Challenges and Opportunities for ICT Industry in Indonesia 2016

1. MASYARAKAT TELEMATIKA INDONESIA
Indonesian ICT’s Society
by: Kristiono
Chairman of MASTEL

2. 88.1 million internet user
(34% population)
63.4 million smartphone user
(24,7% population)
308.2 million mobile phone
user (121% population)
3 hrs/day, average of
internet access via mobile
device
2 hours 52 minutes/day,
average of social media
usage
74 million social media user
(29% population)
69 million facebook user
50 million twitter user
3 million fixed broadband
user (1,5% population)

3. will grow to IDR 140 Trillion by 2020, fuelled by data revenue growth

4. 0
5000
10000
15000
20000
25000
30000
35000
40000
TLKM2010 TLKM2014 EXCL2010 EXCL2014 ISAT2010 ISAT2014
Fixed Line Cellular Data
Growth in data services will change the business model
of the ICT industry in Indonesia
Source: Company Annual Report
Revenue Composition of
Telecommunications Operator
CAGR 2010-2014
TLKM
Fixed Line -9,0%
Cellular 4,2%
Data 17,5%
EXCL
Cellular 1,4%
Data 28,1%
ISAT
Fixed Line -4,0%
Cellular 5,0%
Data 9,1%

7. Masyarakat Telematika Indonesia

8.  Based on MASTEL Study
Income elasticity of demand indicate that
smartphone as necessary goods
cell phone subscriber create added value for
the economy amounted to 5.52% of GDP
 National ICT Master Plan
Lack of National Broadband Ecosystem
1.
2.

9.  Resolve Infrastructure Bottleneck
 Too many players
 Supportive Regulation
 Review Policies on Spectrum (Neutral
Technology, spectrum re-farming, digital
dividend, white spectrum/unlicensed spectrum)
 Infrastructure sharing (passive and active)
 Industry Efficiencies
3.

10.  Digital Divide
Lack of successful roll out model
Network segment priorities
 Regulatory Environment
Establish convergent regulation
Grey Area in OTT Phenomenon
4.
5.

11.  Developing Upstream and Downstream Industry
 Technology (hardware & software) cluster link to
engineering school
 Fostering creative Industry  media, e-services,
digital application
 Increase Supply of Skilled ICT Workforce
 Shortfall 9 millions skill/semi skill workers until 2030
 Potential growth of e-commerce is quite large in
Indonesia
6.
7.
8.

12.  ICT Adoption by SME
 55 millions SME, with 108 million employee (95% of
firm)
 GDP Contribution per employee $139 vs $3.514
 ICT to support
 Priority Sectors (transportation, agro business, health,
education)
 Service Industry (Internet Access, financial inclusion)
 Quality and Efficiency Improvement in Public Service
(E-Government, Smart City)
9.
10.

13. By resolving the challenges and taking the
opportunities, Indonesia potentially become
the biggest digital economy player in the
Region

14. MASYARAKAT TELEMATIKA INDONESIA
Indonesian ICT’s Society