XL-Smartfren Merger May Create Oligopoly

With only four mobile operators in the country, the upcoming merger of XL and Smartfren can potentially give birth to an oligopoly.

Jaffry Prabu Prakoso

31 Mar 2024 - 16.22
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XL-Smartfren Merger May Create Oligopoly

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Bisnis, JAKARTA – The planned merger between XL Axiata (EXCL) and PT Smartfren Telecom (FREN) may be a double-edged sword for the industry without proper anticipative measures.

ICT Institute’s executive director Heru Sutadi the XL-Smartfren merger increases the risk of birthing an oligopoly due to there being less and less competition.

"We must be vigilant of the few players creating an oligopoly because only three players will dominate the Indonesian market. This falls under the domain of the KPPU [Business Competition Supervisory Commission] to ensure competition continues in terms of price, coverage, and quality," he told Bisnis on Friday (29/3/2024).

Heru explained that he disagreed with the Communications and Information Minister Budi Arie Setiadi’s statement that merger affairs are entirely in the hands of mobile operators due to their business to business (B2B) nature.

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XL-Smartfren Merger May Create Oligopoly

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