Executive Summary
Indonesia’s Telecommunications sector (KBLI 61) represents a critical pillar of the country’s digital economy, enabling connectivity across the world’s fourth-largest population and supporting the rapid expansion of digital services, e-commerce, and mobile-first consumer behavior.
Between 2022 and 2024, the sector demonstrated steady revenue growth alongside significant shifts in profitability dynamics. Expansion has been supported by structural drivers such as rising mobile data consumption, nationwide 4G and early 5G deployment, and the continued digitalization of Indonesia’s consumer and enterprise economy.
However, financial performance across the sector reflects a more complex operating environment. While revenue growth has remained resilient, competition among mobile network operators and large-scale infrastructure investments have continued to shape profitability patterns.
Profit indicators highlight a pronounced divergence between operating and net-level earnings over recent years. Operating profitability expanded strongly in 2024 following earlier volatility, while net profitability rebounded significantly after losses recorded in the previous years — suggesting that industry players are benefiting from improved cost discipline, consolidation dynamics, and stabilization in network investment cycles.
Overall, sector performance reflects structural digital demand growth combined with margin recovery, rather than purely cyclical changes in telecommunications consumption.
Industry Snapshot 2024
Indonesia’s KBLI 61 — Telecommunications sector includes enterprises engaged in wired and wireless telecommunications services, satellite communication, internet service provision, and digital network infrastructure operations. These companies form the backbone of Indonesia’s digital connectivity infrastructure and support the country’s rapidly expanding digital ecosystem.
In 2024, the sector generated approximately USD 28.40B in Revenue, corresponding to a Revenue CAGR of roughly +3.7% between 2022 and 2024. This growth reflects increasing mobile data usage, expanding broadband penetration, and rising demand for digital services across Indonesia’s consumer and enterprise segments.
Over the same period, Cost of Goods Sold reached approximately USD 2.22B, representing a COGS CAGR of around –0.5%. The relatively stable cost base suggests improved network efficiency, infrastructure sharing arrangements, and gradual normalization of network operating costs following earlier expansion cycles.
Profitability indicators reveal strong recovery across operating performance. In 2024, Operating Profit stood at approximately USD 5.36B, reflecting an Operating Profit CAGR of roughly +28.6%, highlighting improved operational leverage and stabilization across the competitive telecom landscape.
At the bottom line, Net Profit reached approximately USD 2.02B, representing a sharp turnaround from negative earnings in previous years. The recovery indicates improving sector fundamentals, cost discipline, and the financial impact of industry consolidation and operational restructuring. As of 2024, approximately 234 companies operated within KBLI 61, illustrating a moderately concentrated telecommunications landscape, where several major mobile network operators dominate national connectivity infrastructure while smaller service providers and internet operators support niche market segments.
Industry Characteristics & Operating Landscape
Where do companies typically operate?
Telecommunications activity in Indonesia is primarily concentrated in regions where population density, digital adoption, and economic activity intersect.
Key connectivity hubs include:
• Greater Jakarta (Jabodetabek) — Indonesia’s largest digital economy hub and the center of telecommunications infrastructure and data traffic
• Java Economic Corridor — High population density and strong demand for mobile data and broadband services
• Surabaya and East Java — Industrial and logistics centers with growing enterprise connectivity demand
• Secondary cities across Sumatra, Kalimantan, and Sulawesi — Expanding digital infrastructure as connectivity improves nationwide
Despite geographic concentration in major urban areas, telecom operators continue expanding networks into archipelagic and rural regions, driven by government connectivity initiatives and growing digital inclusion efforts.
What drives demand in this sector?
Demand within Indonesia’s KBLI 61 — Telecommunications sector is primarily driven by mobile data consumption, digital platform adoption, and the country’s rapidly expanding internet user base.
A major structural driver is Indonesia’s mobile-first digital economy. With one of the largest smartphone populations in Southeast Asia, mobile connectivity has become the primary gateway for digital services, including social media, e-commerce, digital payments, and streaming platforms.
The expansion of 5G networks and fiber broadband infrastructure is also shaping sector growth, enabling higher data speeds and supporting emerging digital services such as cloud computing, enterprise connectivity, and smart city initiatives.
Indonesia’s growing digital economy — projected to be among the largest in Southeast Asia — further reinforces long-term demand for telecommunications infrastructure and data capacity. However, sector demand is also influenced by intense price competition among operators, which continues to shape revenue growth and margin performance across the industry.
What defines the operational model?
Telecommunications companies operate under a capital-intensive infrastructure model, requiring significant long-term investment in network infrastructure, spectrum licenses, and digital platforms.
Revenue streams are primarily generated from:
• Mobile data and voice services
• Broadband and fiber connectivity
• Enterprise telecommunications solutions
• Digital services and value-added platforms
Cost structures are dominated by:
• Network infrastructure deployment and maintenance
• Spectrum licensing and regulatory fees
• Data center and transmission infrastructure
• Technology investment and system upgrades
Given the high fixed-cost nature of telecom infrastructure, profitability is strongly influenced by subscriber scale, data traffic growth, and network utilization, rather than simple pricing power. Operators must also continuously balance network investment cycles with competitive pricing strategies, making capital efficiency a key determinant of financial performance.
Interpreting 2022-2024 Performance
Sector-wide financial patterns between 2022 and 2024 highlight steady revenue growth combined with a strong rebound in profitability.
Revenue expansion reflects the structural rise in digital connectivity demand across Indonesia’s consumer and enterprise sectors, as mobile data consumption continues to grow rapidly.
At the same time, relatively stable COGS levels suggest improving operational efficiencies and infrastructure sharing across telecom operators.
The sharp improvement in Operating Profit and Net Profit in 2024 indicates sector-wide margin recovery, potentially driven by industry consolidation, cost rationalization, and improved network utilization following earlier expansion phases. Overall, the sector demonstrates digital infrastructure-driven growth combined with profitability normalization, a pattern commonly observed in telecommunications markets following large-scale investment cycles.
What This Means for Investors
For investors, Indonesia’s Telecommunications sector (KBLI 61) provides exposure to one of Southeast Asia’s most structurally important digital infrastructure industries, closely tied to the growth of the country’s digital economy.
Key considerations include:
• Rapid expansion of Indonesia’s digital economy and mobile data consumption
• Network investment cycles and capital intensity of telecom infrastructure
• Competitive dynamics among mobile network operators
• 5G deployment and fiber broadband expansion opportunities
• Potential consolidation and operational efficiency improvements across the sector
Value creation within the industry often depends on network scale, spectrum assets, and infrastructure efficiency, rather than simple subscriber growth alone. Indonesia’s telecommunications sector therefore represents a strategically important digital infrastructure market, where long-term growth is anchored by connectivity demand — while profitability outcomes increasingly depend on cost discipline, network utilization, and industry consolidation dynamics.
About Datagent
Datagent is the trusted intelligence partner for company data and insights across Southeast Asia and beyond. We combine firmographics, financials, macro and micro economics into one integrated dataset — helping organizations uncover opportunities, assess markets, and make smarter, data-backed decisions across 11 dynamic economies.
Datagent provides a total of 61 firmographic data fields, comprising 22 non-financial, and 39 financial indicators with coverage spanning 2022–2024.
This report is for informational purposes only and does not constitute financial advice or an invitation to invest. Decisions should be based on independent research and professional consultation to avoid any unintended liabilities.