Indonesia - Internet, Broadband Services and Forecasts

Synopsis

This report presents an overview of Indonesia’s internet and broadband market and looks at the changes that have taken place over the last decade or so as the telecommunications industry got back on its feet following the economic crisis of the late 1990s. Commercial internet services were not launched in Indonesia until 1995. Coming into 2012, it was estimated that Indonesia had around 24 million internet users, up from 13 million in 2007. This meant that internet users comprised only 10% of the population. On a positive note broadband internet services, although still very much in their infancy, had already become a very significant proportion (68%) of the internet subscriber base by end-2011. The ongoing efforts to expand internet access will, however, likely be impeded by inferior telecommunications infrastructure. Nevertheless, the country has enormous potential as an online market.

Key developments:

Broadband services were growing at around 25% annually. PT Telkom Indonesia and Telkomsel combined to offer a new broadband package (SpeedyFlash). Social networking continues to be very popular in Indonesia (in company with a number of other Asia nations.) MCIT issued a policy document on wireless broadband usage for public comment. Development of 4GG/LTE postponed for two years.

Companies covered in this report include:

PT Telkom, TelkomNet, Telkomsel, PT Indosat, Bakrie Telecom, PT Indosat Mega Media; PT Internux; PT First Media; PT Jasnita Telekomindo; PT Berca Hardayaperkasa; PT Rahajasa Media Internet; PT Comtronics Systems; PT Adiwarta Perdania.

Table of Contents

• 1. Synopsis
• 2. Internet market
  • 2.1 Overview
    • 2.1.1 Market survey
  • 2.2 Internet statistics
  • 2.3 Forecasts – internet services – 2015; 2020
  • 2.4 Social Networking
• 3. Regulatory developments
  • 3.1 Indonesian Internet Agency (LII)
  • 3.2 Domain names
  • 3.3 Internet information control
  • 3.4 Cyber laws
• 4. Internet infrastructure
  • 4.1 Telkom’s national IP backbone
• 5. ISP market
• 6. Broadband networks and services
  • 6.1 Overview
    • 6.1.1 Broadband statistics
  • 6.2 Broadband market background
  • 6.3 Broadband service providers
    • 6.3.1 TelkomNet
    • 6.3.2 Indosat Mega Media (IM2)
    • 6.3.3 First Media
  • 6.4 ID-WiBB
  • 6.5 High-Speed Broadband (HSBB) project
  • 6.6 Wireless broadband
    • 6.6.1 Background
    • 6.6.2 WiFi hotspots
    • 6.6.3 WiMAX
    • 6.6.4 LTE / Fourth Generation (4G)
    • 6.6.5 RIM’s Blackberry
  • 6.7 Internet via satellite
• 7. E-services
  • 7.1 E-commerce
    • 7.1.1 Electronic Document Interchange (EDI) project
    • 7.1.2 E-commerce payment system
    • 7.1.3 E-government
    • 7.1.4 E-health
• 8. Voice over Internet Protocol (VoIP)
• 9. Notes on scenario forecasts
• 10. Related reports

• Table 1 – Internet users – 1998 - 2012
• Table 2 – Internet subscribers – 1998 - 2012
• Table 3 – Dial-up internet subscribers – 2004 - 2011
• Table 4 – Total international internet bandwidth – 1998 - 2011
• Table 5 – Households with internet access (%) – 2005 - 2011
• Table 6 – Forecast of Internet subscribers and penetration rates – 2015; 2020
• Table 7 – Domain name registrations – June 2010
• Table 8 – Internet licences by licence type – 2007
• Table 9 –TelkomNet’s dial-up internet subscribers – 2004 - 2011
• Table 10 – IndosatNet’s dial-up internet subscribers – 2010 - 2011
• Table 11 – Fixed broadband subscribers – 2000 - 2012
• Table 12 – DSL subscribers – 2001 - 2011
• Table 13 – Broadband subscribers and households - 2011
• Table 14 – PT Telkom’s broadband subscribers – 2004 - 2011

• Chart 1 – Internet subscribers and annual change – 2003 – 2012