The Indonesian government, through the Ministry of Industry, is actively promoting the development of the 5G industry by offering incentives such as land exemptions, tax allowances, and tax holidays. This initiative aims to accelerate 5G adoption, enhance industrial competitiveness, and position Indonesia as a key player in the global digital ecosystem. With the country’s digital economy transactions growing by 13% to USD 90 billion in 2024, these efforts are expected to drive further economic growth and technological advancement.
To support Industry 4.0 transformation, the ministry has introduced the Indonesia Industry 4.0 Readiness Index (INDI 4.0) and encourages the production of 5G-compatible devices domestically. By strengthening local manufacturing and reducing import dependence, Indonesia aims to boost self-sufficiency and competitiveness. Additionally, investments in electronics are projected to rise from IDR 5.11 trillion in 2023 to IDR 8.29 trillion in 2024, reinforcing the importance of a robust industrial ecosystem. Through fiscal and non-fiscal incentives, workforce training, and strategic partnerships, the government remains committed to fostering a strong, investment-friendly environment for 5G and AI development.
