Why Indosat bets on AI to redefine telco marketing in Indonesia

In a market where telecom players are racing to move beyond connectivity, Indosat Ooredoo Hutchison - Indonesia’s second-largest operator with more than 100 million subscribers - is betting on artificial intelligence as its competitive edge. From churn-prediction models that help the brand anticipate customer behaviour, to AI Experience Centres in Papua and Solo designed to build local talent and sovereign AI capacity, the company is weaving AI into both its commercial strategy and its contribution to national digital inclusion.

Indosat CMO Vivek Mehendiratta (pictured) calls it a structural transformation. “Indosat is on a journey to becoming an AI-native company. This is a long-term strategic transformation, and we are making strong, deliberate progress,” he told MARKETING-INTERACTIVE recently.

Speaking less than a year into his tenure, Mehendiratta framed AI not merely as a tool for efficiency but as a foundation for new business models, customer engagement, and national digital equity. Guided by its “AI NorthStar” framework, Indosat is pursuing three goals in parallel: embedding AI into core operations (AI Native Telco), building new digital business models (AI TechCo), and supporting the development of sovereign AI capacity in Indonesia (AI Nation Shaper).

Don't miss: Indosat opens IDCamp 2025 to accelerate Indonesia's AI talent pipeline

Marketing at scale, with precision

For Mehendiratta, the strategic bet goes beyond profitability. He pointed to initiatives such as the AI Experience Centres, designed to extend access to training, infrastructure, and applications in rural Indonesia. These efforts sit alongside broader national agendas, including support for the National Centre of Excellence and the development of Bahasa Indonesia-based large language models such as Sahabat AI.

“Through our AI Experience Centre in Papua, we aim to expand access to AI and the opportunities it will create to more rural communities in Eastern Indonesia,” he said. “We want the centre in Papua and the centre we have created in Solo to act as platforms that bring communities, government, and the private sector together - in a spirit of gotong royong - to help develop Indonesia’s sovereign AI technology and talent.”

This dual focus - driving commercial applications while investing in national capacity - aims to position Indosat as both a market innovator and a contributor to the state’s digital ambitions.

From a marketer’s standpoint, AI is already reshaping how Indosat connects with millions of subscribers. The CMO explained that AI enables real-time segmentation and predictive engagement, ensuring campaigns are both personalised and scalable.

“With AI, we can better segment our audiences in real time, predict their needs, and deliver highly relevant content through our mobile app and other channels,” he said. “AI means we can create and deliver personalised content at scale to millions of individual customers quickly and easily.”

One of the clearest applications is in churn prediction. “We’ve built AI models that predict churn weeks in advance, and instead of sending the same message to everyone, we now reach out with personalised offers,” Mehendiratta emphasised. These range from tailored data packages and loyalty perks to app-exclusive bundles.

At the end of the day, AI for us isn’t just about algorithms, it’s about making smarter, more human connections with our customers, and making every marketing investment work harder.

Balancing national campaigns with micro-personalisation

Indosat believes the combination of a more sophisticated mobile app, stronger data analytics, and now the adoption of AI has allowed it to move towards more personalised campaigns delivered through digital channels. However, despite the clear pivot to data-driven relevance, the company has not abandoned mass reach.

Mehendiratta pointed to SATSPAM - an anti-spam and scam protection service integrated into the IM3 network - as an example of blending large-scale public education with digital protection. Its Jakarta launch combined national messaging with experiential engagement, symbolised by the #NomorModusNoMore parade.

In August, hundreds of IM3’s signature yellow-uniformed staff took to the streets of Jakarta’s Car Free Day in Thamrin for the SATSPAM Parade, joined by members of the public and journalist Najwa Shihab. Unlike security features that require manual activation or third-party apps, SATSPAM is built directly into the IM3 network. It switches on automatically for any customer with an active data package, scanning in real time to detect and block suspicious numbers and messages before they ever reach the user.

“Our approach is to balance AI-powered digital marketing that is highly personalised with national campaigns and events that have mass appeal,” Mehendiratta said. The duality reflects Indonesia’s unique market, where consumer habits remain diverse across regions and demographics.

AI-driven micro-targeting alone won’t cut it. Indonesia isn’t one homogeneous market - people’s behaviours and media habits vary widely. National campaigns and big offline events still matter for visibility, cultural resonance, and reaching audiences that aren’t fully digital.

It’s about ensuring we have the right message, deliver through the right channels to build a strong bond with our customers that lasts.

Asked about long-term brand building in an era of fragmented attention, the CMO argued for integrated experiences rather than channel silos. “Attention may be fragmented, but human needs aren’t. The biggest opportunity is in integrated brand experiences that move seamlessly across platforms: storytelling on TV, interaction on short-form video, and conversion in commerce.”

Bundling, he added, has become central to this playbook - positioning Indosat not just as a provider of connectivity, but as a partner in consumers’ daily lives. A recent example is its partnership with VISION+, the OTT platform under MNC Group. Content spanning global sports, box-office films, and locally produced originals is now bundled directly into Indosat’s digital ecosystem.

“When we bundle data with entertainment, gaming, or eCommerce, we’re not just selling products - we’re enabling moments that matter: a family streaming together, a young gamer connecting with friends, or an entrepreneur running a business online.”

Looking ahead: Embedding AI as culture

Mehendiratta - who joined Indosat in October 2024 - has since led marketing through a rapid product cycle. His proudest moment so far has been watching his team embrace AI across functions, he said. “Adopting new technologies and ways of working can be difficult but my team is successfully using AI technology to maximise their own creativity and to drive real and positive impact for our marketing campaigns.”

Personally, I believe the role of a telco today is bigger than connectivity - it’s about being a partner in progress for society. That’s where true brand equity is built, and that’s the future Indosat is committed to.

Looking forward, he set a clear benchmark: “In a year from now, I want to have embedded AI fully into our marketing strategy and be delivering personalised marketing content and campaigns at scale through our digital channels.” For him, success will be reflected in rising NPS and brand strength scores - and in Indosat being recognised as “the most pioneering and trusted telco brand in Indonesia.”

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