Indonesian Government Supports Development of National Digital Infrastructure

RRI.CO.ID, Jakarta - Vice Minister of Communication and Digital Affairs, Nezar Patria, asked local governments to fully support the acceleration of telecommunications infrastructure development in their regions. This support can be realized through the implementation of fair rental rates for regional assets and regulatory certainty that does not burden the industry.

The minister made the statement during the Meeting on the Implementation of the Regional Property Rental Concept in accordance with Ministry of Home Affairs Regulation Number 7 of 2024 at the Ministry of Home Affairs Office, Jakarta, Tuesday, 20 January 2026. He highlighted the high regulatory burden or regulatory cost that the telecommunications industry in Indonesia has to bear, which amounts to 12 percent, one of the highest in the world.

This condition is considered unhealthy for the industry's sustainability and could hinder national digital transformation. "Digital transformation is no longer an option, but a key prerequisite for achieving the 8 percent economic growth target set by President Prabowo and Vice President Gibran. This agenda is highly dependent on the smooth deployment of digital infrastructure in the regions," Vice Minister Nezar.

According to him, there are still regional policies that are not in line with national regulations regarding the imposition of tariffs for the deployment of digital infrastructure in the regions.

"Even though the regulations are clear. Article 128B of the Minister of Home Affairs Regulation Number 7 of 2024 concerning Guidelines for the Management of Regional Property states that the adjustment of digital infrastructure rental is 0 percent if the Integrated Utility Network Facilities are not yet available. This provision is designed to maintain a balance between optimizing regional assets and investment viability," he said.

Moreover, Vice Minister Nezar underscored that the telecommunications industry does not refuse to contribute to regional revenue. However, the industry needs policy certainty, fairness, and consistency.

Unmeasured and fluctuating regulatory costs due to unilateral interpretation actually have the potential to deter investment and slow down the expansion of the internet network to remote areas Telecommunications infrastructure, according to Vice Minister Nezar, is a cross-sectoral driver that supports public services, education, healthcare, and even local government transaction systems.

"If the industry's climate is unhealthy, the expected economic impact of digital technology or the multiplier effect will not be optimal. We view the importance of collaboration and policy harmonization between the central and regional governments. The goal is simple yet strategic: to create a fair, transparent, and pro-growth regulatory climate," Vice Minister Nezar stated.