Komdigi is Drafting Regulations for the 1.4 GHz Frequency Band Allocation

The government plans to allocate the 1.4 GHz frequency band to accelerate the distribution of fast internet in Indonesia. The plan is contained in the Draft Regulation of the Minister (Rancangan Peraturan Menteri - “RPM”) of Communications and Digital (“Komdigi”) on the Use of Radio Frequency Spectrum in the 1.4 GHz Radio Frequency Band. Policy allocation is considered less targeted and has the potential to lead to a monopoly.

“The allocation of 1.4 GHz frequency shall be opened as widely as possible for telecommunications operators, especially members of the Telecommunication Network Operators Association (APJATEL), so that it is not only for one operator. For example, one region could allocate 80 MHz band for 4 telecommunication operators,” said Jerry Mangas Swandy, Chairman of Telecommunication Network Operators Association, to Hukumonline.

In addition, he hopes that the regulatory cost from the Fee for Radio Frequency Band Usage Rights and Permits (“BHP IPFR”) can be made more affordable to avoid burdening business actors. This is particularly important as the draft RPM was established to ensure equitable broadband access for the community. Thus, the winner of the auction in a region is expected not to monopolize new business so as not to deviate from the government's vision of Infrastructure Sharing/Spectrum Sharing.

Based on the RPM Komdigi on the Use of Radio Frequency Spectrum in 1.4 GHz Frequency Band owned by Hukumonline, it is known that the right-to-use of the frequency is granted in the form of IPFR to packet switched-based local fixed network operators with regional service areas.  There are 3 regions with different numbers of service zones. Regional 1 consists of zone 4, zone 5, zone 6, zone 7, zone 9, and zone 10.

“The policy plan for affordable internet will focus on areas with limited internet service penetration or even those with no penetration at all,” the beleid reads.