Indonesia experienced economic growth rates 5.5 to 7.0 per cent per year since the late eighties and early nineties, resulting in greater demand for telecom services. But, like many other developing countries, Indonesia had a low level of telecom infrastructure development. Consequently, the government introduced a number of policy reforms aimed at making the sector more responsive to the business needs. These policy changes have resulted in deregulation and the beginning of private participation. The paper sketches the state of the Indonesian telecom sector and outlines the policy changes that have taken place since 1989 and highlights issues in management of telecom policy reforms.