ICT
From The Report: Indonesia 2019
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Some 70% of Indonesia’s citizens are under the age of 39, and many are mobile-first and digital native consumers, making the ICT market very attractive to purveyors of data services, applications, software and hardware. Developing domestic ICT infrastructure has been a key goal of President Joko Widodo’s administration. When his administration took office in October 2014, it unveiled an Rp278trn ($19.7bn) broadband connectivity plan, designed to spur broad-based and inclusive economic growth, with a 35,000-km, nationwide fibre-optic network, the Palapa Ring, as its centrepiece. This chapter also contains interviews with Rudiantara, Minister of Communication and IT; Nadiem Makarim, CEO, GOJEK; and Dian Siswarini, CEO & President Director, XL Axiata.

Articles from this Chapter

Overview

Grid for tomorrow: Rapid growth in internet access and usage lays the groundwork for investment in myriad leapfrog technologies
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Indonesia has the largest GDP in South-east Asia and the fourth-largest population in the world. Some 70% of its citizens are under the age of 39, and many Indonesians are mobile-first and digital native consumers, making it a very attractive market for purveyors of data services, applications, software and hardware. Developing domestic ICT infrastructure has been a key goal of President Joko Widodo’s administration. When his administration took office in October 2014, it unveiled a Rp278trn…

Analysis

Missing piece: A bold infrastructure project is expected to bring a range of benefits across the economy, especially in rural areas
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In an effort to bridge the geographical divide in digital services and provide high-speed internet across the country, the Widodo administration began work in 2016 on the Palapa Ring project. The priority infrastructure project comprises a 35,000-km fibre-optic cable network intended to provide access to 4G services throughout the archipelago by 2019. Some 34 provinces and more than 500 regencies will benefit from the project, especially those where it has not been viable for telcoms operators…

Interview

Widening reach: Rudiantara, Minister of Communication and Information Technology, on infrastructure development and subscriber growth
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Interview:Rudiantara What can be done to close existing gaps in infrastructure and digital service penetration? RUDIANTARA: Nearly half of Indonesia’s mobile subscribers still utilise 2G services. The Indonesia Broadband Plan 2014-19 targets a penetration rate for mobile broadband subscription of 100% among urban and suburban populations and 52% of people in rural areas by 2019. These goals explain the priority of mobile broadband expansion. With 96% of the population already covered for…

Analysis

One in a billion: Policymakers and entrepreneurs look to capitalise on a reputation as a nurturing environment for digital start-ups
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Indonesia’s start-ups have generated great excitement among international media and investors in recent years. The archipelago is home to four of South-east Asia’s seven unicorns, or start-ups valued at over $1bn, and the country’s top-10 start-ups raised $2bn in 2018. “Indonesia’s start-up ecosystem is becoming a reference point for other countries,” Roman Nedielka, adviser of customer and digital strategy at PwC Indonesia, told OBG. “Our start-ups are coming up with innovative…

Interview

Bridging the divide: Nadiem Makarim, CEO, GO-JEK, on the role of mobile apps in widening financial inclusion
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Interview:Nadiem Makarim How do you evaluate the role of apps in bridging Indonesia’s prevalent rural-urban divide? NADIEM MAKARIM: Indonesia has not yet bridged the divide between rural and urban populations, although the quality of living has improved in rural areas. Given that most of the population live in major cities, the country still faces huge demographic and infrastructure challenges that will take decades to solve. Unlike China, we missed our infrastructure investment window…

Interview

Greater connectivity: Dian Siswarini, President Director and CEO, XL Axiata, on expanding ICT infrastructure to reach all regions
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Interview:Dian Siswarini What regions offer the most potential for telecoms operators outside Greater Jakarta? DIAN SISWARINI: Java grows at roughly the same pace as the Greater Jakarta region. Cities such as Bandung and Surabaya are emerging as key centres on Indonesia’s main island. However, the regions that offer the highest growth potential are actually located outside of Java. This is why operators are increasingly focused on expanding to other areas, primarily Sumatra and Sulawesi.…

Overview

Building blocks: Blockchain technology is finding multiple applications that could revolutionise global trade and provide opportunities for the developing world
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Blockchain – the distributed-ledger technology that underpins cryptocurrencies such as Bitcoin – appears set to transform a wide variety of industries and perhaps fundamentally change the way business is conducted across the global economy. While the technology is still taking off, and not everyone is convinced about its potential, many emerging markets are hoping that it will allow them to leapfrog older infrastructure and tackle a wide range of challenges. These include the costs and risks involved in developing centralised databases, issues of corruption and fraud in supply chains and land registries, and persistently high transaction…

Overview

Building blocks: Blockchain technology is finding multiple applications that could revolutionise global trade and provide opportunities for the developing world
OBG
plus

Blockchain – the distributed-ledger technology that underpins cryptocurrencies such as Bitcoin – appears set to transform a wide variety of industries and perhaps fundamentally change the way business is conducted across the global economy. While the technology is still taking off, and not everyone is convinced about its potential, many emerging markets are hoping that it will allow them to leapfrog older infrastructure and tackle a wide range of challenges. These include the costs and risks involved in developing centralised databases, issues of corruption and fraud in supply chains and land registries, and persistently high transaction…