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Indonesia - Internet, Broadband Services and Forecasts


Attention: There is an updated edition available for this report.

This report presents an overview of Indonesia’s internet and broadband market and looks at the changes that have taken place over the last decade or so as the telecommunications industry got back on its feet following the economic crisis of the late 1990s. Commercial internet services were not launched in Indonesia until 1995. Coming into 2013, it was estimated that Indonesia had around 53 million internet users, substantially up on the 13 million reported five years earlier. This meant that internet users comprised about 20% of the population by 2013; clearly a major surge in the market was underway. Fixed broadband internet services, although still very much in their infancy, had become a very significant proportion (around 70%) of the internet subscriber base. The ongoing effort to expand internet access around the country was looking as if it would be impeded by inferior telecommunications infrastructure. This has changed dramatically with the advent of mobile broadband services; the rapid roll-out of the wireless broadband, together with the increasing take up of smartphones, had totally changed the market. Indeed, the country has enormous potential as an online market.

Key developments:

Broadband services are growing at around 30% annually;
Social networking continues to be very popular in Indonesia;
Investment in data centres starting to move forward;
Early signs of adoption of cloud computing by local industry;
Surge in demand for data traffic see operators increasing system capacity;
MCIT says that 4G/LTE mobile services are not expected until 2014 at the earliest.
Both Telkom and Indosat expanding the number of WiFi hotspots around the country.

Companies covered in this report include:

PT Telkom, TelkomNet, Telkomsel, PT Indosat, Bakrie Telecom, PT Indosat Mega Media; PT Internux; PT First Media; PT Jasnita Telekomindo; PT Berca Hardayaperkasa; PT Rahajasa Media Internet; PT Comtronics Systems; PT Adiwarta Perdania.


1. Synopsis
2. Internet market
2.1 Overview
2.1.1 Market survey
2.2 Internet statistics
2.3 Forecasts – internet services – 2015; 2020
2.4 Social Networking
3. Regulatory developments
3.1 Indonesian Internet Agency (LII)
3.2 Domain names
3.3 Internet information control and the ‘cyber’ laws
4. Internet infrastructure
4.1 Telkom’s national IP backbone
5. ISP market
6. Broadband networks and services
6.1 Overview
6.1.1 Broadband statistics
6.1.2 Broadband market background
6.2 Broadband service providers
6.2.1 TelkomNet
6.2.2 Indosat Mega Media (IM2)
6.2.3 First Media
6.3 ID-WiBB
6.4 Data centres
6.5 Cloud services
6.6 High-Speed Broadband (HSBB) project
6.7 Wireless broadband
6.7.1 Background
6.7.2 WiFi hotspots
6.7.3 WiMAX
6.7.4 LTE / Fourth Generation (4G)
6.8 Internet via satellite
7. E-services
7.1 E-commerce
7.1.1 Electronic Document Interchange (EDI) project
7.1.2 E-commerce payment system
7.1.3 E-government
7.1.4 E-health
8. Voice over Internet Protocol (VoIP)
9. Notes on scenario forecasts
10. Related reports
Table 1 – Internet users – 1998 - 2013
Table 2 – Fixed internet subscribers – 1998 - 2012
Table 3 – Dial-up internet subscribers – 2004 - 2011
Table 4 – Total international internet bandwidth – 1998 - 2012
Table 5 – Households with internet access – 2005 - 2012
Table 6 – Forecast of Internet subscribers and penetration rates – 2015; 2020
Table 7 – Domain name registrations – June 2010
Table 8 – Internet licences by licence type – 2007
Table 9 –TelkomNet’s dial-up internet subscribers – 2004 - 2011
Table 10 – IndosatNet’s dial-up internet subscribers – 2010 - 2011
Table 11 – Fixed broadband subscribers – 2000 - 2012
Table 12 – DSL subscribers – 2001 - 2012
Table 13 – Fixed broadband - subscribers and households - 2012
Table 14 – Mobile broadband subscribers – 2009 - 2012
Table 15 – PT Telkom’s fixed broadband subscribers – 2004 - 2012
Table 16 – PT Telkom’s mobile broadband subscribers – 2011 - 2012
Chart 1 - Internet users and penetration - 2005 – 2013

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