Indosat's latest Huawei deal underscores Beijing's diplomatic triumph over Washington

Indosat Ooredoo Hutchison (IOH) and Huawei have cut the ribbon on the Indonesian telco's Digital Intelligence Operations Centre (DIOC).

Nick Wood

August 7, 2024

2 Min Read

The new facility is the nerve centre of IOH's network operations, providing real-time insights and enabling proactive service management in an effort to optimise performance and reliability.

It's all in the pursuit of what's called Data-Driven Innovation, a concept that sees every scrap of information harvested to enhance the customer experience and serve as the backbone of exciting new products and services.

"With the DIOC, we are not just improving network performance; we are redefining the way we serve our customers," said IOH president and chief exec Vikram Sinha. "By integrating advanced technologies and fostering talent, we are setting new benchmarks in network performance and customer satisfaction. This collaboration is pivotal in realising our mission to connect and empower every Indonesian through digital connectivity."

The DIOC is just the latest area of collaboration between IOH and Huawei, two companies that have been working closely together for years now.

Recent highlights include February's Mobile World Congress (MWC), where the two signed a Memorandum of Understanding (MoU) that paves the way for a collaborative effort on AI. More specifically, IOH and Huawei will work together on AI development, industry applications, ecosystem building, and training.

Huawei has also played an important role in the integration of Indosat and Ooredoo's networks following their merger, which was completed in January 2022.

Simon Lin, president of Huawei's Asia-Pacific region, said the collaboration with IOH on its new DIOC "is built upon our long-term strategic partnership with Indosat and serves as a testament to our shared commitment to continuously providing exceptional network experience."

The close ties between Huawei and IOH also underscores the contrasting diplomatic fortunes of China and the US when it comes to Indonesia.

Since the mid-20th Century, Indonesia has had a much closer relationship with Washington than Beijing. That has changed in recent years though, as the latter has become Indonesia's biggest trading partnering, pouring billions into high-profile infrastructure projects, including high-speed railways, mining, power generation, and technology.

According to a New York Times article from February last year, the US invested $2 billion into Indonesia during the first nine months of 2022, while China invested $5 billion. The same article cites comments from Indonesia's coordinating minister of maritime and investment affairs, Luhut Binsar Pandjaitan, who said compared to their Chinese counterparts, US officials are far more liable to dictate onerous terms and conditions before authorising an investment.

When it comes to technology, a report in 2022 by Foreign Policy detailed how Chinese tech firms, particularly Huawei, are helping Indonesia address its two biggest challenges: improving cybersecurity and closing its digital skills gap. For Jakarta, these are said to be a higher priority than any concerns it might have about Beijing potentially spying on it.

"As a technology innovator, industry pioneer, and local contributor rooted in this region, Huawei is committed to leveraging our innovative solutions to help our customers maintain sustainable business success and competitiveness," said Lin this week. "Together, we are shaping a more digital, connected, and intelligent future for Indonesia."

Despite Indonesia's continuing role as an important US ally, when it comes to this particular front in its anti-Huawei campaign, the US is floundering.

About the Author(s)

Nick Wood

Nick is a freelancer who has covered the global telecoms industry for more than 15 years. Areas of expertise include operator strategies; M&As; and emerging technologies, among others. As a freelancer, Nick has contributed news and features for many well-known industry publications. Before that, he wrote daily news and regular features as deputy editor of Total Telecom. He has a first-class honours degree in journalism from the University of Westminster.

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