Indonesia ICT Institute Newsletter November Edition - in English

We again present Indonesia ICT Institute Newsletter to meet ICT community especially in Indonesia, after the presence of the prime newsletter last month. We also thank you for your input, criticism and dissemination of information newsletter. In the second edition this November, we review some of the issues ICT development in the country, ranging from Akamai reports that Indonesia internet speeds are low, the opening of a neutral technology in the 900 MHz band, as well as cloud computing market review market in Indonesia. As said before, it is not advisable to print this e-newsletter in order to save paper and ink. And for readers who want to provide input, feedback or questions please email to [email protected]. Happy reading. Heru Sutadi Executive Director

2nd Edition 1st Year November 2012

Indonesia ICT Institute Research . Empowerment . Discussion

Neutral Technology Policy DDDirectionTeknologi Netral

Tanpa Arah? The government has issued a neutral technology policy for 900 MHz. However, this policy is questionable because it does not offend refarming 1800 MHz.

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From Editor

.id domain users until the end of 2011 reached 59,059. According to Directorate General Telematics Applications, Ministry of Communications and Information Technology, most user domain .id is commercial (co.id) 29 059 followed by personal / community (web.id) and schools

(sch.id) with respectively 15 664 and 5602. The lowest is military (mil.id) with 155 sites.

Akamai: Indonesian Internet Still Slow Akamai has issued its report intelligent global platform of the 2nd quarter 2012 on connection speed, availability, connectivity and attack traffic in the topic of the report "State of the Internet Report".

Akamai Report said there are about 242 countries connected to the Akamai Intelligent Platform, which uses the platform to spread. By doing so, this report does not specifically discuss about Indonesia.

The method used by Akamai is to monitor on 25 thousand IP that requests to the Akamai’s content. Based on its report, the speed of the fastest internet connections during the second quarter of 2012 was South Korea with 14.2 Mbps, followed by Japan with 10.7 Mbps and Hong Kong in third place with 8.9 Mbps.

According Akamai’s report, Indonesia average internet speed is 0.8 Mbps or 800 kbps. With this condition, Indonesia position still below Singapore (5.1 Mbps), Thailand (3.1 Mbps), Malaysia (2.2 Mbps), Vietnam (1.6 Mbps) and the Philippines (1.2 Mbps). Globally, Indonesia at number 127.

Continue on Page 2

Market Review Reviewing how the cloud computing

market in Indonesia after two years of introduction.

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Although the average speed of the internet Indonesia is considered low, but the peak of the average internet speed can reach up to 8.4 Mbps, and Indonesia is ranked 104. Even this condition, still under the neighbour country like Singapore, Thailand, Malaysia, Philippines and Vietnam.

Akamai report, in line with the World Broadband Commission report that we are still lagging broadband. And interestingly, since the majority of data users in Indonesia is mobile broadband, in the view of Indonesia ICT Institute, all parties should focus on how mobile broadband can be developed to its full potential, with due regard to the development of fixed broadband.

Because mobile broadband, then the matter should be considered correct frequency allocation. 3G service is already crowded, and the settlement does not go no certainty when additional selection block held. In fact, in December 2011, the promised restructuring completed in April this year. If the selection of unfinished blocks of 3G, LTE adoption of the business which will use frequency, will also be delayed.

And as they relate to international lines, the opening of an international selection must also be accelerated. The opening is not just talking the access code, but it is expected to provide an alternative route out of the country that is still predominantly to Singapore. By splitting the bottle neck, then the blockage of internet traffic will be open and we will be more smoothly because the paths to Tier-2 or Tier-1 are used differently..

Webinar Discuss About LTE Adoption

Last October, IndoLTE Forum held a webinar to discuss the adoption of LTE in Indonesia together with Indonesian Telecommunication professionals (ITP) from several countries. The discussion was very productive and constructive, because beside we inform the condition of the adoption of LTE here, we are sharing the experiences of other countries in the adoption of LTE as well. From discussion we are agree that the main main concern is to build the ecosystem.

A Glimpse of ICT Develompent in Indnesia Based on cellular operators report and Indonesia ICT Institute calculation, Indonesian Internet users until the mid-2012's has surpassed the psychological 100 million users. Growth and the number of digits fantastic course. However, if you view the Alexa.com, as of late October, Facebook was ranked as the most visited sites of Indonesian Internet users then Google. At 10, entered the local site Kaskus (7) and Detik.com (10). Interestingly, the position is still above Kaskus accessor Twitter. The access Twitter today, 29.4 million accounts and Indonesia ranks fifth in the world. From the Vice President, Ministers, celebrities, politicians to ordinary people can read the booms on Twitter.

One of the effects of cell phone use in the presence of increasingly smart phones is the use of data internet. With a mobile user population exceeds 237.5 million, an explosion

of Internet users move only a matter of time. And now, Indonesia is enjoying the explosion of Internet users.

(Source: Cellular Operators Q2 report, the data is processed)

(in millions)

Akamai: Indonesia Internet Still Slow (From page 1)

Mobile Data/Internet Users

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Neutral Technology Policy at 900 MHz

The Government has issued a decision that allows PT Indosat uses frequencies in the 900 MHz allocation to be used other than GSM technology had worn over the years. The policy is known as a neutral technology is almost the same as those issued by the government for the frequency of 2.3 GHz. However, because there is no public policy on refarming, the question arises, where will the government bring neutral technology policy direction?

Neutral technology adoption is not something wrong, its trend is there. However, the understanding of it needs to be returned. Because, as the Law on Information and Electronic Transactions (ITE) No.. 11/2008, looking at technology-neutral as a concept of freedom of choice of technology for the utilization of information and communication technologies from the user side and not the provider.

The concept of a technology neutral policy trend in many countries. That's because, specifically related to the use of the frequency spectrum, a scarce resource, the existing spectrum must be utilized optimally.

And interestingly, new technologies, in addition to requiring a wide frequency band, also unspecified occupy a wide range, as well as unspecified occupy a specific frequency range. Such as Broadband Wireless Access, which can be deployed WiMax at 2.3 GHz, 2.5 GHz, 3.3 GHz or 3.5 GHz. Adjusted for mananya region, as well as the policies of each country to determine which of WiMax will be allocated.

Recent developments are existing frequencies that have been used as long as 700 MHz, 900 MHz and 1800 MHz can be optimized to use the latest technology. The transfer of the use of technology known as refarming is mostly done in the 900 Mhz and 1800 Mhz. 900 MHz can be brought to UMTS

or 3G and 1800 MHz can be used for LTE.

Ideally, there should be a policy issued before trial what impact technology neutral if in a frequency range using different technologies. When will the 3G auction in 2006, Indosat and Telkom Flexi StarOne it should be moved to 850 MHz technology for hybrid method feared disturbing frequency neighbors.

And most countries do refarming simultaneously between 900 MHz to 1800 MHz, with several methods. One is to return all frequencies held by the operator to the country, and then made a new arrangement. This concept is related to the cost of the new spectrum and massive new frequency allocations. The other method is just a spectrum of price adjustments, or the amount of bandwidth allocation of new spectrum.

Unfortunately, Indonesia does not adopt such methods. Conversion based on the request of the operator, in view of Indonesia ICT Institute, showed no spectrum management governance is good and seem pointless because it should have made first public policy on refarming. Moreover, from current conditions, allocation of frequency spectrum for the operator is not the same and some are not side by side. From the table looks, Indosat frequency allocation can most with 42.5 MHz. Second is Telkomsel with 40 MHz.

Tabel. Frequency Allocation in Indonesia

MHz

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NAP Licensing is Re-opened The government re-opened the Licensing organization of Network Access Point (NAP), after dimoratorium since 21 April 2010.

Termination NAP licensing at that time because the total national supply of international bandwidth exceeds the bandwidth needs internet access nationwide (oversupply). However, due to the development needs of national Indonesian Internet bandwidth, permitting to reopen NAP.

The reopening of the NAP service licensing service is limited to the requirements and qualifications as follows:

1. Has had a license for fixed network covered with development commitments beyond the region of the Republic of Indonesia.

2. Willing is committed to provide international bandwidth at least equal to 1 x 10 Gbps in the principle license and a minimum of 5 x 1 0 Gbps at 5 (five) years period of the operating license.

3. Willing is committed to building a service delivery point (Point of Presence / PoP) in 2 cities / different provincial capitals in the consent principle and minimal in 10 cities / different provincial capitals in 5 (five) years, the first time the operating license .

4. Willing to organize traffic and routing settings for the ISP and connect with other NAP organizers through interconnection.

5. Willing is committed to long-term cooperation agreement for a minimum of 5 (five) years connectedness (transit) with 2 (two) Tier-1 Internet providers abroad in two different continents.

Application requirements and qualification according to the government aims to maintain continuity the provision of international bandwidth by increasing national demand. For information, up to September 2012, an official data from the Ministry of Communications and Information Technology showed that the number of companies holding operating licenses NAP is as much as 49 companies.

Based on the analysis of the Indonesia ICT Institute, before the re-opening the new license, government should clustering where the NAP company which uses satellite-based and where the fiber optic cable. Since many are using satellites, the opening is directed to operators that build fiber optic due to Indonesia is still leak international fiber optic lines.

Because not many operators want to build international fiber optic lines, this can be done in one package, such as the implementation of IDD, who wants to build internasonal lines, granted NAP and SLI licenses as sweetener. 49 NAP operators could be vain and has a lot if there is no additional infrastructure abroad that are still minimal and most via Singapore only.

Cloud Computing Potential Market

In 2012, this is the second year of Cloud Computing introduction in Indonesia. As a new product, cloud computing can not be accepted easily by society. From the few studies conducted in Indonesia, there are three main things that concern when an individual or corporation decides to move to cloud computing: security, privacy, and integration between the new system with the old system.

Currently, a lot of local players, and also abroad, began to enter the cloud computing business in Indonesia. Major operators such as Telkom, Indosat and XL Axiata officially declared entry into this business. External players such as EMC and Equinix also try to enter Indonesian market.

How potential cloud computing market in Indonesia? Very potential. Currently, SMEs can be targeted using cloud computing totaled 520 thousand, about 117 state-owned enterprises, school 4,900, approximately three thousand colleges, there are more than 1,000 hospitals, not to mention the telecom operators, both technology-based GSM / UMTS, CDMA and WiMax.

Indonesia ICT Institute see that the market is becoming increasingly open to get into because the competition is not tight and regulations that are still unclear. Plus, big data will be a challenge and opportunity cloud business in the future.

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Development and progress toward digital technology and internet protocol-based (IP) as well as the convergence between telecommunications, broadcasting and the internet, making the current Broadcasting Act can no longer be maintained. Therefore, as quoted from Kontan Online (10/24/2012), the Parliament said they are ready to discuss the revision of Broadcasting Act. The revision of Broadcasting Act will be consisted of 14 Chapters and 99 Articles.

Indonesia ICT Institute considers that the discussion draft would be interesting, considering not only seen as an broadcasting industry, but also related to control of media, exploiting the political interest of the party, as well as the public interest to be protected from the impressions that are not qualified and do not educate content, and culturally appropriate nation. Broadcasting—television—has been making continuous presence in living room, even not invited.

Existing law seems only to be decorated as a standard broadcast program is not followed sanctions deter even impressed easily mocked. The most obvious programme example is the impression that guided Tukul Arwana, formerly "Empat Mata", after being reprimanded and then just replaced "Bukan Empat Mata", another programme "Silet " which has also been reprimanded then reappears, artist Olga were also given a reprimand, still look like before to date.

Not only that. Networked broadcasting stations are also not working. In fact, the desire of the Law is the

diversity of content and the diversity of ownership, not as they are now, a media conglomeracy—there are some stations that are owned the same owner.

In response to advances in technology and the challenges of different era, the Broadcasting Act will surely have to answer all of them. As the digitization of broadcasting where in Broadacsting Act No 32/2002 is only talking about analog broadcasting. Also with the progress of the presence of IPTV, internet TV, and internet radio which does not need a large corporation but only by individual level can broadcast programming.

Questions of ownership, according to the spirit of diversity of ownership, need clear whether cross-ownership rules prohibited or allowed. Including the extent to which cross-ownership should not be. What happens right now, is not directly cross-ownership, but on two or three levels above it. What also needs clarity, are allowed owners affiliated with a particular political party. Therefore, it is feared, less public agenda with the agenda of the owner or party agenda.

Another issue which also important is how advanced the Indonesian Broadcasting Commission (KPI) that do not currently have a relationship with KPID. And in many countries, namely Singapore, Malaysia, Australia, regulators there be one, between the governing broadcasting, telecommunications and the internet, become Commission Multimedia. Is here will be maintained separate regulator: KPI, BRTI and government as well?

The discussion is certainly not in vacuum condition, there will be a power struggle in the interests of government, broadcasting owner and the public. We'll see who will win.

Revision of Broadcasting Act No. 32/2002 Ready to Be Discussed

ap untuk Dibahas Although almost ten years as an Act,

Broadcasting Act No. 32/2002 just real effective for seven years. The Act which not signed by the President at that time, Megawati Soekarnoputri, now ready to be discussed for revision in the Parliament, between parliament and government.

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Obligation to Put Data and Disaster Recovery Center in Indonesia Signed by President Yudhoyono

After a long time wait, from website www.setkab.go.id the Government Regulation on Implementation of Electronic System and Transaction, as part of elaboration from Electronic Information and Transactions Act No. 11/2008, signed by President Susilo Bambang Yudhoyono, on October 12. So, what is stipulated in this regulation? Here's the review.

In the 41 pages Government Regulation that contain 90 chapters is set up as follows: a. Implementation of Electronic Systems; b. Implementation of Electronic Transactions; c. Electronic Signatures; d. Electronics Certifications Implementation; e. Reliability Certification Agency , and f. Domain Name Management.

The operation electronic systems carried out by the electronic systems operator, which can be done for the public service and non-public service. Especially for electronic systems operator for the public service, they have to register, which must be done before electronic system in service. But for non-public service, they can just register their services.

Mentioned in Government Regulation, the electronic system operator must have competent experts in the field of electronic systems or Information Technology. Especially for electronic system operator for strategic use, they must have expert with Indonesian nationality.

In addition, the electronic system operator shall: a. Secrecy, integrity, and availability of personal data that they manage, b. Ensure that the acquisition, use, and use of Personal Data Personal Data based on the owner's consent, and c. Ensuring the use or disclosure of the data is based on the consent of the owner of such Personal Data.

This rule reinforces the importance of a guarantee of user data. User data become confusing dan question right now because it seems the user data can be move from one party to another, from one service to another service. For example, many consumer complain their data, at least mobile number, used from one credit card agency to others.

In the Government Regulation No. 82/2012, the rules also provide protection to the user. Electronic system operator shall submit information to the user at least the following: a. Identity provider electronic systems; b. Object transacted; c. Airworthiness or safety of electronic systems; d. Tools use procedure; e. Terms of the contract; f. The procedure to reach an agreement,; and g. Guarantee the privacy and / or protection of personal data.

And the long-awaited rule from this Government Regulation is a matter of obligation to put a data center in Indonesia. According to this regulation, the electronic system operator for the public service shall put the data center and disaster recovery center in Indonesia for the purpose of law enforcement, protection, and enforcement of national sovereignty to the data of its citizens.

Especially for this rule, in its implementation, Indonesia ICT Institute think this rule need further elaboration through the Minister Decree, which electronic system operator is categorized as a public service. Because in practice there are three types of public service, which is paid, not paid but no such paid transactions online shop, and free e.g. search engine, news portal etc. For work that is not easy to determine which one to put data centers in Indonesia, which are not. Not only foreigners, but also for local players who had been placed data centers abroad as tyang occurred in public service banking. And of course, Ministerial Decree must be discussed with all stakeholders.

2nd Edition 1st Year

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By the end of October, following the decision of the Central Jakarta Commercial Court bankruptcy against Telkomsel, the government has not opened the selection process additional blocks of 2.1 GHz or 3G.

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Since the release of Circular Letter No. BRTI. 177/2011 dated October 14, 2011, the government has not issued a new policy regarding the setting of premium content services as a revision of the Ministerial Decree No. 1/2009. However, now the operator tried again to revive the service, especially the ring back tone (RBT).

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A total of 30 districts and cities are considered successful in the application of ICT Pura awarded from the Ministry of Communication and Information Technology. The award was made in Medan, mid-October.

CONTACT US:

If you have any question, input or critic, please do not hesitate to contact

us by email to [email protected]

November 2012