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Issue 4

Forward thinking A Time Of Turbulence- The Digital Interregnum
Mobile Technology and adoption: Mobile services
statistics indionesia Indonesia
wireless networks It's good to chalk?
mobile Increasing Complications in ARPU
  MRA update
Xmas on and offline shopping behaviour study link

Indonesia

By Qmars Safikhani

The fourth highest populated country in the world and the biggest Muslim country has been having a rough time of late, with continuing involvement in post-September 11th activities, violent clashes accompanying the re-election of Jakarta's widely disliked governor and power blackouts for long periods. Its economy is unable to lift about 40 million Indonesians out of unemployment, when nearly 60 percent of the population is at risk of falling below the poverty line.

 

 

 

 
socio-economic indicators

  2001

20022

2003

Population (million)

228.44

232.07

235.68

15-39 age band as percentage of population

43.71

43.48

43.24

GDP (US $bn)

161.58

168.85

176.45

GDP per capita (US $)

707

728

749

R&D investment (US $bn)

0.46

0.48

0.50

R&D investment as percentage of GDP

0.28

0.28

0.28

FigureSeeqTM


Indonesia also presents geographic challenges with 13,667 islands, mountainous regions, 100 active volcanoes, and a tropical climate. This always meant that creating a telecoms network was particularly difficult, but the situation was not helped by almost total lack of investment by the government. However, the financial crises and political turmoil of the past have forced the government to restructure the economy in exchange for IMF aid, and WTO membership obliges the government to develop the liberalisation of the telecommunication market.

Mobile

At the moment there are seven mobile companies operating in the country: Telekom, Indosat, Satelindo, Telkomsel, Excelcomindo, Komselindo, Metrosel and Mobisel. Telkmosel is the biggest operator with nearly 2 million subscribers.

Mobile phone

2001

2002

2003

2G mobile phone subscribers (million units)

4.00

5.00

5.99

2G mobile phone subscribers (per 10,000 inhabitants)

175

215

254

2.5G mobile phone subscribers (million units)

0.00

0.00

0.01

2.5G mobile phone subscribers (per 10,000 inhabitants)

0

0

0

3G mobile phone subscribers (million units)

0.00

0.00

0.00

3G mobile phone subscribers (per 10,000 inhabitants)

0

0

0

Total mobile phone subscribers (million units)

4.00

5.00

6.00

Mobile phone subscribers (per 10,000 inhabitants)

175

216

255

FigureSeeqTM

 

 

 

Internet

According to our latest figures released for 3Q 2002 there are nearly 3.9 million people in Indonesia with access to Internet. The cost of Internet access is relatively high (US $25.34 per 30 hours of dial-up access). The main dial-up systems are based on:

A)   Inclusive access which is applied by TelkomNet

B)    Telephone charges and separate ISP charges

The high price tag is reflected in the number of users: only 15% of Internet users surf from home. Internet cafs and the workplace represent more than 80% of the Internet access location.

Development of the Internet in Indonesia has also been hampered by the lack of PCs, poor telecom coverage, a general lack of ISPs and few websites in the local language

Internet access

2Q 2002

3Q 2002

4Q 2002

Internet access (million units)

3.36

3.90

4.87

Internet access (per 10,000 inhabitants)

145

168

210

FigureSeeqTM

 

 

 

Broadband

The country is experiencing the adoption of all different access technologies such as ADSL, Cable modem, Satellite and fixed wireless. The demand for broadband access would be 0.5 million by the end of 2003 and this figure will be tripled by the end of 2004. Telkom is running the service in Jakarta. Meanwhile Indosat is installing wireless DSL network in Surabaya and other fifteen cities.

Kabelvision has lunched its Kabelnet Internet access through cable modem and expecting to see an 200% increase of Cable modem broadband subscribers by the end of next year fromăcurrent 18 thousand subscribers.

Telkom has already concluded an agreement with Alcatel to providing broadband access via HFC in Jakarta and Surabaya.

The company also provide a two-way satellite broadband access with downloads speed up to 1.5Mbps and up-load via dial-up connection. This service cost around US$ 650 per month. Many cyber cafs in remote area are deploying this service.

Households with broadband

2001

2002

2003

xDSL access technology (million households)

0.03

0.10

0.46

Cable access technology (million households)

0.00

0.02

0.04

Fixed Wireless access technology (million households)

0.00

0.00

0.00

Satellite access technology (million households)

0.00

0.00

0.00

Households with broadband access (million households)

0.03

0.12

0.50

FigureSeeqTM

E-business

The lack of adequate infrastructure for e-business, poor awareness, transparency and banking facilities have all contributed to limited growth. To tackle those problems, the Ministry of Industry and Trade is running training programmes on such subjects as digital signatures and computer misuse.

e-commerce (US$bn)

2001

2002

2003

Business to consumer

0.35

0.72

1.71

Business to business

1.52

3.13

7.45

Total

1.88

3.86

9.16

FigureSeeqTM

 

 

 

For further information about Indonesia and other 82 countries please email us here, telephone 01524 382000 or visit our website


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