Japan to back telcos looking to set up infrastructure in Indonesia

Government support designed to facilitate market entry.

In Indonesia, where the telecommunications infrastructure market is dominated by Chinese firm Huawei, Japan is looking to offer competition by supporting Japanese telcos in their expansion plans.

Citing a Nikkei Asia report, the Vietnam News Agency said subsidies will be provided by the Japanese government to assist companies in setting up maintenance centres in Indonesia where Japan is currently not present in terms of telecom equipment such as base stations.

It was noted that entering the Indonesian market could serve as a gateway for further expansion into Southeast Asia.

The government backing will include telco equipment testing, with the industry hoping to get things rolling as early as the current fiscal year.