Telecommunication Industry Role in Economic and Social Development in Indonesia: A Case Study of Telkomsel
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Abstract
The telecommunication industry possesses an important role in this age by facilitating communication infrastructure across the region, serving as a pillar for daily and business activities and helping social inclusion. Telkomsel as one of the largest telecommunication companies, has provided significant investments in digital infrastructure, yet this contribution has not been fully analyzed. We examined the role of telecommunication industry in Indonesia through a case study of Telkomsel. This study aims to measure the socioeconomic impact created by Telkomsel from their investment and initiatives. This study uses secondary quantitative data and survey to analyze the multiplier effect of telecommunication industry using input-output table, panel regression to examine relationship between Telkomsel’s data payload and GRDP, and descriptive analysis evaluating Telkomsel’s support for MSMEs. It was found that Telkomsel had a significant contribution to social development and employment through various initiatives and products. Telkomsel accounted for 1.6% of Indonesia’s GDP in 2023 and is estimated to provide 76.19 billion rupiah in GRDP for each petabyte of payload. From the survey, it was found that MSME owners experienced an increase in sales and revenue by using Telkomsel’s service, while also making daily business operations easier.
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