Indonesia is increasingly being seen as one of the most promising markets for digital transformation in Southeast Asia. With its vast geography, diverse industries and many operational sites located far from major urban centres, connectivity plays a critical role in enabling modern industrial operations. At UPTIME 2026, Hari Kumar, CTO Enterprise at XL Smart, presented an overview of how private 5G networks are being deployed across Indonesian industries including mining, ports, manufacturing, and oil and gas. His presentation highlighted both the opportunities and the practical realities of deploying these networks in complex operational environments.
XL Smart operates as part of the wider Axiata Group ecosystem and also has strong links with the Indonesian conglomerate Sinar Mas. This positioning allows the company to combine telecommunications capabilities with industry expertise across sectors such as agriculture, property, finance and manufacturing. With more than 80 million subscribers and thousands of enterprise customers, the operator is increasingly focusing on digital transformation services for businesses, including private networks, IoT platforms and edge connectivity solutions.
The enterprise strategy revolves around several technology pillars that include connectivity, cloud, security, ICT platforms, private networks and emerging technologies such as AI. Private networks and IoT have become particularly important because many industrial environments require reliable connectivity that public networks or traditional enterprise Wi-Fi cannot always deliver. In Indonesia this challenge is amplified by the country’s geography, where industries such as mining and plantations are often located in remote regions across many islands.
Market forecasts suggest that Indonesia’s digital transformation sector is expanding rapidly. The overall market is valued at tens of billions of dollars and is expected to grow strongly over the coming years. IoT alone is projected to account for a significant share of this growth. Within that broader ecosystem, private 5G networks are emerging as a key enabling technology for industrial automation and digital operations.
Several drivers are pushing this growth. Telecommunications infrastructure continues to expand across the country, while government initiatives such as Indonesia 4.0 are encouraging industrial digitalisation. Smart city programmes are also gaining momentum, supporting applications such as traffic monitoring, environmental sensing and public safety. At the same time, enterprises are increasingly exploring AI-based analytics, satellite connectivity and ESG-focused digital solutions.
One of the most compelling examples shared in the presentation comes from the mining sector. In large open-pit mines, working conditions can be extremely harsh, with high temperatures, dust and significant safety risks. In one deployment in South Kalimantan, a private network was used to support the remote operation of bulldozers working in tailing pond areas where waste material from mining operations is deposited. By using high reliability wireless connectivity, operators can control heavy machinery from a remote control room located several kilometres away from the active worksite.
This approach significantly improves worker safety by removing personnel from hazardous environments. It also reduces fatigue because operators can work in controlled indoor settings rather than in extreme outdoor conditions. Productivity can also improve because remote operations eliminate the time required for workers to travel to equipment locations during shift changes.
Another mining deployment in East Kalimantan extends the concept further by integrating onboard computing, cameras and communication systems directly into the machinery. The equipment connects through a private cellular network to nearby base stations, which then link to local servers and the site’s IT systems. These deployments also support additional applications such as slope stability sensors and AI based video analytics monitoring haul roads and operational areas.
Ports represent another environment where private networks are delivering measurable improvements. At a container terminal within Port of Jakarta, the operator initially relied on hundreds of Wi-Fi access points to connect cranes, tablets and operational systems across the terminal. Over time the network became increasingly difficult to maintain, with interference, coverage gaps and unreliable handovers as equipment moved across the site.
A private 5G network was introduced to address these challenges. The deployment used a small number of cellular base stations strategically placed across the port area. This allowed cranes and mobile devices to maintain continuous connectivity while moving between operational zones. One of the technical challenges involved the dense stacks of containers that can reach several layers high, creating complex radio propagation conditions. Careful radio design was required to ensure reliable coverage across the terminal, particularly in areas where containers create canyon-like structures that can block signals.
After deployment, the port reported noticeable improvements in operational performance. Higher reliability and near real time connectivity enabled better coordination of equipment and personnel. Productivity gains varied depending on operational conditions but were reported to range from around ten to forty percent due to improved logistics flow and faster turnaround times.
Manufacturing deployments are also emerging, although some are currently implemented using hybrid architectures that combine public and private network capabilities. In these environments network slicing can allow enterprises to benefit from the coverage of a public network while still maintaining dedicated performance characteristics for critical applications within the factory.
Across these examples a common theme is that private networks are typically introduced when existing connectivity technologies reach their limits. Wi-Fi often works well in office environments but struggles in large industrial spaces with mobility, interference and high device density. Private cellular networks provide more predictable performance, stronger mobility management and better support for large numbers of connected devices.
Indonesia’s industrial sectors are still at different stages of digital maturity, which means adoption will likely continue to expand as companies modernise their operations. Industries such as automotive manufacturing are already relatively advanced in automation, while sectors like agriculture, oil and gas and pulp and paper still have significant room for further digital transformation.
As these industries increasingly adopt sensors, automation systems and data analytics, reliable wireless connectivity will become an essential foundation. Private 5G networks are therefore likely to play a growing role in enabling safer operations, higher productivity and more efficient industrial processes across the Indonesian economy.
The talk is embedded below:
Comments
Post a Comment