Indonesia - Internet, Broadband Services and Forecasts
This report presents an overview of Indonesia's internet and broadband market and looks at the changes that have taken place in recent times. Commercial internet services were not launched in Indonesia until 1995. Coming into 2015, it was estimated that Indonesia had around 88 million internet users, substantially up on the 16 million reported five years earlier. This meant that internet users comprised about 35% of the population by 2014; 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 60%) of the fixed 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, has totally changed the market. Indeed, the country has enormous potential as an online market, with the local population spending a lot of time on line.
Internet user penetration had reached 35% coming into 2015, according to the APJII;
Despite relatively high user numbers, subscription levels were low by regional standards;
Fixed broadband subscriber penetration, for example, was less than 2% into 2015;
Total broadband subscriptions were, however, growing rapidly;This has been boosted by the mobile broadband explosion which saw subscriber numbers at around 65 million (26% penetration) by
end-2014; Social networking continues to be very popular in Indonesia; Investment in data centres has started to take off; There are early signs of adoption of cloud computing by local industry; Surge in demand for data traffic sees operators increasing system capacity; Both Telkom and Indosat have been expanding the number of WiFi hotspots around the country; In 2015 it was reported that Indonesia ranked as the second country in Southeast Asia for time people spend online.