The GSMA has highlighted the need for a more robust, investment-focused strategy to expedite Indonesia’s digital transformation and stimulate innovation, according to its recent findings published in the reports GSMA Digital Nations 2025 and ASEAN Consumer Scam 2025.
The GSMA has proposed a feasible strategy to facilitate the unlocking of private capital and hasten the roll-out of 5G spectrum, fiber backhaul, and AI-optimized data centers. This strategy is underpinned by policy consistency and cooperation across sectors. There is a strong inclination among Indonesian businesses towards digital transformation.
Indications of such enthusiasm were evident in a recent GSMA Intelligence survey where over 580 firms spanning across ASEAN were surveyed. The results revealed that Indonesian companies intend to dedicate an average of 10% of their revenues to digital transformation between 2025 and 2030, exceeding both the ASEAN (10.4%) and global (9.8%) averages. Two-thirds of the participants prioritized AI in their top three expenditure areas, with over half deeming 5G-powered Internet of Things (IoT) vital for future growth. This underscores Indonesia’s ambition to capitalize on cutting-edge technologies to fortify its competitive edge and security.
GSMA Intelligence anticipates that the ensuing wave of 5G investments in Indonesia could inject an extra USD 41 billion into the country’s GDP between 2024 and 2030, underlining the transformative economic potential of digital connectivity. Since 2015, mobile operators have pumped nearly USD 29 billion into Indonesia’s network infrastructure and services. Given the right investment conditions, the sector, including operators and ecosystem partners, is projected to inject an additional USD 16 billion from 2024 to 2030, primarily targeting 5G proliferation.
Julian Gorman, Head of Asia Pacific at the GSMA, expressed his thoughts on the matter, highlighting the unique opportunities presented by Indonesia’s significant scale, entrepreneurial vigor, and youthful, tech-savvy population. The focus now should be on targeted investment in areas such as affordable, dependable spectrum; robust backhaul; and AI-compatible, sustainable data centers, coupled with clear consumer protections.
The GSMA’s Digital Nations report evaluated the advancement of Asia Pacific nations in five key areas: infrastructure, innovation, data governance, security, and people. It provided insights into where investment could yield the highest returns.
Indonesia ranked midway among the 21 nations assessed. The report underscored Indonesia’s advantages in terms of its population, digital skills, and cybersecurity, while also pointing out areas in need of enhancement, particularly in innovation and investment. Potential obstacles to progress include delays in mid-band spectrum allocation, inconsistent rural coverage, and limited AI-ready capability. Consumer trust is also a matter of concern.
Findings from the ASEAN Consumer Scam Report 2025 indicate that Indonesia mirrors the wider ASEAN trend, with 45% of adults admitting to having been scammed at some point, and 68% of victims losing money. In Indonesia, scam contacts are predominantly mobile-oriented, with over-the-top (OTT) messaging (50%) and voice calls (44%), both exceeding the ASEAN average.
On a brighter note, 81% of Indonesians endorse operators sharing minimal, purpose-specific network signals such as SIM-change and number-verification during high-risk instances to prevent fraud, thus setting the stage for a broader application of GSMA Open Gateway anti-fraud APIs. Indonesia’s three primary mobile operators, Telkomsel, Indosat, and XL Axiata, have teamed up to shield customers from scams and other cybersecurity threats by collectively adopting Open Gateway APIs, such as SIM swap, number verification, and device location, to secure payments and logins.
What approach does the GSMA recommend to accelerate Indonesia’s digital transformation?
The GSMA suggests a more robust, investment-focused strategy to expedite Indonesia’s digital transformation. This includes unlocking private capital and hastening the roll-out of 5G spectrum, fiber backhaul, and AI-optimized data centers.
What potential economic impact could the next wave of 5G investment have on Indonesia?
GSMA Intelligence anticipates that the ensuing wave of 5G investments in Indonesia could inject an additional USD 41 billion into the country’s GDP between 2024 and 2030.
How are Indonesia’s major mobile operators responding to cybersecurity threats?
Indonesia’s three major mobile operators, Telkomsel, Indosat, and XL Axiata, have formed an alliance to protect customers from scams and other cybersecurity threats by jointly adopting GSMA Open Gateway anti-fraud APIs, such as SIM swap, number verification, and device location, to secure payments and logins.
