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Jakarta, CNBC Indonesia – The Ministry of Communication and Information plans to provide 5G incentives. Mobile operators have expressed some of their requests.

Director & Chief Business Officer PT Indosat Tbk. (Indosat Ooredoo Hutchison/IOH), Muhammad Danny Buldansyah explained that the forms of incentives can vary. However, this also requires approval from various parties and it is certain that there will be a bargaining process.

“I’m sure there will be definite bargaining, we want it like this. Yesterday, one of them was if the old PNBP spectrum was reduced by 20 percent, but if there is PNBP, it will be given a grace period, for example 3-4 years,” said Danny when met in Jakarta, Wednesday ( 11/8/2023).

When asked about the ideal incentives from operators, Danny revealed that regulatory charges should be below 10 percent. If the industry wants to survive, it could be around 5-7 percent.

Currently, regulatory charges are 11-12 percent. However, it could increase if there is a new spectrum to 15 percent.

“Currently, the industry figure submitted to the ministry is 11-12 percent. If there is a new spectrum, it could increase further to 14-15 percent, so restructuring of PNBP is needed to sustain the industry,” he explained.

“For the industry to survive it should be below 10 percent. Ideally 5 percent, whether to take 7 percent, that can be seen later,” added Danny.

Last week, cellular operators and Minister of Communication and Information Budi Arie met together. Both parties agreed to form a Task Force to formulate these incentives.

“Last week, the Minister made the decision to create a task force for each operator. From Kominfo, two Wayans (Director General of PPI) and Ismail (Director General of SDPPI) were appointed plus echelon 1,” said Danny.

[Gambas:Video CNBC]

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