Jakarta. Indonesia has awarded radio spectrum in the 700 MHz and 2.6 GHz bands to the country's three largest mobile operators as part of a nationwide initiative to expand 4G coverage in underserved areas and accelerate the rollout of 5G services.

The licenses were awarded to Telekomunikasi Selular (Telkomsel), Indosat, and XLSMART Telecom Sejahtera, Communications and Digital Affairs Minister Meutya Hafid announced on Tuesday.

The additional spectrum will be used to extend 4G mobile broadband services to 538 underserved villages and urban wards while increasing network capacity to support the nationwide deployment of 5G.

"The Communications and Digital Affairs Ministry is ensuring that this spectrum auction delivers tangible and equitable benefits to the public. Ultimately, the impact must be felt directly by communities at the grassroots level," Meutya said in a statement.

Beyond improving telecommunications services, the spectrum allocation is expected to generate around Rp 6 trillion ($334.7 million) in state revenue during the initial phase. Over the next decade, the government estimates total revenue could reach Rp 29.9 trillion ($1.7 billion).

Meutya said the broader objective is to improve public access to high-quality internet services. The additional spectrum in the 700 MHz and 2.6 GHz bands is expected to expand network coverage, increase capacity, improve connection stability, and reduce operators' network costs, potentially leading to more competitive mobile data prices.

Operators Face Rural Coverage, 5G Rollout Targets
As part of the licensing conditions, the three operators must deploy 4G services in 538 villages and urban wards that currently lack adequate mobile broadband coverage or suffer from weak signal quality. The locations are spread across the archipelago, from Sumatra to Papua.

"The availability of reliable connectivity will improve access to education, healthcare, digital government services, and economic opportunities that have previously been out of reach," Meutya said.

The operators are also required to expand 5G services to cover at least 51% of Indonesia's population within five years.

The government aims to raise average mobile broadband speeds to 100 Mbps by 2029, supported by the complementary use of the 700 MHz low-band spectrum, which is well suited for broad geographic coverage including remote areas, and the 2.6 GHz mid-band spectrum, which provides the capacity needed for high-performance 5G services.

According to Meutya, broader and more reliable connectivity will underpin several government priorities, including the People's Schools program, the digitalization of learning at more than 1,000 locations, the expansion of digital public services, and initiatives to strengthen local economies through the Red and White Cooperatives program and broader digital transformation.

She said the spectrum selection process was conducted transparently and provided equal opportunities to all participants.

Following the auction of the 1.4 GHz band in late 2025 and this year's awards of the 700 MHz and 2.6 GHz bands, the ministry will begin preparations for the future allocation of the 900 MHz band to meet Indonesia's growing connectivity needs, Meutya said.