In this case, it can be supported through the implementation of reasonable rental rates for regionally owned assets and regulatory certainty that does not burden the industry.
"Digital transformation is no longer an option, but a primary prerequisite for achieving the 8 percent economic growth target set by President Prabowo and Vice President Gibran. This agenda relies heavily on the smooth deployment of digital infrastructure in the regions," said Deputy Minister of Communication and Digital Affairs Nezar in an official statement received in Jakarta on Wednesday.
Deputy Minister of Communication and Digital Affairs Nezar, in a meeting on the Implementation of the Regional Property Rental Concept in accordance with the Minister of Home Affairs Regulation Number 7 of 2024 at the Ministry of Home Affairs Office, Central Jakarta, Tuesday (20/1), highlighted the high regulatory burden or regulatory costs that must be borne by the telecommunications industry in Indonesia, which reached 12 percent, one of the highest in the world.
This condition is considered unhealthy for the sustainability of the industry and could hamper national digital transformation.
According to him, there are still regional policies that are not in line with national regulations regarding the imposition of tariffs for deploying digital infrastructure in the regions.
"In fact, the regulations are clear. Article 128B of Home Affairs Ministerial Regulation Number 7 of 2024 concerning Guidelines for the Management of Regional Assets stipulates that the digital infrastructure rental adjustment is 0 percent if the Integrated Utility Network Facility (SJUT) is not yet available. This provision is designed to maintain a balance between optimizing regional assets and investment feasibility," he stressed.
