Indonesian telcos insist govt provide incentives before they commit to five-year broadband expansion

19 Dec 2014

The Jakarta Post reports Indonesian operators PT Telekomunikasi Indonesia (Telkom), PT XL Axiata and PT Indosat as saying that whilst they are behind the government’s five-year broadband expansion plan, they will need ‘certain incentives’ before they can commit fully.

Last week, CommsUpdate reported the minister for communications and technology, Mr Rudiantara, as saying that state-owned Telkom would set the pace in the country’s proposed USD24 billion drive to expand the country’s broadband capacity over the next five years. At the time the minister added that the government was considering extending ‘unspecified incentives’ to Telkom in an effort to bolster internet access in southeast Asia’s largest economy. However, with Rudiantara noting that the government is still in the process of finalising the details of the plan, Telkom has gone on record as saying it will require certain assurances – such as additional spectrum and some guarantee that it will be able to see a return on investment for covering less commercial areas. Further, it is understood that Telkom is advocating tax and regulatory incentives from the government, while for its part, XL Axiata favours the adoption of an infrastructure sharing plan. Finally, Indosat says it would only come on board if the state provides it with assistance to boost its revenues and trim operational costs.