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Indonesia Realising Smart City Goals with 5G

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Wayan Toni Supriyanto, the Director-General of Post and Informatics Organisation at the Ministry of Communication and Informatics emphasised that implementing 5G telecommunications technology significantly contributes to the increase of Indonesia’s national gross domestic product (GDP).

During his speech at the event in Central Java recently, Wayan Toni Supriyanto also highlighted that the government, in collaboration with mobile telecommunication service providers, is actively striving to accelerate the implementation of 5G technology use cases in Indonesia. One of the primary objectives of this effort is to support the development of smart cities or “kota cerdas” in the country.

A smart city is a concept that refers to the use of advanced technologies and data-driven solutions to enhance the city’s quality. In a smart city, data and information are collected from various sources, such as sensors, devices, and citizens, and analysed to gain insights for better decision-making. This data-driven approach enables city authorities to manage resources more efficiently, enhance public services, optimise transportation systems, improve energy efficiency, promote environmental sustainability, and foster economic growth.

Quoting research conducted by the Bandung Institute of Technology in 2020, Wayan Toni Supriyanto stated that developing 5G services would significantly impact the economic growth of both society and industries in Indonesia.

According to him, the progress of 5G networks in Indonesia can substantially contribute to the country’s economy. By 2030, 5G could contribute over Rp2,800 trillion, about 9.5% of the total GDP. Furthermore 2035, this figure could increase to Rp3,500 trillion, approximately 9.8% of Indonesia’s total GDP.

“The development of 5G networks in Indonesia has the potential to contribute more than Rp2,800 trillion, equivalent to 9.5% of the total GDP, by 2030. By 2035, it could be increased approximately by 9.8%,” he stated.

Furthermore, Toni explained that the innovation and advancement of 5G technology significantly impacts communication services. The 5G technology offers faster throughput, lower latency, and the ability to connect many sensor devices, enabling the connectivity of millions of devices, especially for applications related to the Internet of Things (IoT), virtual reality, and artificial intelligence.

“These capabilities of 5G have enormous potential that can be utilised to accelerate digital transformation in Indonesia, particularly in the current era of Industry 4.0. It benefits various sectors such as industry, healthcare, transportation, tourism, and smart cities,” he stated.

In Indonesia, 5G networks have been commercially operational since 2021. The 5G services are available in Jabodetabek, Medan, Solo, Bandung, Surabaya, Makassar, Batam, Denpasar, and Balikpapan. Toni explained that 5G technology acts as a catalyst for vertical sectors, serving as an enabler that significantly impacts the growth of the national GDP.

In the future, the transformation brought by 5G will extend to various sectors, including manufacturing, industrial zones, mining, oil and gas, tourism, creative economy, and the implementation of smart cities as envisioned by the government.

Regarding the implementation of smart cities, the Ministry of Communication and Informatics is trying to have a more significant number of smart cities in Indonesia by 2024 through the Movement Towards Smart City programme. The target is 150 affiliated districts and cities for smart city implementation.

The presence of 5G technology is expected to accelerate the smart city programme in Indonesia. The implementation of 5G smart city initiatives is underway in Surakarta for Smart Kampung and public complaint services.

Toni is optimistic that the future transformation by 5G will bring significant changes in Indonesia’s governance and business sectors. “Ultimately, the aim is to strengthen citizen satisfaction and enhance the citizen experience in Indonesia,” he concluded.

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