The telecommunication sector is a critical driver of economic growth and technological
advancement, particularly in emerging markets such as Indonesia. This study aims to analyze the
impact of the transition from 4G to 5G network technology on the profitability and stock returns of
telecommunications companies listed on the Indonesia Stock Exchange (IDX). With Indonesia
experiencing rapid digitalization, the expansion of high-speed internet access, and increasing
smartphone adoption, the introduction of 5G technology presents a transformative phase for the
industry. This research investigates whether the adoption of 5G technology has significantly
influenced the financial performance, measured by key profitability ratios, and the stock market
performance, represented through stock returns, of telecom firms operating in the Indonesian
market.

Using a quantitative research approach, financial data and stock price information from IDX-listed
telecommunications companies were collected and analyzed over multiple periods encompassing
the end of the 4G era and the initial adoption phase of 5G technology. Statistical methods including
descriptive analysis, correlation, and regression analysis were conducted to identify relationships
and measure the impact of the technological shift on company profitability and investor returns. The
findings reveal substantial changes in profitability metrics aligned with 5G rollout timelines,
suggesting that infrastructure investments and service diversification contribute to increased
revenue and operational efficiency. Stock return analyses further indicate that the capital markets
have reacted positively to 5G adoption, reflecting investor optimism regarding future growth
prospects of telecom companies embracing cutting-edge network technologies.