ICT
From The Report: Indonesia 2018
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Driven by rising demand for new, affordable technology products and services among the nation’s large youth population, as well as increased investments by both the state and the private sector, Indonesia’s ICT sector expanded rapidly in 2016 and the first half of 2017. By January 2017 Indonesia’s mobile connectivity penetration rate – a measure of the number of mobile subscriptions as a percentage of total population – stood at 142%, which was among the highest in the region and up considerably from as recently as two years ago.

This chapter contains interviews with Anthony Tan, Group CEO, Grab; and Safdar Khan, Division President for Indonesia, Malaysia and Brunei, Mastercard.

Articles from this Chapter

Overview

Next-generation opportunity: Rapid uptake of data services plus a large population point to growth
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Driven by rising demand for new, affordable technology products and services among the nation’s large youth population, as well as increased investments by both the state and the private sector, Indonesia’s ICT sector expanded rapidly in 2016 and the first half of 2017. By January 2017 Indonesia’s mobile connectivity penetration rate – a measure of the number of mobile subscriptions as a percentage of total population – stood at 142%, which was among the highest in the region and…

Interview

Thumbs up: Anthony Tan, Group CEO, Grab, on developing public transport infrastructure and the role ride-hailing apps play in the sector
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Interview: Anthony Tan What logistics and infrastructure challenges does public transport face, and what is currently being done to address these issues? ANTHONY TAN: Public transport infrastructure in Indonesia is still catching up with the needs of the people. Almost 1.4m commuters travel from Jakarta’s outskirts into the city centre every day, and 70% of these commuters drive in with their own automobiles. Infrastructure can take years to build and we must provide alternative transport options…

Analysis

Connecting the nation: Boosting the internet penetration rate is a key objective
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As of late 2016 Indonesia had overall internet penetration of 51.8%, according to data from the Indonesian Internet Service Provider Association (APJII). This rate is up substantially from as recently as 2013, when the penetration rate was estimated at well under 30%. The rapid jump in usage is the result of an increase in smartphone ownership in recent years, rising awareness of the benefits of ICT among the populace and an influx of investment in new communications technologies by leading…

Interview

Digital advances: Safdar Khan, Division President for Indonesia, Malaysia and Brunei Darussalam, Mastercard, on developing a cashless society
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Interview: Safdar Khan What are the main improvements required in the e-payments ecosystem in Indonesia? SAFDAR KHAN: Indonesia is the largest economy in ASEAN in terms of GDP and personal consumption expenditure. Today Indonesia’s youth are extremely savvy when it comes to digital and online commerce. With smart-phone penetration over 35% and more than 100m internet users, the country is ready for a paradigm shift in e-payments. However, despite some enablers being in place, e-payments still…

Analysis

Keeping up with demand: The mobile segment is working to stay at the forefront of network technology
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Like most other telecoms markets across South-east Asia, Indonesia’s mobile segment is expected to rely increasingly on revenues from data services in the coming years. This shift to mobile data has taken place only recently in Indonesia, driven in large part by the introduction of high-speed 4G LTE services by the major mobile operators. As of mid-2017 the transition to a data-centric mobile telecoms market was under way. WAY TO GO: While most operators have successfully launched 4G LTE…