Indium nitride (InN)-based semiconductor saturable absorbers have previously shown advantages for application in near-IR fiber lasers due to their broad modulation depth, ultrafast nonlinear response and thermal stability. However, up to now all demonstrated saturable absorber elements based on InN (either transmissive or reflective) have shown limited performance due to poor coupling and insertion losses. We present here a simple mode-locking device based on a GRIN-rod lens in conjunction with an InN semiconductor saturable absorber mirror (SESAM) for its use in a passively mode-locked all-fiber laser system operating at telecom wavelengths. Our results demonstrate that this coupling element ensures not only a compact, turnkey and alignment-free design but also a highly-stable optical femtosecond pulse train. The reduction of insertion losses (3.5 dB) enables the generation of 90-fs ultrafast pulses with an average power of 40 mW and up to 7 nJ of pulse energy without the need for additional amplification.