Telkom expands infrastructure and partnerships to meet surging bandwidth demand.
Indonesian telecommunications company PT Telkom Indonesia is pursuing collaboration with global operators to expand digital infrastructure as rising demand, particularly from artificial intelligence (AI), puts pressure on network capacity.
Telkom’s capital expenditure is targeted at around 18-20% of revenue in 2026, reflecting the infrastructure needed to support Indonesia’s growing digital economy, which is projected to reach US$360 billion by 2030.
Telkom President Director Dian Siswarini said the investment would support cellular networks operated by Telkomsel, domestic and international fiber networks, telecommunications towers and data centers.
“If we cannot translate this potential into adequate digital infrastructure, it will remain only potential,” Ms. Siswarini said on the sidelines of the Bali Annual Telkom International Conference (BATIC) 2026 in Nusa Dua, Bali, on Tuesday, August 25, 2026.
She said that if revenue reaches around Rp150 trillion, approximately 20% would be allocated to infrastructure investment. Telkom recorded consolidated revenue of Rp146.7 trillion in 2025.
Telkom Director of Wholesale and International Services Budi Satria Dharma Putra said AI growth could drive bandwidth requirements up to tenfold, increasing the need for additional connectivity infrastructure.
Telkom completed a submarine cable route connecting Singapore and the United States through Indonesian waters in 2025 after up to five years of construction. However, Mr. Budi said its bandwidth capacity was already nearing saturation in less than a year amid strong demand.
The pressure on capacity is prompting Telkom to deepen collaboration with global operators, particularly to develop international submarine cable infrastructure and meet growing market demand.
BATIC 2026 is providing a platform for those discussions, bringing together more than 2,700 delegates from 760 companies across more than 67 countries. The event has generated more than 4,200 business meetings, creating opportunities for new partnerships and deeper industry collaboration.
As demand for connectivity continues to rise, Telkom’s investment and international partnerships could help expand capacity and strengthen Indonesia’s position within the regional digital ecosystem.
Source: ANTARA News
