1 Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 1 Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 2012 The Profle of INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association The Profle of INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association RI National Library: Catalog in Publishing Indonesia Internet Service Provider Association The Profile of Indonesian Internet Users: Editor DR Ir Didit Herawan MBA and Content is The King; Jakarta: APJII, 2013. xxviii + 84 pages; 15 x 24 cm. Original Title: Profil Pengguna Internet Indonesia ISBN 978-602-19596-2-6 Editors: DR Ir Didit Herawan and Content is The King Final Editing: Parlindungan Marius Layout: Content is The King Cover Design: Content is The King Cover Photos: @blontankpoer Publisher: Indonesia Internet Service Provider Association, www.apjii.or.id. Publication: 1st, February 2013 The printing house is not subject to be responsible for the contents. All Rights Reserved. Table of Contents Board vi Introduction vii Executive Summary ix The Surveys Background x Methodology xiii
RI National Library: Catalog in Publishing Indonesia Internet Service Provider Association The Profile of Indonesian Internet Users: Editor DR Ir Didit Herawan MBA and Content is The King; Jakarta: APJII, 2013. xxviii + 84 pages; 15 x 24 cm. Original Title: Profil Pengguna Internet Indonesia ISBN 978-602-19596-2-6 Editors: DR Ir Didit Herawan and Content is The King Final Editing: Parlindungan Marius Layout: Content is The King Cover Design: Content is The King Cover Photos: @blontankpoer Publisher: Indonesia Internet Service Provider Association, www.apjii.or.id. Publication: 1st, February 2013 The printing house is not subject to be responsible for the contents. All Rights Reserved. Table of Contents Introduction vi Executive Summary vii Background viii Methodology xi
Chapter 1 Demographical Profile of Indonesias Internet 15 Chapter 2 Analysis of Internet User Penetration 27 Chapter 3 Psychographical Segmentation 31 Chapter 4 Habit and Behavior of Internet Users 35 Chapter 5 Consideration and Satisfaction in Choosing Internet Service Provider 47 Chapter 6 Behavior of Internet Users in Online Shopping 51 Chapter 7 Media Information to Use 63 Chapter 8 Potentials in Rurl Areas and Challenge for Internet Service Providers 67 Board Indonesia Internet Service Provider Association vi Board Period for 2009 - 2012 Board Period for 2012 - 2015 Indonesia Internet Service Provider Association vii Introduction vi T he Internet is no longer simply about technology but also about something more advanced. It has even become a part of peoples daily indispensable actvites. It plays the biggest role in changes that take place in all industries. The Internets growth is always interestng to be observed by those of business entty and other backgrounds who need to improve their compettveness. For Indonesia with populaton 260 million people, the Internet serves as an important soluton to provide a gateway of informaton connectng the vast geographical territory. Impacts that the Internet has made in industrial sector are apparently more massive than that that they look to be. The ever-growing number of the Internet users in Indonesia proves the huge potentals in the future. Indonesia Internet Service Provider Associaton (APJII) which facilitates internet service companies has initated to conduct a more comprehensive survey on the Internet users behavior. The survey was made as an efort to provide reference of statstcal data on the Internet use by Indonesians. This survey involved samples in 42 capitals, followed with in-depth interview with a vast range of sources. They were internet experts, people from industries, regulators, and scholars. This survey started at the tme APJIIs Commitee 2009-2012 was about to complete its duty and fnished when APJIIs Commitee 2012-2015 began to take ofce. APJII is completely aware that there are assignments looming ahead to take on to bring the Associaton as a part of the center for informaton reference Chairman of the Association of Indonesias Internet Service Providers viii Indonesia Internet Service Provider Association about the Internet. Upon the completon of this book, would like to thank those who have contributed to the survey. And we would like to personally thank Roy Yamin and APJII Commitee 2009-2012 who have initated this survey. Our grattude may also pass to Marius Parlindungan who dedicated his tme and energy for being a person who was responsible for the survey program. The same grattude may also go Sapto Anggoro and the entre members of APJII Commitee who took care of and completed the survey. We would also like to appreciate Didit Hermawan (a lecturer at Bakrie University) who helped keep the survey methodology academically reliable. The highest appreciaton may go to Adrian Suherman, Boni Pudjiano, Enda Nasuton, Garin Ganis, Gatot S Dewabroto, Gunawan Wibisono, Hammam Riza, Michael Sungiardi, Onno W Purbo, and Wicaksono for their viewpoint on the present progress of the Internet in Indonesia that they willingly shared with us. Last but not least we would also like thank all members of APJII for their support to this survey. We hope that this book will be useful for APJII members in developing their business and for the development of the Internet industry in Indonesia. Jakarta, December 2012 The Associaton of Indonesias Internet Service Providers Semuel A. Pangerapan Chairman vii ix Indonesia Internet Service Provider Association about the Internet. Upon the completon of this book, would like to thank those who have contributed to the survey. And we would like to personally thank Roy Yamin and APJII Commitee 2009-2012 who have initated this survey. Our grattude may also pass to Marius Parlindungan who dedicated his tme and energy for being a person who was responsible for the survey program. The same grattude may also go Sapto Anggoro and the entre members of APJII Commitee who took care of and completed the survey. We would also like to appreciate Didit Hermawan (a lecturer at Bakrie University) who helped keep the survey methodology academically reliable. The highest appreciaton may go to Adrian Suherman, Boni Pudjiano, Enda Nasuton, Garin Ganis, Gatot S Dewabroto, Gunawan Wibisono, Hammam Riza, Michael Sungiardi, Onno W Purbo, and Wicaksono for their viewpoint on the present progress of the Internet in Indonesia that they willingly shared with us. Last but not least we would also like thank all members of APJII for their support to this survey. We hope that this book will be useful for APJII members in developing their business and for the development of the Internet industry in Indonesia. Jakarta, December 2012 The Associaton of Indonesias Internet Service Providers Semuel A. Pangerapan Chairman vii n Executive Summary The survey reveals that growth od the Internet use in Indonesia steadily increases. In 2012 penetraton of the Internet use in Indonesias urban areas reached 24.23% (APJII, 2012). This implies an extraordinary potental, especially when it is compared to the countrys populaton of about 260 people (Statstc Indonesia, 2012). This also implies a huge number when compared to that of the Internet users in the neighboring countries, including Southeast Asia and Ausralia regions. On the other hand, the enormous penetraton of the Internet users in Indonesia can only acquire services from less than 200 intenet service providers. And most of them are located in Jakarta or Java Island. The research involving 2,000 internet users in 42 cites in the country portrays the Internet users behavior, life style, and trend of the Internet use itself. It indicates that the Internet users all around the country in 2012 reached 63 million people. Most of them come from an age group of 12-35 years old which comprises 60% of all the Internet users.This segment of age group belongs to a so-called digital natves, referring to those who were born and raised in a completely computerized environment and accustomed to digital informaton and data, and interconnected in a system or network. This group are internet literate and intuitvely able to operate various gadgets easily as they have been used to them since they were children. This survey also explains 65% of the Internet users more frequently get connected through mobile phones. The increasing mobile internet access is partly enhanced by the various models of smartphones in afordable price, which makes acccess more economical. Oportunites and at the same tme challenges that the Indoensias internet service providers face come from the fact that they should make efort to provide faser, more afordable, and more reliable internet access in the future. Besides, the Internet should not have been soncentrated in Jakarta or Java, but also in all other territories with the help of wireless technology to overcome problems the natural and geographical conditon poses. This survey was made by reaching respondents from the most west part of Indonesia (Banda Aceh) to the eastern territory in Jayapura (Papua), and found out that the Internet has become peoples indispensable comunicaton need to support their daily actvites. For that reason, a quality coverage with fast and reliable connecton has become a requirement for users in areas outside Jakarta and Java Island to enhance rural development. sources: banjarmasinnews.com The Intenet Becomes a more Primary Need for Indonesian People viii x Indonesia Internet Service Provider Association n The Surveys Background The natonal telecommunicaton industry has recently been marked with three increasing mainstream trends. First, the fading era of mobile phones with old-fashion and out-of- date features, which are gradually edged of by their smartphone counterparts with new operaton technology such as Symbian, Android, or Mac OS. Second, the platorm evoluton or operaton system evoluton and the growing applicaton market, as well as the improving fanatcal users of social network applicaton. Third, the expanding network capacity followed with the increasing speed and availability through the remote areas. The three mainstream trends form pillars for telecommunicaton industry in Indonesia these days. The undearer price of chips helps the availability of smatphone with afordable price. Of 250 million cell users in 2011 with averagely 1.33 SIM card per person, it is estmated that there were about 168 million units of mobile phone in Indonesia (Netzen, 2011) out of which were dominated with smatphone by 80%. The growth of smartphone users apparently trigers evoluton of the way people access the Internet. Apart from the mobile phone, tablet have come up as a new rising star, even though tablets growth is so far stll outnumbered by that of smartphone and laptop. Tablet has increasingly become a choice for Indonesian consumers, thanks to its specifc advatages that other gadgets like smartphone and laptop do not have. Tablet users tend to use the gadget for browing or searching data and informaton, or playing games, and getng engaged in social network. This triggers a change of life style among the people in the sense that they becoe more dependent on the Internet access. The need for internet access is increasingly demanding, especially for fast, reliable, vast, and inexpensive one. The availability and afordable various models of gadgets encourages consumers behavior to crave for informaton and entertainment limitlessly available in the virtual world even more. Accesss to the virtual world does not only provide informaton and entertainment but also other cotents to support work actvites, online banking, and online trading are more likely to take place the conventonal and direct encounter for such purposes. sources: citydirectory.co.id sources: teknologi.news.viva.co.id ix The switch of social interracton from face-to face encounter or voice communicaton to that through the Internet has taught people to be more familiar with the Internet world which eventually put applicaton of social network to be a requirement. The industry of applicaton contents and social network gradually pushes the behavior of conventonal telecommunicaton market and voice communicaton toward communicaton of data. The supremacy of voice communicaton is on the brink of its extncton and becoming a legacy. Telephone number which was once idetcall atached to ones individual identty is now replaced by user ID. This phenmenon can be seen from the the increasing growth of revenue data carrier which outperforms taht of the voice one. This also proves that the patern of IP-based communicaton is getng more dominant in the future. The availability of smartphone, tablet, and plarform evoluton of program applicaton, including the social network, has caused change the way people access the Internet. The porton of mobile internet also rises higher compared to the conditon when people stll mostly relied on fxed network like cable in the past. It nor surprising that in the near future most internet users will access the Internet through their mobile gadgets. But this does not necessarily mean that the fxed cable and fbre optc internet will be abandoned, as this kind of connecton has its own advantage in the sense that it has faster internet access than that of its mobile counterpart. Other impacts that the increasing users of mobile internet may cause is that there will be a need for more extensive internet network or coverage accessible from any random spot with relatvely same quality. This is because the tools to access the Internet no longer exclusively belong to those of middlle-up comunity. People of all social classes can easily get enganged themselves in the virtual world. This may rather be on the contrary with the conditon of the early days of smartphone market which merely focused on high-end products for middle-up consumers. Main producers of smartphone have come to be aware the bigger market potentals, which they respond by ofering afordable smartphone for consumers of middle-low community. This conditon also helps the internet make vaster geographical penetraton. Producers sharp eye in studying consumers needs and wants plays a key role in boostng the internet use. They furnish their products with various features like music player radio, and analogue television tuner, indicatng that they know well most Indonesians passion to spend most of their tme listening to the musics. sources: scottsdaleairparkit.com xi Indonesia Internet Service Provider Association n The Surveys Background The natonal telecommunicaton industry has recently been marked with three increasing mainstream trends. First, the fading era of mobile phones with old-fashion and out-of- date features, which are gradually edged of by their smartphone counterparts with new operaton technology such as Symbian, Android, or Mac OS. Second, the platorm evoluton or operaton system evoluton and the growing applicaton market, as well as the improving fanatcal users of social network applicaton. Third, the expanding network capacity followed with the increasing speed and availability through the remote areas. The three mainstream trends form pillars for telecommunicaton industry in Indonesia these days. The undearer price of chips helps the availability of smatphone with afordable price. Of 250 million cell users in 2011 with averagely 1.33 SIM card per person, it is estmated that there were about 168 million units of mobile phone in Indonesia (Netzen, 2011) out of which were dominated with smatphone by 80%. The growth of smartphone users apparently trigers evoluton of the way people access the Internet. Apart from the mobile phone, tablet have come up as a new rising star, even though tablets growth is so far stll outnumbered by that of smartphone and laptop. Tablet has increasingly become a choice for Indonesian consumers, thanks to its specifc advatages that other gadgets like smartphone and laptop do not have. Tablet users tend to use the gadget for browing or searching data and informaton, or playing games, and getng engaged in social network. This triggers a change of life style among the people in the sense that they becoe more dependent on the Internet access. The need for internet access is increasingly demanding, especially for fast, reliable, vast, and inexpensive one. The availability and afordable various models of gadgets encourages consumers behavior to crave for informaton and entertainment limitlessly available in the virtual world even more. Accesss to the virtual world does not only provide informaton and entertainment but also other cotents to support work actvites, online banking, and online trading are more likely to take place the conventonal and direct encounter for such purposes. sources: citydirectory.co.id sources: teknologi.news.viva.co.id ix The switch of social interracton from face-to face encounter or voice communicaton to that through the Internet has taught people to be more familiar with the Internet world which eventually put applicaton of social network to be a requirement. The industry of applicaton contents and social network gradually pushes the behavior of conventonal telecommunicaton market and voice communicaton toward communicaton of data. The supremacy of voice communicaton is on the brink of its extncton and becoming a legacy. Telephone number which was once idetcall atached to ones individual identty is now replaced by user ID. This phenmenon can be seen from the the increasing growth of revenue data carrier which outperforms taht of the voice one. This also proves that the patern of IP-based communicaton is getng more dominant in the future. The availability of smartphone, tablet, and plarform evoluton of program applicaton, including the social network, has caused change the way people access the Internet. The porton of mobile internet also rises higher compared to the conditon when people stll mostly relied on fxed network like cable in the past. It nor surprising that in the near future most internet users will access the Internet through their mobile gadgets. But this does not necessarily mean that the fxed cable and fbre optc internet will be abandoned, as this kind of connecton has its own advantage in the sense that it has faster internet access than that of its mobile counterpart. Other impacts that the increasing users of mobile internet may cause is that there will be a need for more extensive internet network or coverage accessible from any random spot with relatvely same quality. This is because the tools to access the Internet no longer exclusively belong to those of middlle-up comunity. People of all social classes can easily get enganged themselves in the virtual world. This may rather be on the contrary with the conditon of the early days of smartphone market which merely focused on high-end products for middle-up consumers. Main producers of smartphone have come to be aware the bigger market potentals, which they respond by ofering afordable smartphone for consumers of middle-low community. This conditon also helps the internet make vaster geographical penetraton. Producers sharp eye in studying consumers needs and wants plays a key role in boostng the internet use. They furnish their products with various features like music player radio, and analogue television tuner, indicatng that they know well most Indonesians passion to spend most of their tme listening to the musics. sources: scottsdaleairparkit.com xii Indonesia Internet Service Provider Association The expense people spend to acces the Internet is not not within their reach, but they also can fnd various duraton-based packages-- daily, weekly, and even monthly-- that precisely suit the Indonesians consuming patern which indicates that they tend to obtain retail services and daily spendings. To grab more profound understandings about the rapidly-growing internet users, it requires a comprehensive study. There must be an efort to measure how big is the growing number of users in the market and how vast the penetraton of the internet users has been taking place. Most of the existng studies and surveys tend to be picky, concentraing only on small number of capital cites in Indonesia. Thus, there is a need for a more thorough study which involves wider range of geograpical urban areas to obtain clearer portrait of the development of internet industry. The growth of Indonesia netzen, which plays a potental target market, poses a huge challenge to internet service providers. The increasing number of subscribers that all operators experience-- cellular, wire, and wireless one-- has caused network capacity crowded, which makes consumers more sensitve about network quality. This conditon actually ofers a challenge to internet service providers. The increasing data trafc requires them to maintain quality of service. Once consumer fail to get proper speed and connecton, they may swicth their loyalty from one provider to the other. Thus, there must be a complete evaluaton to capture the real conditon about consumers satsfacton expectaton, and consideraton about the service that they obtain from providers. It is evident that a quality network has become an improtatnt concern for consumers in choosing an internet provider. Therefore, there must be a study to take a beter look at consumers anxiety and desire, and to measure how much the market grows. This study will serve as a comprehensive and integrated reference on internet market in Indonesia and a mapping of supply-and-demand among intenrt service providers. Therefore, being a stakeholder of intenrt industri, APJII realizes that it needs to make a signifcant contributon amidst the development of intenrt industry in Indonesia, by conductng a comprehensive study about the undustry. By taking account of market behavior and industry perspectves, this profle of internet users is hoped to serve as a reference in creatng an actve role and mutual synergy of stakeholders of internet industry in Indonesia. sources: kontan.co.id xiii Indonesia Internet Service Provider Association The expense people spend to acces the Internet is not not within their reach, but they also can fnd various duraton-based packages-- daily, weekly, and even monthly-- that precisely suit the Indonesians consuming patern which indicates that they tend to obtain retail services and daily spendings. To grab more profound understandings about the rapidly-growing internet users, it requires a comprehensive study. There must be an efort to measure how big is the growing number of users in the market and how vast the penetraton of the internet users has been taking place. Most of the existng studies and surveys tend to be picky, concentraing only on small number of capital cites in Indonesia. Thus, there is a need for a more thorough study which involves wider range of geograpical urban areas to obtain clearer portrait of the development of internet industry. The growth of Indonesia netzen, which plays a potental target market, poses a huge challenge to internet service providers. The increasing number of subscribers that all operators experience-- cellular, wire, and wireless one-- has caused network capacity crowded, which makes consumers more sensitve about network quality. This conditon actually ofers a challenge to internet service providers. The increasing data trafc requires them to maintain quality of service. Once consumer fail to get proper speed and connecton, they may swicth their loyalty from one provider to the other. Thus, there must be a complete evaluaton to capture the real conditon about consumers satsfacton expectaton, and consideraton about the service that they obtain from providers. It is evident that a quality network has become an improtatnt concern for consumers in choosing an internet provider. Therefore, there must be a study to take a beter look at consumers anxiety and desire, and to measure how much the market grows. This study will serve as a comprehensive and integrated reference on internet market in Indonesia and a mapping of supply-and-demand among intenrt service providers. Therefore, being a stakeholder of intenrt industri, APJII realizes that it needs to make a signifcant contributon amidst the development of intenrt industry in Indonesia, by conductng a comprehensive study about the undustry. By taking account of market behavior and industry perspectves, this profle of internet users is hoped to serve as a reference in creatng an actve role and mutual synergy of stakeholders of internet industry in Indonesia. sources: kontan.co.id n Methodology This survey applies two approaches. First is quanttatve approach to obtain primary data from felds, and second is qualitatve approach which invloves interviews with experts of informaton technology who are regarded to represent several professions such as observers, business persons, and regulators. 1. Quantitative Approach The method of quanttatve data gathering was carried out by making a direct encounter with respondents, taking into account of the following criteria: The study was conducted in urban areas of the entre provinces of Indonesia, considering that communicaton access in such areas-- either cable or wireless-- is much beter than that in rural territories. With beter access-- marked with high penetraton and internet- heavy persons-- internet users in rural areas can have more opportunites to do various internet-based actvites through which their life style can be analyzed in the study. Social classes are A, B, and C. Ages betweeen 12 - 65 years. Internet use over an hour a day. l l l 69.957 57.667 (82%) 12.290 (18%)
34,68 % 23,03 % 89,32 % 3,04 % 0,62 % 14,39 %
41,03 % 30,95 % 88,32 % 29,56 % 33,88 % 9,30 % 29,41 % 35,17 % 2,38 % 100,00 % 100,00 100,00 Total Rural Status Urban Total Village Village with Telkom cable access Village with internet cafes Village with powerful cellular phone signal Village with low cellular phone signal Village with blank cellular phone signal Total Telkom Fixed Line/Hoseholds source: old.indonesiafnancetoday.com x xiv Indonesia Internet Service Provider Association Survey Areas SUMATERA 1) Banda Aceh 2) Medan 3) Batam 4) Pekanbaru 5) Padang 6) Bengkulu 7) Jambi 8) Palembang 9) Bandar Lampung KALIMANTAN 29) Pontianak 30) Palangkaraya 31) Banjarmasin 32) Samarinda 33) Balikpapan SULAWESI 34) Makassar 35) Palu 36) Kendari 37) Gorontalo 38) Manado INDONESIA TIMUR 39) Ambon 40) Ternate 41) Sorong 42) Jayapura BALI - NUSTRA 26) Denpasar 27) Mataram 28) Kupang JAWA 10) Cilegon 11) Jakarta 12) Bogor 13) Depok 14) Tangerang 15) Bekasi 16) Bandung 17) Semarang 18) Purwokerto 19) Surakarta 20) Yogyakarta 21) Surabaya 22) Gresik 23) Sidoarjo 24) Malang 25) Jember source: berita21.com xi Cluster Random Sampling and Weighing The sampling method applied in this survey was proportonal area cluster sampling over 2,000 respondents in 42 cites. Cluster sampling is a sample chosing procedure by grouping populaton units in a certain group or cluster. Meanwhile proportonal sampling was considered the best for a conditon where populaton table is scarcely available like that in Indonesia. The proportonal area cluster sampling was applied by using data from POdes of Indonesia Statstcs (BPS) by selectng villages in each municipaity defned as the survey cluster areas. The villages were selected systematcally by taking into account of populaton proporton so as that the sample distributon in each village took place proportonally against populaton. The number of respondent samples in each municipality was defned according to minimal quota of 30 persons to comply with respondent minimal standard for each sample area. The number of respondent samples in each municipality should be in accordance of natonal populaton proporton for natonal level analysis, and it was then weighed according to BPSs populaton in each municipality. Thus, the natonal analysis would represent profle of the actual populaton proporton. 2. Qualitative Approach The qualitatve data collectng method to obtain profound informaton based on observers viewpoint toward to-date and future progres in technology industry in Indonesia. In-depth interviews were made with 10 experts of technology and informaton who represented several categories such as: No Kategori Nama Respondent Aktvitas 1 Blogger/Youth/Netzen Enda Nasuton Founder of salingsilang.com and politkana.com 2 Blogger/Youth/Netzen Wicaksono Journalist and blogger, editor in chief of plasamsn.com 3 Business person Adrian Suherman Managing Director of livingsocial. co.id 4 Business person Garin Ganis Consultant of PrawedaNet 5 Business person Michael Sungiardi Owner of PT BoNet 6 Regulator Boni Pudjianto Head of Sub-directorate of Informatcs Empowerment of Urban Community, Ministry of Communicaton and Informaton 7 Regulator Gatot S Dewabroto Head of General Bureau and Public Relaton of Directorate General of Post and Telecommunicaton, Ministry of Communicaton and Informaton 8 Observer Onno W Purbo IT Expert 9 Observer/scholar Gunawan Wibisono Lecturer of Electric Engineering, Indonesia University 10 Observer Hammam Riza Director of Center for Informaton and Comunicaton Techology, BPPT. xii source: scmp.com Survey Areas SUMATERA 1) Banda Aceh 2) Medan 3) Batam 4) Pekanbaru 5) Padang 6) Bengkulu 7) Jambi 8) Palembang 9) Bandar Lampung KALIMANTAN 29) Pontianak 30) Palangkaraya 31) Banjarmasin 32) Samarinda 33) Balikpapan SULAWESI 34) Makassar 35) Palu 36) Kendari 37) Gorontalo 38) Manado INDONESIA TIMUR 39) Ambon 40) Ternate 41) Sorong 42) Jayapura BALI - NUSTRA 26) Denpasar 27) Mataram 28) Kupang JAWA 10) Cilegon 11) Jakarta 12) Bogor 13) Depok 14) Tangerang 15) Bekasi 16) Bandung 17) Semarang 18) Purwokerto 19) Surakarta 20) Yogyakarta 21) Surabaya 22) Gresik 23) Sidoarjo 24) Malang 25) Jember source: berita21.com xi Cluster Random Sampling and Weighing The sampling method applied in this survey was proportonal area cluster sampling over 2,000 respondents in 42 cites. Cluster sampling is a sample chosing procedure by grouping populaton units in a certain group or cluster. Meanwhile proportonal sampling was considered the best for a conditon where populaton table is scarcely available like that in Indonesia. The proportonal area cluster sampling was applied by using data from POdes of Indonesia Statstcs (BPS) by selectng villages in each municipaity defned as the survey cluster areas. The villages were selected systematcally by taking into account of populaton proporton so as that the sample distributon in each village took place proportonally against populaton. The number of respondent samples in each municipality was defned according to minimal quota of 30 persons to comply with respondent minimal standard for each sample area. The number of respondent samples in each municipality should be in accordance of natonal populaton proporton for natonal level analysis, and it was then weighed according to BPSs populaton in each municipality. Thus, the natonal analysis would represent profle of the actual populaton proporton. 2. Qualitative Approach The qualitatve data collectng method to obtain profound informaton based on observers viewpoint toward to-date and future progres in technology industry in Indonesia. In-depth interviews were made with 10 experts of technology and informaton who represented several categories such as: No Kategori Nama Respondent Aktvitas 1 Blogger/Youth/Netzen Enda Nasuton Founder of salingsilang.com and politkana.com 2 Blogger/Youth/Netzen Wicaksono Journalist and blogger, editor in chief of plasamsn.com 3 Business person Adrian Suherman Managing Director of livingsocial. co.id 4 Business person Garin Ganis Consultant of PrawedaNet 5 Business person Michael Sungiardi Owner of PT BoNet 6 Regulator Boni Pudjianto Head of Sub-directorate of Informatcs Empowerment of Urban Community, Ministry of Communicaton and Informaton 7 Regulator Gatot S Dewabroto Head of General Bureau and Public Relaton of Directorate General of Post and Telecommunicaton, Ministry of Communicaton and Informaton 8 Observer Onno W Purbo IT Expert 9 Observer/scholar Gunawan Wibisono Lecturer of Electric Engineering, Indonesia University 10 Observer Hammam Riza Director of Center for Informaton and Comunicaton Techology, BPPT. xii source: scmp.com xv Indonesia Internet Service Provider Association DEMOGRAPHICAL PROFILE OF INDONESIAS INTERNET Chapter 1 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 16 48,4 % I nternet is a newly-come comunicaton means in Indonesia. The developmen of internet as a communicaton means began by mid 1990 and found its popularity by the ned of 1990. Its early phase, the development of the internet development was pioneered by groups of scholars who were interested in actvites concerning with computer and radio technologies. They made a series of experiments and researches in campuses and in the Government-owned insttutons where telecommunicaton technology, especially computer and its network, was concerned. In other words, at the beginning the Internet arrived as a part of educaton process to make exhange data and informaton easy. For the last 10 years, the Internet in Indonesia has been developing rapidly. This can be seen from the development of technological aspects, broadband wireless access (BWA), access speed which has embarked toward the fourth generaton, the increasingly-annual growth of users, the the thriving gadget producers (including afordable gadgets), and the increasing gadget market. Meanwhile, competton among the Intenet service providers (ISPs), some 220 registered ISPs, is getng stfer. This survey reached female and male respondents in equal porton through quota control process. The control was based on an assumpton that the number of female internet users has been catchip up their male conterparts. There is a switch of communication form, from voice to data communication, pearticularly among young and professional users. Demographical Profile of Indonesias Internet Gender Onno W. Purbo source: campusguidetv.com 48,4 % 51,6 % Male Female Gender of the Internet users in Indonesia The Internet users in Indonesia in 2012 based on gender. Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 17 North Sumatra Jambi West Sumatra South Sumatra Riau Islands Aceh North Sulawesi South Sulawesi Central Sulawesi Southeast Sulawesi Riau Bengkulu Gorontalo Lampung 52,0 % 52,0 % 51,6 % 51,6 % 51,6 % 48,0 % 50,0 % 66,6 % 66,6 % 48,4 % 48,4 % 51,6 % 51,6 % 61,3 % 48,0 % 48,0 % 48,4 % 48,4 % 48,4 % 52,0 % 50,0 % 33,3 % 33,3 % 51,6 % 51,6 % 48,4 % 48,4 % 38,7 % Sumatera Sulawesi Kalimantan West Java Central Java East Java Banten DKI Jakarta DI Yogyakarta 52,0 % 52,0 % 51,6 % 48,0 % 66,6 % 48,4 % 48,0 % 48,0 % 48,4 % 52,0 % 33,3 % 51,6 % Jawa South Kalimantan East Kalimantan 50,0 % 41,9 % 48,4 % West Kalimantan Central Kalimantan 67,7 % 33,3 % 50,0 % 58,1 % 51,6 % Papua & Maluku Bali & Nusa Tenggara Papua West Papua 50,0 % 50,0 % 41,9 % 41,9 % 48,4 % Maluku Bali North Maluku West Nusa Tenggara 67,7 % 67,7 % 33,3 % 33,3 % 50,0 % 50,0 % 58,1 % 58,1 % 51,6 % Distribution of the Internet Users in Indonesia based on gender Male Female East Nusa Tenggara THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 18 The Intenet users are mostly the youths of 12-34 years old comprising 58.4%, most of which are those of 25-29 years old comprising 14.4%. 12 - 15 Years 16 - 19 Years 20 - 24 Years 25 - 29 Years 30 - 34 Years 35 - 39 Years 40 - 44 Years 45 - 49 Years 50 - 54 Years 55 - 59 Years 60 - 65 Years The adaptation process into becoming the Internet users among those who belong to the digital immigrant group takes place later than those belonging to the digital native who have got used to techology from childhood. D i g i t a l
I m i g r a t n t D i g i t a l
N a t i v e s The Internet users whose age are over 34-years old of age are called Digital Immigrant. This refers to a generaton that just get to know the Internet when grownup. They frequently need to learn to adapt themselves in how to operate gadgets, to use E-mail, and social networks, and fnd difcultes changing sofware platorms. The Internet users whose age are under 34-years old are called Digital Natve. This refers to a generaton that were born and brought up in a completely- digitalized and connected Internet era, and they tend to initate new trends in virtual world. source: seruu.com Age Group The Internet users age Digital Immigrant Digital Native Enda Nasution 2,5% 3,1% 6,0% 9,1% 10,1% 10,9% 11,8% 14,2% 11,6% 10,9% 9,9% Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 19 The survey indicates that the higher users educaton, the more intense they access the Internet. Those who fnished senior high school, diploma, undergraduate, and post- graduate comprise majority of all internet users. The increasing internet use which goes side by side with users educaton has to do with the need to obtain informaton from online sources School Students 16,6% Housewives 15,3% University Students 9,0% Unemployed 5,8% Employed Users 53,3% Profile of the Internet Users Education Elementary School Junior High School Senior High School Diploma Under- graduate Post- graduate 1,3% 47,9% 11,1% 20,8% 11,3% 7,5% Education Activities The need for getng engaged in social network, informaton, and retail business has driven housewives to become a group of the Internet users with increasing proporton. source: marketing.co.id Apart from respondents various motves in using the Internet, it can be found that most of them are employed, while school and university students follow second, and housewives third. THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 20 The Internet users occupation are mostly trading, service and consultant, as well as education sectors. These sectors requires quality pesonal internet connectivity, in line with the high need for real-time information to support their activities. It should be noticed that this survey was made by reaching personal and retail internet users, so as to emphasize that the occupation here refects the personal or retail internet users background, instad of that from corporation, companies, or enterprises. In the future, the Internet as an enabler will boost retail and personeal demands much more than that of nowadays. At the same time, there is going to be massive demand from big industries to improve service to consumers. Trading 28,1% Education 12,7% Government 9,1% Health 8,2% Manufacture 3,0% Automotive 5,5% Finance and Banking 4,6% Agriculture 2,7% Property 2,5% Advertising 0,4% Army/Police 0,4% Mining 0,1% Construction 1,0% Restaurant 0,6% Entertainment 0,9% Service and Consultant 25,5% Occupation source: jpnn.com Hammam Riza, BPPT Occupation of the Internet Users Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 21 Job and Position White Collar When it comes to job position, most internet users come from those of white collars who represent formal sector, such as professionals, top level positions, managers, administrations. This group intensely access the Internet during and out of ofce hours to obtain information to support their job and to improve their work performance and quality. source: qipersons.blogspot.com Entrepreneur 21,5% Blue Collar 15,1% White Collar 63,4% The expanding internet access and its users requires us to take into account of blue collars as internet users even though in this survey their proportion is only 15%. The blue collars which also represent groups of informal labor forces use the Internet more for social netwroks rather than for supporting their daily work. Blue Collar sumber: tribunnews.com THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 22 The Internet Users According to Gender The Internet Users in Families According Age Group More than half of family members of the Internet users are users as well. Even though more male family members who use the Intenet, the percentange is not too far exceeding that of female respondents. This, once again, emphasizes that when it comes to gender, the proportion of female and male users is quite sheer. In families, 53.9% the Internet users are youths of 12-29 years old. Meanwhile, most of the Internet users are 20-24 years old, comprising 15.1% of the population. The Internet Users in Families 56,8% Female 47,3% Male 52,7% The Internet Users in Families According to Gender The Internet Users in Families sumber foto: republika.co.id 60 - 65 Years 66 - 70 Years 12 - 15 Years 8 -11 Years 4 - 7 Years 0 - 3 Years 16 - 19 Years 20 - 24 Years 25 - 29 Years 30 - 34 Years 35 - 39 Years 40 - 44 Years 45 - 49 Years 50 - 54 Years 55 - 59 Years 0,2% 0,8% 2,9% 11,4% 13,9% 15,1% 13,5% 10,3% 9,3% 8,4% 6,8% 3,8% 2,3% 1,3% 0,1% The Internet Users in Families According to Age Group Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 23 The Internet has long infltrated Indonesian families. This especially happens to children that are getting addicted to the Internet. Children comprise 46% of the Internet users in families. This means that the Internet has become a part of life culture among Indoensian youths as their activities are inseparable from the Internet. Meanwhile, parents (fathers and mothers) in families who use the Internet come up the biggest portion by 52%. The number of family members who use the Internet most are four persons (34.7%). Sisters/Brothers in Law 0,1% Grandchildren 0,6% Parents in Law 0,1% By Ones Self 0,9% Husbands 26,5% Wives 25,7% Children 46,2% Mean Score: 4.2 sumber foto: aafstexas.org The Internet Role in Families Roles of the Internet Users in Families The Number of Family Members 22,1% 1 person 2 persons 3 persons 4 persons 5 persons 6 persons 7 persons 8 persons 1,6% 7,1% 34,7% 20,5% 8,3% 2,2% 2,4% Below is a graphic indicating that averagely family members who use the Internet in a family are about four to fve persons. sumber foto: calendow.org THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 24 The Internet Users Based on the Number of Family Members This survey indicates that averagely a family has 2.4 members who use the Internet, meaning that there are two to three persons in each urban family in Indonesia using the Internet. The more members in a family does not necessarily mean tha there are more persons who use the Internet. For a family with two to fve members, more than half of them use the Internet. But for afamily with more than six members, the average internet users even less than half of them. For retail Internet at houses in Indonesia, despite the number of users steadily increases, the average annual collective need does not exceed three members of family in each house. 100% 43,2% 35,6% 20,4% 14,8% 9,9% 2,9% 12,8% 19,7% 22,0% 15,8% 22,5% 4,4% 2,9% 29,7% 24,6% 15,9% 18,2% 8,8% 23,4% 25,5% 22,2% 14,3% 4,7% 27,3% 31,5% 19,5% 7,0% 41,8% 24,6% 13,3% 46,7% 17,7% 56,8% 1 2 3 4 5 6 7 8 person persons persons persons persons persons persons persons N u m b e r
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Number of Family Members Who Uses the Internet 1 2 3 4 5 6 7 8 person persons persons persons persons persons persons persons The Internet Users Based on the Number of Family Members Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 25 What monthly family spending means is a categorization of people economic classes based on how much expense familes averagely spend for their routine needs like foods, dinks, transport, fees for housekeeper, electricity and phone bills. The expense does not include that for luxuries, like that to buy houses, cars, gadgets and electric devices. More than IDR 3 milion 28,0% IDR 2-3 million 39,0% IDR 1-2 million 33,1% Based on the rate of monthly family spendings, this survey fnds out that these days the Internet users economic proportions are close enough to one another. This means that economic segmantation does not has to do with the Internet outreach. And even if it does, this only because of the access oprions that suit customers purchasing capacity. This emphasizes that the Internet is a virtual terrain which ofers democracy and refuses to be picky about its users background. source: vivanews.com Monthly Family Spendings Michael Sungiardi Monthly Family Spendings by the Intenet Users ANALYSIS ON PENETRATION OF THE INTERNET USERS source: carakata.info Chapter 2 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 28 Padang Bengkulu Palembang Bandar Lampung Based on populaton, most of the Internet users live in Jakarta (3.5 million users), Surabaya (955 thousan users), and Bekasi (676 thousan users). Meanwhile, Ternate and Sorong are the places with the least Internet users. This has to do with the inadequate infrastructures and inappropriate internet network. Some IT experts and observers revealed during interviews that some are factor enhancing growth of the Internet service business in Indonesia: , The three factors are refected in the life style of the Indonesian Internet users who would always like to access social media using easy-to-use smartphone, afordable devices and prepaid packages to comply with the family gathering. Territory-based Analysis on Penetration of the Internet Users Banda Aceh 244.000 people 88.000 people 36,1 % Medan 2.294.000 people 389.000 people 17,0 % Jambi 582.000 people 153.000 people 26,3 % 1.592.000 people 383.000 people 24,1 % Batam 1.033.000 people 263.000 people 25,4 % Pekan Baru 982.000 people 199.000 people 20,3 % 912.000 people 223.000 people 24,4 % 338.000 people 88.000 people 26,1 % 965.000 people 290.000 people 30,1 % Penetraton of the Internet Users Total Populaton of Surveyed Urban Minicipality Number of the Internet Users of Surveyed Municipal Penetration of the Internet Users in Sumatra Penetraton rate of the Internet users in Indonesias urban areas is 26.08% or some 12 million users out of 48 million total urban populatons. sumber foto: guardian.co.uk Economy (consideraton in choosing inexpensive internet access with afordable devices). Technology (tendency to use user-friendly tools) Culture (common habit of most Indonesians who love to chat and family gathering). 1 2 3 Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 29 Penetration of the Internet Users in Java DKI Jakarta 9.583.000 people 3.538.000 people 36,9 % Denpasar 863.000 people 291.000 people 33,7 % Mataram 441.000 people 160.000 people 36,4 % Kupang 368.000 people 74.000 people 20,2 % Bogor 1.040.000 people 273.000 people 26,3 % Bekasi 2.554.000 people 677.000 people 26,5 % Surakarta 546.000 people 90.000 people 16,4 % Depok 1.902.000 people 502.000 people 26,4 % Yogyakarta 425.000 people 164.000 people 38,5 % Semarang 1.702.000 people 398.000 people 23,4 % Malang 897.000 people 160.000 people 17,9 % Purwokerto 249.000 people 49.000 people 19,8 % Jember 292.000 people 50.000 people 17,1 % Tangerang 1.967.000 people 371.000 people 18,9 % Cilegon 410.000 people 67.000 people 16,4 % Bandung 2.620.000 people 579.000 people 22,1 % Surabaya 3.025.000 people 956.000 people 31,6 % Gresik 1.288.000 people 151.000 people 11,8 % Sidoarjo 2.124.000 people 293.000 people 13,8 % Penetration of the Internet Users in Bali and Kalimantan Pontanak 607.000 people 101.000 people 16,6 % Pakangkaraya 242.000 people 51.000 people 21,3 % Samarinda 796.000 people 177.000 people 22,3 % Balikpapan 610.000 people 112.000 people 18,4 % Banjarmasin 684.000 people 148.000 people 21,7 % Penetraton of the Internet Users Total Populaton of Surveyed Urban Minicipality Number of the Internet Users of Surveyed Municipal Penetraton of the Internet Users Total Populaton of Surveyed Urban Minicipality Number of the Internet Users of Surveyed Municipal THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 30 Penetration of the Internet Users in Sulawesi, Maluku, and Papua Gorontalo 197.000 people 46.000 people 23,4 % Palu 368.000 people 96.000 people 26,1 % Makasar 32,3 % 1.464.000 people 472.000 people Kendari 317.000 people 69.000 people 21,7 % Ambon 362.000 people 73.000 people 20,2 % Ternate 203.000 people 36.000 people 17,9 % Sorong 209.000 people 28.000 people 13,6 % Jayapura 281.000 people 78.000 people 27,8 % Manado 449.000 people 119.000 people 26,5 % source: visiqueoptometrist.co.nz Penetraton of the Internet Users Total Populaton of Surveyed Urban Minicipality Number of the Internet Users of Surveyed Municipal PSYCHOGRAPHCAL SEGMENTATION Chapter 3 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 32 v Psychographical segmentation or behavioral segmentation is a method of marhet segment grouping based on customers habits and life style. This method is applied for strategic decision making of marketing. In this case the grouping is used to comprehend the Internet users attitude and behavior refected in the way they use the Internet. Psychographical analysis in this survey implies two tendencies of the Internet users. Firstly, its has to do with the users behavior. This means whether they tend to be mobile in using the Internet, or tend to use it in regular place and time (fxed). Segmentation Psychographical and Segmentation Analysis source: panjiwiyana.wordpress.com source: thedrum.com Secondly, it has to do with budget or buying pattern, meaning that whether the users prefer monthly package (subscriber), or those who prefer prepaid retail (non- subsriber). While waiting for something, I need to spend my time accessing the Internet. I feel relieved when I can access the Internet anytime in any place. I feel happy when accessing the Internet in public spots like cafe, shopping mall, city parks, and public transports. I love spending my travel accessing the Internet. My life is inseparable from the Internet. The Internet is one of my daily needs. I prefer all time connected -internet access I love to upload and download musics or videos. Monthly internet subscribe is less expensive. I allocate money for the Internet expense. I would rather access the Internet through desktop computer than smartphone or tablets. I would rather access the Internet at home. Fixed internet is more reliable than that of wireless one. I would rather access the Internet in the same place. I use the Internet in certain times. I use the Internet according to my need nd quota rather than monthly subscribe. I access the Internet only when I need it. I always watch my Internet quota. Accessing the Internet from from ofce, campus, or school is much more economical since there is no need to pay. Register for the Internet subscribe takes efort. Mobile Subscriber Fixed Non Subscriber Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 33 Fixed Subscriber Users who subscribe the Internet service with fxed devices in a certain place, for example a house. Fixed Non-Subscriber Users who use the Internet without subscribing (no fxed monthly expense), with fxed devices in the same place (the Internet cafe). Mobile Subscriber Users who use mobile gadgets (cellular modems or smartphones) with which they subscribe the Internet services. Mobile Non-Subscriber Users who use mobile gadgets to access the Internet without have to subscribe the services, for example smartphone users who obtain prepaid internet voucher either weekly or daily. From the two options, profle of the Internet users can be divided into for trend segments: The psychographical analysis results in four segments of behavioral trends among the Internet users. The four segments are not meant to fnd out the number of users in each segment based on their behavior, rather this is meant to show teh Internet users life style trends. An internet user may buy retail voucher to support their need for the Internet in daily basis (mobile non-subscriber), still she or he has a basic behavior, for instance, to lead a regular pattern of life and spendings (fxed subscriber). Segmentation and Psychographics of the Intenet Users in Indonesia Mobile Subscriber 27,4% Fixed Subscriber 40,9% Mobile 9,7% Non Subscriber Fixed Non Subscriber 21,9% source: tvinx.com THE INTERNET USERS HABITS AND BEHAVIOR Chapter 4 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 36 Seluler Phone Cable Wireless TV Cable Satellite 96,9 85,0 49,0 11,4 3,4 Development of the Internet technology enables people to access it by using various media, such as fxed phone, coaxial cable, cellular devices, and WiMax. And those who use cellular networks turn to be dominant.The use of cellular devices is the most popular among users, while fxed phone and wireless follow suit. Challenges that the Internet service providers face is to continuously provide more quality mobile or wireless, considering that development of the Internet in Indonesia shows the increasing Internet use through mobile and wireless devices. At the beginning the Internet could only be accessed through fxed devices like desktop computer. But in the long run it gradually in more practical and dynamic features like smartphone, laptop or netbook and tablet computer which allow people to access it anytime and anywhere. Media for the Internet Access Devices to Access the Internet Available Media for the Internet Access * In this survey a respondent was allowed to give more than one answers. Challenges that the Internet service providers face is to contnuously provide more quality mobile or wireless, considering that development of the Internet in Indonesia shows the increasing Internet use through mobile and wireless devices. source: techwireasia.com Of all the Internet users, 65% access it through smartphones. The increasing access through smartphones was enhanced by various models of smartphones in afordable price. And smartphone producers, clearly aware of Indonesian internet users behavior to get to know one another in the social media, decide to bundle their products with features of social media like Facebook or Twiter. Device to Access the Internet Smartphone Tablet PC Desktop Computer Laptop/Netbook 65,7 1,9 52,0 45,0 * In this survey a respondent was allowed to give more than one answers. Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 37 Aceh Jakarta Capital Sumatera Java North Sumatera West Java West Sumatera Central Java Riau Yogyakarta Jambi East Java Bengkulu South Sumatera Banten Lampung Riau Islands 37 61 84 48 54 61 27 61 59 56 63 52 48 27 43 57 59 50 71 63 61 63 32 52 26 45 39 81 50 70 45 35 35 90 49 71 43 32 45 54 25 81 26 57 0 4 0 1 6 2 3 0 3 2 0 0 0 0 0 Devices to Access the Internet in Each Province Smartphone Smartphone Tablet PC Tablet PC Desktop Computer Desktop Computer Laptop/ Netbook Laptop/ Netbook 76 * In this survey, respondents are allowed to provide more than one answers. THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 38 North Sulawesi Central Sulawesi South Sulawesi Southeast Sulawesi Gorontalo 50 52 33 47 23 23 39 50 50 45 81 40 57 0 0 4 0 0 Smartphone Tablet PC Desktop Computer Laptop/ Netbook 42 Bali West Nusa Tenggara East Nusa Tenggara 80 77 37 33 70 60 67 77 3 0 3 Smartphone Smartphone Tablet PC Tablet PC Desktop Computer Desktop Computer Laptop/ Netbook Laptop/ Netbook Bali & Nusa Tenggara 93 West Kalimanatan Sulawesi Kalimantan Central Kalimantan South Kalimantan East Kalimantan 84 70 79 71 71 50 40 39 42 43 65 6 3 0 3 48 70 * In this survey, respondents are allowed to provide more than one answers. Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 39 Aceh Papua & Maluku North Maluku Sumatera Barat Papua 37 61 48 57 43 87 71 63 70 50 90 57 0 3 6 7 Smartphone Tablet PC Desktop Computer Laptop/ Netbook Maluku West Papua 57 23 87 20 27 97 20 0 0 Smartphone Tablet PC Laptop/ Netbook * In this survey, respondents are allowed to provide more than one answers. THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 40 The Internet use has closely to do with how it is easy, which is afedted by some factors. For instance, the media through which the access is made, network availability, users capacity and knowledge about internet mobile options and how to optimize them. Location to Access the Internet Based on the Devices Used Most users access the Internet from home, using smartphones, laptop/ netbook, PC tablet. Some access the Internet from public places like ofce, schools, cars, and during traveling. Home Office Public Spots School/ University Cars/ Traveling Internet Cafe Restaurant Mall Cafe 92 24 16 13 11 9 5 2 83 24 26 6 16 10 8 50 14 16 13 3 14 20 5 2 Location to Access the Internet Based on the Devices * In this survey, respondents are allowed to provide more than one answers. Smartphone Tablet PC Laptop/Netbook source: portibionline.com Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 41 source: likalikulakuku.wordpress.com 15,9% Prepaid Monthly Package Pulse Debt 39,0% 15,4% 10,9% 7,6% 6,3% 5,1% Monthly Subscription with Bill Internet Cafe Daily Package Free Use (Office/Scool/ Campus) Weekly Package The Internet service providers have been ofering various ways of subscribton for customers, such as monthly, weekly, and daily packages.Some even ofer more afordable packages with specifc contents to scale down the expense. The Internet users mostly began to get to know the Internet for the last two years (in 2012), and some have been knowing since six years before (2006). How Users Subscribe/Pay for the Internet Access Duration in Being the Internet Users How to Subscribe for the Internet Access 1 year 2 years 3 years 4 years 5 years More than 6 years Sumatera AREA TOTAL Java Kalimantan Bali & Nusa Tenggara Sulawesi Eastern Indonesia 11% 14% 21% 10% 20% 2% 21% 25% 21% 16% 19% 18% 13% 20% 10% 15% 10% 11% 14% 12% 18% 11% 7% 7% 9% 4% 17% 13% 33% 11% 26% 26% 32% 29% 21% 25% 14% 18% 11% 8% 24% 33% Duration in Being the Internet Users THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 42 Intention in Accessing the Internet The Internet users in Indonesia have not been serious in utilizing the technologies as they simply use it for socializing in the virtual world, browsing, and updating. Once a person uses the Internet, she or he has seized a spectrum of the Internet network, while the canal is limited. Gunawan Wibisono Tujuan Mengakses Internet source: ee.ui.ac.id Some IT observers state that percentange of data usage will outdo that of voice. And one thing that will extraordinarily emerge in the next ten years is that communication through the Internet and personal blog will be defnitely based on multimedia. This is where such virtual activities will be enriched with direct video and voice comunications, since the bandwidth will be available in much wider capacity. Video streaming will be much atached to cata communicaton so that video call and video blogging wil be more common. There is even a hint that digital television is going to replace its conventonal counterpart as people prefer watch YouTube and other updated videos on demand. Intention in Accessing the Internet Social Network Searching/Browing Information Video Upload/ Download Searching for Updated News E-mail Chatting Online Games Video Call Blogging VOIP File Sharing Trading Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 43 Each site management would surely love many people visit it. How many visitors a site is accessed depends on its contents. This survey indicates that sites with a great number of visitors are those of social networks, searching engines, and news portals. The Most Frequently-accessed Sites The Most Frequently-accessed Sites Pointblank 21,8 21,4 18,7 11,4 8,9 6,3 3,4 2,6 1,8 1,7 1,4 0,7 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 44 J A V A Jakarta Capital West Java Central Java Yogyakarta East Java Banten Blog, being an individuals manifestation in online daily journal in the Internet or even a mains to campaign a certain ideology, has also found its popularity among the Internet users to enhance their online business. The need for information from the Internet encourages the Internet users to download fle in huge capacity while browing, thanks to the availability of information and data in various formats. Most fles to download are not only for ofce applications like PDF, DOC, or XLS, but also multimedia like WAV, MP3, MP4, MOV, AVI. Blogging Behavior in Downloading Huge Files 2,2% of the Internet users or some 1,2 million people have blog that they routinely update. source: kun.co.ro More than half (60%) of the Internet users or some 30 milion people admit that they ofen download huge fles by purpose or by chance. 60% The Internet users download huge files. S U M A T E R A Aceh North Sumatera West Sumatera Riau Jambi South Sumatera Bengkulu Lampung Riau Islands 77% 67% 49% 65% 73% 55% 49% 87% 38% 87% 81% 61% 45% 68% 57% Bali West NT East NT K A L I M A N T A N West Kalimantan Central Kalimantan South Kalimantan East Kalimantan P A P U A
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M A L U K U Maluku North Maluku West Papua Papua B A L I
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N U S T R A67% 70% 53% 61% 61% 47% 65% S U L A W E S I North Sulawesi Central Sulawesi South Sulawesi Souteast Sulawesi Gorontalo 74% 67% 63% 40% 77% 77% 37% 73% 47% Behavior in Downloading Huge Files by Province IDR 200.001 - IDR 250.000 Under IDR 50.000 IDR 250.001 - IDR 300.000 IDR 300.001 - IDR 350.000 IDR 50.001 - IDR 100.000 IDR 400.001 - IDR 450.000 IDR 150.001 - IDR 200.000 IDR 350.001 - IDR 400.000 IDR 100.001 - IDR 150.000 IDR 450.001 - IDR 500.000 Above IDR 500.000 Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 45 Expense for the Internet is the whole spendings that the users make to cover monthly access, either for mobile and non-mobile media like fxed phone (at home), cable TV, wireless, and cellular thorugh which they access the Internet. Expense for the Internet IDR 200.001 - IDR 250.000 Under IDR 50.000 IDR 250.001 - IDR 300.000 IDR 300.001 - IDR 350.000 IDR 50.001 - IDR 100.000 IDR 400.001 - IDR 450.000 IDR 150.001 - IDR 200.000 IDR 350.001 - IDR 400.000 IDR 100.001 - IDR 150.000 IDR 450.001 - IDR 500.000 Above IDR 500.000 Monthly Expense for the Internet The expense to spend for the Internet access mostly ranges from IDR 50,000 to IDR 100,000. 6,0% 21,8% 6,9% 1,6% 28,4% 0,9% 17,9% 0,4% 13,7% 0,9% 0,7% Seluler Phone Cable Wireless TV Cable 37 48 61 56 56 56 56 56 52 27 27 43 71 32 39 50 50 70 90 32 81 57 57 0 6 3 0 0 0 Above IDR 500.000 IDR 450.001 - IDR 500.000 IDR 400.001 - IDR 450.000 IDR 350.001 - IDR 400.000 IDR 300.001 - IDR 350.000 IDR 200.001 - IDR 250.000 IDR 250.001 - IDR 300.000 IDR 150.001 - IDR 200.000 IDR 50.001 - IDR 100.000 IDR 100.001 - IDR 150.000 Kurang dari IDR 50.000 50,6 37,6 2,5 0,9 0,1 0,5 0 0,2 0,1 0,4 5,8 22,3 20,8 22,8 3,8 0 0,3 0,2 0,6 0,3 3,8 11,0 26,0 29,6 2,9 2,8 0,8 0 0 0 0,6 0 10,0 6,2 59,1 0 6,8 0 0 0 0 0 0 6,8 Expense for the Internet Based on Media * In this survey, respondents are allowed to give more than one answers source: hotels.com THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 46 When there is technical problem, the Internet users prefer most to do is to contact customer support by phone. Thus, he Internet service providers must give quality customer support. This survey also reveals that not all customer support can serve as a soluton. There are tmes when it takes some tmes to fx the problems. Therefore, the Internet users prefer to seek alternatves for soluton. The Most Favorable Internet Trouble Solution The Most Favorable Solution for the Internet Trouble * In this survey, respondents are allowed to give more than one answers Behavior of the Internet users who commonly possess mult devices and the availability of various media to access the internet like Internet cafe makes them turn away to other devices and media access as soon as they fnd problems. source: ehow.com Contact Customer Service Use Other Devices (spartphones, laptop) Use Others Devices (friends, relatives) Use Other Owned Media Access Visit Customer Service Make Access in Free Spots (office/school) Stop Subscribing and Turn to Other Provider Increase Time Quota Subscribe More than One Providers Increase Bandwidth Capacity of Upgrade the Package Fix Things by Oneself (ask for help to friends or relatives) None Nothing to do Ask someone who knows better Visit spots where wifi is available Ask teacher Visit Internet Cafe CONSIDERATION AND SATISFACTION IN CHOOSING THE INTERNET SERVICE PROVIDERS Chapter 5 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 48 Inexpensive internet access Stable and reliable connection Commonly used The available packages Modem price Easy to install 93,9 79,7 31,9 28,6 18,6 6,8 In line with growth of he Internet users, business opportunity also increases for local and and national internet service providers. They aggresively ofer various packages, claiming to be the best provider. This especially happens to competition among cellular internet service providers. To quench customers needs for quality sevices, the providers are inevitable supposed to make improvement, to say that they should invest to increase their network capacity. But this also causes a dilemma for themselves. On the one hand the investment is likely to pose fnancial burden. On the other hand they also sufer from a trend of the declining average revenue per user (ARPU). Important Factors in the Internet Use The rapid increasing number of the Internet users in Indonesia poses a serious challenge to the the Internet service providers. The increasing users causes crowded network. And in turn, this causes complaints by users about the worse network quality. The growing users, inexpensive access, and faster Internet constitute basic consideration factors for users in selecting the Internet service providers. Wicaksono The Internet service providers need to take into account of consideraton factors of users in choosing the services. Making business and investment strategies by taking into account of the consideraton factors will help providers prioritze the investment for strategic aspects. Consideration Factors in Selecting the Internet Service Providers sources: beritateknologi.com * In this survey, the respondents are allowed to give more than one answers Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 49 Does cost matter for the Internet users in choosing the Internet service providers? It turns out that users in majority need speed access most. But some internet users are likely to not keep in mind that it is impossible to make bandwidth inexpensive since basically such service implies cost and it is not cheap. Basic Consideration Factors in Choosing the Internet Service Providers source: nasyidmadany.wordpress.com Basic Consideration Factors in Choosing the Internet Service Providers Inexpensive cost 31,6% Highly-speed access 39,9% Wide network Stable connection Easy access Quick loading Free extra services/ bonuses Comonly used Accustomed to the provider long Satisfactory service Powerful singnal 38,8% 12,7% 6,8% 5,7% 2,5% 3,4% 4,5% 5,6% 4,8% THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 50 Quick access/ connection Wide network Stable connection Powerful signal Satisfactory services Quick loading Easy access Commonly used Having used the provider long Free extra services/ bonuses Inexpensice cost 10 20 30 40 50 49,1 43,9 26,8 12,7 6,8 5,7 5,6 4,8 4,5 3,4 2,5 100 Discontinue connection Slow loading/access Costly Not portable/ impractical Limited network range Not unlimited Uncertain expense Unsatisfactory custmer service 38,8 36,8 35,4 8,2 5,9 3,0 2,4 1,8 Reasons to Be Faithful to the Presently-used Internet Service Provider Reasons to Change the Internet Provider The Internet has become an important aspect for people. The survey indicates, users stick to the Internet with quick access connection. Costly access and discontinue connection become consideration factors for the Internet users about the Internet servive providers that they use. * In this survey, the respondents are allowed to give more than one reasons THE INTERNET USERS BEHAVIOR IN ONLINE SHOPPING Chapter 6 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 52 Online shopping has become a new life style for the Internet users. Open, equal, plain, and wide communicaton has pave an unlimited chance to communicate among them to make transacton.
The online shopping commonly has three main channels. First, online shops which ofer various commodites with various schemes of payment. Second, platorm which enables many selles and buyers to contact and create forum. Such platorm usually ofers various categories of inquiries and commodites so as that it is easier for both sides to make commercial deals. Third, social network in which people showcase their commodites, while buyers simply need to send inquiries. It can be said thet there is no boundaries or regulatons for online trading in the Internet, where even multnatonal trading can be made. Rules or regulatos are simply difned by online shops. Otherwise, rebulatons are made through agreements and trust by both partes. Actvites to seek informaton is the Internet users do most. The surveys found out that once they make a plan for online shopping, 46.7% of them would frst try to obtain informaton about commodites or services they would like to buy. The will start with the commodites specifcaton, models, optons, and prices. The Internet Users in Online Shopping Behavior in Seeking Infromation before Online Shopping Not all eforts in seeking informaton would end up with transacton. Some simply fnd complete informaton or references about a certain product or service and wait untl they make direct contact to make conventonal transacton. The survey reveals that 22.8% respondents once buy a product in the Internet in the last three months. Experiences in Online Shopping 46,7% Behavior in Seeking Information before Online Shopping 22,8% Proportion of the Internet Users Who Have an Experience in Online Shopping Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 53 Propostion of the Internet Users Who Have an Experience in Online Shopping Riau Jambi Bengkulu Lampung Banten Jakarta Yogyakarta West Java South Sumatera West Kalimantan Central Kalimantan South Kalimantan North Sulawesi North Maluku West Papua Papua Maluku Central Sulawesi South Sulawesi Gorontalo Southeast Sulawesi East Kalimantan West Sumatera North Sumatera Nangroe Aceh Darusalam 32% 29% 29% 23% 10% 23% 33% 26% 12% 39% 23% 53% 53% 17% 17% 30% 3% 53% 53% 53% 53% 18% 35% 23% 10% Central Java 79% East Java 17% Bali NTB NTT 20% 17% 47% source: http://ofce.microsoft.com THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 54 Reasons for not Making Online Shopping Reasons for not Making Online Shopping The Internet users stll favor conventonal transacton that requires direct encounters, defying the fact it can be easier for them do do that online. They are concerned about frauds when making online deals. Secondly, most users also stll feel necessary to phisically get in touch with commodites they are going to buy, which discourages them to make online transacton where users can only see the commodites virtual specifcatons. 34,6% Concerns about Frauds 2,4% Lengthy Process 21,5% Unable to See the Goods Directly 21,5% Expensive 21,5% Uninterested 9,3% Doubtful about the Quality 6,0% Procedures Unkown 5,2% Impractical 4,7% Unmatch Goods 4,0% Comodities Different from the Picture 4,1% Dislikeness source: http://ofce.microsoft.com Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 55 Segmentaton of commodites in online shopping is not much diferent from that in the convensional one. Accessories like clothings or bags are female Internet users most frequently buy. Meanwhile, male users mostly buy mobile phone, computer, or laptop. Comodities to Buy in Online Shopping Clothings Mobile Phone Travel Ticket/ Shows Computer/ Laptop Shoes Bags Books Electronic Devices Cosmetics Hotel Reservation Kids Toys 39,1 Men 77,1 Women 17,8 2,1 16,9 8,7 16,1 3,8 1,4 11,1 11,0 5,2 9,0 2,2 8,8 5,0 0,3 0,3 4,7 0,8 4,6 4,8 source: http://ofce.microsoft.com THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 56 Sites to Visit for Online Shopping Many Seller Forum Online Shop (single seller) Social Network Mailing List Blog Messenger Groups 61,1 Men 28,6 Women 24,5 50,6 28,7 39,1 1.0 0,8 0,7 0,0 0,0 0,4 Of the three online shopping chanels, platform or many-seller forum is male users most frequently visit for online shopping. Whereas, female users prefer social network sites. Total deal the Internet users made during online shopping in the last three months reached ove IDR 500,000, which indicates huge market potency of online shopping. Sites to Visit during Online Shopping Online Shopping Transaction in the Last Three Months Value of Online Shopping in the Last Three Months IDR 20.000 - IDR 100.000 IDR 100.001 - IDR 200.000 IDR 200.001 - IDR 300.000 IDR 400.001 - IDR 500.000 IDR 300.001 - IDR 400.000 Over IDR 500.000 12,1 26,6 15,8 5,5 10,8 29,2 source: http://ofce.microsoft.com Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 57 Selling products in online market has become a home-based business breakthrough with promising margins. They do not to bother with expense to rent shops, but simply display and ofer their products in trading-platform sites or open an account in social network. However, only 10% of the Internet users have experience or still use it to sell products. Experience in Online Shopping Experience as Seller in Online Shopping 10,1% Proportion of the Internet Users with Experience in Online Trading Experience as Seller in Online Shop in Provinces Riau Jambi Bengkulu Lampung Banten Jakarta Yogyakarta West Java South Sumatera West Kalimantan Central Kalimantan South Kalimantan North Sulawesi North Maluku West Papua Papua Maluku Central Sulawesi South Sulawesi Gorontalo Southeast Sulawesi East Kalimantan West Sumatera North Sumatera Nangroe Aceh Darusalam 17% 6% 3% 10% 4% 11% 23% 17% 0% 3% 3% 10% 0% 3% 0% 10% 0% 7% 13% 0% 0% 5% 6% 8% 3% Central Java 16% East Java 7% Bali NTB NTT 3% 17% 13% THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 58 43,8 Men 44,8 Women 20,9 21,7 17,0 16,4 5,5 5,9 5,2 3,3 3,6 3,1 2,7 3,6 2,5 3,5 1,9 2,7 2,4 2,1 1,3 3,0 Obstables/Reasons in not Becoming Seller in Online Shop No comodities to offer No intention Procedures Unknown No business persons Complicated Concerns for Frauds Unnecessary No capital to Start with No Time Concerns for Losses Happy with Direct Selling The reason why the Internet users do not try to sell their products online is that because they do not yet have the products or commodities to offer. Obstables and Reasons in not Becoming Seller in Online Shop source: money.cnn.com Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 59 Clothing Mobile Phone Cars Motorbike Computer Devices Foods Bicycle Automotive Accessories Music Instruments Shoes Bags Cosmetics 20,7 Men 37,2 Women 19,2 7,7 8,6 3,6 6,1 4,0 4,4 0 4,1 8,7 4,0 1,5 3,7 0 3,4 4,6 3,3 2,3 2,9 3,3 1,3 10,7 1,0 4,7 Clothings are comodity in the online shop that female users sell. Meanwhile, male users prefer to sell electronic devices like mobile phone and motor vehicles. Products in Online Shops Products of Online Shop Based on the Sellers Gender THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 60 Many-seller forum and social network is the most frequently-used channel for online trading since sellers do not necessarily spend a lot of money to start their own sites. Sites for Online Trading Channel Websites for Online Trading Channel Many Seller Forum Single Seller Social Network Mailing List Blog Messenger Groups 54,1 Men 78,1 Women 51,4 15,2 7,1 13,6 5,6 0 3,9 1,3 4,5 0 Facebook is the social network that female internet users most frequently use during online trading. Meanwhile, male users would prefer use platform sites of sellers and buyers and at the same time forum sites like Tokobagus and Kaskus.co.id. Online Trading Sites Sites for Online Trading Facebook Kaskus Ebay.com Tokobagus Twitter Otosia.com Berniaga Batikanvia.com Butikrena Messaging 46,7 Men 64,5 Women 26,1 10,0 30,7 1,6 0,9 0 3,9 1,5 2,0 0 3,5 0 0 1,8 0 0 2,4 2,8 Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 61 BCA and Mandiri are most favorable for the Internet users for electronic transaction. Online transaction that the internet banking owners most frequently make is to check the balance and cash transfer. The Internet Banking Behavior Issuance Banks of Electronic Payment The Most Frequent Transaction through the Internet Banking Issuance Banks of Electronic Payment 0,6% 0,8% 0,8% 2,5% 0,4% 4,3% 0,5% 11,3% 17,3% Jawa Nusatenggara Sulawesi Eastern Indonesia 39 38 38 15 95 28 21 8 25 35 0 43 Sumatera Balance Information Cash Transfer Routine Bill Payment Purchasing (tickets/bonds/ phone pulse) To Check Transaction History To Check Transaction Status Kalimantan 48 54 64 64 95 57 0 74 72 79 91 95 72 40 42 51 29 64 0 38 15 36 46 0 43 The Most Frequent Transaction in Internet Banking * In this survey, respondents are allowed to give more than one answers THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 62 PC/laptop is the most frequently-sed device to access the Internet banking. This has to do with visualization comfort for the users as they need to directly see the number accuracy and sense of security during the online transaction. Devices for Internet Banking Some IT experts put it that thee will some a trend in the future where more people make trading and business in the Internet. Platform or online trading online forum like Kaskus, Tokobagus.com will expand. This will become on of main traits of the fat Internet, where home or small industries run by educated and internet literate middle-class society thrive and have potency to reduce domination by huge and mainstream industries or traders. Jawa Nusa Tenggara Eastern Indonesia Sumatera Kalimantan 65,1 % 55,5 % 63,9 % 74,0 % 56,7 % 57,1 % 63,3 % 100 % 43,1 % 100 % Handphone Computer/ Laptop Sulawesi 71,3 % 57,4 % * In this survey, respondents are allowed to give more than one answers Devices in the Internet Banking MEDIA INFORMATION TO USE Chapter 7 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 64 Television Newspaper The Internet Radio Magazines Tabloids 88,0 80,0 52,2 29,0 28,6 22,2 Frequently-used Media Information The era of print media, started from the invention of printing machine in the 19th Century, is now outperformed by television. In the 20 Century television begins to dominate, precisely since 1950s. It seems that televisons domination as main media to access news may still last for the next six decades. Frequently-used Media Information * In this survey, respondents were allowed o give more than one answers But chances are, in the future people will turn away to online news, regarding the fact that these days the Internet plays important role as a source of information for at least 80% of the Internet users. source: mediaindependen.com source: tehsusu.com source: musikkamu.com source: pelauts.com Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 65 Friends/ Neighbors Brochures TV Commercials The Internet/ Websites Newspaper Advertisement The Internet Service Providers Staff Magazine Advertisement Billboard 79,6 46,2 21,2 14,5 11,1 10,3 5,9 2,9 Information Sources about the Internet Service Providers Television, the Internet, and print media are frequently accessed to search information, people will still depend on their close friends, neighbors, and relatives in obtaining infromation about the Internet service providers. Information Sources about presently- used Internet Service Providers Word of mouth or testmony of the closest ones are supposed to be reliable informaton source for the Internet users in selectng the Interet service providers. * In this survey, respondents were allowed o give more than one answers LOCAL POTENCIES AND CHALLENGES FOR THE INTERET SERVICE PROVIDERS Chapter 8 THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 68 Challenges that the Internet service providers face come from competton among themselves. The result is that the should give price as low as possible, which may cut margins. What is worse, they also face high churning rate of the Internet users due to their tendency to switch servives. This forces the Internet providers to make business diferentaton and give additonal values such as extra contents and entertainment. The Internet service providers are required to aim business of communicaton providers in public hubs like hotels and apartments where advantageous revenue may come (interniew with Onno W PUrbo). Besides, there is opportunity from a future trend where people may work remotely and fexibly. Possibility to Work remotely An opportunity where people may work remotely (remote ofce) has become a hot topic of discussion among people in big cites like Jakarta. Time inefciency due to routne and lengthy trafc congeston that in turn also causes fuel inefciency amidst the Governments call for the use of subsidied fuel, has driven people to turn to get a job where they can work from remote places in fexible schedule, which basically represents the concept of remote ofce. Places of the Internet Users Activities The users spend more tme in their working places like ofce, schools, campuses, or outside Local Potencies and Challenges for the Internet Service Providers source: hukumonline.com source: beritasatu.com 34,6% 65,4% Outside ofce/schools/campuses In ofce/schols/campuses Places of The Internet Users Activities Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 69 Chances for Remote Work More than half (65.7%) of Those who work in ofce, schools, or campuses stll believe that it remote work is quite possible. But Adrian Suherman, an IT expert, says that such remote work can only be implemented concerning some certain jobs. Some other jobs stll require direct presence and remore work is impossible, especially when quality and employees performance are concerned. Places of Activities Impossible Outside ofce/school/campuses Possible In the ofce/schools/campuses 63,6 % 36,4 % 64,7 % 35,3 % 32,3 % 32,3 % 71,5 % 28,5 % 67,6 % 32,4 % 69,9 % 30,1 % 34,3% 65,7% Chances for Remote Work Sulawesi Sumatera Jawa Nusa Tenggara Eastern Indonesia Kalimantan THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 70 Chances for Remote Work Impossible Possible 40,0 % 60,0 % 32,6 % 67,4 % 34,3 % 65,7 % 33,3 % 66,7 % 36,0 % 64,0 % 21,1 % 78,9 % Opinions on Productivity of Remote Work Some 70% responents say that remote work will enhance productvity. Hindering the Productvity Enhancing the Productvity Opinions on Productivity of Remote Work 29,9% 70,1% Sumatera Jawa Kalimantan Sulawesi Nusa Tenggara Eastern Indonesia Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 71 Opinios on Time Effectivity during Remote Work Most respondents (77.6%) say that remote work will save tme. On the other hand such work may even pose obstable as this kind of work may lack coordinaton unless there is no direct presence. Opinion on Time Efficiency of Remote Work 75.4% respondents say that remote work will cut cost, especially transpot expense. But 24.6% respondents say that remote work will cost more to install reliable Internet connectvity for the employees. Posing Problems Requires more expense Time Saving Saves money 22,4% 24,6% 77,6% 75,4% Opinion on Productivity of Remote Work Opinions on Time Efficiency of Remote Work source: beritasatu.com THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 72 Options between Remote Work and Present Condition Eventually, though some appreciate remote work, stll more of the Internet users opton to visit the ofce or schools during working days. Remote work/study Stll visit the ofce/working place/schools/campuses 41,8% 58,2% Options between remote works and present condition source: digitalnewsasia.com Options betweeen Remote Work and Present Job in the Surveyed Islands Work/study at home Stll visit the ofce/working place/schools/campuses Sumatera Jawa Kalimantan Sulawesi Nusa Tenggara Eastern Indonesia 75,5 % 24,5 % 60,0 % 40,0 % 59,4 % 40,6 % 56,5 % 43,5 % 47,7 % 52,3 % 58,6 % 41,4 % Indonesia Internet Service Provider Association THE PROFILE OF INDONESIAS INTERNET USERS 2012 73 Hopes for the Local Internet Service Providers The Internet users hope the Internet service providers to provide faster internet access and wider network. This poses challenge to the local Internet service providers to turn to wireless instead of cable technology. Korea and Sweden can be a benchmark for the Internet service providers in providing fast connection, wider network, and mobile. Gatot S. Dewabroto, the Ministry of Comunications and Information Talking about needs for the Internet in local areas, the common problem is lack of supply amidst growing demands. Thus, supply must be increased. The problem is that infrastructure conditian to improve Internet accessability ia unevenly available throughout Indonesia. This not only requires the Governments will to issue policies and regulations to support the Intenet access, but also the Internet srvice providers will to set aford- able price without sacrifcing their target for break-even point. In short, there is no over supply of the Internet network in local areas. Hamam Riza, BPPT Potencies in eastern Indonesia is somewhat hard to predict due to most of the local areas are stll underpopulated where the Internet accessability fnds it hard to defne price. At present the Government with several internet service providers have been installing Palapa Ring Fiber Optc across the country to Papua. The infrastructure backbone has been built, and now we need to defne outreach strategy up to 50 to 100 kilometers radius from the backbone. Soluton that we can get is by using WiMax with 150-300 Mbps speed. One of the strategies to increase demands is through educaton sector. And this requires the Governments goodwill. Onno W. Purbo Development of Local Potencies through the Internet THE PROFILE OF INDONESIAS INTERNET USERS 2012 Indonesia Internet Service Provider Association 74 The Internet Service Providers Hopes Hopes for the Internet to Develop Local Potencies Faster Access/Connection Wider Network Less Expensive Cost More Powerful Signals More Promotion Less Expensive Internet Package Better Quality Affordable Internet Expenses Improve Science Faster Information Advanced Education More Internet Cafes More Updated Information More Advanced Technology Easy to Obtain Information More New Friends More Exposure of Business The more Internet users in a country, the more chances for busi- ness transactions, and this condition creates a kind of snowball to keep growing bigger and faster. Onno W. Purbo source: thejakartaglobe.com 30,7% 15,4% 20,2% 19,9% 10,1% 9,7% 8,6% 4,6% 3,9% 3,9% 13,7% 12,6% 11,5% 11,1% 8,3% 6,2% 6,9% Indonesia Internet Service Provider Association