Indonesia adopts faster Wi-Fi to drive growth | Asian Business Review
, Indonesia

Indonesia adopts faster Wi-Fi to drive growth

The tech is expected to benefit people and companies, and improve basic services.

Indonesia has entered a new era of wireless technology with the launch of Wi-Fi 6E and Wi-Fi 7, as part of a government push to fast-track the nation’s digital transformation that is expected to unlock $187.6b in economic potential in the next six years.

Its Ministry of Communication and Digital Affairs added 24 new 20 MHz channels last month to expand broadband access, reduce Wi-Fi congestion, and enhance connectivity. It will also connect 1.14 million more people to the internet whilst lowering enterprise costs and boosting productivity.

"By adopting Wi-Fi 6E and Wi-Fi 7 on the 6 GHz frequency band, Indonesia is taking a strategic position on the global digital map,” Communication Minister Meutya Hafid said at the launch in Jakarta. “This is a tangible demonstration of our commitment to driving digital transformation as a national agenda.”

The Indonesia Technology Alliance (ITA), estimates almost $200b in economic value between 2022 and 2031 associated with allocating the 1200 MHz in the 6 GHz band — $126.4b in economic output, $37.7b in producer surplus to Indonesian enterprises, and $23.4b in consumer surplus.

“The total economic value increases over time with significant acceleration towards the end of the period due to the value leverage capability of 6 GHz,” it said in an October 2021 report.

Ismail, director general of Resources and Postal and Informatics Devices at the Ministry of Communication, said Wi-Fi 6 and Wi-Fi 7 are crucial as Indonesia enters the gigabit-speed internet era.

"Various modern applications, including artificial intelligence (AI), require high speeds, especially for home use,” he told Asian Telecom during the launch. “With Wi-Fi 6 and Wi-Fi 7, Indonesia is now part of that era.”

“Now, it's a matter of strengthening supporting infrastructure such as fiber optics,” he added.

By opening the 6 GHz spectrum, Indonesia can implement faster, low-latency, and more reliable Wi-Fi 6E and Wi-Fi 7, benefiting businesses, the public, and basic services.

This technology also allows more devices to connect simultaneously whilst maintaining a stable connection. “This is ideal for high-density areas like stadiums,” Ismail said.

He said a key challenge in implementing Wi-Fi 6 and Wi-Fi 7 is the availability of digital infrastructure, particularly fiber optic networks.

Still, Wi-Fi 6E and Wi-Fi 7 are expected to improve internet quality in Indonesia, especially for fixed broadband networks. “However, mobile networks still require further improvements.”

In a statement, the ITA, an alliance of companies and people that seek to accelerate technological innovation and progress in Indonesia, said the new spectrum aligns with the approach adopted by 81% of countries that have implemented Wi-Fi 6 GHz.

The maximum 80 MHz channel width ensures optimal performance for high-density deployments, making it ideal for both residential and enterprise use, it pointed out.

One of the major enhancements is the Very Low Power (VLP) category, which allows indoor and outdoor operations for portable devices in the 5925-6425 MHz range.

The initiative supports various applications, including ultra-fast file transfers, seamless video conferencing, and high-quality streaming in 8K.

Ismail noted that while the government does not directly partner with specific companies, it works with various stakeholders, including global firms like Cisco Systems, Inc., HP, Inc., Huawei Technologies Co., Ltd., and Samsung Group, as well as telecommunication operators.

"We are working together to develop technical specifications and regulations to support the implementation of this technology," he added.

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