Indonesia internet usage for business sector

ii

INDONESIA INTERNET USAGE FOR BUSINESS 2013

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION & INDONESIA STATISTICS

Indonesia Internet Usage for Business Sector 2013; Parlindungan Marius and Freddie Pinontoan;

Jakarta: APJII, 2013. x + 41 pages.; 21 x 30 cm.

ISBN 978-602-19596-3-3

Writers : Parlindungan Marius and Freddie Pinontoan

Editors : DR. Ir. Didit Herawan, MBA and Content is The King

Layout and Infographics : Content is The King

Cover Design : Content is The King

Publisher : Asosiasi Penyelenggara Jasa Internet Indonesia

Publication :

The printing house is not responsible for the contents of this publication

All Rights Reserved

APJIIAsosiasi Penyelenggara Jasa Internet IndonesiaJl. Kuningan Barat No. 8 Jakarta 12710Tlp. (021) 52960634www.apjii.or.id

BPSBadan Pusat Statistik

Jl. dr. Sutomo No. 6-8 Jakarta 10710Tlp. (021) 3841195, 3842508, 3810291-4

www.bps.go.id

iii


TABLE OF CONTENTS

Foreword .......... ............. .................................... v

Executive Summary ........................................... vii

Background and Research Objectives ............... x

CHAPTER 1METHODOLOGY- p.1

CHAPTER 4PURPOSES OF INTERNET USERS - p.21

CHAPTER 2BUSINESS SECTOR’S INTERNET USERS - p.5

CHAPTER 3INTERNET NETWORK FACILITIES - p.11

PENETRATION OF INDONESIAN INTERNET USERS IN 2013

27.58%20.10% 43.17%

Extrapolation Method

p.31

iv


Badan Pusat Statistik (BPS) menyambut baik atas disusunnya buku publikasi hasil Survei Penyerapan dan Penggunaan Sarana Komunikasi dan Teknologi Informasi (P2SKTI) 2013

yang diterbitkan oleh Asosiasi Penyelenggara Jasa Internet Indonesia (APJII). Buku yang menyajikan data hasil survei ini akan lebih bermanfaat dan bermakna apabila dapat dijadikan sebagai rujukan bagi para pengguna data, khususnya pelaku usaha jasa internet, untuk memanfaatkannya dalam merencanakan dan mengambil keputusan terkait dengan ekspansi bisnis maupun inovasi dalam penyediaan jasa internet di Indonesia.

This book can be used as complementary by data users who need accurate and up-to-date information regarding usage and utilization of internet services by business sector, which previously in 2012 the similar book was published to present the survey limited to internet penetration in households and individuals. While for BPS, I hope this book can be used as baseline to improve the quality and quantity of available Core ICT Statistics data which nowadays is required more than before, by various data users including private institutions, government agencies, and international organizations.

Last but not least, I express my gratitude to the God Almighty and thank you to APJII and all BPS teams, in particular the Communication and Information Technology Statistics Sub-Directorate, which has been working hard and successfully establishing cooperation with the APJII in visualizing the analysis of P2SKTI 2013 survey in this book. Hopefully this cooperation will benefit not only the BPS and APJII, but it will also benefit the general public and data users in Indonesia and in the world. God bless us in the publication of this book.

Jakarta, January 2014

Dr. Suryamin, M Sc.Head of Central Bureau of Statistics

OPENING REMARKS

HEAD OF CENTRAL BUREAU OF STATISTICS

v


Each year the Indonesia Internet Service Provider Association (APJII) conducted a survey of internet users. In 2012 the survey was performed on individual users, while in 2013 the survey

highlighted the business users. The 2013 survey was conducted in cooperation with the Central Bureau of Statistics (BPS).

The surveys were conducted to provide greater benefits to our mem-bers which are internet service providers (ISPs) from all regions in In-donesia. Positive responses to previous survey had encouraged APJII to provide better, comprehensive report.

For APJII, internet becomes an essential part of our daily activities, acts as an enabler and transformer for all industrial changes, therefore internet research is considered an important requirement. For the ISPs, the research is necessary especially the corporate market segment. In collaboration with the BPS, a state bereau that bound to the law, the research results will only display the functions and generic names. Spe-cific products or names such as facebook and twitter in this research are not mentioned individually and they are grouped in one category (social media).

The research covers all provinces in Indonesia with the hope that the broad coverage will provide sensible results that have real benefit. Re-search method and sample size are adjusted to the International Tele-communication Union (ITU) as a UN agency. It is a part of national pro-gram in accordance with MDGs (Millennium Development Goals) target launched by the UN that in 2015, 50% population of each country shall be connected to internet.

After reviewing the results, penetration of Indonesian internet users are still at 28%, far below the target of 50%. In a year the figure should grow at least twice to achieve the international standard. Although it is not the party responsible to achieve the standard, APJII constantly en-courages the growth of internet users in Indonesia.

It is expected that the survey results will provide a strong impulse for the industry to increase the penetration of internet users throughout Indonesia. It will also provide a valuable documentation for internet de-velopment in Indonesia.


Semuel A. PangerapanAPJII Chairman

OPENING REMARKS

Chairman of Indonesia Internet Service Provider Association

vi


As a continuation of the previous year program, the Indonesia Internet Service Provider Association (APJII) Committee 2012-2015 once again publishes Personal Internet Users Survey

2013. In contrast to 2012, in this edition, the scope of the survey is broader. The current survey includes Business Sector’s Use of Inter-net in 2013 and the Profile of Internet Users 2013.

The report presented in infographics is prepared from Survey on Usage and Absorption of Communication and Information Technology Facilities 2013. The survey was resulted from the cooperation between Central Bureau of Statistics (BPS) of the Republic of Indonesia and APJII in organizing the Survey on Usage and Absorption of Communication and Information Technology Facilities (P2SKTI).

In responding to the increasing demand on internet survey data from the public, APJII hopes this book can be used as a reference in providing internet services for APJII members, industry, academic stakeholders, the Government, and general public.

The survey will not succeed without supports of various parties. For the supports, we really appreciate and thank to Mrs. Sylvia W. Sumarlin as Chair of APJII Supervisory Board; Mr. Samuel Pangerapan, Mr. Sapto Ang-goro, and Mr. Freddie Pinontoan as APJII Executive Boards; Mr. Suryamin as the Head of Central Bureau of Statistics and all supporting staff, Mr. Didit Heryawan and Mr. Rachmat. We would also like to thank all parties who directly and indirectly had supported the survey.

We do hope this good faith may benefit to all parties, especially to the development of internet industry in Indonesia.


Parlindungan MariusAPJII Survey Manager

FOREWORD

Survey Manager of Indonesia Internet Service Provider Association

vii


Survey on Usage and Absorption of Communication and Information Technology Facilities 2013 was conducted by the Central Bureau of Statistics (BPS) in cooperation with

the Indonesia Internet Service Provider Association (APJII) focused on business sector in Indonesia. The business sector includes manufacturing industry, hotels, and restaurants with a total of 1,108 business respondents. The survey conducted in all provinces in Indonesia illustrates the positive development of penetration and use of internet by business sector in supporting their main activities.

How will significant increase of Indonesian internet users affect the industry? By the end of 2013, internet users in Indonesia were 71.19 million and in first quarter of 2014 the figure increases to 82 million. Although trend of increase in business sector has not been identified, it can be estimated that the internet users in this sector also grow positively.

The survey indicates that hospitality is the business sector with the largest percentage of internet use. Approximately 71.06% hotels are using internet, while manufacturing industry and restaurants are 68.9% and 57.77% consecutively. The greatest opportunity to provide internet connection is restaurant by 11.15%, followed by manufactur-ing industry by 8.65%, and hotel by 3.53%. In the aspect of server use to support main activities, the greatest opportunity is restaurant by 10.71%, manufacturing industry by 9.93% in the second position, and

“The availability of adequate data has simi-lar importance with the way data is visualized to make it easy to under-stand and benefit to all parties.”

EXECUTIVE SUMMARYHTTP://BLOGS.ITB.AC.ID/

viii


the last is hotel by 7.65%.

Opportunity to provide internet connection service based on regions can also be observed from this survey. The greatest opportunity in Su-matera, Java, and Bali regions is Bangka-Belitung Islands by 14.28%. While in other regions (Nusa Tenggara, Kalimantan, Sulawesi, Maluku, and Papua), Central Sulawesi is on top with the potential as high as 30%.

Human resources requirement in information technology in the busi-ness sector is also interesting to observe. Compared with all internet us-ers in business sector, hospitality is on top with 29.88% gap to be filled with IT personnel, while restaurants’ gap is 13.70% and manufacturing industry is 13.34%.

Based on speed of internet access, 90.07% hotels use fixed-broad-band internet access. There are 25.29% manufacturing industry which still using narrowband access. While broadband access is used by 9.34% manufacturing industry. In fixed-broadband access, WiFi/WiMAX/Micro-wave group is mostly used, followed by dial-up connection, while VSAT is the last option.

Internet access speed based on regions:1. Java island is dominated with WiFi/WiMax/Microwave broadband in-ternet connection. Largest users using WiFi/WiMax/Microwave access is found in Yogyakarta (55.17%). While East Java is dominated with users using cellular access (10.17%). Most users in Central Java use dial-up access (27.71%).

2. Sumatera island is dominated with DSL broadband internet connec-tion. In Jambi most users use DSL access (71.43%). While in Bengkulu is dominated with cellular access (33.33%). Dial-up access is commonly used in Bengkulu (66.67%).

3. In Nusa Tenggara, Bali, and Kalimantan regions, WiFi/WiMax broad-band internet connection is dominant. WiFi/WiMax access is commonly used in Central Kalimantan (66.67%). Cellular access is dominant in West Kalimantan and East Nusa Tenggara (12.50% each). Dial-up connection

HTTP://CDN2.AGODA.NET/

ix


is used by most users in Central Kalimantan (33.33%).

4. In Sulawesi island most users use WiFi/WiMax broadband internet connection without indication of cellular access. While WiFi/WiMax and dial-up accesses are commonly found in Gorontalo (66.67%).

5. Maluku and Papua regions are dominated with WiFi/WiMax broadband internet connection without indication of cellular access. All user samples in North Maluku (100%) use WiFi/WiMax access. Dial-up access is also commonly used in North Maluku by 50% users.

P2SKTI 2013 survey also shows largest percentage of manufac-turing industry (36.96%) pay subscription of internet access below Rp 500 thousand per month. The figure is relatively similar with sub-scription fee between Rp 500 thousand and Rp 1 million per month (29.19%) and above Rp 1 million per month (33.85%). In hospitality business, most hotels (40.06%) spend internet access subscription above Rp 1 million per month. While 54.97% restaurants pay the subscription fee below Rp 500 thousand per month. Approximately 73% business sectors use one ISP, but there are 0.6% businesses use four ISPs simultaneously.

In a year the business sectors purchase information and commu-nication technology equipments in an average of less than Rp 10 million: restaurants 80.93%, hotels 67.06%, and manufacturing in-dustry 53.87%.

The survey shows top five purposes of internet use as follows: send/receive e-mails (95.75%); search for news (78.49%); search for goods/services (77.81%); search for government agencies (66.07%); and provide customer services (61.23%). The figure of last purpose is similar with social media use.

The profile of survey results above is both a challenge and op-portunity for internet service providers to participate in developing penetration and use of internet in Indonesia. It is worth to men-tion that Millenium Development Goals set 50% population in In-donesia or 107 million in 2014 and 139 million at the end of 2015 must be connected to the internet. It is a great duty that can be accomplished only by establishing comprehensive collaboration of all stakeholders.

x


Today’s development of information and communication technology in Indonesia benefits many people including general

public, the government, and businesses. Demand from various parties for statistical data of Infor-mation and Communication Technology (ICT) is increasingly high. International agencies such as International Telecommunication Union (ITU) and United Nations Conference on Trade and Devel-opment (UNCTAD) regularly require ICT statistics from the BPS for the purpose of preparation of ICT Development Index and calculation of Core ICT Indicators.

At the other end, APJII which accommodates 300 members of internet service providers has real re-quirement to expand their markets and to provide in-ternet access for general public. By conducting com-petent survey, it is expected that all APJII members may increase their productivity, their market pene-tration will accelerate, and internet use will increase rapidly. With similar requirement and spirit, BPS through Communication and Information Technolo-gy Statistics Sub-Directorate had an initiative to in-crease the availability and variability of ICT statistics by establishing cooperation with APJII.

Cooperation in the survey on Use and Absorption of Communication and Information Technology Fa-cilities (P2SKTI) 2013 had been focused on business sector to obtain data and information regarding the availability of ICT facilities and infrastructures, ac-cess to ICT facilities, as well as use and utilization of ICT facilities in business sector. P2SKTI survey covers business sector in three business activites including large and medium manufacturing industry, hotels, and restaurants. Respondents are defined using sampling method from all provinces in Indonesia based on sampling frame of the directory of Large and Medium

Manufacturing Industry, Hotels, and Restaurants.

In general, the objectives of Survey on Use and Ab-sorption of Communication and Information Technol-ogy Facilities 2013 are as follows:a. To meet the requirement of data users in the aspect

of the availability of ICT statistics data variability.b. To provide supporting data for the preparation of

ICT Indicators and the calculation of ICT Develop-ment Index.

c. To provide a reference for the government in estab-lishing and evaluating relevant policies particularly in communication and information technology sec-tor.

d. To provide an illustration of the penetration of use and absorption of communication and information technology facilities and infrastructures, particular-ly in relation with the availability of ICT infrastruc-tures, access to ICT, as well as use and utilization of ICT in business sector.

P2SKTI 2013 survey was conducted in 33 provinces in Indonesia, and derived to 78 regencies/municipalities and integrated in BPS routine business-based surveys. The survey was taken place in provincial capital city and nearby regencies/municipalities. a. Enterprises categorized as large and medium man-

ufacturing industry.b. Enterprises providing accommodations including

star and jasmine class hotels.c. Enterprises providing food and beverage namely

restaurants.

To maintain continuity of ICT statistics data availa-bility, particulary in relation with the use and utiliza-tion of ICT facilities in business sector, it is expected that P2SKTI survey will be routinely conducted on a yearly basis.

xi


In the first National Conference on 15 May 1996, the declaration date of APJII establishment, the board members assigned for the first 3 years term were asked to execute several strategic, key programs to develop internet networks in Indonesia. The programs were:

• Internet service tariff• Establishment of Indonesia-Network Information Center [ID-NIC]• Establishment of Indonesia Internet Exchange [IIX]• Negotiation of telecommunication service infrastructure tariffs• Proposal for number and type of providers

Both programs were successfully executed including Internet service tariff proposal and negotiation of telecommunication service infrastructure tariffs with the issuance of several Government decisions namely:

• Decision of the Minister of Tourism, Post, and Telecommunications of the Republic of Indonesia No. KM.59/PR.301/MPPT-96 dated 30 July 1996 on Internet Service Tariff.

• Decision of the Minister of Tourism, Post, and Telecommunications of the Republic of Indone-sia No. KM.2/PR.301/MPPT-97 on Leased Circuit Service Tariff including the elaboration, in accordance with Letter of the Secretary General of Ministry of Tourism, Post, and Telecommuni-cations No. Pr.301/9/5/PPT-97 dated 28 February 1997 which stated that the Internet Service Providers are Telecommunication Service Operators.

APJII’s Role in Internet Tariff Regulation

illustration: danpontefract.com

xii



INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION 1

Chapter IMETHODOLOGY


INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION2

1.1 SCOPE OF SURVEY

Survey on Use and Absorption of Communication and Information Technology Facilities 2013 was conducted in 33 provinces in Indonesia, and derived in 78 regencies/municipalities.

Scope of business sector in the survey covers 3 business categories that refer to the Indonesian Standard Industrial Classification (KBLI, Klasifikasi Baku Lapangan Usaha Indonesia)*

The Indonesian Standard Industrial Classification (KLBI) means standard classification of economic activites conducted in Indonesia which is detailed based on categories. KLBI only classifies production units based on economic activities without distinguishing production units based on ownership, type of legal entity, formal or informal.

Business Categories in the Survey

MANUFACTURING INDUSTRYEnterprises categorized as large and medium manufacturing industry

HOTELSEnterprises providing accommodations including jasmine and star class hotels

RESTAURANTSEnterprises providing food and beverage namely restaurants

1 2 3

This includes economic or business activities in transforming materials, elements, or components using chemical or physical processes into new products. Raw materials for manufacturing industry are obtained from agriculture, forestry, fishery, mining, or excavation products, and products from other manufacturing industry. Included in this category of manufacturing industry is unit that transforms materials into new products.

A business that utilizes a building or part of a building that specifically provided where people may stay, eat, and obtain services and other facilities with payment. The business includes one to five-star hotels and jasmine class hotels.

This includes providing food and beverage services to be consumed immediately, and including traditional restaurants, self-service restaurants, or take away restaurants, either located in fixed or temporary location and without seats. Providing food and beverage service means providing food and beverage to be consumed by order.

illustration: kilurahsemar.wordpress.com illustration: asiarooms.com illustration: okefood.com



East

Java

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i

1.2 DATA & SAMPLES

1.108TOTAL SAMPLES

DATA COLLECTION METHOD

Sample allocation based on business

category

36% 36%

28%

MANUFACTURINGINDUSTRY RESTAURANTS

185

148144

110

Sample Allocation Based On Provincial RegionsNumber of enterprises

53

4338

28 2722 21 20 19 18 18 17 16 14 13 12 12 11 10 10 8 8 7 5 55 5 4

52

Sample allocation

based on main islands

Java and Bali regions

Sumatera regions

HOTELS

65.1%

17.1%

6.4%

6.2%

5.1%

Kalimantanregions

Sulawesiregions

Nusa Tenggara, Maluku dan Papua regions

enterprises

Data is collected from selected samples by face-to-face interview between the surveyors and the respondents.

Determination of sample distribution is based on number of relevant businesses in the regions. The number of samples is highest in Java region given the number of businesses located in Java is the highest than other regions in Indonesia.



AcehAceh Besar, Banda Aceh

West KalimantanKubu Raya, Kota

Pontianak

Central KalimantanKatingan, Palangka Raya

South KalimantanBanjarmasin, Banjar Baru

East Kalimantan-Kutai Kartanegara, Balikpapan, Samarinda

South Sulawesi Gowa, Maros, Makassar

Southeast Sulawesi Konawe, Kendari

North SulawesiMinahasa, Manado

Central SulawesiParigi Moutong, palu

GorontaloKota Gorontalo

West SulawesiMamuju

MalukuAmbon

North MalukuTernate

West PapuaSorong

PapuaJayapura, Kota Jayapura

North SumateraDeli Serdang, Langkat,Medan, Binjai

RiauPelalawan, Pekan Baru

West SumateraPadang, Solok

BengkuluBengkulu

LampungPasawaran, Bandar Lampung

JakartaSouth, East, Central, West, North Jakarta

BantenSerang, Cilegon, Kota Serang

West Java Kab. Bandung, Garut,

Ciamis, Kota Bandung, Bekasi, Cimahi

DI YogyakartaSleman, Yogyakarta

Central JavaJepara, Kab. Semarang, Kendal, Kota Semarang, Pekalaongan

East JavaPasuruan, Sidoarjo, Gresik, Pasuruan, Mojokerto, Surabaya

BaliBadung, Gianyar, Denpasar

West Nusa TenggaraLombok Barat, Mataram

East Nusa TenggaraKupang, Kota Kupang

South SumatraBanyu Asin, Palembang

JambiJambi

Bangka Be-litung IslandsPangkal Pinang

Regencies/Municipalities Coverage Based on Provinces

In conducting this survey, BPS as an official government bureau should not mention brand or product name. In case of social media for example, the survey did not specifically mention facebook, twitter, or kaskus forum. Such survey ethics should be adhered to by the BPS therefore it not allowed mentioning specific brand to maintain the objectivity of survey results.

BPS Survey



Chapter IIBUSINESS SECTOR’S INTERNET USERS



Internet Users in Industry 2013

(Restaurants, Hotels and ManufacturingIndustry)

In responding ICT data requirement demanded by various stakeholders, both domestic and international (namely ITU), the BPS has a program to conduct Survey on Use and Absorption of Communication and Information Technology Facilities in 2013. In the occasion, APJII had established cooperation with BPS in the survey. BPS used Core ICT Indicators 2010 as a reference for measurement parameter. Core ICT Indicators were used in order to get the results can be compared internationally. In this matter APJII refered to the interest of internet industry stakeholders and data requirements that in turn will benefit its members, the Internet Service Providers. The survey was conducted by BPS internal personnel in 33 provinces and involving 1175 business respondents and took place in September (1 month), while the process was already started in May 2013. Data collection and processing were conducted since October to November 2013.

Manufacturing Industry

Hotel Industry

/WWW.TRIPADVISOR.CO.UK/

WWW.TRIBUNNEWS.COM/



Internet in Business World

Fadjar Efendy Rasjid, S.Kom

Internet has triggered a revolution by changing the world in conducting local and global businesses. It started from collecting data for employee recruitment in a company, and today internet is used by many businesses, so internet benefits business communities. People find ways to optimize internet for their businesses. Many websites had been developed and equipped with back-office system including database, accounting packages, and finally small and big companies are capable to utilize internet in supporting their businesses. Online business emerges where internet is the main business.

Many companies, especially that implement online trading, have integrated their inventory control and customer tracking. This step ensures reduced administrative cost and increased customer services by providing fast and accurate information regarding order processing updates to the customers.

source: ubaya.ac.id

By the growth of advanced technology, internet seems becomes the ‘nutrition’ in human and business daily life. Head of Central Bureau of Statistics (BPS) Suryamin presupposed the internet as a basic need for business world. “Internet is very important for businesses and the community, it is similar to our basic needs,” said Suryamin in an event ‘Latest Profile of Industrial Internet and Its Growth’ in Jakarta, on Wednesday (15/1/2014).

In the event organized by the Indonesia Internet Service Provider Association (APJII) and BPS, Suryamin even said that needs for internet in the community and industry have been equal to the needs for food. Understandably, now almost all activities of human life are associated with the internet.

“With internet, people may get the information instantly. Even a part of the community and industry owners have put the internet as their first priority, similar to food,” said Suryamin. According

to him, internet may fulfill the sense of curiosity of the people in fast, easy, and affordable ways. For businesses, the internet may speed up information and data flow from their users.

Outside businesses, Suryamin explained, internet may also help in educating the nation. What’s more, a survey conducted with APJII has shown that 78.49% industry owners in Indonesia use the internet to search for news information.

He hoped, in the future there will be better internet services particularly for business sector in order to increase the productivity of domestic business owners.

source: www.apjii.or.id

Internet is ‘Nutrition’ for the Business World



2.1 USE OF COMPUTERS & INTERNETInformation obtained from these parameters are:

Use of Computers, Internet, and ServersMultiple answers - percentage

MANUFACTURING INDUSTRY HOTELS RESTAURANTS

1 2 3

77.8%

68.9%

59.0%

74.6%

68.9%71.1%

57.8%

63.4%

47.1%

Using Computers

Using Computers Connected to

the Internet

Using Servers

Enterpresises those use computers in their main business activities. The computers include desktops, laptops, and tablets but excluding cellular phones and televisions.

Enterpresises those use computers in their main business activities, and the computers are connected to the internet.

Server computer is computer equipment that functions as data center or terminal to distribute resources, permission, and others that connected to other computers.

USING COMPUTERS CONNECTED TO THE INTERNET

USING COMPUTERS USING SERVERS

Gap percentage of the use of computer and internet for main business activity:

manufacturing industry 8.65%; hotels 3.53%, and restaurants 11.15%.

The gap reflects the opportunity to provide internet connection services.

Prasabri Pesti, Deputy Executive General Manager (Business Service Division) Telkom

In the future internet access and its applications will be an integral part of a hotel. It is important to support the service improvement and the growth of hotel’s business value. Internet will be useful for promotional events to hotel management.

Internet in Hospitality Industry

illustration: starwoodshotel.com

P2TIK 2013 survey, a cooperation between BPS and APJII



Use of Computers, Internet, and Servers in Each ProvinceMultiple answers - percentage

01

02

03 04

06

07

05

Using computers connected to the internet


Java and Bali

Sumatra

01

02

04

03

07

05

09

06

08

01. Aceh

02. North Sumatra

03. West Sumatra

04. Riau

05. Jambi

06. South Sumatra

07. Bengkulu

08. Lampung

09. Bangka Belitung Islands

10. Riau Islands

75

64,7

70,5

81,8

60

80

63,1

85,7

80

70

01. Jakarta

02. Banten

03. West Java

04. Central Java

05. Yogyakarta

06. East Java

07. Bali

90,8

81,4

68,7

65,7

83,7

72,6

86,5

01. WestKalimantan02. Central

Kalimantan03. South

Kalimantan

04. EastKalimantan

94,1

71,4

67.8

58,3


Kalimantan

01 02

04

03

68,7

54,9

70,5

81,8

60

70

65

57,8

71,4

80Using computers

Using computers

Using computers

81,6

74,4

59

58

78,3

80,7

64,4

50

71.4

60,7

94.1




Sulawesi 01. North Sulawesi

02. Central Sulawesi

03. SouthSulawesi

04. SoutheastSulawesi

05. Gorontalo

06. WestSulawesi

90

55,5

72,7

75

60

40

87,5

01. West NusaTenggara

02. East NusaTenggara

03. Maluku

04. North Maluku

05. West Papua

06. Papua

66,6

85,7



Nusa Tenggara, Maluku and Papua

Use of Computers, Internet, and Servers in Each ProvinceMultiple answers - percentage

50

60

63,4

51,8

60

Using computers

02

02

05

03

01

04

71,4

50

61,5 61,5

40

80

87,5

80

Using computers

01

03

04

06

05

The obtained figure of penetration is based on number of samples in the survey.



11

Chapter IIIINTERNET NETWORK FACILITIES


12

INTERNET NETWORK FACILITIES

In this survey, use of internet network facilities is categorized based on internet speed and position mobility (mobile or fixed).

2. MOBILE BROADBAND1. NARROW BAND 3. FIXED BROADBAND

Internet facilities with speed below 256 Kbps, including: dial-phone lines, ISDN, DSL, CDMA 1X, GPRS, and WAP.

Mobile internet facilities using wireless technology, including: WCDMA, UMTS, HSDPA, HSUPA, and CDMA 2000.

Internet facilities with speed above 256 Kbps and fixed location, including: DSL, cable modem, fixed wireless, WLAN, and WiMAX.

<=

>

256

256

Kbps

KbpsSP

EED

Fixed Mobile

NARROWBAND

MOBILE BROADBAND

FIXED/MOBILE

FIXED BROADBAND

TECHNOLOGY APPLICATION

NARROW BAND MOBILE BROADBAND

Internet Network Facilities

Dial-upInternet access using fixed telephone line or mobile telephone. Computer through modem dials the connection to the Internet Service Provider.

CellularA communication system providing internet services where subscriber’s access can be performed in mobility.

FIXED BROADBAND

1. WifiTechnology utilizing electronic devices to exchange data using radio wave (wireless) through a computer network, including high-speed internet connection.

4. VSAT (Very Small Aperture Terminal)Terminal that receives signal from the satellite using disc receiver antenna with diameter of less than 3 meters.

6. Leased LineFixed telephone connection line between two points provided by public telecommunication company.

7. DSL (Digital Subscriber Line)A set of technology that provides digital data transmission through cables in a location near local telephone network.

5. Fiber OpticsTransmission line or type of cable made of glass (silica) or plastic , slightly thicker than a human hair, and it can be used to transmit light signal between the two ends of the fiber. Light sources commonly used are laser or LED.

2. WimaxBroadband wireless access technology with high-speed access and broad coverage.

3. MicrowaveElectromagnetic wave with super-high frequency (SHF) above 3 GHz (3x109 Hz).


13

Business Sector’s Use of Internet Network FacilitiesMultiple answers - percentage


1 2 3

Mobile Broadband

Narrowband

FixedBroadband

9.3

25.3 17.6 22.8

70.8 90.1 76.0

4.3 6.4

Wifi/Wimax DSL

Leased Line

Fiber Optics35.8 35.8

13.2

12.1

VSAT 5.5

Fiber Optics

13.9

LeasedLine 4.6

VSAT 4.6

Wifi/Wimax

Wifi/Wimax

64.2

50.9

DSL

34.8

Leased Line

VSAT

FiberOptics

DSL

32.88.8

2.9

2.3

Fixed broadband technology used in the manufacturing industry

Fixed broadband technology used in hotels

Fixed broadband technology used in restaurants

Access technology used by the industry is predominantly wireless access. This is evident in many ISPs that use 5.8 GHz frequency for their services.

WiMAX access technology is not separated from BWA in this survey. BWA/Wifi access is counterbalanced by ADSL in almost all sectors, in a proportion around 30 percent.

BAB 3 halaman 13

Narasinya sbb:



14

Provincial Internet Network Facilities

06 East Java 07 Bali

Cellular

Wifi/Wimax

VSAT

Fiber Optics

Leased Line

DSL

Dial Up

10,1

51,6

2,5

5,9

6,7

38,9

22,8

11,9

0

26,1

2,3

28,5

23,8

83,3

Java and Bali

Cellular

Wifi/Wimax

VSAT

Fiber Optics

Leased Line

DSL

Dial Up

9,3 4,7 2,4 6,95,6

44,931,2 50,5 49,4 55,1

6,2 3,5 1,2 3,44,4

15,6 15,2 8,4 10,324,7

6,2 12,9 7,2 6,910,1

40,6 42,1 27,526,9

9,3 23,5 27,7 27,520,2

01 Banten 02 Jakarta 03 West Java 04 Central Java 05 Yogyakarta

The regions are dominated by WiFi/WiMax/Microwave broadband internet connection. WiFi/WiMax/Microwave access is mostly used in Yogyakarta (55.17%). Cellular access is mostly used in East Java (10.17%). While in Central Java, most users are connected with dial-up acces (27.71%).

Although internet access in Java is dominated by wireless technology, fiber optic such as metro Ethernet and FTTH are already introduced as potential access technology.

Fixed broadband technology with higher speed namely 10Mbps will be more efficient with fiber optic access technology.

It is true that the speed to extend fiber optic much ‘slower’ than wireless technology, but there is increasing number of providers that manage fiber optic and several big operators had started long before this technology becomes mature in Indonesian market.

Wifi/Wimax VSAT Dial Up Fiber OpticsDSL Leased Line Cellular

0203

04 06

0507

01



15


06 Riau Islands 07 Bangka Belitung 09 Bengkulu 10 South Sumatra08 Lampung

Cellular 0 20 0 33,3 7,6

25 20 45,4 100 69,2

12,5 0 18,1 0 0

6,2 0 9 0 0

18,7 20 18,1 0 7,6

31,2 20 36,3 0 30,7

25 40 9 66,6 0

Wifi/Wimax

VSAT

Fiber Optics

Leased Line

DSL

Dial Up

90,9

01 Jambi 02 Riau 04 North Sumatra 05 Aceh03 West Java

Cellular 5,514,2 0 03,5

55,542,8 33,2

16,60 8,3 03,5

5,50 8,3 03,5

00 8,3 07,1

44,471,4 58,3 046,4

11,114,2 25 917,8

Wifi/Wimax

VSATFiber Optics

Leased Line

DSL

Dial Up

28,5

Sumatra

This region is dominated by DSL broadband internet connection. Largest percentage of DSL access can be found in Jambi (71.43%). Cellular access is dominant in Bengkulu (33.33%). While dial-up access is also dominant in Bengkulu (66.67%).


05

04

01

07

0602

03

09

10

08



16


Sulawesi

05 Gorontalo 06 Southeast Sulawesi02 West Sulawesi

Cellular

Wifi/Wimax

VSATFiber Optics

Leased Line

DSL

Dial Up

0 0 28,5

50 0

0 0

0 0 0

50 0 42,8

50 66,6 21,4

0 66,6 42,8

03 South Sulawesi 04 Central Sulawesi

7,1 0

7,1 0

0 0

28.6 0

42,8 16,6

21,4 33,3

35,7 50

Cellular

Wifi/Wimax

VSATFiber Optics

Leased Line

DSL

Dial Up

01 North Sulawesi

8,3

0

16,6

0

8,3

41,6

58,3


This region is dominated by WiFi/WiMax broadband internet connection without indication of cellular access. Largest percentage of WiFi/WiMax and dial-up accesses can be found in Gorontalo (66.67%).

01

05

04

02

03

06

Dominan:VSATDSL

Dial Up

Dominan:Wifi

Dial Up

Dominan:WifiDSL

Kalimantan

21,7 0Dial Up 33,3 6,2

03 East Kalimantan 04 South Kalimantan

Cellular 0 10

23,5 10

0 0

5,8 0

35,2 40

Wifi/Wimax

VSATFiber Optics

Leased Line

DSL

41,1 60

01 Central Kalimantan 02 West Kalimantan

0 12,5

0 0

0 0

16,6 25

33,3 18,7

66,6 62,5

All provinces in Kalimantan are dominated by the use of WiFi/WiMax access. Largest WiFi/WiMax access used by the business sector can be found in Central Kalimantan (66.67%) and West Kalimantan (62.50%).

0101

03

02


17

Wifi/Wimax VSAT Dial Up Fiber OptikDSL Leased Line Seluler

01 North Maluku

Cellular

Wifi/Wimax

VSATFiber Optics

Leased Line

DSL

Dial Up

0

0

50

0

0

50

100

Maluku, Papua and Nusa Tenggara

04 Papua 05 West Papua

Cellular

Wifi/Wimax

VSATFiber Optics

Leased Line

DSL

Dial Up

0 0

28,5 0

0 0

0 25

42,8 25

28,5 25

42,8 50

02 East NT 03 West NT

12,5 0

0 0

0 11,1

25 11,1

37,5 0

25 22,2

52,5 88,8

06 Maluku

xx

0

0

0

20

0

60


These regions are dominated by WiFi/WiMax broadband internet connection without indication of cellular access. Largest percentage of WiFi/WiMax access is North Maluku (100%). Dial-up access is also dominant in North Maluku (50%).

01

06

04

02 03

06



18

Cost of Internet Access Paid by the Enterprises persentage


1 2 3

Cost of Internet Access

> 1 million

0.5 - 1 million

< 0.5 million

33.9 40.1

34.4 36.8

55.025.5

29.2

37.0

8.2

Survey results that suggest average monthly subscription fee paid by the enterprises to the internet service providers.

Research conducted by Ookla suggests that cost of internet in Indonesia is USD 26.04 per Mbps, or ranked 62 of 64 countries included in the research. Indonesia is only better from Venezuela (USD 28.96 per Mbps) and the Philippines (USD 30 per Mbps). In comparison, the price is almost 9 times more expensive than neighboring Singapore (USD 2.93 per Mbps) and twice than Malaysia (USD 11.54 per Mbps).

Expensive Internet Cost in Indonesia

source: infokomputer.com

Largest percentage of manufacturing industry (36.96%) had paid subscription of internet access below Rp 500 thousand per month. The figure is relatively similar with subscription fee between Rp 500 thousand and Rp 1 million per month (29.19%) and above Rp 1 million per month (33.85%). While 54.97% restaurants pay the subscription fee below Rp 500 thousand per month.



19

Today, the availability of internet access/services in hotels becomes a liability. There are guests who left the hotel and unwilling to pay because the hotel’s internet service is unsatisfactory. Hotel managers nowadays are aware of reviews written by the customers in the form of direct complaints or post of comments in social media, tripadvisor for example. This reflects in internet subscription cost which is dominantly above Rp 1 million/month in hospitality industry. In recent years, internet subscription fee is decreasing drastically, so the survey suggests that more than 60% business respondents pay below Rp 1 million/month. But a conclusion can not be made whether it is a matter of cost or interest and requirements for faster internet access are represented in the portion of 40%. Restaurants are supported by internet with a relatively high availability but the capacity is not large and it seems the service is not yet a liability (in SLA and its capacity). This matter is reflected in dominant internet cost below Rp 500 thousand per month.

Jakarta, 1 October 2013

Higher internet traffic due to the increasing number of

subscribers has encouraged the internet service providers

to improve the quality and capacity of their infrastructures.

To improve the service quality of its members, the

Indonesia Internet Service Provider Association (APJII) has

revitalized its infrastructures by improving device quality

in internet data traffic exchange terminal with Indonesia

Internet Exchange (IIX) which is newly operated.

In the revitalization APJII uses Brocade MLXe-16 router

which has capability to serve traffic up to 7.68 Tbps (tera

bit per second) with total port of 528 x 1 GBe (Gigabit

Ethernet) and 16 x 10 GBe (Ten Gigabit Ethernet).

The capacity is added with 100 Gbe (Hundred Gigabit

Ethernet) modules that redundantly configured in several

data centers connected to IIX APJII.

According to Head of IIX APJII, Harianto Pribadi, IIX is one

of Indonesian internet backbones and it becomes the main

focus of APJII services to accommodate more than 280

internet service providers including telecommunication

operators.

As addition to improving IIX capability, he continued, APJII

also establishes partnership with data centers namely Cyber

CFS (Jakarta), Biznet Technovillage (Cibubur, Bogor) in Tier-3

category and Omadata (Surabaya), and XL Data Center (East

Java).

The availability of reliable IIX infrastructures with large

capacity will avoid errors that may result in Indonesian

internet services collapsed. Total traffic of IIX APJII is 8-10

Gbps with a total of 181 peers. According to Harianto, the

migration will improve the traffic growth at the end of 2013

up to threefold.

APJII Improves Internet Exchange Capacity

source: apjii.or.id


20

MANUFACTURINGINDUSTRY

73.5

0.83.9

21.8

HOTELS

14.6

2.30.6

81.8

RESTAURANTS

0.62.3

7.6

89.5

NUMBER OF INTERNET SERVICE PROVIDER USED

Using 4 ISPs or more

Using 3 ISPs

Using 2 ISPs

Using 1 ISP

ISP (Internet Service Provider) means a service business offered by an enterprise to its subscribers to access internet by providing interface to the internet network.

Survery results on number of ISP used by the enterprise.

Most of the businesses in the sector use one ISP, and there are few businesses use four ISPs simultaneously.


21


Chapter IVPURPOSES OF INTERNET USERS


22

In the aspect of internet utilization by business sector, the survey suggests that e-mail (receive and send) is on top (95.7%), second utilization of internet is to search for news or information (78.49%), third is search for goods and services (77.81%), fourth is search for government agencies information/tender (77.81%), and the fifth utilization of internet is social media (61.23%). The figures may differ with the results of previous APJII’s survey on internet use in households/consumers where social media is the top internet utilization (88%)

while e-mail stands in fifth position. Social media used in business sector is not necessarily for personal use of the employee considering that nowadays many enterprises use social media as a tool for promotion and customer service. The unique result is the news media (search for news information) in Indonesia, both in the consumer and industrial surveys it is ranked the second or the third (68%).

WHAT ACTIVITIES PERFORMED BY INDUSTRIAL INTERNET USERS WHEN ACCESSING THE INTERNET?

Deliver/receive e-mails

Search for news information

Search for goods/services

Search for government agencies

Provide customer services

Social media

Receive good/service orders

Internet banking

Purchase goods/services

Employee recruitment

Access other financial facilities

VOIP

State-Owned Enterprises electronic procurement

Video conferencing

Personnel training

Others

95.7

78.4

77.8

65

61.2

61.2

55.7

47.2

45

38

37.6

20.6

25.6

19.5

17.1

4.1P2TIK 2013 survey, a cooperation between BPS and APJII

23


PURPOSES OF INTERNET USE


Search for goods/services



Internet banking

Receive good/service orders

Purchase goods/services

Social media



Provide customer services

VOIP

State-Owned Enterprises electronic procurement

Video conferencing

Personnel training

Others

74.7 76.2 31.0

84.4 89.4 52.1

54.5 52.7 26.9

50.6 48.3 31.0

28.4 27.2 18.7

38.9 45.0 22.8

84.1 86.8 50.9

54.1 65.2 38.6

40.9 42.7 25.7

19.1 24.5 11.7

3.9 4.6 3.5

50.6 78.8 46.2

19.5 21.2 6.4

14.4 28.5 16.4

38.1 82.8 57.9

MANUFACTURINGINDUSTRY

HOTELS RESTAURANTS

95.7 97.0 93.6

Purposes of internet use: activities or needs related to enterprise’s business those require internet network facilities.

Main purpose of internet use in business sector is dominated by the activity to send or receive e-mails and search for goods or services. While providing customer services is the main purpose of internet use in restaurants.



24

Social Media


Purposes of Internet Use in Sumatera

Aceh North Sumatera West Sumatera Riau Jambi

72.7

54.5

30.3

18.1

66.6

48.4

66.6

36.3

27.2

9.0

33.3

33.3

54.5

36.3

30.3

3.0

83.3

66.6

8.30

8.30

83.3

50.0

91.6

66.6

50.0

33.3

41.6

33.3

66.6

16.6

8.3

8.3

94.4

72.2

27.7

16.6

66.6

50.0

72.2

50.0

50.0

16.6

44.4

22.2

38.8

16.6

22.2

5.5

100

75.0

8.3

8.3

83.3

75.0

91.6

75.0

58.3

25.0

33.3

41.6

75.0

41.6

-

-

87.5

50.0

12.5

-

75.0

75.0

75.0

37.5

25.0

25.0

37.5

25.0

50.0

50.0

25.0

-

Highest Second Highest

VOIP

Video Conferencing

Search for goods services



Receive goods/service orders

Purchase goods/service orders

State-Owned Enterprises electronic

Internet Banking


Provide Customer services


Personnel training

Others


25


Social Media


South Sumatera Bengkulu Lampung Bangka Riau Belitung Islands

66.6

66.6

33.3

-

50.0

33.3

66.6

50.0

50.0

33.3

66.6

33.3

50.0

16.6

33.3

-

100

50.0

18.7

6.2

68.7

43.7

50.0

62.5

43.7

6.2

50.0

37.5

75.0

43.7

18.7

-

91.6

66.6

33.3

16.6

58.3

50.0

58.3

41.6

33.3

16.6

33.3

25.0

41.6

25.0

16.6

-

100

33.3

-

33.3

100

100

100

66.6

66.6

33.3

33.3

33.3

100

-

-

-

87.5

50.0

12.5

-

75.0

75.0

75.0

37.5

25.0

25.0

37.5

25.0

50.0

50.0

25.0

-

Purposes of Internet Use in Sumatera


VOIP

Video Conferencing







Internet Banking




Personnel training

Others



26

West Central East Banten BaliJakarta Java Java Yogyakarta Java

82.9

51.0

15.9

14.8

68.0

62.7

72.3

51.0

40.4

13.8

40.4

30.8

54.2

32.9

17.0

4.2

93.5

70.9

22.5

16.1

87.1

74.1

87.1

74.1

54.8

12.9

51.6

45.1

77.4

51.6

16.1

9.6

85.7

49.6

18.0

14.2

66.9

55.6

62.4

42.8

35.3

14.2

45.1

27.8

39.8

31.5

13.5

4.5

83.8

46.4

27.2

19.1

66.6

55.5

63.6

45.4

39.3

20.2

49.4

38.3

54.5

41.4

27.2

3.0

81.8

58.5

18.1

22.2

75.7

69.7

73.7

48.4

40.4

14.1

41.4

36.3

59.6

27.2

13.1

4.0

91.4

57.1

28.5

20.0

77.1

65.7

74.2

60.0

40.0

17.1

25.7

34.2

54.2

31.4

22.8

5.7

93.3

62.2

35.5

24.4

77.7

57.7

91.1

51.1

46.6

15.5

64.4

35.5

71.1

60.0

20.0

-

Purposes of Internet Use in Java and Bali


Social Media


VOIP

Video Conferencing







Internet Banking




Personnel training

Others


27


West Central South EastKalimantan Kalimantan Kalimantan Kalimantan

93.7

43.7

18.7

-

75.0

62.5

87.5

37.5

31.2

-

31.2

18.7

50.0

25.0

-

-

85.7

71.4

-

-

71.4

71.4

71.4

71.4

71.4

28.5

28.5

42.8

71.4

42.8

42.8

-

89.4

73.6

31.5

42.1

73.6

68.4

73.6

57.8

63.1

31.5

57.8

57.8

68.4

52.6

42.1

5.2

100

40.0

20.0

30.0

50.0

50.0

60.0

30.0

30.0

10.0

40.0

40.0

70.0

20.0

20.0

-

Purposes of Internet Use in Kalimantan


Social Media


VOIP

Video Conferencing







Internet Banking




Personnel training

Others



28

West Central North South Southeast GorontaloSulawesi Sulawesi Sulawesi Sulawesi Sulawesi

66.6

66.6

-

-

66.6

33.3

66.6

33.3

-

-

-

-

33.3

-

-

33.3

55.5

44.4

11.1

11.1

44.4

33.3

44.4

33.3

22.2

-

11.1

11.1

22.2

22.2

11.1

11.1

100

91.6

66.6

25.0

75.0

66.6

83.3

66.6

50.0

8.3

41.6

66.6

58.3

33.3

41.6

-

86.6

60

26.6

33.3

86.6

60.0

86.6

60.0

46.6

20.0

60.0

33.3

46.6

40.0

33.3

6.6

87.5

25.0

25.0

12.5

25.0

25.0

50.0

25.0

25.0

12.5

12.5

12.5

37.5

25.0

25.0

-

100

33.3

-

33.3

33.3

66.6

66.6

-

-

-

-

-

66.6

-

-

-

Purposes of Internet Use in Sulawesi


Social Media


VOIP

Video Conferencing







Internet Banking




Personnel training

Others


29


NTT NTB Maluku North West Papua Maluku Papua

75.0

25.0

25.0

16.6

58.3

41.6

50.0

41.6

50.0

8.3

25.0

33.3

41.6

25.0

25.0

-

87.5

87.5

37.5

25.0

87.5

50.0

87.5

62.5

50.0

12.5

25.0

62.5

75.0

25.0

-

-

83.3

50

16.6

16.6

66.6

16.6

33.3

33.3

33.3

16.6

16.6

16.6

50.0

33.3

-

-

100

100

100

50.0

100

100

100

100

100

-

100

100

100

50.0

50.0

-

100

100

25.0

50.0

100

75.0

100

100

100

75.0

100

50.0

75.0

25.0

-

-

85.7

42.8

28.5

14.2

57.1

42.8

57.1

57.1

42.8

14.2

14.2

28.5

42.8

28.5

14.2

14.2

Purposes of Internet Use in Nusa Tenggara, Maluku and Papua


Social Media


VOIP

Video Conferencing







Internet Banking




Personnel training

Others



30

ADVERTISE HERE

Jakarta, 26 September 2013

This time the Indonesia Internet Service Provider

Association (APJII) is revitalizing its important

infrastructure by improving device quality in internet

data traffic exchange terminal (IIX - Indonesia Internet

Exchange). The revitalization is marked with the launch of

IIX APJII using Brocade MLXe-16 router which has capability

to serve traffic up to 7.68 Tbps (tera bit per second) with

total port of 528 x 1 GBe (Gigabit Ethernet) and 16 x 10

GBe (Ten Gigabit Ethernet).

IIX is one of Indonesian internet backbones and it becomes

the main focus of APJII services to accommodate more than

280 internet service providers including telecommunication

operators. Massive investment made by APJII is driven by

the trend of internet users that increasingly grows.

As addition to improving IIX capability, APJII realizes that

data storage requirements have the same weigh. With its

limitation in data storage, APJII has established partnership

with data centers namely Cyber CFS (Jakarta), Biznet

Technovillage (Cibubur, Bogor) in Tier-3 category and

Omadata (Surabaya), and XL Data Center (East Java).

With the operation of two MLXe-16 in APJII data center at

Cyber Building first floor and Cyber CFS data center, both

data centers have been integrated using metro-ethernet

technology with 256-core fiber optic media end-to-end and

also function as IIX single cloud. Therefore ISP members

of APJII may establish direct peer at Cyber Building first

floor and Cyber CSF, or Biznet Technovillage data center.

Furthermore, IIX APJII will also be connected to Nusantara

eXchange (NIX) located in Bali, Surabaya, Palembang, and

Medan.

This is the biggest revitalization and massive investment

ever made by the APJII since IIX was deployed in 1997 and

connecting 15 pioneering ISPs. At the time, APJII received

device infrastructure assistance from Cisco, Intel, and HP.

The availability of reliable IIX infrastructures with large

capacity is expected to improve public services by avoiding

the occurrence of single point of failure that may result in

Indonesian internet services collapsed.

Also, in APJII’s data center on the first floor of Cyber

Building, there is Meet Me Room (MMR) equipped with

cat6 cabling system and adequate backup UPS where

APJII members may set up the switch to facilitate

interconnection between carrier operator (Telco) and the

ISPs.

Today total traffic of IIX APJII is 8-10 Gbps with a total

of 181 peers. According to Harianto, the migration will

improve the traffic growth at the end of 2013 up to

threefold. “We hope IIX traffic at the end of 2013 will

grow threefold,” said Harianto.

Previously IIX APJII implements VRRP (Virtual Router

Redundant Protocol) in two Juniper M7i routers and for

the next generation it implements GLBP (gateway load

balancing protocol) in two Brocade MLXe-16. IIX traffic is

expected to grow threefold by the end of 2013. However,

it depends on the amount of data and connectivity rate

of traffic owners to IIX APJII.

Through the socialization of IIX and Data Center APJII

Connect, APJII members may immediately fill the SO to

utilize 120 racks capacity in Cyber CSF and APJII racking

capacity in Biznet Technovillage, and data center partners

outside Jakarta.

APJII Revitalizes IIX to Anticipate the Wave of Traffic Growth

source: apjii.or.id

INTERNET USER PENETRATION IN 2013


32

INTERNET USER PENETRATION IN 2013

Indonesian internet users will reach 71.19 million in 2013

The Indonesia Internet Service Provider Association (APJII) and Central Bureau of Statistics (BPS) reveals internet users in Indonesia had reached 71.19 million at the end of last year.

The figure means 13 percent growth compared to the end of 2012 with 63 million users, said APJII Chairman, Sammy Pangerapan in the presentation of cooperation between APJII and BPS, on Wednesday 15 January 2014.

When comparing the figure with total population then, according to Sammy, internet penetration in Indonesia is approximately 28 percent.

“Thank you BPS for the cooperation in conducting the internet survey, with this way the Indonesia government and general public know the position of internet industry today,” said Sammy.

Based on survey result, APJII estimates that it is hard for Indonesia to achieve an alignment with the target of Millennium Development Growth (MDGs) which has also been agreed by the International Telecom Union (ITU), that in 2015 half population on earth must connected to the internet.

Based on population in Java region, the highest number of internet users is West Java province with 13.2 million users, followed by East Java with 9.8 million users, and Central Java with 8.6 million users.

While in other regions, based on population, the lowest internet users are found in West Papua and North Maluku. Understandably, it is due to limited infrastructures and internet network availability in the regions.

Some IT experts and observers through in-depth interviews had suggested several factors that drive the growth of internet service business in Indonesia. The factors can be concluded in three main factors as follows:

source: merdeka.com

1. Economics (consideration to choose low-cost internet access with affordable devices)

2. Technology (tendency to easy of use or user friendly)

3. Culture (culture of Indonesian people who tend to engage in long conversation or gathering)

These three factors are simultaneously visible on the lifestyle of Indonesian internet users who like to access social media using smartphone devices that are relatively easy to use, and affordable device and prepaid access, thus supporting the gathering culture.


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37.9%

1. ACEH

2. NORTH SUMATERA 4. RIAU

19.3%

26.7%

3. WEST SUMATERA

9. BANGKA BELITUNG

5. JAMBI 7. BENGKULU

01

02

03

04

06

05

07

08

09

Internet UsersPopulation

Internet User Penetration in Sumatera Region

5.14

14.50

1.95

5.41

6.43

3.51

8.36

1.94

8.47

1.40 1.98

2.79

1.44 1.441.00

2.14

0.55

2.73

0.360.63

Unit: Million

22.5%

28.6%

25.6%

28.2%

32.2%

25.8%

32.0%

6. SOUTH SUMATERA

8. LAMPUNG 10. RIAU ISLANDS

PENETRATION

The figures of internet user penetration in Indonesia which described for each province are determined using extrapolation method based on historical data of internet users obtained from APJII’s previous surveys.


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Internet User Penetration in Java and Bali Regions

1. JAKARTA 3. CENTRAL JAVA 5. EAST JAVA 7. BALI

2. WEST JAVA 4. YOGYAKARTA 6. BANTEN


Unit: Million

PENETRATION

42.8%

27.4%

23.9%

21.7%

24.4%

41.5%

37.5%

48.37

35.44

3.38

40.90

12.23

1.87

10.64

4.55

13.24

8.64

1.59

9.79

2.651.62

01

02

03 04

0605


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1. WEST KALIMANTAN

3. SOUTH KALIMANTAN

5. NORTH SULAWESI

2. CENTRAL KALIMANTAN

4. EAST KALIMANTAN

9. GORONTALO7. SOUTH SULAWESI


Kalimantan Sulawesi

Unit: Million

6. CENTRAL SULAWESI

8. SOUTHEAST SULAWESI

10. WEST SULAWESI

01 02

04

03

PENETRATION

17.8% 23.8% 27.8% 34.1% 26.1%

23.2% 23.3% 27.6% 23.5% 34.0%

4.95

0.880.59

2.54

4.11 4.12

0.98 0.96

InternetUsers

Population

Unit: Million

2.52

0.70 0.82

2.97

8.90

2.55

1.17 1.31

3.03

0.600.31 0.45

Internet User Penetration in Kalimantan and Sulawesi Regions

05

06

07

08

09

10


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Internet User Penetration in Nusa Tenggara, Maluku, and Papua Regions

01. WEST NUSATENGGARA

03. MALUKU 05. WEST PAPUA

02. EAST NUSA TENGGARA

04. NORTH MALUKU 06. PAPUA


Unit: Million

PENETRATION

38.3%

21.6%

15.7%

28.9%

22.3%

18.7%

5.26

1.73

1.190.88

3.24

5.02

1.92

1.14

0.390.22 0.14

0.93

01 02

03

05

04

06


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ANNEX

P R O F I L E


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APJII ESTABLISHMENTThe Indonesia Internet Service Provider Association (APJII) was established in Jakarta on 15 May 1996 by the Deed of Establishment No.148 dated 16 August 1996 made by Notary Darbi, SH.APJII was established by Internet Service Providers that had obtained official licenses from the Government, considering that internet as global information and communication media is a strategic technology and facility that needs to be controlled properly so it can be optimally utilized in supporting various development activities in Indonesia as well as educating the nation.

APJII Founders

APJII Missions APJII Objectives

APJII’s Principle and Foundations

• PT. Rahajasa Media Internet ;• PT. Indosat, Tbk ;• PT. IndoInternet ;• PT. Cyberindo Aditama ;• PT. Melvar Lintasnusa ;• PT. Bitnet Komunikasindo ;• PT. Grahasedaya Serasi ;• PT. Khasanah Timur Indonesia ;• PT. Jasa Jejaring Wasantara ;• PT. Centrin Utama (Saat Ini PT. Centrin

Online Tbk) ;

• To support internet development in Indonesia;

• To manage internet resources to internet community in Indonesia; and

• To improve human resources potential in internet technology.

a) APJII adopts Pancasila as the sole principle;b) APJII foundations:

• PT. Transmedia Mitra Indonesia (Saat Ini PT. Transmedia Indonesia) ;

• PT. Sejahtera Globalindo ;• PT. Pos Indonesia (Saat Ini PT. Bhakti

Wasantara Net) ;• PT. Visionindo Network Perdana ;• PT. Promindo Global Internet ;• PT. Uninet Bhaktinusa ;• PT. Meganusa Lintasbuana ;• PT. Carakayasa Binekatara ;• PT. Alpha Netindo Pratama.

• To facilitate its members in providing quality internet services for the people of Indonesia;

• To promote internet in supporting human resources development in Indonesia;

• To support the creation of business opportunities for Indonesian entrepreneurs by providing global information and communication facilities;

• To support the Government in its effort to realize economic equality in Indonesia by providing equal access opportunities to information and communication in all regions in Indonesia;

• To facilitate its members in providing sources of information about Indonesia; and

• To improve people participation in international cooperations.

c) APJII is not involved in politics, not affiliated with any political group or party, and not pursuing material gain (non-profit association).

1

3

2• The 1945 Constitution as constitutional

foundation;• Law Number 1 of 1987 on Chamber of

Commerce and Industry as structural foundation; and

• APJII’s Articles of Association as operational foundation.


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APJII Structure and Instruments

APJII Main Duties

• National Conference;

• Extraordinary National Conference;

• National Working Meeting;

• APJII Open Policy Meeting (AOPM);

• Supervisory Board;

• Executive Board;

• Regional Executive Board; and

• Daily Executive Board.

5

4

• To maintain and develop a sense of unity among its members;

• To protect the interests of its members in carrying out their business in accordance with applicable laws and regulations;

• To facilitate arbitration efforts by means of mediating, reconciling, and settling the disputes of interest among its members;

• To organize communication and consultation among members, between members and the Government, and between members and domestic and foreign partner associations/organizations, and business in general;

• To participate in determining relevant policies in internet industry;

• To establish relationship with economic and other agencies, both national and international agencies related to and beneficial to APJII; and

• To be Government partner in developing national and international information and communication facilities in order to mobilize all available resources in integrated, efficient, and effective ways;


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APJII SERVICES

MEMBERSHIP

NUSANTARA INTERNET EXCHANGE (NIX)

INDONESIA INTERNET EXCHANGE (IIX)

1 2

• APJII member shall be business entity that has obtained Internet Service Provider License issued by the Government and/or authorized agencies and has legitimate official business as provided in laws and regulations of the Republic of Indonesia is represented by its owner or director; and

• APJII honorary member means individual figure, government official, and organization/body/institution whose considered having merits and/or participation in the progress of the organization (APJII).

•

NIX is a Government program through the Ministry of Communication and Information of the Republic of Indonesia which will be built and enabled by 33 (thirty-three) provinces in Indonesia.

Currently APJII has established cooperation with the telecommunication company the winning bidder to operate NIX at the Institute for Telecommunication and Information Financial Provision and Management, Directorate General of Post and Information Operations, Ministry of Communication and Information of the Republic of Indonesia.

Currently the results of such cooperation have been realized in the following cities: Medan (North Sumatera), Surabaya (East Java), Denpasar (Bali), and Palembang (South Sumatera), followed by Jakarta, Batam (Riau Islands), Bandung (West Java), Semarang (Central Java), Yogyakarta, Solo, and the possibility of other provincial capital cities.

IIX is national interconnection service between Internet Service Providers (ISPs) in Indonesia, so that subscriber of one ISP may communicate with other ISP subscriber located in Indonesia with easy access and affordable cost. IIX management is a strategic program that became one of APJII’s main services to its members which was initiated in 1996. IIX service management has been gradually developed professionally.

Current locations of IIX nodes:• 3 (three) nodes, one is located in Jakarta and independently

managed by APJII;• 2 (two) nodes each in Jakarta and Surabaya are results of

cooperation between APJII and Data Center Provider in both cities;

• 1 (one) node in Yogyakarta Regional Executive Board;• 1 (one) node in East Java Regional Executive Board;• 1 (one) node in Bali Regional Executive Board;• 1 (one) node in Central Java Regional Executive Board;• 1 (one) node in North Sumatera Regional Executive Board;• 1 (one) node in Southern Sumatera Regional Executive Board;

and• Following are West Jave, Riau, and Riau Islands Regional

Executive Boards.

3


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4

INDONESIA NETWORK INFORMATIAN CENTRE (ID-NIC)

ID-NIC is part of APJII which has responsibility to manage IP address allocation in Indonesia. ID-NIC is one of National Internet Registries under Asia Pacific Network Information Center (APNIC) which is Regional Internet Registry based in Brisbane, Australia. The internet functions properly because of communication between devices (machines) in a numbering-based network which is now known as Internet Protocol version 4.

Services• Allocation of Internet Protocol version 4 (IPv4) and version 6 (IPv6);• Reverse DNS;• Route Object; and• Other related data.

Services are intended for• Internet Service Providers, Network Access Points, and holders of

other telecommunication licenses issued by the regulator or the Government;

• Government or private agencies;• Educational institutions; and• Individuals;

Benefits of having own IP Allocation • Relatively large allocation (minimum of 256 IPs);• No need to change IP address when changing Internet Service

Provider;• Clear company identity in ‘Who-Is’ data; and• Can do multi-homing which use 2 (two) or more Internet Service

Providers as gateway or to connect to the Internet Exchange.

TrainingsID-NIC regularly organizes trainings related to Internet Protocol utilization in cooperation with APNIC and other competent institutions.The trainings are intended for technical personnel who work at Internet Service Providers, general companies, government agencies, and academic institutions.

For further information please contact:

Cyber Building I, 3A floor & 11th floorJl. Kuningan Barat No.8, Jakarta 12710Phone : 021.52960634, Fax : 021.52960635Email : [email protected] [email protected] : www.apjii.or.id & www.idnic.net


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