Fifth-generation (5G) cellular network technology is not only slated to provide speedier content downloads, but there are also a host of other applications that 5G is capable of, which can transform the way people conduct their day-to-day activities and business, from the internet of things (IoT) to artificial intelligence (AI). With Indonesia set to become one of the world’s digital economic powerhouses, 5G will play an instrumental role in the economy going forward. With the goal of being among the world’s top five-largest economies by 2045, the digital transformation is a crucial element for enterprises in speeding up growth to move away from a resources-driven economy to a knowledge- and digital-based economy. From smart factories to an AI-based new capital city in Kalimantan and digital-based agricultural businesses, to industrial IoT, Indonesia has the potential to become Southeast Asia’s largest 5G market.
However, Indonesia is still facing challenges in implementing 5G technology, especially in the slow availability of the spectrum, the incompatibility of existing smartphones and a possible price war between telecommunications operators. Other countries in the Asia-Pacific have already started to free up mid-band spectrum and are on their way to implementing a commercial use of 5G.