Press Release No. 279/HM/KOMINFO/08/2021
Thursday, 12 August 2021
About
Three Operators Open 5G Services, Minister of Communication and Information: Government Prepares 5G TKDN
The Ministry of Communication and Information said the Government would prepare for the development of the 5G Domestic Content Level (TKDN) and asked manufacturers to activate the software so that 5G phones could access the 5G network.
Minister of Communications and Information Johnny G. Plate stated that currently there are two cellular operators that provide commercial 5G services, namely PT Telkomsel, which will start operating on 27 May 2021 and PT Indosat Tbk, which will operate on 7 June 2021.
“Today, we welcome the participation of PT XL Axiata Tbk, which has just received a Certificate of Operation Eligibility (SKLO) for 5G Services on August 6, 2021 a few days ago. After carrying out the Operational Feasibility Test (ULO) on August 3 to 5, 2021 in the Jalan Margonda area, Depok City. One day after the operation-worthy test, SKLO is issued,” he explained in a Virtual Press Conference on the results of the Operational Feasibility Test for the Implementation of the 5G Cellular Mobile Network Based on IMT-2020 (International Mobile Telecommunications-2020) Technology in the 1800 MHz Frequency Band PT XL Axiata, Tbk from Jakarta, Thursday. (12/08/2021).
Since May 2021, commercial 5G telecommunication network services have been present in 9 cities or agglomeration areas in Indonesia, namely (1) Jabodetabek; (2) Bandung; (3) Batam; (4) Balikpapan; (5) Makassar; (6) Surakarta; (7) Surabaya; (8) Denpasar; and (9) Medan. Minister Johnny emphasized that currently 5G commercial services have been supported by three national telecommunications operators.
“In the future, we all hope that, of course, we must maintain that 5G commercialization can develop well in Indonesia,” he hoped.
According to the Minister of Communication and Information, the presence of 5G network services is not only able to support the progress of the telecommunications industry, but can grow various industrial derivatives.
“Be it the fintech industry, e-commerce, edutech, health tech, and various other industries will be increasingly accelerated, enlivening Indonesia’s digital ecosystem,” he said.
Minister Johnny stated that the Indonesian Government implemented a Neutral Technology Policy in the implementation of 5G services. Through this policy, cellular operators are given the flexibility to implement and choose the latest cellular technology in the utilization of radio frequency bands that have been stipulated in their licenses.
“So cellular operators have the flexibility to sort, choose and determine which technology is the right choice. Of course, with the hope that we will keep it so that the ease of speed in after-sales service can also be done well. And the communality system that exists in Indonesia continues so that there is no overcost in its maintenance,” he explained.
The government is also currently and will continue to develop a 5G supporting ecosystem which is carried out so that the presence of 5G technology can provide opportunities and opportunities for technology development in the country.
“Some concrete things that are being carried out include: (1) increasing the TKDN aspect of 5G devices, synergizing with the Ministry of Industry in this regard; (2) application ecosystem development; (3) 5G-oriented digital talent development; and (4) policy synchronization between the Central and Regional Governments for the deployment of 5G infrastructure,” said the Minister of Communication and Information.
Minister Johnny stressed that currently there is a TKDN for 4G telecommunications network technology. According to him, the reference will be a benchmark for the development of 5G TKDN. “This is all for the efficiency and economy of the domestic industry,” he said.
According to the Minister of Communication and Information, the development or expansion of network infrastructure is important for human resource development to support 5G deployments. Regarding the availability of 5G mobile devices, Minister Johnny stated that he had asked mobile phone manufacturers to activate 5G software so that they could be used to access 5G networks.
“We also need to use other technology options, both in large numbers and with high qualifications. Specifically regarding the availability of 5G smartphone devices, Kominfo has asked all 5G manufacturers and vendors to open 5G software, so that smartphones that can already be used for 5G cover, “he explained.
Keep the Balance and Develop the Digital Economy
The issuance of PT XL Axiata, Tbk’s 5G Network Service SKLO is carried out in accordance with the mandate of Article 4 of the Minister of Communication and Informatics Regulation Number 5 of 2021 concerning Telecommunications Operations. Through the issuance of the 5G Service SKLO, network services, as well as all 5G facilities and infrastructure that have been completed by PT XL Axiata, Tbk, are technically declared ready to operate.
“This 5G network service will be carried out on a frequency band of 1800 MHz or 1.8 GHz, with a bandwidth of 20 MHz in the range of 1807.5 MHz to 1827.5 MHz,” explained the Minister of Communication and Information.
According to Minister Johnny, the presence of a third cellular operator that provides 5G network services shows that the industry providing 5G network services can develop commercially well in Indonesia.
“Although it is still at the initial commercial operations stage, this good achievement certainly cannot be separated from the facilitation of policies contained in Law no. 11 of 2020 concerning Job Creation which includes policies, among others, (1) active and passive infrastructure sharing; (2) spectrum sharing; and (3) regulation of the coexistence of Over The Top (OTT) services with conventional multimedia services,” he explained.
The Minister of Communication and Informatics emphasized that the Job Creation Law also provides a platform for setting the upper and lower limits of tariffs in order to create favorable and affordable tariffs for telecommunications operations.
The mechanism for determining the ceiling price is prepared to ensure that service tariffs do not exceed the purchasing power of users. Meanwhile, the mechanism for determining the floor price is prepared to ensure that there is no predatory pricing practice so that the industry can compete fairly
“It is better for us to maintain the level of people’s purchasing power on the one hand and on the other hand also to maintain healthy competition for the development of the cellular telecommunications industry in Indonesia,” said Minister Johnny.
In addition, the Minister of Communication and Information reaffirmed the continuity or coexistence of 4G services even though 5G services are currently being implemented.
“We have to maintain it because 4G is still the backbone that supports our national digital transformation,” he said.
Through this initial step of implementing 5G technology in Indonesia, Minister Johnny hopes that he will be able to support the development of the cellular industry in the country as well as open up opportunities for the development of the digital economy.
“By starting the commercial operation of 5G, it will further enliven our national cellular telecommunication industry and open up more space and opportunities for our digital economy now and in the future. So that we are increasingly capable of realizing a Connected Indonesia; The more digital the more advanced,” he said.
At the press conference, Minister Johnny was accompanied by the Director General of Resources and Equipment of Post and Information Technology Ismail and the CEO of PT XL Axiata, Tbk, Dian Siswarini.
XL Axiata CEO Dian Siswarini appreciated the Ministry of Communication and Informatics’ support in deploying 5G networks. “I would like to thank the Minister of Communications and Informatics and also the ranks of the Ministry of Communication and Information who have provided extraordinary support so far,” he said.
According to Dian Siswarini, his party is ready to provide full support to the government to provide the best service to the community. “We fully support the government and we support efforts to accelerate the implementation of 5G technology in Indonesia by continuing to innovate and be adaptive to all technological developments that occur in the world,” he said.
Even the CEO of XL Axiata invites all cellular industry ecosystems in Indonesia to work together to support every government policy. “Hopefully everything we have done together with the government and all parties will help accelerate national development in all fields and can accelerate the realization of an advanced Indonesia,” he said.