## 3 Indonesian Profile  
### Mobile Ecosystem and Spectrum Regulatory Policy  
With a population of approximately 270.2 million, Indonesia is the fourth most populous country in the world, with a land area of almost two million square kilometers spread over 13,000 inhabited islands (out of 17,000). However, more than 56.10% of the land area is concentrated on Java Island, and the country's population is not equally distributed over its land mass [34]. Java Island, which contributes 58.70% of the country's GDP, dominated the spatial structure of the Indonesian economy in Quarter 1 2021, followed by Sumatera Island at 21.54%, Kalimantan Island at 8.05%, Sulawesi Island at 6.52%, and Bali and Nusa Tenggara at 2.75%. The Maluku Island and Papua provincial groups accounted for the lowest contribution at 2.44% [35].  
Concerning internet users in Indonesia, Figure 3 shows the percentage of the Indonesian population with internet access. Java Island contains more than half (56.4%) of Indonesia's internet users, followed by Sumatra Island (22.1%), Bali-Nusa Tenggara (5.2%), Kalimantan (6.3%), Sulawesi (7%), and Maluku-Papua (3%) [36].  
Figure 3: Contribution of internet users by region from all users [36].  
In 2021, there were around 345.3 million mobile phone subscribers (market penetration 125.6%) [37], many of whom had more than one mobile subscription. The country has 202.6 million internet subscribers, 96.4% of whom prefer to access the internet via mobile devices. Indonesia is currently served by six public service operators deploying the 2G, 3G, and 4G network infrastructure. Figure 4 shows the proportion of each service operator's subscribers in Indonesia [38].  
From 2017 to 2021, some Indonesian service operators developed trial tests for 5G band candidates as part of their deployment plan [38]. Most of the trial tests used the mmWave frequency of 28 GHz (24.25-29.5 GHz) [39]. An experiment with 3.5 GHz (3.3-4.2 GHz) was also carried out in an indoor area. In 2021, Telkomsel and Indosat launched the first commercial 5G enterprise in Indonesia [40].  
In Indonesia, the spectrum usage fee policy is run by the Ministry of Communication and Information in accordance with the provisions of the applicable laws. Under the law product of [2], any service operator running the network infrastructure on a certain spectrum has been obliged to pay the spectrum usage fee as state income. Such government income is categorized as non-tax income and is expected to gradually increase every year. The fee is formulated with the motivation to promote the effective and efficient use of the frequency spectrum and to fairly contribute to the country's overall development plan.  
Figure 5 shows the amount of spectrum usage fees paid by the big three service operators in Indonesia in 2010-2020. The trend shows a growing income that can be interpreted as Indonesian service operators massively deploying 3G and 4G technology during this period. The amount of the paid spectrum fee corresponds directly to the capacity infrastructure built by the service operators [41].  
Figure 4: The proportion of each service operator’s subscribers in Indonesia (million) [38].  
Figure 5: Spectrum usage fees of the three biggest service operators in Indonesia (IDR Million) [41; 42; 43].