The Ministry of Communication and Digital Affairs (Komdigi) plans to move all telecommunications device testing to domestic facilities by the end of 2026.

Minister Meutya Hafid announced this initiative during her visit to the Indonesia Digital Test House (IDTH) in Depok, West Java.

Hafid said this effort addresses Indonesia’s past reliance on foreign labs due to limited local capacity.

The establishment of IDTH is intended to fill this gap with testing processes that meet international standards.

The government aims to boost self-reliance in the digital sector through transparent and internationally recognized testing.

IDTH, operational since May 2024, has earned over 32 billion rupiah (US$1.9 million), though this is still below global benchmarks.

To speed up progress, Komdigi signed a deal with the National Standardization Agency (BSN) to improve accreditation and develop domestic testing centers.

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🔗 Source: Katadata

🧠 Food for thought

1️⃣ Indonesia’s testing initiative represents a multi-billion dollar economic opportunity

The revenue gap between Indonesia and developed nations in telecommunications testing highlights the significant economic potential of this initiative.

IDTH has generated Rp32 billion (approximately USD 2 million) over three years, which pales in comparison to Germany’s annual Rp59 trillion (approximately USD 3.7 billion) and South Korea’s target of Rp11 trillion (approximately USD 690 million) from testing activities 1.

This disparity reflects both the maturity gap and untapped opportunity in Indonesia’s telecommunications testing ecosystem, especially considering the global telecom testing market is projected to reach USD 965.3 million by 2028 2.

The initiative aligns with Indonesia’s broader digital transformation goals outlined in the Digital Indonesia Roadmap (2021-2024), which aims to accelerate connectivity improvements across the archipelago 3.

By building domestic testing capacity, Indonesia positions itself to capture more value from the telecommunications supply chain while reducing foreign currency outflows for services that could be performed locally.

2️⃣ Self-reliance in testing balances economic and regulatory priorities

Indonesia’s push for domestic telecommunications testing comes amid increasing global emphasis on digital sovereignty and telecommunications security.

The establishment of IDTH represents a strategic move to strengthen domestic technical capabilities, particularly important as Indonesia ranked 58th in the Global Network Excellence Index for Q1 2025, indicating room for improvement in telecommunications infrastructure 3.

The collaboration between Komdigi and the National Standardization Agency (BSN) mirrors similar approaches in countries like South Korea, where strong regulatory frameworks have supported the development of one of the world’s most advanced telecommunications sectors 1.

Indonesia’s telecommunications regulations have evolved significantly since 2019, when the Telecommunication Authority (SDPPI) implemented stricter device certification requirements including mandatory labeling and QR codes 4.

This initiative creates a framework where Indonesia can enforce its technical standards while building capacity that generates economic returns, potentially addressing both security concerns and development goals in a single policy approach.

3️⃣ Geographic challenges amplify the importance of domestic testing capacity

Indonesia’s archipelagic geography, spanning 17,500 islands, creates unique testing requirements that foreign facilities may not adequately address 5.

With fixed broadband penetration at only 21% of households compared to mobile broadband at 121 subscriptions per 100 inhabitants, Indonesia’s telecommunications landscape is predominantly mobile-first, necessitating specialized testing protocols 3.

The complexity of delivering consistent connectivity across such diverse geography has historically complicated infrastructure development, making locally relevant testing capabilities crucial for ensuring devices perform reliably in Indonesia’s specific conditions 3.

According to telecommunications leaders in Indonesia, the country’s unique geographic challenges present both obstacles and opportunities. Domestic testing facilities that understand these conditions can help ensure technologies are appropriately adapted to local needs 5.

As Indonesia continues its digital transformation efforts, having testing capabilities that specifically account for the nation’s geographic diversity will be crucial for addressing the digital divide between urban centers and remote islands.

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