Pegatron, a Taiwan-based technology firm, has partnered with Telkomsel, an Indonesia-based digital telecommunications provider and first 5G operator, to accelerate smart manufacturing transformation in Indonesia.

The duo said in a statement on Tuesday that Pegatron has officially inaugurated its new smart manufacturing facility in Batam, Indonesia.

The factory combines advanced Artificial Intelligence (AI), automation, and 5G connectivity, marking a key milestone in Pegatron’s global digital transformation journey.

Meanwhile, through its enterprise unit, Telkomsel delivers a Standalone (SA) 5G Private Network, ensuring secure, high-speed connectivity across the production area.

The collaboration also includes 1,200 SIM cards to support internet of things (IoT) devices for real-time machinery and production monitoring.

Telkomsel is simultaneously strengthening its public network to enhance workforce mobility and operational productivity.

“Our partnership with Telkomsel lays the foundation for a connected, adaptive, and efficient Smart Factory,

“With Telkomsel’s strong digital infrastructure, we are driving operational transformation and supporting the growth of Indonesia’s high-tech sector,” said Gary Cheng, Pegatron President and Chief Executive Officer.

Adis Alifiawan, Director of Spectrum Planning at the Ministry of Communication and Information Technology, underscored the national significance of the project.

“Indonesia is becoming not just a market, but a producer and innovator in global technology,” he said.

The factory’s 5G Private Network enables seamless integration of thousands of sensors and machines, supporting automation, data-driven decision-making, and optimization of cost, quality, and maintenance processes.

Wong Soon Nam, Planning and Transformation Director of Telkomsel, highlighted the broader impact of the partnership.

“Our customized 5G solution empowers Pegatron to boost efficiency and competitiveness in the Industry 4.0 era,

This collaboration was first announced at Mobile World Congress (MWC) 2025,” he said.

It is noted that Indonesia’s manufacturing sector is showing strong growth, with rising output and new orders in 2024.

A projected 5.2 percent gross domestic product (GDP) increase in 2025 and favorable investment conditions continue to attract global players to the region.

Setia Diarta, Director General at the Ministry of Industry, praised the companies’ efforts.

“This partnership shows how emerging technologies can support inclusive and sustainable industrial growth,” he said.

Pegatron’s Batam facility reflects its broader commitment to innovation, sustainability, and workforce development, advancing future technologies such as robotics, mobility solutions, and next-generation connectivity, said the statement.

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