Telkomsel’s Standalone (SA) 5G Private Network Enhances Connectivity and Productivity for Digital Transformation in Indonesia’s Strategic Manufacturing Sector.
Batam, April 24, 2025 – Telkomsel and PT Pegaunihan Technology Indonesia, a subsidiary of global electronics manufacturer Pegatron, have officially signed a Strategic Collaboration Agreement to deliver advanced technology solutions powered by the latest 5G connectivity. The initiative supports the integration of Artificial Intelligence (AI) and high-level Internet of Things (IoT) automation at the company’s Smart Factory in Batam (4/24). This Smart Factory, operated by PT Pegaunihan Technology Indonesia, forms part of Pegatron’s global digital transformation strategy and reflects Telkomsel’s ongoing commitment to accelerating the growth of Indonesia’s manufacturing industry.
PT Pegaunihan Technology Indonesia itself is established to expand the company’s manufacturing presence in Southeast Asia. With operations in over 13 countries, Pegatron plays a strategic role in global digital transformation and serves as a key catalyst for building resilient, connected, and sustainable manufacturing ecosystems.
Through this collaboration, Telkomsel provides Standalone (SA) 5G Private Network infrastructure, ensuring reliable and secure connectivity across the entire production area. Telkomsel is also delivering up to 1,200 SIM cards to enable IoT device integration into the 5G-powered Smart Manufacturing system, supporting efficient, real-time monitoring of machine performance and production control. In addition, Telkomsel is deploying its 5G Public Network to support workforce mobility and productivity at the Batam Smart Factory.
According to the Ministry of Industry of the Republic of Indonesia, the national manufacturing sector has continued to demonstrate resilience and solid growth amid global economic fluctuations. In 2024, manufacturing investment reached IDR 721.3 trillion, equivalent to 42.1% of total national investment, with a year-on-year growth of 20.8%, and contributed to the creation of over 2.45 million jobs. Contributing 18.98% to national GDP, the manufacturing sector remains a major economic driver and the largest source of employment in Indonesia.
During the inauguration of PT Pegaunihan Technology Indonesia’s new office and manufacturing facility in Batam on April 24, Setia Diarta, Ministry of Industry's Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry, remarked, “We highly appreciate the concrete steps taken by Telkomsel and Pegatron in deploying digital technology powered by 5G connectivity to accelerate the transformation of the manufacturing sector. As a strategic pillar of Indonesia’s economy, this transformation is crucial to securing the country’s competitiveness on a global scale. The government will continue to encourage similar partnerships, enabling all industrial sectors, including manufacturing, to fully harness the latest technologies for inclusive and sustainable growth.”
5G technology is rapidly emerging as a key driver of transformation in the manufacturing industry. According to Deloitte’s 2025 Manufacturing Industry Outlook, 5G – alongside cloud and generative AI – is among the top three technologies delivering the highest ROI (return on investment) for manufacturers. Over one-third of industrial producers also plan to adopt 5G within the next one to three years. With ultra-reliable, low-latency connectivity, 5G Private Network enables the real-time integration of thousands of sensors and machines, supporting automation, edge analytics, and optimization of quality, cost efficiency, and predictive maintenance capabilities.
Wong Soon Nam, Chief Strategic Planning Officer at Telkomsel, stated, “Building upon the Memorandum of Understanding (MoU) signed with Pegatron during the Mobile World Congress (MWC) 2025 in Barcelona last March, this partnership is a strategic move in accelerating digital transformation within Indonesia’s manufacturing sector. Through our customized 5G Private Network solution, PT Pegaunihan Technology Indonesia will be empowered to enhance its Smart Manufacturing operational efficiency, productivity, and business competitiveness in this Industry 4.0 era. As Telkom Group’s product powerhouse for enterprise solutions (B2B), we are confident this initiative will strengthen the national manufacturing ecosystem and drive Indonesia’s technological advancement.”
Pegatron’s long-term strategy included Artificial Intelligence, future-of-work innovation, business competitiveness, strategic partnerships, and organizational restructuring. The collaboration with Telkomsel exemplifies the strategy’s commitment to future-oriented partnerships that accelerate digital advancement. The smart factory also prioritizes customer orientation, performance, sustainability, teamwork, creativity, problem analysis for decision making, and proactive business engagement. In the long run, Pegatron is committed to exploring frontier technologies such as the Pegaverse, future mobility, advanced connectivity, sustainable living, and robotics.
Andy Hsieh, Director of Pegaunihan Technology Indonesia, stated, “Partnering with Telkomsel, a pioneer of 5G in Indonesia, lays a critical foundation for developing a truly adaptive, connected, and efficient Smart Factory. With Telkomsel’s reliable 5G network and robust digital infrastructure, we are expediting digital transformation across our production chain while fostering the growth of a high-tech industrial ecosystem in Indonesia.”
Beyond enhancing Indonesia’s manufacturing competitiveness, this investment also contributes to job creation, promotes technology transfer, and strengthens the nation’s position in the global supply chain. Pegatron also supports talent development through digital and technical skill training programs aligned with the needs of future industries.
For more information about Telkomsel's range of 5G solutions for business, visit tsel.id/enterprise.
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