Indonesia Digital Landscape

Indonesia digital landscape

brief overview

250

4th

73Source: eMarketer Indonesia Online, March 2013

million people

largest population

in the world

million online population

by the end of 2013

Source: Google 2012, Bloomberg , April 2012, in On Device Research 2013

*Google measured speeds on desktop and mobile devices in 50 countries

#1Slowest desktop internet speed in the world*

slowest mobile internet speed in the world*#9

but cheapest for mobile data plan

and internet penetration is still Growing rapidly

Source: eMarketer Indonesia Online, March 2013

online growth

internet users (in million)

59.6

72.783.6

93.4

2012 2013 2014 2015

Indonesia online population

is growing rapidly

demographic profileSource: APJII, Indonesian Internet Profile, December 2012, comScore Media Metrix, March 2013

MALE Female

48.4%

51.6%

female internet users

started to catch up with

the proportion of male

internet users

Source: comScore, Media Metrix, March 2013

in general, women are more likely to visit family, home, and retail

sites, while men gravitate towards sports, auto, and technology

fragrances/cosmestics 168

flowers/gift/greetings 152

lifestyles - food 140

department stores 137

jewellery/accessories 137

teens 133

family/parenting 130

(highest)

f-to-m

reach index

politics 78

technology - news 78

automotive 77

gaming information 76

online gambling 75

sports 74

online trading 69

(lowest)

f-to-m

reach index

demographic profileSource: APJII, Indonesian Internet Profile, December 2012

9.9%

10.9%

11.6%

14.2%

11.8%

10.9%

10.1%

9.1%

6%

3.1%

2.5%60-65

55-59

50-54

45-49

40-44

35-39

30-34

25-29

20-24

15-19

12-14

years old

DIGITAL IMMIGRANT Older generation, knew

internet when they were

adults, often feel the need

to always learn to adapt

with new technologies

!DIGITAL Native Younger generation, born

and living in the internet

era. Tend to make trends in

cyberspace


internet users are dominated

by younger Generation.

Digital immigrant

41.6%

58.4%Digital Native


1.3%

20.8%

11.1%

47.9%

11.3%

7.5%Elementary school

Middle school

High School

diploma

graduate

post-graduate

Internet users are predominated by people

with higher education

demographic profile

Housewives group is rapidly

growing because of the needs

to socialise, seek information

or conduct a business

58.4%16.6%

15.3%

9%

5.8%

Workers

Students

Housewives

college Students

unemployments

Source: APJII, Indonesian Internet Profile, December 2012

demographic profile

15.1%

21.5%

63.4%

White collar

blue collar

entrepreneur

blue collar using internet to socialise

rather than directly to work

!white collar intensely accessing the

internet anytime anywhere to

obtain information, both work

and personal purposes


Mobile internet is making

gains, aided by affordable

smartphones along with

more affordable data

packages

Device used66%

52%45%

2%mobile desktop notebook tablet


shares of device page traffic on a typical workday

Device used

Source: comScore Device Essentials, July 2013

Device usage varies significantly by time of day.

Mobiles brighten the commutes, Desktops take

up work hours, while tablets rule evenings.

2.6%

3.6%

5.3%

5.9%

18.5%

22.4%

57.9%

62.1%

68.3%

68.9%

87.8%

reasons to go online

Social media

Browsing

news

dl/uL video

email

chatting

online game

video call

blog

voip

file sharing

internet users has not been seriously harness the

power of technology for productive activities. It is

still largely used only for social media, browsing, or

to find the latest news updates


Source: comScore Media Metrix, March 2013

top 10 most visited

categories87% 86%

80%72%

63% 63% 59%53% 52%

29%

sns search blog news multimedia lifestyle email games photosent.


top 5 most visited sites by category

Category: Retail

AVG.com 1,435

Amazon Sites 1,347

Lazada Sites 1.260

Indonetwork.co.id 778

apple.com worldwide sites 703

Category: travel

priceline.com INCORPorated 970

LIONAIR.CO.ID 561

airasia 513

tripadvisor inc 396

garuda-indonesia.com 381

Category: entertainment

youtube.com 7.171

OMG! from Yahoo! 2.172

kapanlagi.com 2.133

cbs interactive 1.808

VEVO 1.636

mobile internet users

demographic profile: Age

indonesia has the

youngest mobile

internet user base

in southeast asia

Source: MMA & VSERV.mobi, The Mobile Internet Consumer Indonesia 2013

14%

33%

32%

21%under 18

18-24

25-35

above 35

19%*

28%*

32%*

21%*

* SEA AVERAGE

demographic profile: gender

indonesia has one of

the highest male to

female ratio among

mobile internet users

in southeast asia

MALE Female

29%

71%


63%*

37%*

* SEA AVERAGE

demographic profile: educationSource: MMA & VSERV.mobi, The Mobile Internet Consumer Indonesia 2013

30% of mobile internet users in Indonesia

are graduates or post graduates

* SEA AVERAGE

9%

31%

29%

30% 36%*

27%*

10%*

27%*

graduate/post graduate

diploma/undergraduate

schooling up to 12 years

uneducated

demographic profile: occupation

1/4th of mobile internet users in indonesia are

businessmen or self employed professionals


16% business

9% self-employed

12% part time job

39% full time job 16% student

4% housewives

4% not working/retired

product

ownership

only 1/4th of mobile

internet users in indonesia

own an automobile


33% 27%

computers tablet

Consumer Durables automobiles payment cards

18%33% 22%

affluent lifestyle

only 1/3rd of mobile internet users in indonesia

went into a restaurant in the last month


* SEA AVERAGE

58%

46%

32%

58%*

47%*

41%*restaurant

movie theatre

shopping mall/market

Source: eMarketer, April 2012

phone types

2012 2013 2014 2015

users (in million)

23.8 38.557.7 71.6

148.9160.5

169.7179

mobile phone users

smartphone users

operating system

Source: IDC Indonesia via Jakarta Post, 5 January 2013

although android has

quickly become

majority, blackberry

(Until now) remains a

significant player

53%

35%

9%

android blackberry windows apple iOS

4%

device usage

Source: InMobi, Mobile Consumption Indonesia 2013

indonesian people are more likely to

use their mobile phones when they

were alone and it is cannibalising

print media

69%

35%

29%

17%

14%

lying in bed

while waiting

watching TV

spending time with family

while commuting

6%8%12%14%16%20%

24%social media

entertainment

general info

email

games

shopping

local search

online

activity

Source: InMobi, Mobile Consumption Indonesia 2013

growth in indonesian mobile

usage in the coming years is

likely to come from social

media & entertainment

Source: Redwing Asia (2012), InMobi (2012)

Mobile ADS

Mobile ads grew by 99% in 2012

200 billion ad impressions in 2012

2nd largest market in mobile ads

after the us


* SEA AVERAGE

users love mobile ads

that help them..

22%

33%

36%

67%

27%*

36%*

42%*

55%*download mobile content

find a good deal on something

learn about the brand

locate something nearby

downloaded

content


1/4th of mobile internet

users in indonesia download

all types of mobile content

in a month, highest in sea

70%

49% 44%33%

game/app video music theme

social network activities

INDONESIANS and

social media

Source: Multiple Resources in On Device Research, 2013

People are using social media to

make their voice heard

It has a higher user-to-usage

ratio than most other countries

politicians are now taking social

media seriously

it got worldwide attention for

politics-related discussion

Social media creates a sense of

community & IT’s Growing strong

Source: eMarketer, August 2012

social network79.2

users (in million)

% of internet users

80%

34.4

52.1

67.1

87.5%

92.3%

94.8%

2011 2012 2013 2014

TOP Social Networks


4.9%

5.9%

10.5%

26.4%

80.2%

facebook

twitter

LinkedIn

yahoo! Profile

tumblR

although Facebook is

still very popular, its

popularity may be

declining among the

digital savvy users in

larger cities who are

now turning to path

photo Sharing sites

hand in hand with other

social networking sites,

photo sharing are

becoming popular in the

country


28.8%

Reach of the category

7.1 min

time spent per visitor

social messaging

Source: On Device Research, 2013

instant messaging has become a multi-faceted platform —where

people can chat, play games and buy things- all in one place

43%whatsapp

37%blackberry

chatline facebook

messengertwitter Wechat kakaotalk Skype yahoo

messenger

36% 23% 23% 20% 16% 16% 15%

average instant messaging installed per person: 4.2. “indicate friends using

different apps” and “having different features” are two biggest reasons for having

multiple instant messaging apps.

Indonesians have caught

Into the sticker culture

Source: On Device Research, 2013

and 19% of sticker users have paid for them at least once

46%

use daily

84%

have used at least once

13%

do not use

e-Commerce in Indonesia

Source: TechinAsia, November 2013

E-commerce stats

29.8%penetration

4.6million

have shopped in 2013

1.8billion $

spent in 2013

users (in million)

% of internet users

17.5%

43

2011 2012 201520142013 2016

59.674.6

83.693.4

102.8

24%29.8%

33%36.5%

39.8%

Source: eMarketer, March 2013

Market Growth

Source: APJII, Indonesian Internet Profile, Dec 2012

shopping behaviour

clothing

handphone

plane/show ticketS

laptop & Acc

bags

books

electronics

shoes

77.1%

2.1%

8.7%

3.8%

11.1%

5.2%

2.2%

5%

39.1%

17.8%

16.9%

16.1%

1.4%

11%

9%

8.8%

fashion and female

are the top

category & buyer

respectively

Market reluctance


2.4%

4%

4.1%

4.7%

5.2%

6%

9.3%

12.7%

13.8%

21.5%

34.6%fear of fraud

items cannot be touched/seen

high prices

not interested/not needed

quality of products is not guaranteed

do not know how

not practical

items do not match offer

items are not in accordance with anyone’s liking

items do not match picture

long process

payment method

Source: Indonesia Credit Card Association, 2013

57%bank transfer

7%credit card

28%cash on delivery

8%others

bank transfer is still the most

preferred method of payment

because many users are still

unfamiliar with online payment and

worry about online security

Source: Veritrans & Daily Social, eCommerce in Indonesia, August 2012, eComScore Metrix, March 2013

Majority of digital

buyers prefer C2c

model. Seller & Buyer

negotiation made

through any

platforms, including

phone calLs, SMS,

Facebook, BBM,

Whatsapp & Twitter

top 10 sites for online purchase in 2012

1 Facebook 50%

2 Kaskus 49.2%

3 Disdus 19.5%

4 Toko Bagus 13.6%

5 Deal Keren 11.9%

6 Amazon 8.9%

7 E-Bay 8.5%

8 Bhinneka 5.5%

9 Multiply 5.5%

10 Blibli 4.7%

Growing

player in 2013

with 84%

growth from Sep

2012 to Mar 2013

Source: PriceArea.Com, 2013

key Players

c2c categoryB2c category

2013

indonesiain spotlights

internet user number in indonesia still grows at a high

pace in the past years, and is still dominated by younger

generation. although indonesians have already adopted

multiple platforms and devices, mobile phone is still

the key of internet penetration in the country. Social

networking and entertainment still capture majority

of online activities across platforms in which Facebook and

Youtube continue to be the number one in the category

respectively. SOCIAL Messaging receives positive

acceptance and provides opportunities to be monetised.

e-commerce is beginning to capture indonesian market and

provides a lots of headroom for growth. both B2C and c2c

model shows positive growth although securitY remains

an issue that prevented the audience to shop online.

thank you

Technology

Indonesia Digital Landscape