Indonesia’s Digital Transformation: GSMA Highlights Key Investments in AI, 5G, and Connectivity

Indonesia stands at a pivotal moment in its digital transformation journey. During the highly anticipated Digital Nation Summit (DNS) Jakarta 2025, the GSMA called for a stronger focus on investment-led strategies to unlock the full potential of the nation’s digital economy. Their latest reports, namely the GSMA Digital Nations 2025 and ASEAN Consumer Scam 2025, emphasize the critical role of strategic investments in 5G infrastructure, rural broadband coverage, and AI-ready data centers to propel Indonesia into a leading position in the ASEAN region.

Driving Digital Transformation with Strategic Investments

According to GSMA Intelligence, Indonesia could unlock an estimated US$41 billion in gross domestic product (GDP) between 2024 and 2030 by advancing its 5G investments. This digital evolution is already in motion, as mobile operators have collectively invested approximately US$29 billion in infrastructure and services since 2015. Looking ahead, an additional US$16 billion is expected to be invested by 2030, focusing on pressing priorities such as affordable spectrum allocation, fiber backhaul, and scalable AI-driven solutions. These efforts are not only essential to bolster Indonesia’s technological capabilities but also critical to maintaining its competitive edge in an increasingly interconnected global economy.

AI and IoT: Catalysts for Growth and Innovation

As digital transformation accelerates in the ASEAN region, Indonesian enterprises are leading the charge with plans to allocate 10% of their revenues to modernization efforts between 2025 and 2030—higher than both the ASEAN and global averages. Artificial intelligence (AI) emerges as a top priority, with two-thirds of Indonesian companies ranking it among their primary focus areas. Additionally, over 50% of surveyed businesses view 5G-enabled Internet of Things (IoT) solutions as essential to future growth, highlighting the transformative potential of next-generation technologies. These innovations promise to enhance operational efficiencies, drive sustainable growth, and ensure the nation’s readiness for a digitally driven future.

Overcoming Challenges: Infrastructure and Consumer Trust

Despite these promising developments, challenges remain. Delays in mid-band spectrum allocation, uneven rural connectivity, and limited AI-ready infrastructure threaten to slow momentum just as digital demand peaks. The GSMA also flagged alarming consumer trust issues, with 45% of Indonesians reporting lifetime victimization by scams, many of which are perpetrated via mobile platforms. Encouragingly, 81% of Indonesians favor proactive measures, such as operators sharing network-based fraud signals, to combat scams. Initiatives like the GSMA Open Gateway anti-fraud APIs offer effective tools to rebuild trust while protecting consumers in Indonesia’s burgeoning digital ecosystem.

Shaping a Resilient Digital Economy

To position Indonesia as a leader in digital and economic innovation, key stakeholders must work together. The GSMA underscores the need for policy certainty, targeted investments, and cross-sector collaboration to create an ecosystem that drives inclusive growth across Indonesia’s vast archipelago. By embedding fairness, transparency, and accountability into digital innovation, Indonesia can set a strong foundation for sustainable development while ensuring its population benefits from expanded access and opportunities. The Digital Nation Summit 2025 serves as a unique platform to bring government officials, regulators, and industry leaders together to accelerate this vision and secure Indonesia’s digital future.