Threat of Communications Blackout Looms Over Paradise as Bali Tower Ruling Jeopardizes Digital Economy

JAKARTA, Investortrust.id — More than 50% of telecommunication towers across Bali’s resort regency of Badung could soon be torn down, raising the specter of a widespread communications blackout in Indonesia's premier international travel destination.

The threat stems from a contentious verdict by the Bali High Court in favor of PT Bali Towerindo Sentra Tbk (BALI) against the Badung Regency Government, which orders the dismantling of all cellular towers in the area not owned by Bali Towerindo.

Badung is the commercial engine of Bali’s tourism economy, home to world-renowned destinations such as Kuta, Seminyak, and Canggu. A localized mobile communications collapse would paralyze hospitality operations that rely on frictionless cashless payments, including point-of-sale terminals and the national QRIS standard, while undermining international traveler confidence in the country's broader digital readiness.

A High-Stakes Demolition Order

The Telecommunication Infrastructure Providers Association (Aspimtel) cautioned that executing the court ruling would immediately crater local coverage and mobile data capacity.

Out of more than 1,000 towers delivering critical 4G and 5G cellular coverage across Badung, more than half would have to be dismantled if the decision is enforced, Aspimtel Secretary General Indra Gunawan stated in Jakarta on Monday, Sept. 15, 2026.

Gunawan emphasized that the fallout extends well past physical asset losses, warning of immediate spillover into local commercial activity.

"Almost all transactions across the tourism sector now utilize cashless systems," Gunawan said on Monday. "Hotels, restaurants, tourist attractions, and small vendors rely on QRIS, EDC terminals, credit cards, and other digital services. The economic value at stake is enormous if the signal suddenly vanishes and people cannot transact."

Broadband Constraints Amplify the Threat

Replacing demolished infrastructure is exceptionally challenging because wireless connectivity cannot be replicated overnight, requiring fresh site zoning, network planning, and lengthy municipal permitting.

The vulnerability is intensified by national connectivity dynamics. Figures from the Ministry of Communication and Digital Affairs (Kemenkomdigi) indicate Indonesia remains overwhelmingly reliant on mobile networks, with mobile broadband penetration at 97.16% compared to a meager 20% to 21% for fixed broadband.

Aspimtel Executive Director Tagor H. Sihombing recalled the tangible fallout in 2023 when 48 towers in Badung were removed, causing immediate signal degradation across the region.

"A real degradation of signal quality occurred," Sihombing said on Monday. "At that time, when we conducted a joint meeting with the local administration, participants could not even make basic voice calls from inside the room."

A Multi-Trillion-Rupiah Legal Battle The standoff traces back to Bali High Court Decision No. 200/PDT/2026/PT DPS, which favored Bali Towerindo by extending its infrastructure cooperation agreement through May 7, 2047, while demanding the demolition of rival towers in Badung.

Refusing to implement the order, the Badung Regency Government submitted a formal cassation appeal to the Supreme Court on Sept. 3, 2026.

Both Kemenkomdigi and the Ministry of Home Affairs (Kemendagri) have intervened to mediate the dispute involving the Rp 3.3 trillion ($207.55 million) claim, seeking to resolve the impasse before the threat of cellular outages disrupts the island's tourist economy.