Japanese telecom firms eye Indonesia as gateway to Southeast Asian expansion

The Japanese Government will offer support to companies setting up facilities in Indonesia to manage telecommunications infrastructure, helping cultivate customers in a fast-growing region, the Nikkei reported.

Japan’s Ministry of Internal Affairs and Communications provide subsidies for companies to set up maintenance centers in Indonesia.

A legal framework could be in place as early as the current fiscal year, paving the way not only for the export of telecom equipment but also for its operation and service. This will enable companies to respond more swiftly to technical needs while opening up new revenue streams.

Tokyo will also support Japanese firms in conducting trials in Indonesia to test the speed and security of their equipment. Securing telecom infrastructure contracts there will mark the first entry of Japanese players into this market.

Orex Sai, a joint venture between telecommunications giant NTT Docomo and NEC Corporation, announced expansion plans for Indonesia. In March, it signed a comprehensive agreement with Indonesian telecommunications company Surge, officially known as Solusi Sinergi Digital, projecting investments worth yen 500 billion ($3.4 billion) over the next decade, primarily targeting sparsely populated regions.

By securing contracts in Indonesia, the world’s fourth most populous nation, Japanese firms could use this market as a stepping stone for broader expansion in ASEAN.