A Decade of Digital Transformation: How Indonesia's 4G Launch Catalyzed Economic Growth

Jakarta, INTI - Indonesia has undergone a transformative decade, marked by a tenfold increase in internet speed, from an average of 2.5 Mbps in 2014 to 25 Mbps in 2024. This dramatic improvement in digital infrastructure is a testament to the country's commitment to embracing and advancing in the digital age.

The Minister of Communication and Informatics, Budi Arie Setiadi, credited this progress to a pivotal moment in December 2015 when President Joko Widodo officially launched the 4G telecommunications service on the 1,800 MHz frequency across the nation. The launch event, which took place at the National Museum in Central Jakarta, marked the beginning of a new era for digital connectivity in Indonesia.

"Friday afternoon, December 11, 2015, was a historic day. It was when President Joko Widodo launched the 4G service on the 1,800 MHz frequency nationwide, marking a significant step forward in our digital evolution," said Minister Budi Arie during his remarks at the documentary film launch of "Derang Daring" at Theatre 3 Plaza Senayan XXI, Central Jakarta, on Friday (August 30, 2024).

He emphasized that the introduction of 4G LTE technology was a crucial and transformative moment for Indonesia, as it significantly enhanced the speed and capabilities of internet access for millions of Indonesians. The nation's leading telecommunications providers, including Telkomsel, Indosat Ooredoo, XL, Hutchison 3, and Smartfren, were quick to adopt and deploy the new technology.

"The presence of 4G LTE on the 1,800 MHz frequency allowed Indonesians to experience a new level of internet access with speeds and capabilities far superior to previous technologies," noted Minister Budi Arie.

He further explained that the launch of 4G LTE not only improved connectivity but also served as a catalyst for Indonesia's burgeoning digital economy. The digital revolution that followed has driven significant economic growth, enabling the nation to weather the challenges posed by the Covid-19 pandemic.

"When President Jokowi launched 4G LTE at the National Museum nine years ago, he expressed his hope that the digital revolution would lead to an economic revolution. Today, we see that this has indeed happened, with our digital economy growing rapidly and showing resilience during the pandemic," explained Minister Budi Arie.

During the challenging years of the Covid-19 pandemic from 2020 to 2022, the digital sector became a cornerstone of Indonesia's economic stability, playing a vital role in maintaining business operations and connecting communities. "Connectivity became essential, and all elements of the digital ecosystem played a crucial role in ensuring access for everyone," he added.

Minister Budi Arie also highlighted the government's focus on accelerating digital transformation, particularly in the Frontier, Outermost, and Remote areas (3T regions). "We have seen firsthand how the availability of internet access in these regions has transformed local economies and improved the quality of life for communities," he said.

He concluded by acknowledging the collective effort of the government, industry, and other stakeholders in achieving this digital milestone. "This achievement lays the groundwork for further digital transformation, strengthening our economy, and preparing Indonesia to become a developed nation by 2045," Minister Budi Arie concluded.

The documentary film launch was attended by key figures including the Director General of Information and Public Communication, Prabunindya Revta Revolusi, the Minister's Special Staff, Sarwoto, APJII Chairman Muhammad Arif Angga, Telkom Indonesia's Director of Digital Business Fajrin Rasyid, PANDI Chairman John Sihar Simanjuntak, Film Producer Fauzan Zidni, and Director Dodik.