Biometric SIM registration: structural uplift to pricing power Quick Note

Research evidence excerpt

Biometric SIM registration: structural uplift to pricing power Quick Note

Nomura Securities Malaysia Sdn Bhd

30 June 2026Indonesia Telecom

EQUITY: TELECOMS

Biometric SIM registration: structural uplift to pricing power Research Analysts

Indonesia Research Team

Tushar Mohata, CFA - NSMQuick Note tushar.mohata@nomura.com

Indonesia’s Ministry of Communication and Digital (Komdigi) has mandated biometric +60(3)20276895

face recognition as a core component of the starter pack (SP) registration process, Onshore expert

requiring operators (Opsel) to validate each new subscriber against the civil registry

(Dukcapil) database. The system operates on a 1:1 matching basis – the face submitted at Erwin Wijaya (erwin.wijaya@verdhana.id)

registration must match the photo in the file for the corresponding identification number Theonshoreexperts,whoare

(NIK), with a minimum similarity threshold of 95%. Transmission is through encrypted employedbyPTVerdhanaSekuritas

Base64 format (not raw image files), secured through ISO 27001-certified infrastructure, Indonesia(“Verdhana”)andarenot

dedicated Opsel–Dukcapil connectivity, dual face-to-face firewalls, end-to-end encryption, licensedoutsideIndonesia,have

and role-based access controls. Attempts to register a third-party NIK using one's own contributedtothecontentofthis

biometrics will trigger a mismatch response (error code 6019), effectively closing the most reportunderapartnershipagreement

common identity-fraud loophole in the prepaid channel. betweenNomuraandVerdhana.

We believe the enforcement of biometric KYC eliminates the practice of bulk or proxy SP

purchases – historically, a significant driver of both SP sales volume and artificial churn,

as subscribers routinely cycle through cheap SPs rather than topping up existing lines. We