Indonesia, with its distinctively challenging geographical character, has been working over a long period to put viable and progressive telecom infrastructure in place. When the government launched its Joint Operating Service (KSO) strategy, it had high hopes that this would be the main driver for the development of the national fixed-line telephone network. The KSO program fell well short of expectations. The country has since made a fresh start on the building of its telecom infrastructure. Invigorated by the highly successful mobile segment on the back of increased competition in the marketplace, the country’s telecom industry has found a new dynamic. This report looks at progress in building infrastructure, in particular the development of the fixed-line network, and describes some of the changes, as the industry picks up momentum again.
Growth in the fixed-line market continues to be almost totally in fixed wireless subscribers. Indosat’s efforts to be involved in the country’s fixed line market suffered a major setback in 2011 when its customer base fell dramatically. The government has licensed a consortium of seven Indonesian companies to build the US$1.5-billion 34,000 km Palapa Ring optical fibre cable network. PT Telkom announced plans in 2011 to launch the Telkom 3 satellite.