Ericsson: 5G Can Boost Indonesia’s Economy, GDP Could Reach US$41 Billion

Ericsson: 5G Can Boost Indonesia's Economy, GDP Could Reach US$41 Billion
Ericsson: 5G Can Boost Indonesia's Economy, GDP Could Reach US$41 Billion (photo: envato elements)

Indonesia is on the brink of a digital revolution, with 5G technology set to play a pivotal role in accelerating this transformation. From 2024 to 2030, 5G is projected to contribute over US$41 billion, or Rp659.89 trillion, to the country’s GDP, as highlighted by telecommunications giant Ericsson.

During the Ericsson Imagine Live 2024 event held in Jakarta on Tuesday (28/5/2024), Head of Ericsson Indonesia Krishna Patil shared insights from the Global System for Mobile Communications Association (GSMA). Krishna emphasized that the 5G network would be instrumental in driving Indonesia’s digital transformation and sustainable economic growth.

“5G can further accelerate growth to position Indonesia as a leader in this region,” Krishna declared, underscoring the significant potential of 5G technology.

Krishna explained that Ericsson is preparing a robust digital infrastructure in Indonesia, aiming to bridge the digital divide, create employment opportunities, boost the economy, and digitally transform the nation.

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In alignment with these goals, Ericsson is continuously investing in Indonesia. The company’s early involvement in the 5G space was marked by its pioneering trials of non-Standalone 5G networks in 2021.

“We are proud to be the first to trial selected networks in Indonesia with non-Standalone 5G,” Krishna noted.

Affordable access to mid-band spectrum is crucial, Krishna pointed out, drawing from Ericsson’s observations in other countries, particularly in Asia, where such allocations have led to significant advancements. Consequently, Ericsson recommends that Indonesia adopt a similar strategy.

Krishna also highlighted that the Standalone 5G architecture would enable Indonesia to unlock the potential of Industry 4.0, forming the backbone of the country’s digital vision for 2045.

“We remain committed to supporting the government’s digital agenda,” he affirmed.

At the same event, Ericsson showcased various advanced technological solutions and relevant 5G use cases that are crucial for Indonesia’s transition to a digital economy.

The 5G use cases and demonstrations were organized into four zones: Capture the value of 5G, Enterprise Transformation, Shape our Future Together, and Programmable Networks.

Krishna elaborated that the advent of 5G opens up new opportunities for operators, both in the established mobile broadband business and in exploring new areas of growth.

“This allows operators in Indonesia to implement 5G simultaneously, optimizing their chances to create profits in the rapidly evolving 5G landscape,” Krishna concluded.

As Indonesia strides towards a digital future, the collaboration between the government and stakeholders like Ericsson is key to ensuring that the benefits of 5G technology are maximized, fostering economic growth and digital innovation across the nation.