ICT sector performance review for Indonesia

Date

2011-04

Journal Title

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Volume Title

Publisher

LIRNEasia, Colombo, LK

Abstract

Now fully recovered from the Asian crisis of the late ‘90s, the Indonesian economy is perhaps at its post-crisis healthiest. The once sluggish telecom markets too have started showing an impressive growth. Indonesian telecom industry is gradually attaining maturity while more opportunities are made available for the users. Despite the urban-rural connectivity disparity and the immaterialized ‘Palapa Ring’ – the USD 300 - 500 million mega broadband nationwide digital backbone to connect entire Indonesia - the environment is far improved from 2006 and even 2008, when the first two sector performance reviews were done. Numbers relate the story best. Parallel to the per capita GDP (real) increase from USD 1, 1196 in 2004 to 2,590 in 2009. The communication subsector (including broadcasting) has increased its contribution to GDP from 2.35% to 3.04% for the same period. The aggregate telecom revenue in 2010 was USD 11,000 million. While eleven mobile operators have issued close to 200 million SIMs (about 84 SIMs per every 100 in population) by 2010, the number fixed (wireline and wireless) subscribers have risen to 36 million (15 for 100) with Compound Annual Growth Rates (CAGR) of 33% and 21% respectively between 2005 and 2010. Four providers offer wireless services while wireline, which is now identified as a constricting market, remains the monopoly of one of the two incumbents. Broadband landscape too has undergone a shift with more and more users relying on faster and easily available mobile broadband solutions than on fixed.

Description

Keywords

TELECOM REGULATORY ENVIRONMENT, ECONOMIC GROWTH, ICT, TELECOMMUNICATIONS, MONOPOLIES, INFORMATION TECHNOLOGY, POVERTY ALLEVIATION, INDONESIA

Citation

DOI