Indonesia's 5G Expansion: US Interference Stirs Digital Colonialism Debate

A diplomatic correspondence related to the US-Indonesia Agreement on Reciprocal Trade (ART) has reignited debate over Indonesia's digital sovereignty. The US government has recently exerted pressure on Indonesia through the ART to exclude Chinese vendors and favor US-backed suppliers in future 5G procurement. It is conceived as an act of foreign interference and the beginning of “digital colonialism.”

It is reported that Indonesia's Ministry of Communication and Digital Affairs has initiated the auction of 700 megahertz (MHz) and 2.6 gigahertz (GHz) spectrum recently, both considered critical for expanding Indonesia's digital infrastructure and accelerating 5G deployment.

However, according to the source familiar with the correspondence, the US Department of State sent a formal letter to the Indonesia's Ministry of Investment and Downstream Industry on April 21, urging Indonesia to, under the framework of ART, exclude suppliers like Huawei and ZTE and select Ericsson and Nokia, which are labelled by the US as "trusted suppliers" for future 5G expansion. The US warns that failure to comply could deter investments from leading US technology companies to Indonesia and expose it to potential sanctions for breaching the agreement.

The source said the demand undermines Indonesia's established tender procedures and represents political coercion aimed at shaping the country's telecommunications architecture for geopolitical and economic advantage. "This is not a commercial recommendation - it is pressure that intrudes on sovereign procurement decisions," it said.

Controversy surrounds the ART itself, signed on February 19, 2026. Members of Indonesia's parliament and civil-society commentators have called for a review of the ART. Many legal and policy analysts argued that its provisions constrain Indonesia's ability to set independent digital policy. Hosea Immanuel Latumahina from Center for Digital Society claimed that every digital clause construction contained in the ART has limited Indonesia's ability to determine the direction of national digital policy.

Furthermore, the ART also provides legitimacy and concessions to the US to control the Indonesian government regarding what digital fiscal policies can be implemented, how democracy in the digital space should be implemented, and which suppliers for 5G, 6G, and communications satellites should be chosen. It is this loss of government control over state policy that conceptualises the ART as a manifestation of the practice of digital colonialism, namely the conquest and control of the US - especially through Big Tech companies - towards Indonesia's digital resources.

"When a country is colonised by another country, the result is that country loses sovereignty over its territory and resources. Using the same conceptual logic, the practice of digital colonialism implies the colonising country's loss of control over digital sovereignty, namely the sovereignty of its digital ecosystem and resources," Hosea said.

Member of Commission I of the Indonesian House of Representatives (DPR), Yulius Setiarto, has also called for a reevaluation of the ART. According to him, the agreement was signed without parliamentary discussion and approval. He argued that ART must be reviewed because it affects national interests.

"There are loopholes in the ART substance that could become a major challenge for Indonesia, especially in the context of digital sovereignty," Yulius said in a written statement on May 15, 2026. "The problem is that this arrangement is unbalanced. It benefits US technology companies more, while risking harm to national interests," Yulius said.

He also highlighted Article 3.3 on Digital Trade Agreements, which requires Indonesia to communicate with the US before signing new digital trade agreements with other countries if the agreements are considered to affect US interests. Moreover, observers also note reputational and technical concerns over the US suggested suppliers. Ericsson and Nokia, while endorsed by US authorities, have faced legal and corruption-related scrutiny in multiple jurisdictions.

According to US Attorney Geoffrey S. Berman of the Southern District of New York, Ericsson has admitted to a years-long campaign of corruption in Indonesia and four more countries to solidify its grip on telecommunications business. "Through slush funds, bribes, gifts, and graft, Ericsson conducted telecom business with the guiding principle that 'money talks'," he said. "If procurement is driven by geopolitical pressure rather than performance and cost, Indonesia risks importing suboptimal infrastructure and surrendering oversight of critical digital systems," a telecommunications analyst said.

The source also indicated that the impact of Indonesia's 5G spectrum auction extends far beyond Indonesia. The US approach reflects a broader strategy of aligning trade agreements with digital infrastructure influence, including restrictions on third-country vendors and expectations of policy coordination in digital trade negotiations. 

"How Jakarta responds will be closely observed by other middle-income countries negotiating digital and telecoms partnerships with the United States," an economy expert said. “If trade agreements become instruments for supplier selection and market steering, the global system based on competitive procurement could be undermined.”

If such practices become normalised, other countries engaged in telecommunications cooperation with Washington may face similar pressures affecting procurement autonomy, data governance frameworks, and cybersecurity policy independence.