The implementation of ICT Development

in Indonesia

Directorate General of Posts and TelecommunicationsThe Ministry of Communications, The Republic of Indonesia

2nd Meeting on Asia-Pacific Initiative for the Information SocietiesNegara Brunei Darussalam : 5 - 9 August 2002

Policy and Regulatory

Issues on Digital Divide - 1Population : > 200 millionsNational teledensity : ~ 3 %Major cities have adequate teledensity

The Metropolitan City of Jakarta > 40 %Other major cities (e.g. Medan, Surabaya, Bandung, Semarang) > 11 %

Other regions : very lowRural areas : 0.2 % (40.000 villages have lack of access, out of 70.000 villages)

Low teledensity

Lacking domestic investmentLacking local telecom manufacturersPoor information culture Industry self-finance since 1985 (budget from the state was discontinued)Development on new phone lines has been slowing down

Development

Issues on Digital Divide - 2Fixed wireline : ~ 7.1 milionsCellular wireless : ~ 6.5 millionsFixed wireless AccessTelephone Cafes : 200.000 points

Access

Internet Access:Users: estimated 4.2 millionsPotential users: estimated 61 millionsHigh growth in Internet users

Technology access :Dial-up, Cable modem (HFC), xDSLWireless access, broadband wireless access, satellite

Internet Access

The Government targeted 4 million new telephone lines by 2004, developed respectively by :

Telkom: 1.9 million linesIndosat: 1.6 million linesOthers: 600,000 lines.

Tokyo declaration people should have the opportunity to acquire access to information network (internet), prior to 2005.20 million internet users are targeted prior to 2004 Indonesia has high potential users.

Telecommunications Development Targets Telecom Targets

Information access

Strategy for telecom development

Commercial regions(Competitive / non-

USO)

Target for Development:

the adequateness of telecom and information access

Non-commercial regions (USO)

Supported and encouraged by :• Investments • Law

• Consistent and conducive regulation• Interconnection implementation • Tariff

• Regional government)

The Strategic Concept for Development

Differentiate treatment between commercial regions and non-commercial regions (universal service obligations) :

In competitive/commercial regions:The government to provide full opportunity for investors to participate and compete in these regions.The government is currently repositioning itself as a facilitator, providing the necessary policies and regulations to develop a dynamic and fair competitive environment.In non-commercial regions (USO)

The government will be actively setting up funding strategies and the implementation of telecommunications development in USO areas.

Repositioning incumbent operators In transition to a fully competitive environment

Early termination of voice exclusivity right :Telkom’s monopoly for local telephony was terminated on August 1, 2002.Indosat was granted a local telephony license.

Privatization of state-owned telecom companiesTask force for competition watch being established:

To continuing evaluate competition in telecom industryEstablishing regulations to support and ensure competition environment :

TariffInterconnection and Clearing HouseUniversal Service Obligations

Industry Restructuring

Building Information Societies

International BandwidthDealing with International bandwidth, Government endorse that bandwidth (Internet) should be cheaper than before .Through network access point (NAP) license, Government encourages private investments to compete in International bandwidth provisioning in Indonesia.ISPs : This policy has reduced prices of international bandwidth than before

IT development strategyEstablishing regulations on ICTDeveloping Infrastructures and access facilities and CTCDeveloping IT corridors.Encouraging IT services, emphasized on:• Tele Education• Tele Medicine.• E-Government.

Program in ICT regulationCurrently, no limitation on the number of ISP.Preparing Information Technology Law to provide jurisdictions and umbrella provisioning for IT implementations in Indonesia. The law will covers all aspects on IT implementations such as:

Privacy protectionElectronic CommerceCompetition, Consumer protection, Taxation.IPR (Intellectual Property Right)

Program in information access:Endorse Information Access through villages :

Telephone accessInfrastructures for community telecenter in rural areas (MCT)Broadband Internet Kiosk/CaféBusiness Information Center

Internet Roadshow :City-to-city internet campaign : Millenium Internet RoadshowGovernment-to-government : for E-Gov campaign

Education:School 2000 program, accelerating internet access from schools.Internet cafes in schools :

Softloan for computersFree Internet access and 50 % discount of local access.

Program in IT corridors

Develop multimedia cities:Jakarta : HFC networks in Jakarta and surrounding, Kemayoran citiesWest Java : Parahyangan multimedia corridor, HFC in Bandung, Bandung High-Tech valleyJogjakarta and Central Java : HFC in JogjakartaSumatra : Batam Intelligent Island

Develop High-speed IP-based backbone: Indonesia rings

Programs in application developments

Tele Education :Tele Medicine :

To provide access for 7000 hospitals and health centersE-Government :

National policy on e-governmentYogyakarta : WAN to support interoffice networkInitiatives from Regional Government : North Sulawesi, South Sumatra, and Kalimantan. Applications of E-Government for 86 locations.Applications of E-Government in villages such as information-rich villages (Desa Maju), 95 units.One E-Gov developer : Research and Development Division of PT. Telkom.

Thank You

DIRECTORATE GENERAL OF POST DAN TELECOMMUNICATIONS,THE REPUBLIC OF INDONESIA

Gedung SAPTA PESONA, Jl. Medan Merdeka Barat 17Jakarta 10110 – Indonesia

For more information, please visit our websitehttp://www.postel.go.id