Indonesian telecom firm to invest $140M in 4G coverage

TELECOMMUNICATIONS company Indosat Ooredoo plans to invest two trillion rupiah ($140.5 million) to expand its fourth-generation (4G) network coverage in Indonesia from 81 per cent to 90 per cent of the 264 million population by the end of this year.

Chief operating officer Vikram Sinha said Indosat Ooredoo would add 18,000 base transceiver stations (BTS), primarily in areas outside of Java, to support the expansion plan.

Meanwhile, CEO Ahmad Abdulaziz al-Neama on Friday said during a press conference at the company’s Jakarta headquarters that a far-reaching and reliable 4G network was necessary before the company could start developing the more advanced fifth-generation (5G) network.

“My main priority is to grow and accelerate 4G services,” al-Neama said, adding that it was too soon to say whether Indonesia was ready for 5G. He said Indosat would follow through when the 5G frequency was ready in Indonesia.

Shareholders appointed al-Neama as the Indosat Ooredoo CEO at an extraordinary meeting on Thursday to replace former CEO Chris Kanter, who resigned in May.

The Communications and Information Ministry (Kementerian Komunikasi dan Informatika, Kominfo) stated last year that it planned to hold a 5G frequency auction in 2022.

The ministry is working on the issue, but does not seem to be prioritising 5G networks.

The 5G communication technology is expected to provide a seamless internet experience and reduced device communication latency to users.

Indosat Ooredoo operates 22,015 4G BTS in 422 cities. The company served 53.3 million subscribers during the first quarter, a year-on-year decline of 44.6 per cent due to government regulations on mobile phone number registration, it claimed.

Indosat Ooredoo is 65 per cent owned by Ooredoo Asia headquartered in Singapore, which is part of Ooredoo QSC, a Qatari international telecommunications company that operates in 10 countries across the Middle East, North Africa and Southeast Asia.