Telecoms & IT
From The Report: Indonesia 2015
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2014 was a challenging year for Indonesia’s telecommunications sector, as operators faced fierce competition and market saturation, and average revenue per user (ARPU) continued to decline. The IT sector, however, showed promising growth, which is expected to continue on the back of the burgeoning data centre, cloud computing and e-commerce segments, with an increasing number of private players benefitting from a tech-savvy consumer base. Although the mobile market faces considerable challenges in adapting to shifting consumer trends, Indonesia’s solid economic fundamentals and thriving digital marketplace have created lucrative opportunities for private players of all sizes.

This chapter contains interviews with Alex Sinaga, President-Director, Telekomunikasi Indonesia; and Dian Siswarini, President-Director and CEO, XL Axiata.

Articles from this Chapter

Overview

ICT industry expects stronger results as new services come on-line in Indonesia
OBG
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Despite its strong long-term growth prospects, 2014 was a challenging year for Indonesia’s telecommunications sector, as operators faced fierce competition and market saturation, while average revenue per user (ARPU) continued to decline. The IT sector, however, showed promising growth, which is expected to continue on the back of the burgeoning data centre, cloud computing and e-commerce segments, with an increasing number of private players benefitting from a tech-savvy consumer base. At the…

Analysis

Government initiatives target wider broadband coverage in Indonesia
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The government is moving to boost internet usage via an ambitious five-year broadband plan. Acting as one of the country’s first IT blueprints, the plan targets expanding internet access to the most remote rural areas, enhancing e-services across a number of sectors and improving network performance nationwide. The plan has been welcomed by citizens, especially those outside of Java, where infrastructure remains underdeveloped and internet access can be inconsistent at best, although telecoms companies…

Interview

Alex Sinaga, President-Director, Telekomunikasi Indonesia: Interview
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Interview:Alex Sinaga How is infrastructure deployment for 4G advancing, and what are the prevailing obstacles? ALEX SINAGA: The main challenges in the mobile broadband ecosystem in terms of rolling out 4G are related to the adoption of the correct spectrum for this technology. While spectrum in Indonesia is still dominated by 2G and 3G, allocation for 4G is being planned with consideration being given to all mobile players. For better implementation of 4G, mobile operators need support…

Interview

Dian Siswarini, President-Director and CEO, XL Axiata: Interview
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Interview:Dian Siswarini What are some alternative sources of growth? DIAN SISWARINI: Telecoms operators in Indonesia need to find alternative sources of growth. We need to open new lines of business, leveraging our expertise and knowledge, while also staying relevant to our core business. Internet is definitely an area of expansion, and ecommerce in particular provides a great opportunity for growth. The segment is booming, and many companies are expanding their online retail platforms. However,…

Analysis

Indonesia expanding 4G LTE services
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Indonesia is slated to see its already sizeable base of mobile broadband subscribers expand in the coming years, with the recent rollout of 4G/long-term evolution (LTE) services by the country’s big three operators. That said, operators are facing challenges such as insufficient infrastructure, high capital expenditure requirements and limited available spectrum. The government’s recent move to base its telecoms licensing criteria on service provision, rather than the number of towers and base…