Current Status of ICT

of Indonesia

Directorate of Telecommunication and Informations Technology

Directorate General of Posts and Telecommunications
Telecommunication Operation

„ Based on Government Regulation

No.52 Year 2000, Telecommunication
operation in Indonesia are classified
as follows :
• Network Provider
• Service Provider
• Special Telecommunication Provider
Network Provider
„ Fixed
„ - Local, Long Distance,
International PSTN
„ - Leased Circuit / Leased Line
„ Mobile
• Terrestrial (i.e: Radio Trunking, Paging,
etc)
• Cellular
• Satellite
 Service Provider
„ Basic Telephony (PSTN)
-Telephone, Facsimile
-Telex, Telegraph
„ Value Added Services
-Premium Call, Telephone Card, Virtual Phone, Public Voice
Recorder
-Frame Relay, Radio Paging
„ Multimedia
-Non Internet Based (Non-IP)
* Pay-TV, Cable-TV
-Internet Based (IP)
* ISP, NAP, WAP, Portal, On-Line Transaction
„ Reseller
-Public Telephony Kiosk (Wartel)
-Public Internet Kiosk (Warnet)
Special Telecommunication Provider
„ Individual Use
- Individual
- Amateur, Citizen Band
„ Civilian Government
„ Special Services
- Aeronautical, Navigation, Maritime, SAR, etc
„ Private Use (Badan Hukum)
- Transportation, Banking, Health, Industry, etc
„ Security and Defense Use
- Military, Police
„ Broadcasting
- Sound (Radio) Broadcasting, TV Broadcasting
 Current status in Telephony (June 2004)
Existing Telephony Operators
„ Fixed local telephony : 4 operators

„ PT.Telkom as a dominant operator with

more than 98% market share;
„ Three other operators (PT.Indosat,
PT.Ratelindo, PT.Batam Bintan
Telekomunikasi);
„ For holder or fixed local licenses, are
allowed to implement FWA (Fixed Wireless
Access) with limited mobility. It is
restricted to one charging areas and no
roaming.
„ Cellular :
„ 3 major national operators (98% market
share) using GSM standard, which already
offering GPRS and EDGE as well,
„ 4 Others, include using CDMA 2000-1x and
GSM DCS 1800
„ One 3G license

„ Long Distance :
„ Telkom as the major player
„ Indosat has just entered the market
„ To have equal level playing field, long
distance access code is changed to three
digit codes 0!x’
„ International Telephony
„ Indosat as the major player
„ Telkom has just enter international
telephony

„ ISP
More than 100 ISP licenses already issued and
currently 60 ISP’s are in active operations.

„ VoIP
There are 7 licenses for Voice over IP Operators
(VoIP), for single 9 with access code 010x and
double stage operations.
„ Broadband
Broadband wireless access is issued to more than
20 Operators, using band 2.5G, 3.3G, 3.5G, 5.6G,
5.7G, 10.5G, 10.5G
 Telephony Density
„ Fixed Line : 8.2 Millions of lines ( >
4 % penetration ) and 1.0 Millions of
Fixed Wireless Access (June 2004)
- High teledensity in Jakarta area
(25 %)
- Med teledensity in other big cities (11
– 20 %)
- Low teledensity in rural (0,2 %)
„ Cellular : 23 Millions subscribers in the 2Q of
2004
- Telkomsel : 12.5 millions (GSM)
- Indosat : 7.2 millions (GSM)
- Excelcomindo : 3 millions (GSM)
- Others : 300 thousands (CDMA)

„ Internet Penetration
- 1.2 millions subscribers with +/- 12 millions of
users (+/- 3%)
- Corporate subscribers through dedicated line
56,000 lines
- Instant Internet Access : - 400,000 phone-
subscribers.
- No of Internet kiosks (Warnet) 5000
„ Mobile Cellular Operators
Indonesia has a several mobile operators. The
analogue mobile cellular are AMPS and NMT. The
digital mobile cellular are GSM-900, GSM-1800,
CDMA-800. The future mobile cellular operation
would be CDMA-1900 and IMT-2000

„ Satellite Communication
Satellite communication have been used to link
more than 13 000 islands nation of Indonesia
since September 1969, when the country hooked
up to Intelsat. Seven years after the first
Indonesia satellite, Palapa A1 was launched,
ushering in a new era in the history of the
archipelago’s communications. Indonesia was the
third nation worldwide to adopt a satellite for
domestic use.
„ Recently, more satellite-based applications
are under development to provide instant
access to services, such as Internet access
and telephone lines in the rural area to
fulfill the most needed connectivity factor
for ICT implementation by considering the
content and application that relevant and
applicable local needs and conditions
(local language, social values, etc).
 Satellite Communication
„ Noting to the great potential for growth in the
Asia telecommunication, PT.PSN (Pasific Satelit
Nusantara) is also developing Multi-Media Asia
(M2A) satellite system. M2A is designated to
bring the converging worlds of
telecommunications information and
entertainment together into a single, flexible
platform for Asia. M2A is designed with extensive
coverage throughout the Asian Pacific region,
including Australia, Far East Asia and South East
Asia.

„ Indonesia also utilizes Inmarsat and Intelsat

satellites that are operated by PT.Indosat to
provide International telecommunication services.
 Celullar vs Fixed Telephone
Subscribers
12,000,000

10,000,000

8,000,000
Line in Services Fixed
Telephone
6,000,000
Cellular Subscribers

4,000,000

2,000,000

0
1998 1999 2000 2001 2002
Cellular subs composition
 Current services (1)
„ The number of telecommunication service category and
providers in 2004 are described as follows :
NO ITEMS NUMBER OF SERVICE PROVIDERS
(OPERATOR)
1. Basic Telephony ( PSTN ) 4
-Telephone, Facsimile
-Telex, Telegraph
2. Value Added Service 25
-Premium Call 15
-Calling Card 3
-Virtual Phone Number 1
-Public Voice Recorder 4
-Frame Relay -
-Radio Paging
3. Multimedia 6
-Pay-TV 100
-ISP 13
-NAP 7
-WAP -
-Portal -
-On-Line Transaction
4. Reseller 100.647
-Public Telephony Kiosks
-Public Internet Kiosks
 Current cervices (2)
„ The Number of Telecommunication Network Category and
Providers in 2004 are described as follows :

NO ITEMS NUMBER OF NETWORK PROVIDERS

(OPERATOR)
1. Fixed (PSTN) 4
2. -Local, Long Distance, 16
-VSAT -
-Leased Circuit/Leased Line 7
Mobile 11
-Terrestrial ( i.e : Radio Trunking) 7
-Cellular
-Satellite
Estimation of Cellular Subs in
Indonesia

Source : Bisnis Indonesia, 2003

 Implementation of USO (1)
„ Universal Service Obligation (USO)
- In the non commercial areas, the government promotes
the USO programs by preparing criteria, strategic,
funding and operational of telecom development within
the USO areas.

- In the monopoly era, the USO program was carried by

PT.Telkom with its KSO (Joint Operation Scheme)
partners, while in the era of competition the KSO program
will be carried out by the local fixed network operators.
Thus, it will not only be carried out by PT.Telkom but by
other local fixed network operators as well. At the initial
stage, the telecom facility development was funded by
the state expenditure. Nowadays, the preparation of its
implementation is being done among other things are the
data collection of USO priority areas based on its criteria
and determination of USO execution for the initial stage.
 Teledensity in Rural
• Low teledensity in rurals (0.2 %) :
• + 43.022 villages (64.4 % out of 66.778 villages)
have-no telephone access.
• Infrastructures:
¾ + 8 millions of fixed line (+3% penetration )

¾ + 16 millions of cellular phones users ( 5.5%)

¾ + 7.5 Millions of Internet Users.

z Need more investment mostly in villages with no-

access
 Problems
¾ Investment on fixed-lines needs high-
capital with low RoI (Return on
Investment)
z Development of fixed lines in rural areas
is much more expensive (not attractive in
business point of view)
z Government budgets (APBN) on
telecommunication development was no
longer extended since 1985.
 General Strategy for
National Telecom Development
Strategy of Telecom
Development

Target
the adequacy of telecom
and information access

Telecom provisions in Telecom development in

Commercial regions Non-commercial regions
(Competitive / non-USO) (USO)
 Implementation of USO (2)
USO in Indonesia:
→ “Community Access Within Walking Range”

→ Provision of basic telephony services,

Priority will be given to areas with :
•existing technical support (site, electricity, and if
possible; nearest to a telephone central)
•economical potency
→USO will be a long-term, continuous and
sustainable process
 Deployment Scheme
Year I (2003) Year II (2004) Year III (2005)

Target : 3010 villages Target : + 3500 Target : + 7745

villages villages
Area : Sumatera,
Kalimantan, Eastern Area : Java, Area : Sumatera,
Islands
Sumatera, Kalimantan, Eastern
Technology : Kalimantan, Eastern Islands
VSAT, Portable Fixed Islands
Technology :
Satellite(PFS)
Technology :
Operator :
Seluller, Radio Point
PSN dan CSM
to point, PFS, IP
Based

The technology to be implemented is based on the USO region’s

geographical and infrastructure characteristics
→ alternatives: cable (wireline), wireless (radio), satellite, cellular
 Deployment Scheme
Year IV (2006) Year V (2007) Year VI (2008)

Target : + 7,745 Target : + 7,745 Target : + 7,745

villages villages villages
Area : Sumatera, Area : Java, Area : Sumatera,
Kalimantan, Eastern
Islands Sumatera, Kalimantan, Eastern
Kalimantan, Eastern Islands
Technology : Islands
Technology :
VSAT, Portable Fixed
Satellite(PFS) Technology :
Seluller, Radio Point
to point, PFS, IP
Based

The technology to be implemented is based on the USO region’s

geographical and infrastructure characteristics
→ alternatives: cable (wireline), wireless (radio), satellite, cellular
 USO Funding
• For the 1st year (2003), USO implementation
(for 7,500 villages + 870 municipals) will be
funded by the state budget

• For the years to come, USO will be funded by

telecom operators by contributing 0.75% of their
gross revenue (after reduce with Bad debt, and
Interconnection Fee)
 DEVELOPMENT IN 2003

„ At Sumatera, Jawa,Kalimantan, and

Kawasan Timur Indonesia (KTI)
„ Development contains 3010 villages
„ Technology with PFS (2975) villages
and VSAT (35).
„ Development by PT.PSN and PT.CSM
„ Planning on 2003 = 8370 villages
 DEVELOPMENT IN 2004

„ At Sumatera, Kalimantan, KTI

„ Targets Development are 17.000
village + 5.360 villages (carry over
2003) = 22.360
„ Technology with PFS, VSAT, Seluler,
IP Based, and Radio
Thank You