Indonesia - Key Statistics, Telecommunications Market and Regulatory Overview

Synopsis

The Indonesian telecom sector has been through a lot of turmoil over the last decade. This report gives an overview of the market at a time when it seems to have successfully weathered the worst of the country’s economic and social difficulties. Growth, both in subscriber numbers and in revenues, has been occurring and, more importantly, there are signs that the changes in the regulatory regime and operator restructuring are starting to have a positive effect on the industry. The mobile market has been especially strong and there has been a good response to the launch of 3G networks by five operators. However, there were some signs that the government was hesitating in its efforts to restructure the industry. Some pertinent statistics are provided for the general telecom sector.

Key developments:

Indonesia’s mobile market continues to grow strongly, expanding at an annual rate of around 30%; the number of subscribers passed 250 million around the middle of 2011. Fixed wireless has continued to provide the bulk of the new fixed-line subscribers in the country; there around 32 million fixed-wireless subscribers out of a total fixed-line subscriber base of 40 million. Broadband services were growing at around 50% annually; coming into 2011 around 40% of internet subscribers were broadband as this segment of the market finally took off.

Companies covered in this report include:

PT Telkomsel, PT Telkom; PT Indosat; PT Satelindo; Mobile-8, Smart Telecom, PT Bakrie Telecom SingTel, Temasek; PT Sarana Menara Nusantara; PT Tower Bersama.

Table of Contents

• 1. Synopsis
• 2. Key statistics
• 3. Indonesia’s Telecommunications market
  • 3.1 Overview
  • 3.2 Economy
  • 3.3 Background to development
  • 3.4 Market growth
    • 3.4.1 Mobile sector
    • 3.4.2 Fixed-line services
    • 3.4.3 Broadband
    • 3.4.4 Other
• 4. Regulatory environment
  • 4.1 Background
    • 4.1.1 Telecommunications Law 1989
    • 4.1.2 Telecommunications Law 2000
    • 4.1.3 Cross shareholdings
  • 4.2 Corruption
  • 4.3 Regulatory developments
    • 4.3.1 SMS spam
    • 4.3.2 AT&T licence
    • 4.3.3 Control of the internet
    • 4.3.4 Quality of service
    • 4.3.5 Price fixing
    • 4.3.6 Third fixed-line operator
  • 4.4 Anti-monopoly case
  • 4.5 Privatisation process
    • 4.5.1 Background
    • 4.5.2 Foreign ownership
• 5. Related reports

• Table 1 – Country statistics – 2011
• Table 3 – Telephone network statistics – 2010
• Table 4 – Internet user statistics – 2010
• Table 5 – Broadband statistics – 2010
• Table 6 – Mobile statistics – 2010
• Table 7 – National telecommunications authorities
• Table 7 – Indonesia’s real GDP growth rate – 2006 - 2011