructure investment and innovative pricing will be critical for providers aiming to capture long-term consumer spending and stay competitive in a digitally maturing Indonesia.
Main telecoms
Indonesia’s telecom market is led by Telkomsel, Indosat Ooredoo Hutchison, and the recently merged entity XLSmart (XL Axiata + Smartfren), alongside broadband-focused players like MyRepublic.
Telkomsel remains the largest operator with around 159 million mobile subscribers as of 2023. It has been investing heavily in expanding its 4G and 5G networks, covering over 49 cities with 5G and deploying advanced technologies such as Massive MIMO and autonomous network management. Its strategy focuses on nationwide coverage, AI-driven network optimization, and integrating fixed broadband services through IndiHome under its parent, Telkom Indonesia.
Telkom Indonesia is the dominant player in both fixed voice and broadband markets. Its IndiHome brand offers a variety of bundled plans combining internet, IPTV, and voice services, catering to diverse household needs. Telkom’s strategy also includes affordable offerings like EZnet, which delivers 10 Mbps connectivity tailored for budget-conscious families, expanding its reach into price-sensitive segments.
Indosat Ooredoo Hutchison has about 100 million mobile subscribers. In the first half of 2024 alone, it invested around USD 275 million in expanding its 4G and 5G infrastructure, including 22,000 new 4G base stations and over 100 5G sites. The company is transitioning into an AI-native telco with partnerships involving Nokia, NVIDIA, and Google Cloud, aiming to embed AI across operations. It is also preparing a billion-dollar stake sale of its fibre business and has acquired MNC Play’s broadband base to grow in fixed-line services.
XL Axiata and Smartfren finalized their merger in April 2025, forming XLSmart with a combined subscriber base of around 94–95 million. Prior to the merger, XL Axiata invested in expanding its network with over 160,000 BTS, over 60 percent of which are fiberized, and began deploying green BTS sites. It has also partnered with Ericsson for dual-mode 4G/5G core network development. The merged entity aims to use its scale for rural reach, operational efficiency, and competitive strength, while continuing green infrastructure expansion.
MyRepublic, a fixed broadband provider, surpassed 1 million subscribers in early 2025. It has expanded its fiber network to over 60 new cities and introduced AI-powered customer service solutions. The company’s focus is on reaching underserved areas with high-speed internet and tailored broadband packages.
Indonesia’s telecom operators are heavily focused on expanding 4G and 5G coverage, integrating AI and automation for network optimization, and growing their fixed broadband footprint. Strategic priorities also include rural connectivity, sustainability through green BTS sites, and infrastructure monetization through asset spin-offs or mergers.
Baburajan Kizhakedath
