Indonesia: Internet PenetrationThis is a featured page

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Internet Globe1. Statistics of Internet Penetration
2. The Net Revolution
3. A Broadband Overview
4. Personal Computers and Being Online
5. Warnet (Internet Cafe)
6. Profile of Indonesians Online
7. Regulations & Internet Governance Initiatives
8. Technological Analysis
9. Future Developments
10. Web 2.0 & Youth Development



1. STATISTICS OF INTERNET PENETRATION

Newly, Indonesia got No. 5 of Asia's leading Internet user country! This number is higher than Asia's average of 18.5% but lower than the world's average of 32.6% internet users per country.

One explanation for Indonesia's high rank is their huge population. With over 237,512,355 in population, it is the third largest country in Asia. Experts predict Indonesia to become soon number three in internet penetration in Asia.

The table below shows the increase in internet usage of Indonesia from 2000-2008 (1'150%). To consider is the 5 million increase over 2007-2008 leading to 10.5% penetration in 2008.

YEARUsersPopulation% Pen.GDP p.c.*Usage Source
20002,000,000206,264,5951.0 %US$ 570ITU
200720,000,000224,481,7208.9 %US$ 1,280ITU
200825,000,000237,512,35510.5 %US$ 1,925APJII
Note: Per Capita GDP in US dollars

2. THE NET REVOLUTION

Many referred to the 1998 overthrow of Suharto as the Net Revolution. Merlyna Lim, Professor at Arizona State University School of Justice and Social Inquiry, did a case study on the event and concluded that the Internet played a significant role in creating a network of political activism that led to the political revolution. However, it did not play a direct role.

"What the Internet did provide was an opening for political activism to, first, break through the barriers of state monopoly over the production of knowledge and flows of information and, second, to reach a national and even international audience through the cascading of information from the Internet to people on the street using other media technologies. In the case of Indonesia, through successful popular movement, made possible through openings created by the Internet, other ‘more traditional’ media could also at last play their roles in giving voice to the ‘people’. These more traditional media were also changed by their linkages with the Internet. They were renewed and given new meanings and new values," said Professor Lim

Source: Transcript from Merlyna's public lecture as part of the Association of Internet Researchers conference,held in Brisbane, Australia, from September 27-30 2006, entitled Democracy, Conspiracy, and Pornography: Politics of the Internet in Indonesia, explored the social history of the development of the Internet and its uses in Indonesia


3. A BROADBAND OVERVIEW


The two key players in the broadband market of Indonesia are PT Telkom and PT Indosat.
Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA

(forecast by Ministry of Communications and Information Technology)

* High Speed Mobile Service; mobile Broadband

Nevertheless Broadband per person remains very small. To put the number of Broadband in perspective:



Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA

4. PERSONAL COMPUTERS & BEING ONLINE


The deeper look into fixed contracts of internet broadband per housholds shows a poor picture; this number just counts 1.3%.Telekom’s speedy DSL is Indonesian’s biggest internet access provider. In 2008, they only served 150 000 high-speed internet customers.

The small number of PC (8.5 Mio in 2008) are mainly found in urban areas used for commercial and business purposes both at homes and in the offices.

However, PC penetration is not relative to the number of internet users. The number of PCs in Indonesia is much lower than the number of internet users due to the lifestyle of the Indonesians. Many of them are occasional internet users and find it more economical to share or rent PCs than owning one.

Source: National Statistical Office, International Telecommunications Union, World Bank, Trade sources, Jupiter Research, Euromonitor International


Internet Usage 2008:

The tables explaining (1) the segmentation of Indonesian's internet users, (2) Indonesian's internet users activities, (3) the frequency of internet usage and (4) the number increase in internet usage from 1980 until 2005.

Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA
Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA


Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA



Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA



Internet Suscribers 1980- 2005 Trend:

Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA



5. WARNET
(INTERNET CAFE)

WarnetMajority of the Indonesians turn to the Warnet, a short form for Warung Internet, as an alternative to owning a PC. The Warnet functions like an internet café. With the increasing number of Warnets and internet service providers, the number of internet users in Indonesia is also increasing at a fast rate. As the Warnets offer a cheaper rate due to their operation from cable instead of a dial-up connection, it is often popular with the lower income people. The middle to upper higher income people will usually have their own PC and subscription to an internet service provider.









6. PROFILE OF INDONESIANS ONLINE


In many countries, it is evident that the Internet is dominated by males. According to Professor Merlyna Lim, internet in Indonesia, up to 5 years ago, was also dominated by males. They were mainly highly educated and belonged to the middle class and upwards. She mentioned that a recent trend is that there are increasing female internet users and they are much more productive than the male users. Female internet users also blogged more frequently.

"There are more and more young, female, Muslim housewives who stay home, and they are starting to be networked through the Internet, " said Professor Lim

Source: Transcript from Merlyna's public lecture as part of the Association of Internet Researchers conference, held in Brisbane, Australia, from September 27-30 2006, entitled Democracy, Conspiracy, and Pornography: Politics of the Internet in Indonesia, explored the social history of the development of the Internet and its uses in Indonesia.

7. REGULATIONS & INTERNET GOVERNANCE INITIATIVES


The number of fixed-line infrastructure remains minimal. Due to this restriction Indonesian's internet charge in 2007 was one of the highest worldwide. In 2008 fixed Internet Broadband prices still remained at 20% of monthly GNI per capita.

Indonesian law requests absolute freedom of expression on the Internet. Only since 2009, the government regulates the distribution of pornographic content via the internet. Using or posting a pornographic website gets punished by fines up to 1 billion rupiah or three years jail. Since many people continue to surf online pornography at internet cafes, the controversial of this law remains big.

One reason mentioned to introduce the law is the expanding number of young internet users. This particular audience is expected to double the total internet penetration number to 50 million by 2010. That would form a total of 20 % internet penetration in Indonesia.

Due to the anti-monopoly law, Singapore Technologies (ST) Tamedia was forced to sell its 41% share stake in PT Indosat in June 2008.

8. TECHNOLOGICAL ANALYSIS

Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA

To take out three major points crucial to the Internet penetration and the internet landscape.
As a current challenge and weakness in e-governance development is listed the lack of interoperability, showing up in individual platforms for each government institution.

The table shows a future prospect of the internet-based educational network. This government project is designed to facilitate internet usage in schools. Despite some advances in e-education, constraints remain due to poor infrastructure and a lack of public awareness. Although the government’s initiative will increase the usage of the internet in schools, the government has to initiate measures to increase internet penetration in the country.

Currently, Indonesia has one of the worst records in software piracy rate worldwide. According to the sixth annual BSA- IDC Global Software study, piracy was estimated to be around 85% in 2008. This high risk will deter foreign investment as well as innovations.

Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA

9. FUTURE DEVELOPMENTS Indonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIAIndonesia: Internet Penetration - DIGITAL MEDIA ACROSS ASIA

Premium Indonesia broadband Internet service provider, Biznet, announced recently on its collaboration with Switch and Data to improve internet performance and broadband experience for Indonesia Enterprise and Residential Customers. Public and private peering agreements have been made. This will enable higher efficiency of access of foreign websites from Indonesia. This initiative is in line with the growth of web2.0 in Indonesia. With better infrastructure, Indonesia would be better connected with the rest of the world.

Wireless broadband is promoting strongly and considered as a high revenue area for service providers. Bakrie Telekom and PT Telekom were the first movers in fixed wireless infrastructure.

Example of Indonesian Internet marketers making promotion on Internet Congress in Singapore 2009:




10. WEB 2.0 & YOUTH DEVELOPMENT

A recent research by Synovate showed that the Internet and mobile phones have changed the lifestyle of youth in Indonesia. Out of the 20 millions internet users in Indonesia, close to 40% are aged between 20 and 24.

The hot favorites of the youth in web 2.0 are online games, Avatar, Social Networking Sites (Frienster, Myspace and Facebook), Micro Blogs (Twitter and Plurk)and blogs such as Wordpress.


Sources:
http://www.internetworldstats.com/asia/id.htm
http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan003225.pdf
http://www.indonesiabroadband.net/lowband/index_lowband.html
United Nations Department of Economic and Social Affairs
Point Topic
Source: http://www.idrc.ca/openebooks
Euromonitor International
Brandtology
MarketLine



Also read:

Read more about Social Media in Indonesia:



Indonesia: Internet Landscape - Social Media and PR across Asia



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Latest page update: made by sgsam2k , Nov 12 2009, 9:05 AM EST (about this update About This Update sgsam2k Edited by sgsam2k


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