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Indonesia's AI-Ready 5G Network Could Cut Energy Costs While Expanding Digital Access

Indonesia is building a 5G network specifically designed to run AI workloads more efficiently, combining advanced connectivity with energy-saving technologies to support digital growth across the archipelago. Nokia and Indosat Ooredoo Hutchison announced a partnership to modernize Indosat's nationwide mobile network through deployment of low- and mid-band 5G Radio Access Network (RAN) technologies, with a focus on AI-driven automation and energy efficiency.

Why Is Indonesia Prioritizing Energy-Efficient AI Networks?

The partnership reflects a broader industry shift toward building networks that deliver high performance while supporting greater efficiency. Rather than treating connectivity and artificial intelligence as separate infrastructure challenges, Nokia and Indosat are integrating them from the ground up. Over the next three and a half years, low-band 5G will be introduced across Indosat's full network footprint, with mid-band 5G covering approximately 80% of the network.

The collaboration includes deployment of Nokia's latest Habrok and Pandion radio families, Levante basebands, Centralized RAN, and advanced network management platforms. These technologies are specifically designed to enable intelligent operations and improved energy efficiency, supporting what the companies describe as a more sustainable approach to digital transformation.

How Does AI-RAN Architecture Reduce Energy Consumption?

The partnership centers on AI-RAN (Artificial Intelligence Radio Access Network), an architecture that brings AI workloads closer to the network edge rather than routing all processing to distant data centers. This proximity reduces the energy required to transmit data back and forth while enabling faster response times. Nokia and NVIDIA completed the first AI-RAN call at Mobile World Congress 2026, with field trials in Indonesia scheduled for the end of 2026.

By combining centralized AI factories with distributed AI-RAN infrastructure, Indosat is building what it calls an "AI Grid," creating a unified intelligence layer that distributes both AI and connectivity to millions of Indonesians. This model is already accelerating practical applications in government services, healthcare, education, and agriculture, supported by the AI-RAN Innovation Center in Surabaya and the NVIDIA AI Technology Center ecosystem.

"The next phase of network evolution will be defined by how well operators combine connectivity, intelligence and scale. Together with Indosat and NVIDIA, Nokia is helping build a network that can do exactly that, one that expands 5G, enables new AI-driven services and creates long-term value," stated a Nokia representative.

Nokia, Global Leader in Connectivity for the AI Era

Steps to Deploying Energy-Efficient AI Networks

  • Network Modernization: Deploy advanced 5G RAN technologies including low-band and mid-band spectrum to build a foundation capable of handling AI workloads efficiently across diverse geographies.
  • AI-Driven Automation: Implement intelligent operations and network management platforms that use machine learning algorithms to optimize spectral efficiency and reduce unnecessary power consumption in real time.
  • Distributed AI Architecture: Position AI processing at the network edge through AI-RAN deployment rather than centralizing all computation, reducing data transmission distances and associated energy costs.
  • Field Testing and Iteration: Conduct real-world trials to validate energy improvements and identify optimization opportunities before full-scale rollout across the network.

Nokia is also developing new AI algorithms designed to improve spectral efficiency on NVIDIA AI-RAN platforms, with those capabilities expected to be part of the upcoming field trials in Indonesia. Spectral efficiency refers to how much data can be transmitted using a given amount of radio frequency spectrum, and improving it means the network can deliver more service with less power.

What Does This Mean for Indonesia's Digital Future?

The partnership addresses a critical challenge facing developing nations: expanding digital access while managing energy costs and environmental impact. Indonesia's diverse geography, spanning thousands of islands, makes efficient network infrastructure particularly important. By building AI-ready networks from the start, Indosat can serve customers better by anticipating their evolving digital needs while creating experiences that are more meaningful, according to the companies involved.

"At Indosat, we continuously evolve to serve our customers by understanding their needs more deeply and delivering experiences that truly matter to them. Together with Nokia and NVIDIA, we are building a reliable and AI-ready network foundation that will elevate connectivity and create a more seamless digital experience for every customer," stated Indosat leadership.

Indosat Ooredoo Hutchison Leadership

The upgraded network will enable advanced consumer and enterprise use cases across key sectors, including public services, industry, and digital services. AI-driven automation and energy-efficient technologies will improve operational efficiency while supporting a more sustainable approach to digital transformation, ensuring that technological advancement delivers real impact for businesses and the millions of Indonesians who rely on connectivity every day.

This collaboration demonstrates how 5G and AI can be delivered together to support digital inclusion across geographically diverse regions. By positioning Indonesia as an early adopter of AI-RAN technology, the partnership creates a practical path to bring AI workloads closer to the network, delivering new value for enterprises and public services while managing the energy footprint of rapid digital expansion.