UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL Economic and Social Commission for Asia and the Pacific

Committee on Information and Communications Technology

Mobile applications in Asia and the Pacific Indonesia Case

DR Iwan Krisnadi Commissioner BRTI Indonesia Telecommunication Regulatory Authority Bangkok, 24 November 2010

UN SUMMIT 20 22 September 2010 ;New York High Level Plenary Meeting of the General Assembly

"We must not fail the billions who look to the international community to fulfil the promise of the Millennium Declaration for a better world. Let us meet in September to keep the promise. -- UN Secretary-General, Ban Ki-moon

We can end poverty 2015

Millenium Development Goal

1. 2. 3. 4. 5. 6. 7.

8. 9.

10.

To connect villages with ICTs and establish community access points To connect Universities, colleges, secondary schools and primary schools with ICTs To connect scientific and Research Centers with ICTs To connect Public Libraries , cultural centers, museums, post offices and archives with ICTs To connect health centres and hospitals with ICTs To connect all local and central government departments and establish websites To adapt all primary and secondary school curicula to meet the challenges of the information society, taking into account national circumstances To ensure that all of the world s population have access to television and radio services To ecourage the development of content and put in place technical conditions in order to facilitate the presence and use of all world language on the internet To ensure that more than half the worlds inhabitants have acces to ICTs within their reach.

WSIS Geneva Action Plan

Target by 2015

Country Profile

ICT Profile
ICT Policy and Regulation

Outline

COUNTRY PROFILE : Indonesia

Trend Population in Indonesia

Sex Ratio on Indonesia Population

Population Growth rate 2000-2010

Population Density 2010

Distribution Percentage based on the islands

ICT PROFILE

Three stages in the evolution towards an information society

ICT Readiness, Infrastruct ure Access

ICT Use Intensity

ICT Impact Outcomes

ICT Development Index

ICT Capability Skills Economy Reg Rank 2008

1

Rank 2008

IDI 2008

Rank 2007

IDI 2007

Rank 2002

IDI 2001

Rank chang e2007 -2008

-1

Korea
Japan Singapore Malaysia Thailand Vietnam

7.68

7.23

5.84

2 4 9 11 14

8 14 56 76 86

7.12 6.95 3.96 3.27 3.05

7 15 55 75 93

6.89 6.47 3.66 3.03 2.61

17 16 50 74 106

4.79 4.79 2.71 2.13 1.59

-1 1 -1 -1 7

Indonesia
Cambodia Pakistan
Papua New Guinea

19
23 25 28

107
120 128 151

2.46
1.70 1.54 1.08

108
120 127 150

2.15
1.53 1.45 1.06

109
122 144 137

1.57
1.10 0.92 0.99

1
0 -1 -1

IDI ( The ICT Development Index) Asia Pacific

90

80
70 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 Fixed Wireline Fixed Wireless Celullar Total

Fixed Wireline Fixed Wireless Mobile Cellular Total

2005 3,97 2,14 21,4 27,51

2006 3,94 2,71 28,73 35,38

2007 3,88 4,81 41,52 50,21

2008 3,81 9,53 61,72 75,06

2009 3,83 11,21 66,82 81,86

Telephone Desnity

18 16 14

12
10 8 6 4 2 0 NAD Sumut Sumbar Riau Jambi Sumsel/Babel Bengkulu Lampung Kepri DKI Jakarta Jabar Banten Jateng DIY Jatim Bali NTB NTT Kalteng Kalbar Kalsel Kaltim Sulses+Sulbar Sulut Sulteng Sultra Gorontalo Maluku Papua +Irja Barat

Based on teledensity variaety based on provinces in Indonesia, there are a correlation between teledensity and Income per capita . The highest Income per capita in a province has the highest teledensity , And vice versa

Household Teledensity based on Provinces

Total Subscribers
OPERATORS Telkomsel Prepaid Post Paid Indosat Prepaid Post Paid Excelkomindo Prepaid Post Paid Mobile 8 Prepaid Post Paid STI Prepaid Post Paid Natrindo 21.537 2004 16.291.000 14.963.000 1.328.000 9.754.607 9.214.663 539.944 3.791.000 3.743.000 48.000 500.000

2005
24.269.000 22.798.000 1.471.000 14.512.453 13.836.046 676.407 6.978.519 6.802.325 176.194 1.200.000 1.150.000 50.000 10.609

2006
35.597.000 33.935.000 1.662.000 16.704.729 15.878.870 825.859 9.527.970 9.141.331 386.639 1.825.888 1.778.200 47.688 134.713 133.746 967 12.715

2007
47.890.000 45.977.000 1.913.000 24.545.422 23.945.431 599.991 15.469.000 14.988.000 481.000 3.012.801 2.920.213 92.588 310.464 310.176 288 4.788

2008
65.299.991 63.359.619 1.940.372 36.510.246 35.591.033 919.213 26.015.517 25.599.297 416.220 2.701.914 2.552.975 148.939 784.343 784.129 214 3.234.800

2009
81.643.532 79.608.839 2.034.693 28.707.198 27.416.788 1.290.410 31.438.377 31.101.047 337.330 2.805.842 2.683.776 122.066 636.868 636.566 302 4.105.156

Prepaid
Post Paid Hutchinson Prepaid Post Paid Smart Telecom Prepaid Post Paid TOTAL 30.336.607 46.992.118

10.155
2.560

4.788
2.039.406 2.036.202 3.204 115.000

3.234.800
4.500.609 4.490.202 10.407 1.530.823 1.456.372 74.451

4.105.156
7.311.000 7.295.000 16.000 2.599.665 2.528.026 71.639 159.247.638

63.803.015

93.386.881

140.578.243

90,000,000 Telkomsel 80,000,000 70,000,000 60,000,000 Prepaid Post Paid Indosat Prepaid Post Paid Excelkomindo Prepaid Post Paid Mobile 8 Prepaid

50,000,000
40,000,000 30,000,000 20,000,000 10,000,000 2004 2005 2006 2007 2008 2009

Post Paid
STI Prepaid Post Paid Natrindo Prepaid

Total Cellular Subscriber

120.00%
100.00% 80.00% 60.00% 2007 40.00% 20.00% 0.00% -20.00% 2008

Telkom Group Indosat Excelkomindo Bakrie Mobile 8

2007 15,90% 34,70% 38,00% 112,00% 49,90%

2008 2,10% 13,20% 51,20% 70,70% -17,10%

Operating Revenue Growth

100.00% 80.00% 60.00%

40.00%
20.00% 0.00% -20.00% -40.00%

2007 2008

EBITDA GROWTH

600,000 500,000 400,000 300,000 200,000 100,000 -

Telkom FWA Telkomsel Indosat Indosat FWA Excelcom Bakrie Mobile 8 Hutchinson STI

80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Pre Paid Pre Paid Pre Paid 2007 2008 2009

STI Excelkomindo Natrindo Telepon Selular Hutchinson CPT Mobile 8 Tel

Smart Telecom

The implisit ARPU decline trend due to the increase of the subscribers through various strategies

300,000 250,000 200,000 150,000 100,000 50,000 Post Paid 2007 Post Paid 2008 Post Paid 2009

STI

Excelkomindo

Natrindo Telepon Selular Hutchinson CPT

ARPU

160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% -20.00% -40.00% 2005 2006 2007 2008 2009 Telkomsel Indosat Excelkomindo Mobile 8

OPERATOR Telkomsel Indosat Excelkomindo Mobile 8

2005 49,00% 48,80% 84,10% 140,00%

2006 46,70% 15,10% 36,50% 52,20%

2007 34,50% 46,90% 62,40% 65,00%

2008 36,40% 48,70% 68,20% -10,30%

2009 25,00% -21,40% 20,80% 3,80%

Cellulars Subscribers Growth

2008 2009 Smart Telecom 1,10% 1,60% Hutchinson 3,20% 4,60% Natrindo 2,20% 2,60% STI 0,60% 0,40% Mobile 8 1,90% 1,80% Excelcomindo 18,50% 19,70% Indosat 26,00% 18,00% Telkomsel 46,50% 51,30%

1.1%

100% 90% 80% 70%

3.2%

1.6% 2.2% 0.40% 4.6% 1.80% 2.60%

0.60%

1.90% 18.5%

19.70%

Smart Telecom Hutchinson

26.00% 18.00%

60% 50% 40% 30% 20% 10% 0% 2008 2009

46.50% 51.30%

Natrindo STI Mobile 8 Excelkomindo Indosat Telkomsel

Market Shifting

NAD Sumut Bengklulu Jambi Riau Lampung

9.597 72.437 4.648 9.920 23.914 20.232 20.226 4.648 24.936 22.335 659.932 24.412 154.100 87.275 253.837 26.837 45.072 10.005 6.118 14.784 30.735 15.959 7.403 1.281 14.701 16.063 11.204 1.830 5.100 27.108 15.312 34.071

700,000 600,000 500,000 400,000 300,000 200,000 100,000 NAD Sumut Bengklulu Jambi Riau Lampung Sumbar Kep Babel Sumsel Kepri Jakarta Banten Jabar Jateng Jatim DIY Bali NTB NTT Kalbar Kaltim Kalsel Kalteng Gorontalo Sulut Sulsel Sultra Sulbar Sulteng Maluku Papua Barat Papua

Sumbar Kep Babel Sumsel Kepri Jakarta Banten Jabar Jateng Jatim DIY Bali NTB NTT Kalbar Kaltim Kalsel Kalteng Gorontalo Sulut Sulsel Sultra Sulbar Sulteng Maluku Papua Barat Papua

Internet based on provinces 2008

Field of industry
Agro industry, farming, forresty and fishing Mining Manufactures Electricity, gas and water Construction Trading, hotel and resto Transportation and communication (ICT) Financial, rental and corporate services services

2008
14,4% 11,0% 27,9% 0,8% 8,4% 14,0% 6,3% 7,4%

Q1 2009
15,8% 8,8% 27,3% 0,9% 9,6% 13,4% 6,6% 7,6%
Trading, hotel and resto 13%

Indonesian GDP
Financial, rent Transporta al and tion and corporate communica services tion (ICT) 8%

services 10%

Agro industry, farmi ng, foresty and fishing 16%

7%

Mining 9%

Manufactu res 27% Electricity , gas and water 1%

Constructi on 10%

9,8% Growth 10,0% Field of industry (%yoy) Agro industry, farming, foresty and fishing 4,8% Mining 2,2% Manufactures 1,6% Electricity, gas and water 11,4% Construction 6,3% Trading, hotel and resto 0,6% Transportation and communication (ICT) 16,7% Financial, rental and corporate services 6,3% services 6,8%

Growth of GDP
services Financial, rental and Transportation and Trading, hotel and Construction Electricity, gas and Manufactures Mining Agro 0.0% 5.0% 10.0% 15.0% 20.0%

ICT in GDP : Highest growth but the portion still relative small

Role of ICT in Indonesian Economy

ICT POLICY AND REGULATION

Regulation Impact on ICT industries

Regulation Impact on Internet Utilization

BRTI 23/09/2009

28

Universal Service Policy

Background:

2 March 2009, ITU (International Telecommunication Union) announced that using the ICT growth index stated that the position of Indonesia is within the rank of 108 of 154 countries, under Gabon and above Botswana. It is in the medium category. The lowest subsidized Affordability : Willingness to pay ; Ability to pay Sustainability The availability of the Desa Berdering (Ringing Village) of the 33,259 SSL (Phone) The availlability of the Desa Pintar (Smart Village) of the 5,748 SSL (Internet)

The USO principal

The target of the USO project :

The Indonesias USO Project

Purpose
a. The purpose is to provide the Internet Service Center Provider to the village/s which is needed the support of USO program continuously. b. To guarantee the availability and affordability of the internet service as target ( 4,700 villages Internet Access Service up to year 2014 Objective a. To open the Information Access of the Village Community. b. To increase the ICT penetration in Indonesia ; c. To comply with the WSIS target to establish the Information Society in the year 2015. d. Bridging the digital divide between city and the villages areas . e. To support the acceleration of the economic growth under develop areas.

Target

The availability and the affordability of the internet service within 4,700 villages all over Indonesia .

USO Project

Provision for nationwide infrastructure through Universal Service Obligation USO Program

Short Term
To establish + 38,471 villages equipped with voice services (Desa Berdering) in 2009

Mid Term
To establish villages with internet services (Desa Pintar ) in 2009. The internet will be utilized for weather info, commodity trading,,education and other information necessary

Long Term
To establish information society in 2025 through information center build in villages, community based TV broadcasing and other information services

100.00%

80.00%

60.00% Out of targeted villages 40.00%

Targeted Vilage

20.00%

0.00%

USO USO USO USO USO USO USO USO USO USO USO area area area area area area area area area area area 1 2 3 4 5 6 7 8 9 10 11

2009 Targeted USO Telephone: 36.471 villages

USO area 1 USO area 2 USO area 3 USO area 4 USO area 5 USO area 6 USO area 7 USO area 8 USO area 9 USO area 10 USO area 11

Out of Targeted targeted Vilage villages 75,00% 24,30% 60,00% 40,00% 59,80% 40,20% 73,70% 26,30% 66,80% 33,20% 45,80% 54,20% 47,90% 52,10% 28,10% 71,90% 78,00% 22,00% 59,60% 40,40% 28,70% 71,30%

2009 USO s Villages Target :

Desa Berdering

12 10 8

11 9

6
6 4 2 0 5

7
6

4 3 3

4 4 3

4 3 3

100 Internet Villages has been realized

Desa Pintar in the year 2009

Organizing ICT for broadband economy

Creating netwotk for collaboration:

Infrastructure

Creating network for collaboration

Transport level

sinergy

Palapa Ring Project Introduced since 2006 : Sub marine optical fiber network to cover whole island in the eastern part of the counttry

Broadband Economy Activities

ICT

35

to Asia Pacific to India and arab to Guam , US

Sabang to Thailand Banda Aceh Meulaboh Tapaktuan Sibolga Padang Natal Bengkulu

Kalimantan

Singkawang Batam

Sulawesi
Tarakan Toli-toli Tobelo oo
Manokwari Biak

Medan

Samarinda
Balikpapan

Palemban g

Kalianda

Sumatera

oo o Salaw o o o oo ati Palopo Luwuk o o o oo Kendari Belitung o Nabire oo Sampit Banjarmasin Jakarta Ambon Tual Cirebon Ujungpandang oo o Dobo Semarang Reo o Maumere Surabaya Larantuka Gilimanuk oo o o o Saumlaki Kalabahi Ketapang Merauke Karangasem o Atambua Mataram Kupang Sumbawa Waingapu

Pontianak

Manado Gorontalo

Palu

Jawa

Maluku - Papua

Nusa Tenggara
to Perth, Australia

to Perth, Australia

Indonesia will be a high capacity broadband bridge for the region by empowering Palapa Ring Project

Creating Indonesia as a broadband bridge network for the region

USO

Towards an Empowering and Transformational ICT: Creating an Inclusive, Vibrant and Integrated ASEAN
Core Objectives 1 Economic Transformation

entrepreneurship in the ICT sector, and to build an ICT engine for sectorial transformation

To promote trade, investment and

2 People Empowerment & Engagement

Innovation

To enhance quality of life through affordable

and equitable ICT

To nurture a creative, innovative, an

d green ICT sector

Necessary Foundation

Infrastructure Development

To provide the next generation infrastructure backbone, and enabling policies and legislation
5 Human Capital Development

To develop a skillful ICT workforce and knowledgeable community

6 Bridging the Digital Divide

To elevate countries and people through ICT capabilities

ASEAN ICT MASTER PLAN 2010-2015

Terima kasih Thank you

DR.Ir Iwan Krisnadi MBA. Commissioner BRTI Indonesia Telecommunication Regulatory Authority
Iwan is a Commisioner at the Indonesian Telecommunication Regulatory Authority. He is a dynamic and engaging speaker with national and international audiences. He is a lecturer of the telecommunication management and the Telecommunication Regulation in the Post Graduate Programme of the Universitas Indonesia and the Universitas Mercu Buana. His achievements included his participation in the awakening of the Palapa Satellite Project and the operation of the Palapa Domestic Satellite System starting with the Palapa A Satellite , the Palapa B Satellite up to the Palapa C Satellite generation. He was also the team member during the satellite Launch in the USA. He has attended several International conferences recently such as the World Telecommunication Policy Forum 2009; Asia Pacific Telecommunity Ministrial Meeting, 10th ASEAN Telecommunication Minister Meeting in the year 2009. He was with PT Telkom as the Marketing Manager in their project to introduce the Palapa Satellite transponder within the ASEAN member countries and the neighborhood countries to sell more transponder and exceed the company expectation. The rendezvous of the Supplier, the Manufacturer and the Operator as a satellite industry in the PALAPA USER Forum increased the business networking and establishing the mutual cooperation. Iwan earned his engineering degree in electronics from Institut Teknologi Bandung , and his MBA and PhD degrees from California Coast University