The purpose of this study is to examine the effect of dynamic capabilities (DC), innovation capabilities (IC) and alliances capabilities (AC) on sustainable competitive advantage in digital disruption era for incumbent telecommunication firm in Indonesia, due to the phenomenon of incumbent companies that fail to maintain business sustainability. New entrants could bring new innovations with cheaper, simple and efficient technology. This phenomenon referred to as Disruptive Innovation. Then the incumbents have to find new ways to stay competitive. The study is conducted by cross sectional quantitative method. The unit of analysis is telecommunication firm in Indonesia with management of these firms as the observation unit. The sampe taken from the population is as many as 100 respondents from Senior Leader in Indonesia telecommunication firm. The analytical approach and the solution technique that is used as the analysis tool in this research is Partial Least Square (PLS). The result of hypothesis testing shows that DC, IC, and AC affects sustainable competitive advantage (SCA) of Indonesia’s incumbent telecommunication firm in digital disruption era, where IC has more dominant influence than AC and DC in increasing SCA. This research has implications for both the management of telecommunication firm in Indonesia in maintaining and improving sustainable competitive advantage in the digital disruption era, as well as the contribution to science and further research.