digital review asia pacific indonesia chapter (draft...

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Digital Review Asia‐Pacific Indonesia Chapter (draft 2.0)

Prepared by Center for ICT Studies Foundation (ICT Watch Indonesia)

Donny B.U. * & Rapin Mudiardjo **

Total population : 224.9 million (as of end 2007) 1 Literacy rate : M 94.5% , F 89.2% (as of 2005) 1 GDP per capita (in USD) : 3,843 (as of 2007/2008) 2 Computers per 100 inhabitants : 2.8 (as of June 2007) 3 Fixed line telephones (PSTN) per 100 inhabitants : 3.89 (as of September 2007) 4 Fixed Wireless Access (FWA) per 100 inhabitants : 4.03 (as of September 2007) 4 Mobile phone subscribers per 100 inhabitants : 36.39 (as of September 2007) 4 Internet users per 100 inhabitants : 11.1 (as of end 2007) 4 Domain names registered under .id : 38.461 (as of June 2007) 5 Broadband subscribers per 100 inhabitants : 0.2 (as of end 2007) 6 Internet domestic bandwidth : 80 Gbps (a year as of end 2007) 7 Internet international bandwidth : 5 Gbps (as of end 2007) 7 ----- 1) National Statistic Body 2) Human Development Index - UNDP 3) State Minister for State-Owned Enterprises 4) Directorate General of Post and Telecommunication 5) Indonesia Domain Name Registry 6) Alcatel-Lucent Research 7) Indonesia ISP Association

I. Overview

Indonesia as an archipelago country had more than 17.000 islands (6.000 islands are

populated) spread in 1.919.440 km2 geography area. Indonesia has very big population,

224.9 million people as of end 2007. Until now there are about 43.000 villages or 65% of

total villages nationwide have not reached by phone line yet. In the end of 2006, Indonesia

suffered from the breakdown of fiber optic backbone at Taiwan caused by an earthquake.

International links used by internet service provider (ISP) in Indonesia down for a couple

week. Internet and computer penetration still low, while mobile phone subscriber growth

significantly. Some online services like e‐banking, e‐shopping and e‐ticketing become

common and widely used by Internet user in Indonesia. Even there was an Indonesian

couple who conducted Islamic marital procession through Internet.


In business area, implementation of national single windows on Tanjung Priok Harbour is

one of government strategy for facing ASEAN Single Windows in 2015. To force the legal

aspect of electronic transaction, Indonesia House of Representative just passed the

Electronic Information and Transaction Act. Universal Service Obligator policy and Palapa

Ring project hopefully playing important role to connect the unconnected in Indonesia.

While grass‐root self‐empowerment such as making parabolic antenna using fry pan or

establishing citizen VoIP telecommunication infrastructure based on open source are going

widely use by society.

II. Technology Infrastructure

7.1 SR earthquake in Taiwan, Tuesday (26/12/2006), causing the breaking down of fiber

optic backbone that went through Taiwan. It makes international links used by internet

service provider (ISP) in Indonesia down for a couple week. At that time some of ISP in

Indonesia trying to carry on connection to alternative line provider through satellite. But

they admit it was not too good, considering the capacity from satellite not as big as provide

by fiber optic. Beside that those satellite bandwidth went down in the hub in Singapore or

Hong Kong, which is to get with international backbone they also through that break down

fiber optic.

This mean, the connection through satellite is also gets the Taiwan earthquake impact.

Another problem is Indonesia has not have rights to go to tier‐1 (international internet

backbone), so when the hub to tier‐1 break down the internet connection in Indonesia

collapse. So does the internet kiosks, their income decrease till 70% because the customers

could not connect to access overseas website like Google and Friendster, checking e‐mail

through Yahoomail or Gmail, and could not using instant messaging as well.

II.1. Satellite

Indonesian Satellite Association (Asosiasi Satelit Indonesia ‐ ASSI) predict the value of satellite

service provider business and its derivate in 2007 reach US$ 480 million or increase 15%‐20%

comparing 2006, which reach US$ 400 million. It because there are consumption increment

about 15 transponder minimal, satellite internet use and Universal Service Obligation (USO). Till


the end of 2007, the needs of transponder in Indonesia reach 150 unit, but there are only 97

transponder unit provide by domestic satellite. About 40 transponders still use overseas

satellite. Capacity of one transponder is about 50 Mbps, so if we count shortage of 53 unit

transponders, we need at least 2.65 Gbps more bandwidth from satellite.

Thus will be fulfill from Telkom‐3 satellite, replacement of Palapa D satellite from Indosat

(formerly Satelindo), and replacement of Cakra Warta satellite. According to chairman of ASSI,

Tonda Priyanto, the investment average of satellite with 24 transponders is about US$200

million, whereas it needs US$ 6‐7 million for every transponder. The Telkom‐3 satellite will be

launch in 2009 and it will take 118˚ east longitude slot orbit. It is under engineering stage, like

determining satellite capacity, satellite lifetime and other technically considerations.

Meanwhile the Palapa D satellite will be revolve in 113˚ east longitude slot orbit substituting

Palapa C2, the previous satellite, which will take the 150.5˚ east longitude. Now that orbit was

occupied by palapa C1. The Palapa D will be launch in the mid of 2009. This satellite had 40

transponder unit capacity, little bit more then the capacity of Palapa C2 which only had 36 units.

40% of the Palapa D satellite transponder capacity will be use for Indosat importance in

domestic, while the 60% will be lease to others both in domestic and abroad.

In 2007 there is now new player in satellite provider business. There only they who had licensed,

and will implemented that license as soon as possible. In the mean time, along 2006 the trends

of satellite service business greatly increase since Communication and Informatics Ministerial

Decree No.13/2006 that required registration for every company who used satellite.

Approximation of business value along 2006 came from retail of VSAT (very small aperture

terminal) provider who reached US$140 million, telephony trunking with US$196 million, and

others from 14 transponders about US$45 million. The ASSI hope every operator would optimize

the slot orbit, and regulation support from government and certainty the use of 3.5 GHz

frequency.


II.2. Phone Service

According to Minister of Communication and ICT, Mohammad Nuh, Indonesia already fulfilled

their fact of having fallen behind in information and communication technology (ICT) especially

in telecommunication. In ICT Outlook 2008 at Jakarta by the end of January 2008, he presented

the data from National ICT Macro Indicator book published by his department.

The telecommunication sector was growth 48% in 2007. Telecommunication sector held an

important role in support economic growth. Penetration of cellular greatly increased, far from

the first estimation. Till the end of 2007 cellular could over the target with 30% teledensity from

population or equal with 80 million customers. In while fixed phone about 8%. Fixed phone

growth nowadays moreover depend on Fixed Wireless Access (FWA) service along the stagnancy

of wire based fixed phone. The FWA phone became more popular because they offer lower cost

than cellular, although the use of it still restricted to area code.

From investment side, FWA were so much less expensive than fixed phone. To build up one FWA

connection service only cost US$ 7 million, whereas investment cost for fixed phone is about

US$ 500‐1000. So that fixed phone license holder incumbent operator like Telkom and Indosat

tend to give priority in developing FWA than fixed phone. Despite the investment cost is

cheaper, its use also significantly rising.

In other side the telecommunication sectors which go on to convergent so firmly established

with the presence of third generation cellular services or known as 3G. The 3G operator promote

this service incessantly because it so prospective. Lowness of access for internet service in

Indonesia become one reason they promote that service, though at first lifestyle was the

booster for the growth of 3G. Indonesian people tend to enthusiastic with the newest high‐tech

services. Imagine, though the 3G has not launched yet at the beginning of 2006, sales of 3G

phone reach over half million. This was so high for service that has not been there yet and

expensive price of phone. At that time the price for 3G phone above IDR 3 million. The amounts

of 3G user rapidly increase along the incessantly education and promotion from operator.


II.2.1. 3G

Penetration of 3G or third generation cellular service based on Wideband CDMA is strides

forward though it just been commercially few month before the end of 2006. Users of this

service increasingly along with incessantly promotion from license holder operator especially

Telkomsel, Excelcomindo Pratama (XL), and Indosat. There are 5 operators who had 3G licensed.

Despite three that mentioned above, there are Hutchinson CP Telecommunications Indonesia

(formerly Cyber Access Communication) and Natrindo Telepon Seluler.

There are four million 3G customer registered in the end of 2007. This amount dominated by 3.5

million Telkomsel registered customers. While Indosat and Excelcomindo each noted 500

thousand and one million customers. Although Hutchinson and Natrindo also launched 3G

services till now there is no significant progress, both from service network to the amount of

users. Majority of 3G customers use this service for video calling and downloading music

content.

The presence of 3G in Indonesia more lively since the three operator, Telkomsel, Indosat, and

Excelcomindo upgrading their services with HSDPA (high speed downlink packet access)

technology that offering ten times faster cellular access compare than 3G. From their first

launching Indosat use HSPDA technology or more known as 3.5 G in all of it networks. So does

Excelcomindo, though only half of it. Only Telkomsel purely use 3G since first, then upgrading to

HSDPA in the beginning of 2007. Maximum speed of data access through 3G networks is

384Kbps. Meanwhile HSDPA offer almost ten times faster speed access, up to 3.6 Mbps. The

monthly package for HSDPA is around IDR 350,000 for 1.2 Gbps of usage.

II.2.2. Fixed Phone

Compare to other telecommunication, penetrations of fixed phone is the lowest. From 8.7

million connection registered in the end of 2006, they only added about 100.000 customers in

the end of 2007. It stands to reasons, until now there is no new operator for that service, only

two operators, Telkom and Indosat. From the total amount, majority dominated by Telkom.

Meanwhile Indosat only had 30.000 fixed phone customers. Descend of fixed phone penetration


happened because it is hard to develop cable network infrastructure. Those services frequently

had problem or disconnection due to lots of disinterment in place where the cable is planted.

And yet the government did not want to abandon it even they did not hope too much too. They

will still make open bid for fixed phone in mid of 2008 under Universal Service Obligator (USO)

program. Hopefully it can increase fixed phone penetration, especially for rural or village areas.

II.2.3. Fixed Wireless Access Phone

Fixed wireless access (FWA) market till the end of 2007 had grown 50% with 10.5 million

customers, it increases from 7.1 million a year before. FWA service significantly grown trigger by

some points like national licensed that achieved by Bakrie Telecom and Mobile‐8 Telecom.

Excelcomindo Pratama also submitted to be FWA provider based in Global Satellite for Mobile

Communication (GSM) technology. Indonesia had four operators who had FWA license. They

are Telkom, Indosat, Bakrie Telecom, and Mobile‐8 Telecom. From this four operators who used

technology based on Code Division Multiple Access (CDMA), only Mobile‐8 who has not provide

this FWA service commercially.

At the end of 2007, there are eight operators who had licensed to provide mobile

telecommunication services with unlimited mobility. Whereas in other country, include

Singapore and Malaysia, averagely there are only three operators. The eight operators are

Telkomsel, Indosat, Excelcomindo Pratama, Hutchinson CP telecommunications, Smart Telecom,

Natrindo Telepon seluler, Mobile‐8 Telecom, and Sampoerna Telekomunikasi Indonesia.

Consider the number of operator in that segment were many enough and the competition were

high, the government stated they will not give new cellular telecommunication licensed starts

from 2008. From eight operators, the big three were dominated by Telkomsel, Indosat, and

Excelcomindo. Telkomsel is the biggest with 47.8 million customers till the end of 2007. Indosat

were after that with 24 million customers, and Excelcomindo with 11 million customers.

II.3. Computer

According to the Minister of Communication and ICT, Mohammad Nuh, the rate of PC

ownerships in 2007 has grown significantly, it reach 38.5%. While from the market sales,

according to Indonesian Computer Business Association (Asosiasi Perusahaan Komputer


Indonesia ‐ APKOMINDO ), in 2007 PC sales in Indonesia increased for almost 29% compare to

the year before, from 1.4 million in 2006 became 1.8 million in 2007. From that numbers, local

PC still have many spaces to develop. 65% of PC sales in Indonesia dominated by local brand PC

and PC that assembled in mall or shopping centre The rest were dominated by imported PC

(from overseas vendor). For notebook sales, according to APKOMINDO is still dominated by

overseas brand. It looks enthusiasm of Indonesian market for local PC will increase and so does

in sales. They predict in 2008 PC sales will increase around 39% become 2.5 million.

II.4. Internet

According to Indonesian Internet Services Provider Association (Asosiasi Penyelenggara Jasa

Internet Indonesia – APJII) in the end of 2007 there are about 25 million internet users in

Indonesia. Comparing to the year before the growth of internet users in Indonesia were increase

25%, from 20 million in the end of 2006. In other side, bandwidth cost in Indonesia nowadays

considered expensive for most of internet user. If it could decrease, approximately there will be

an increase in internet user for about 40% in this 2008.

Previously, bandwidth costs reach US$ 2.200 to USS 2500 for every Mbps. This was the Internet

Service Provider (ISP) bandwidth purchasing price. Nowadays the international bandwidth price

tends to decrease to US$ 1.800. But for bandwidth with satellite the price is about US$ 1.300 to

US$ 1.500 for every Mbps. If bandwidth price could decrease it would affect internet use

capacity. Hopefully it could increase internet use capacity one fold times minimally. From traffic

side APJII noted in the end of 2007 internet traffic in Indonesia reach 5 gigabit per second (Gbps)

for international bandwidth use. But for national traffic they could reach to 80 Gbps in a year.

II.5. Domain Name .ID

According to the calculation from Indonesia Domain Name Registry (Pengelola Nama Domain

Indonesia – PANDI) until June 2007 there are 38.461 .id domain names. With details are about

17.552 co.id (48%), 8.814 web.id (24%), 5942 or.id (16%), 1533 sch.id (4%), 1461 go.id (4%),

1032 mil.id (3%), 266 net.id (1%), and 108 war.net (1%). There is more than 50% growth

compare two years before when it organized by Department of Communication and ICT, with

18.000 domain added. There were about 200 .id domain name registered every month.


Pandi had a perspective to obtain 1 million .ID domain names in 2010. So to initiate this

socialization Pandi held an .ID logo design contest and writing contest about the importance of

internet domain name in Indonesia. In 2007 Depkominfo also launched ‘Dot ID Saja’ program

with ‘.ID for your ID’ tagline. This activity were focusing in providing services that usually are in

overseas and accessed by many internet user in Indonesia, like blogs, mailing list, instant

messaging, and search engine. The purpose of this program is to increase bandwidth use in

domestic and to optimize international bandwidth use.

II.6. Local Wimax

Indonesia government through Directorate General of Post and Telecommunication (Postel) will

conduct tender to develop 2.3 GHz local Wimax in 2008. For it, government already prepare

fund about IDR 18 billion taken from national non‐tax income (Pendapatan Nasional Bukan

Pajak ‐ PNBP) 2008. That fund has two general allocations. First, IDR 8 billion will be use for

purchasing measurement equipment, chipset, antenna, and paid licensed for software design.

And IDR 10 billion will be use for operational and development fee.

The development of local Wimax will encompass government, academism, and private. There

are Indonesian Institute of Science (Lembaga Ilmu Pengetahuan Indonesia ‐ LIPI), Technology

Institute of Bandung (ITB), University of Indonesia (UI), Gajah Mada University (UGM),

Hassanudin University (Unhas), Technology Institute of 10 November (ITS), Ministry of Research

and Technology (Ristek), Technology Research Group, PT Inti and PT Harif.

Every WiMax equipment developer will have coordinator. ITB is for chipset development, Ristek

through The Agency for the Assessment and Application of Technology (Badan Pengkajian dan

Penerapan Teknologi – BPPT) for final terminal development, LIPI for baseband radio frequency,

UI for antenna, and ITB for operating system. From every group there will be 40 researchers. The

telecommunication measurement that we will buy is from country with most competitive price.

Some choices are from Singapore, Taiwan, or Japan. The local Wimax development is to give

chance to local resources to develop local manufacture industry.


According to Director General of Post and Telecommunication, Basuki Yusuf Iskandar, the

presence of WiMax is a momentum for Indonesia to develop their local technology information

and manufacture industry. Manufacture and IT is considered as driver to support downstream

industry like content. Take view from service sector, Indonesia is gone pretty well, but from

manufacture side is still zero. Cost of capital in telecommunication sector in 2004‐2005 reach

about IDR 40 quintillion. But the contribution from national manufacture only 3% of it, whereas

the national original product only 0.1% ‐ 0.7% (IDR 1.2 – 8.4 billion).

III. Institution and Organizations Dealing with ICT

III.1. National ICT Council

National ICT Council (Dewan TIK Nasional ‐ DETIKNAS) is an institution formed and leads by

President of Republic of Indonesia through Presidential Decree Number 20 Year 2006. Its

perspective is to accelerate Information and Communication Technology (ICT) growth in

Indonesia efficiently by making national ICT policies through synchronization of ICT programs in

every Department, Ministry and other government institution. National ICT Council had 7

flagship programs. Those programs are:

1. e‐Pendidikan.

e‐Pendidikan (e‐Education) is program that intended to gathered information related with

education by using information and communication technology. Nowadays there are two

main networks in National Education Department (Departemen Pendidikan Nasional –

Depdiknas), National Education Network (Jaringan Pendidikan Nasional – Jardiknas) and

Inherent (Indonesia Higher Education Network). Jardiknas is a network that connecting over

3000 educational institutions in Indonesia, whereas Inherent is an educational network inter

university in Indonesia, for the first phase development the network consist 32 universities.

2. e‐Pengadaan.

e‐Pengadaan (e‐Procurement) is an online goods and service providing service, so the

Government goods and service providing will be transparent and easily controlled by

society. The system and application that already put in to test and readily to use is e‐regular

tendering. This system, since end of 2006 till now is still in trial run through some of working


packet providing process in National Development Planning Agency (Badan Perencanan

Pembangunan Nasional ‐ Bappenas) and Depdiknas. The application complement will be

doing by adding few things that found in trial run process.

3. e‐Anggaran.

e‐Anggaran (e‐Budget) is a budgeting system that merge routine budget and development

budget into on budgeting format, which is expected to reducing the intersect allocation. The

Department of Finance/Treasury (Departemen Keuangan – Depkeu) is now also finishing

online monitoring system for the intern of department.

4. National Single Window.

National Single Window (NSW) is an electronic system that able to serve submission process,

data and information processing, decision making, customs, port and harbor, and airport

document arrangement, comprehensively with the principal unity, service rapidity,

consistent, simple, transparent, efficient, and incessantly. NSW is aim to accelerate custom

clearance, cargo clearance, and custom facilitation process, and to cut off the economy high

cost that related with customs service, in order to prepare for ASEAN Economic Integration

2015.

5. Single Identity Number.

Single Identity Number (SIN) or National Identity Number (NIN) is a concept in

governmental, especially in demography. With this concept, at least every people in certain

country had one unique identity number as their identity.

6. Palapa Ring.

Palapa Ring is national telecommunication system backbone organized as fiber optics ring

that surrounding the entire Indonesian Archipelago. The aim of PAlapa Ring development is

to accelerating access, nationally increasing telecommunication quality, and spread evenly

the availability of infrastructure in the entire area.

7. Software Legalization.

Software legalization program is to socializing legal software using in government and non‐

government instances with Open Source Software (OSS) as the main choice. It was a

government commitment to maintain the intellectual property right. For now the Flagship of

Software Legalization status was in listing process for hardware and software in government

instances.


Case I

National Single Window in Tanjung Priok Harbor, From 5.5 Days to 30 Minutes!

In the end of 2007 Indonesia finally implemented National Single Window (NSW) system in. the

initial implementation applied in Tanjung Priok Harbor, Jakarta. The official announcement was done

by Minister of Finance, Sri Mulyani who also the chairman of NSW Preparation Team, at Monday

(December 17th 2007). The first stage of NSW implementation is done through the www.insw.go.id.

In that website there are composite of five government instances, so the document handling

management directly integrated in that web. For the first step it involves Customs Offices and four

others instances who issued the permit, like Food and Drugs Authority Agency (Badan Pengawas

Pusat Obat dan Makanan), Directorate General of Overseas Trade (Dirjen Perdagangan Luar Negeri),

Agriculture Quarantine Agency (Badan Karantina Pertanian) and Sea and Fish Quarantine Agency

(Pusat Karantina Ikan).

Totally there are 36 instances who involved in publishing exit permit for import and export. But

there are only five now. While there are 100 importer companies need to be served in this first

stage. According to the Minister of Finance, quoted by detikfinance.com, the first stage of NSW

implementation launched is a milestone to the overall NSW implementation in Indonesia and

preparation to join in the Integrated export‐import permit ‘ASEAN Single Window’ (ASW) in 2008.

Indonesian government is also guarantee that NSW implementation in Tanjung Priok Harbor will

bring back time and cost efficiency for export and import business. Because the shorten procedure

and this system also take the chance for irresponsible people who use export import procedure as

their additional fee. Custom broker import cost in Tanjung Priok that now is IDR 950,000 could be

back to its legal cost that is IDR 100,000. Nevertheless, with this integrated export import online

document system (NSW) those ‘additional cost’ could be diminished. Besides the efficiency cost,

NSW will also made the goods exit permit from harbor more efficient. Before, it takes 5.5 half days

to get the goods out from the harbor, but with the NSW the exit permit will be done in 30 minutes.

NSW will be implemented also in Tanjung Perak ‐ Surabaya harbor, Tanjung Mas ‐ Semarang harbor,

Belawan – Medan harbor and Soekarno Hatta International Airport.


III.2. Regulator / Government

1. General Directorate of Post and Telecommunication (Dirjen Postel)

General Directorate of Post and Telecommunication (Direktorat Jenderal Pos dan

Telekomunikasi – Dirjen Postel) which is under the scope of Department of Communication

and ICT together with Indonesia Telecommunication Regulatory Body (Badan Regulasi

Telekomunikasi Indonesia ‐ BRTI) has assignment to make and implementing the regulations

and standardize the technical of post and telecommunication. And it also includes

Directorate of Telecommunication, Directorate of Radio Frequency Spectrum Satellite Orbit,

Directorate of Post and Telecommunication Standardize, and Directorate of International

Post and Telecommunication Institutional.

2. Indonesia Telecommunication Regulatory Body (BRTI)

Indonesia Telecommunication Regulatory Body (Badan Regulasi Telekomunikasi Indonesia –

BRTI) is an independent regulatory body (IRB) that aimed to protect public interest

(telecommunication user) and to support and protect telecommunication business

competition so it will be health, efficient, and can attract more investors. In doing it

functions, BRTI coordinate with Postel and give report to the Minister of Department of

Communication and ICT.

3. State Ministry of Research and Technology (Ristek)

One of the main programs from Ministry of Research and Technology (Kementerian Negara

Riset dan Teknologi – Ristek) is on developing ICT which directed to ICT infrastructure

expansion. So ICT can reach every social aspects, raise the economy activity by applied ICT

solution, industry competition, trading efficiency, public services and social quality of life

effectiveness. Main priority also include the telecommunication development, internet, save

energy and low price computer; authorize the digital technology; and develop application

which bassist on open source.

III.3. Industry / Bussiness

1. Indonesia Infocomm Society (MASTEL)

Indonesia Infocomm Society (Masyarakat Telematika – MASTEL) is a non‐profit

institution which had function as a bridge for government, devotee and ICT people.

Work scopes of MASTEL are telecommunication aspect, multimedia and information


technology. MASTEL has 7 working group: telecommunication blue print, policy

development, broadcasting, ICT roadmap, taxation, ICT for rural area, and dispute

resolutions.

2. Indonesia Information Technology Federation (FTII)

Indonesia Information Technology Federation (Federasi Teknologi Informasi Indonesia ‐

FTII) is an organization consist of some associations on ICT‐related and other field which

compliance with the aim of federation, which is striving for industrial development and

raising up information technology application more wide, integrated and effective.

3. Indonesia ISP Association (APJII)

Indonesia ISP Association (Asosiasi Penyelenggara Jasa Internet Indonesia ‐ APJII)

becomes the umbrella institution for some Internet Service Provider (ISP) with some

strategic key program for developing Internet network in Indonesia. Few things that

related to its program are management of Indonesia‐Network Information (ID‐INC) and

Indonesia Internet eXchange (IIX), and negotiation of telecommunication service

infrastructure fee. APJII also serve its member in Network Information Resources (NIR),

give advice to government, and organize seminar or training.

4. Indonesia Domain Name Registry (PANDI)

(Pengelola Nama Domain Internet Indonesia ‐ PANDI) is a legal entity formed by

trusteeship of information technology (IT) community and already fulfilled requirement

as a legal entity in Indonesia. This organization which legally established in December

29th 2006, play role as domain name registration organizer including developing and

providing other services that related with domain name. The aim of this organization is

to decreasing the dependence of internet user in Indonesia for overseas domain.

5. Indonesia Security Incident Responses Team on Internet Infrastructure (ID‐SIRTII)

ID‐SIRTII is an institution that responsible to control internet traffic in Indonesia. The aim

of ID‐SIRTII is to avoid misuse and misapplication of internet infrastructure such as

anticipating cyber terrorism and others internet crime like hacking. The ID-SIRTII

activities are including collecting log system from ISP, traffic system analysis

and collaboration.


III.4 Civil Society / Consumer

1. Air Putih Foundation

At first Air Putih is a group of information technology volunteer in Aceh. But now this

group turns into a foundation that ready to support ICT in disaster area, or we can say

Information and communication Technology Emergency Response Team. Since the

tsunami in Nangroe Aceh Darrusalam and North Sumatra, Air Putih volunteer is

providing telecommunication and information technology facility in disaster area.

2. Indonesia Telecommunication Users Group (IDTUG)

Indonesia Telecommunication Users Group (id.tug) is a nonprofit institution established

in 2004. It consists of company, education institution, individual, and others who used

telecommunication services and infrastructure.

3. Center for ICT Studies Foundation (ICT Watch)

ICT Watch Indonesia is a nonprofit institution focusing on research and social activities,

particularly those related to information and communication technology (ICT). In

performing its activities, ICT Watch Indonesia always collaborate hand‐in‐hand with

parties which have similar vision and mission. ICT Watch Indonesia established in

January 2004. One of the ICT Watch programs is ‘Internet Sehat’, campaign on using

Internet safely and responsibly. ICT Watch Indonesia entity is a legally registered as the

Center for ICT Studies Foundation (www.ictwatch.com)

IV. ICT and ICT Related Industries

IV.1. ICT Industry

In 2007, value of ICT products and services expenditure in Indonesia is US$ 2 billion. Mostly, all

around 70% for buying hardware, while the rest for software. According to Department of

Industry, composition of Indonesia ICT industries is hardware (5% ‐ 10%), multimedia software

(30% ‐ 40%) and consulting service (50% ‐ 65%). For the value of ICT market is US$ 979.9 million

for hardware, US$ 211.7 million for consulting service and US$ 110.3 million for software. At

2006‐2007, utilization on Indonesia ICT industry only 68.1% with export value at US$ 2.8 billion.


For investment value, ICT industry achieved US$ 54.7 million, with production value at IDR 40.3

quantillion, export value at US$ 2.8 million and import value at US$ 2 million. Human resources

that work at ICT industries are around 58,000 to 60,000 people. ICT industry in Indonesia

consists of information technology (such as computer product & appliances, software and

content) and telecommunication (such as terminal, access network and hub & switches).

In the other side, Indonesia government prepares some policies such as establish special

regional to boost up ICT industry. The development of Regional IT Center of Excellence (RICE) for

example, continuously boosted up as an effort to preparing human resources and software

industry community. RICE were founding in ten cities, there are: Jakarta, Bogor, Cimahi,

Bandung, Surabaya, Denpasar, Manado, Makassar, Balikpapan, and Medan. RICE management

involved stakeholder from government, academism, and business entity.

IV.2. Internet Service Provider (ISP)

According to data released by Directorate General of Post and Telecommunication (Postel), as of

end 2007 there are 298 companies that hold ISP licensed, 44 companies with Network Access

Provider licensed and 25 companies with multimedia licensed. From that data, only 202

companies joined Indonesia ISP Association (Asosiasi Penyelenggara Jasa Internet Indonesia –

APJII). From that 202 companies, only 169 companies running operationally. Not every

company which already gets the permits registers as APJII Member directly. Most of

companies registered as APJII Member is the company who needs either service or rights for

IP Address allocation and connect to Indonesia Internet Exchange (IIX).

IV.3. Internet Kiosk (Warnet)

The internet kiosks (Warung Internet ‐ Warnet) blomming in Indonesia at the beginning of 2007

was go on steadily. In 2007 there are more than 10.000 internet kiosks in Indonesia refer to data

from Indonesian Internet Kiosk Association (Asosiasi Warnet Indonesia – AWARI). The sweeping

issue became a scariest specter issue for the internet kiosk, because some of them are still using

proprietary software illegally. So they become a good target to raid by police. Every internet

kiosks that had not used legal software were urged to use Open Source software.


According AWARI, 40% of 20 million internet users in Indonesia access it from Internet Kiosk.

Averagely, every Internet kiosk has 12 PCs, with occupancy rate around 7 hours per PC per day.

Unique visitors are 7 people per PC per day. Internet kiosks charge the consumer for IDR 4,000

for one hour. Bandwidth usage per Internet kiosk is averagely 128 Kbps, charged around IDR 3

million / month.

The compositions of Internet kiosk expenses are 30% for bandwidth, 10% for electricity, 30% for

staff salary, and 25% for ROI (return on investment). The profit of internet kiosk business in

payback period is about 5%. Internet Kiosks in several big cities in Indonesia become the victim

of 20 kinds of retribution fee that very costly.

V. Key national ICT policies and programs

InternationaI Direct‐Call Tender

In September 2007 the government decided PT Bakrie Telecom as the winner from the tender of

International Direct‐Call (Sambungan Langsung Internasional – SL). In this tender Bakrie out

bode their competitors; there are PT Excelcomindo Pratama and PT Natrindo Telepon Selular

(NTS). The winner of this tender have rights to hold SLI telecommunication service in Indonesia.

As a return they should fulfilled some infrastructure commitments. One of it, they should build

up two international gateway central (Sentral Gerbang Internasional ‐ SGI), in the west and the

east of Indonesia. Those two SGI will connect to the central point of international backbone

network (tier‐1), for example USA or England.

Palapa Ring

Palapa Ring is the most related provisioning project to alternative infrastructure development.

This development of broadband fiber optic intended to connect all of area in Indonesia in one

internet infrastructure circle. The Palapa Ring Phase I will be done for Indonesian east. In May

2007, a consortium that consists of seven company (PT Bakrie Telecom, PT Excelcomindo

Pratama, PT Indosat, PT Infokom Elektrindo, PT Macca System Infocom, PT Powertek Utama

Internusa, and PT Telkom) sign a memorandum of understanding with the government to do the

development of Palapa Ring Phase I.


Previously there are three overseas investors who interested to develop Palapa Ring Phase I.

There are Nawras Development LLC from Oman, MCM‐Tech Berhad Malaysia, and PT Aqela

Communications. But in July 2007, government thorugh Ditjen Postel officially announce the

consortium as the developer of Palapa Ring Phase I. And it also closes the tender offers.

Palapa Ring is government grand project consist of 7 rings covered 33 provinces and 460

regencies. This US$ 255 million project must lay 35,280 km submarine cable and 21.708 km land

cable. Every ring will deliver bandwidth frequency access from one point to another point of

regency. This access will support high speed bandwidth fiber optic network with 300 – 1000

Gbps on those area. Approximately the development will be done in the year 2009 and on first

quarter of 2010 will start to providing services. This early June 2008, the member of Palapa Ring

Consortium will deposit US$ 11.2 million or 5% from its total project value that is US$ 225

million.

VI. Legal and regulatory environment for ICTs

Electronic Information and Transaction Act

Indonesia Representative House on Tuesday (25/3/2008) legalizes the Electronic Information

and Transaction Act. The biggest fine for this decree is about IDR 12 billion and/or 12 year

imprisonment for falsification electronic document crime. Few things that arranged in this law

are about information protection and validity, certificate of authority, domain name, dispute

resolution, and intellectual property right.

About the pornography content violation (immoral), gambling, aspersion, and so

extortion/threat that done through electronic were also included. And it also arrange about

computer misuse, hacking and unauthorized system interception. Of course there is pro and

contra about this decree. One of is some people apprehension, such as media and blogger, that

government will use this decree to did repressive act for freedom of expression in Indonesia or

to took the reins of media freedom in giving information.


Universal Service Obligation

Another policy from the government is for telephone infrastructure in the nation‐wide. This

program also known as Universal Service Obligation (USO). The program that starts in

September 2007 is trying to represent basic telephone infrastructure in 38.741 villages. At first

there are 23 companies that interest in this tender, and the one by one stepped back, so there

only 11 companies. After go through evaluation process this tender only leave two finalist, there

are PT Telkom and PT Asia Cellular Satellite.

In December 2007, this USO tender was being canceled with reason that the two finalists did not

fill the requirement both in technical and administration. The cancelation was done after the

tender committee clarified the proposals. The main fund resource is from 0.75% annual gross

revenue contribution of all telecommunication operators. USO program targeted for each

villages will has at least 1 phone line in 2010. And in 2015, at least 50% of the villages in

Indonesia can access the Internet.

VII. Digital Content Initiative Undertaken by The Country

Indonesian logger Fiesta (Pesta Blogger) held for the first time on Saturday (27/10/2007). About

500 bloggers attended this fiesta and it officially open by Ministry of Communication and ICT,

Mohammad Nuh. At that time approximately there are more than 130 thousand blogger in

Indonesia. The government hoped that in the end of 2008 Indonesia will have 1 million blogger.

In other side some of local blog site arise these days. Like from www.blogdetik.com and

www.dagdigdug.com. The presence of this local service gets positive response from Indonesian

blogger. Because with this local service, besides most of the reader which also in Indonesia could

accessed their blog faster, there are also significant saving of overseas bandwidth use.

In Indonesia, in the era of President Susilo Bambang Yudhoyono not a few of minister (or ex‐

minister) do blogging. Such as Defence Minister Juwono Sudarsono (uwonosudarsono.com),

Agriculture Minister Anton Apriyantono (apriyantono.com), Public Housing Minister Yusuf Asyari

(yusufasyari.com), State Secretary Yusril Ihza Mahendra (yusril.ihzamahendra.com) and Forest

Ministry Malem Sambat Kaban (mskabanet.com). Some of politician, artist, legislative and

executive member also enlivened the blog world in Indonesia.


Local news site is also significantly growth, such as Okezone.com, Inilah.com, Kompas.com, and

Detik.com. For Detik.com, this July 9th 2008 will have its 10th birthday. Based on data from

ComScore per March 2008, their pages‐viewed (pv) reach over than 500 million pv/month, with

unique visitor (IP‐based) reach over 8 million IP/month. According to that result, Detik.com

positioned as the most referable local news website accessed by majority of Internet user in

Indonesia.

This sites had some sister sites such as detikhot.com (celebrity news), detikinet.com (ICT news),

detiksport.com (sports news), detikfinance.com (financial news), detikfood.com (culinary news),

detikbandung.com (Bandung, capital city of West Java regional news) and detiksurabaya.com

(Surabaya, capital city of East Java regional news). Besides that, Detik.com is also doing an

exploration by making television content through Internet (tv.detik.com), blog service

(blogdetik.com) and discussion forum service (detikforum.com). Detikcom has a mobile content

service as well (mobile3845.com). Variety content such as news, astrology, ringtones, games and

tips can be subscribed by consumer through their cellular phone.

VIII. Online Service

Banking services through internet (e‐banking) started to be popular in Indonesian Internet user.

Some of transaction like balance checking, transfer, billing payment, or buying phone voucher,

can be done through the internet and mobile equipment. The customers nowadays is getting

easier because they did not need to come to the bank or ATM frequently, just from through the

internet or their mobile equipment all of the transactions above can be done.

Some of reputable banks in Indonesia also have its e‐Banking and mobile banking as well. There

are BCA Bank (www.klikbca.com), Mandiri Bank (www.bankmandiri.com), BNI 46 Bank

(www.bni.co.id) and Lippo Bank (www.lippobank.co.id). According to Alexa.com, BCA Bank is

the most popular e‐banking sites among users in the Indonesia.


Beside e‐banking, e‐ticket now becomes common. Several local airlines now provide e‐ticket

that can be reserved and bought online. There are Lion Air (www.lionair.co.id), Mandala Airlines

(www.mandalaair.com), Sriwijaya Air (www.sriwijayaair‐online.com) and National Flag Carrier

Garuda Indonesia (www.garuda‐indonesia.com). E‐Commerce sites are also rapidly developed,

such as computer and electronic sites (www.bhinneka.com and www.glodokshop.com), together

with the sites special for photography community (www.fotografer.net) which its member is also

from overseas, online travel bureau (www.indo.com), gift shop (www.iyoushop.com), bookstore

(www.kutukutubuku.com) and career site (www.karir.com) as well.

In education sectors, some universities are also integrated system management with online

lecture materials, for example Bina Nusantara University (www.binus.edu) and Pelita Harapan

University (www.uph.edu). Those facilities allowed the lecturer and the student benefitted the

ICT facility splendidly. Department of Culture and Tourism (Departemen Kebudayaan dan

Pariwisata ‐ Depbudpar) also launched their official website in order to promote Visit Indonesia

Year 2008. The website that addressed in www.my‐indonesia.info.id is intended as a worldwide

tourist information center for Indonesian tourism. Hopefully this site could soup up Indonesian

tourism image in the world and so as increase the amount of overseas tourists and domestic

tourist as well.

Though there is a significant growth of cell phone user in Indonesia, the growth of mobile‐

banking or mobile‐payment user did not automatically follow it. In fact some of big local bank

operated in Indonesia such as BCA Bank and Mandiri Bank already collaborate with cellular

operator to provide those mobile banking service. The barrier is rely on the habit, because most

of the cellular phone usage in Indonesia still limited to basic needs like voice call and text

messaging. One of service development and mobile wallet content that is incessantly promoted

these days is a Telkomsel product called T‐Cash. This mobile wallet service from Telkomsel

already received permit from Central Bank. T‐Cash allowed customer using their cell phone to

make transaction such as buying, payment, and so on. This new service could be use by online or

offline. By offline, the customer could use a card that amount some money to make a

transaction in some merchants that already cooperate with Telkomsel. By online, this service

could be use through SMS.


Case II

Real Married with Virtual Ceremonial Procession

Because the distance made, Rita Sri Mutiara Dewi (50 years) and Wiriadi Sutrisno (52 years) held

their wedding virtually on internet. Rita is in Bandung, whereas Wiriadi works in United State. If

love talked and the desire to married could not hold any longer, thousand miles does not mean

anything. This couple, Rita and Wiriadi could prove it. With help of video conference through

Voice over Internet Protocol (VoIP), they got married and legally declared by Muslim leader.

Rita who is a teacher in Malaysia homecoming in purpose to Bandung, to held her wedding so

her family and the Muslim leader could be part of her happiness moment. And Wiriadi who

came from North Sumatra, is a Physiotherapist at a hospital in California, US. When they got

married Wiriadi is in his office and saw by one of his friend. The wedding is held in Wednesday

(11/12/2006). Physically, they have not met each other. Their first meet is in a chat room. And so

continue by photo exchange till make conversation by phone.

And so as the love blossoming between them, Wiriadi propose Rita at November 3rd 2005, and it

was also through internet. Because Wiriadi could not leave his work there, so he marries Rita

also through the internet. “Though we should done it through internet, we both really happy

with this married” said Rita. For both of them this is the second marriage. Though it virtual, this

wedding is legally declared by Muslim Leader called Penghulu, cause already fulfilled the

requirement which the groom already seen the bride face. This wedding could not be done

without help from a technician from PT Telkom, who prepared the technical needs for that

virtual wedding. So as quoted by detikiINET.com from Associated Press (AP).

With video screen and speakerphones, both of they could make their promise of marriage (Ijab

Qabul). By using the VoIP technology for data transmission and international direct connection

for voice there is four second delay when the Ijab Qabul pronounced by the groom. It takes 25

minutes for this wedding, starts in 8.30 am Indonesian time and 5.30 pm California time. And it

only costs IDR 100.000. In this two weeks Rita plans to go to California, to finally meet the man

who already is her husband now.


IX. ICT Related Education and Capacity Building Program

In human resources sector, the amount of universities (either state university or private) that

performed the ICT program are about 476 universities, communication program 136

universities, with more or less 25.000 graduates every years, yet it still far from the national

needs.

According to Webometrics rank there are 17 universities in Indonesia listed in Top 5000.

Webometrics measure the university performance through its existence in internet. Such as

university website accessibility and visibility, electronic publication, access openness for research

results, connectivity with the industrial world, and its international activities. Those 17

universities are: Gajah Mada University, Bandung Institute of Technology, University of

Indonesia, Brawijaya University, Bogor Institute of Agriculture, Petra Christian University, 10

November Institute of Technology, Hassanudin University, STT Telkom, Airlangga University,

Gunadarma University, Surabaya Electronics Polytechnics, Bina Nusantara Unversity,

Parahyangan Catholic University, Duta Wacana Christian University, Padjajaran University, and

Lampung University.

Below is list of higher education that has ICT majors or faculties that most well known by job

hunters:

• Bina NusantaraUniversity, Private ‐ Jakarta (www.binus.edu) : 83%\

• University of Indonesia, Public ‐ Jakarta (www.ui.ac.id) : 81%

• Gunadarma University, Private – Jakarta (www.gunadarma.ac.id) : 80%

• Bandung Technology Institute, Public ‐ Bandung (www.itb.ac.id) : 75%

• 10 November Technology Institute, Public ‐ Surabaya (www.its.ac.id) : 46%

• Trisakti University, Private ‐ Jakarta (www.trisakti.ac.id) : 42%

• Gadjah Mada University, Public ‐ Jogjakarta (www.ugm.ac.id) : 38%

• Pelita Harapan University, Private – Karawaci (www.uph.edu) : 30%

• Tarumanegara University, Private – Jakarta (www.untar.ac.id) : 14%

• Brawijaya University, Public – Malang (www.unibraw.ac.id) : 9%


According to research by Center of Data & Analysis Tempo, in the next three years information

technology graduates are the most wanted people. Approximately, a thousand graduates would

be completely absorbed in a week by companies. And the salary for the fresh graduate is about

IDR 4 million a month.

CIO Program

The government is preparing all of its echelon III and IV functionaries in every

department/ministry to be a Chief Information Officer (CIO). It was the first in Indonesia. Some

of echelon II and IV functionaries in every governmental department/ministry will be pointed as

CIO. In the future CIO will be positioned right under the minister of its department. CIO position

will be placed in province government as well. Every CIO will justify the key performance

indicator in their area into National ICT Council. CIO candidates will has 3 semesters full‐study at

Gajah Mada University or Bandung Institute of Technology. All the graduates will have

competency in technical (40%), management (20%), leadership (20%) and job‐related (20%). So

therefore they are expected to support and develop e‐government program in their institution.

JARDIKNAS/INHERENT

The term of JARDIKNAS (Jejaring Pendidikan Nasional/ National Education Network) used for the

first time in July 2006 along with ICT infrastructure development program in Directorate of

Vocational School, Department of National Education. At first they were plan to develop

national online network infrastructure for school zone interconnection needs in every

city/region all over Indonesia. In progress, those online network infrastructures also connect to

all of Province Educational Agency offices and city/region all over Indonesia as local node of

JARDIKNAS. Whereas those offices should distribute JARDIKNAS to all of schools include the

vocational school that function as ICT Center in each region.

Along with the JARDIKNAS program, Directorate General of Higher Education also develops

national infrastructure network dedicated for higher education called INHERENT (Indonesia

Higher Education Network). There 32 universities as the INHERENT local mode, where those

local knot should distribute the connection to other universities in its region. Till the end of 2006

JARDIKNAS and INHERENT infrastructures have not completely integrated into a one national

education network infrastructures yet.


In March 2007, JARDIKNAS infrastructures officially announced by President Republic of

Indonesia, Susilo Bambang Yudhoyono, at the opening of South East Asian Ministry of Education

(SEAMEO) conference in Bali. It also watched by others 34 location around Indonesia through

JARDIKNAS Video Conference system which involve delegation from some of province

educational official, City/Region, INHERENT, and some schools. At the end of May 2007,

Indonesia House of Representative (Dewan Perwakilan Rakyat – DPR) evaluates the ICT program

in Department of National Education. The result is instruction to completely integrating the

management and infrastructure of JARDIKNAS and INHERENT so it will more effective and

efficient.

Then since August 2007 this integrated program officially use only one term, there is JARDIKNAS.

INHERENT infrastructure that formerly stands alone now fully integrated as a part of JARDIKNAS,

especially served for Higher Education zone. Generally in JARDIKAS there are 4 network zones:

Education Official Office Zone, Higher Education Zone (formerly INHERENT), School Zone, and

Personal Zone. It based on geographic condition, technology availability, needing scale, program

function and benefits in every institutions and education community.

In 2007, JARDIKNAS connections were increasing over 100%. It became 1,104 nodes, where the

significant increase is in higher education and other government institutional. Significant

changes also in Network Operating Center (NOC) numbers, which before there is only 1 NOC

now become 3 NOCs. And there is also big change in IP, from Private IP (10.xxx.xxx.xxx) to Public

IP (118.xxx.xxx.xxx). April 1st 2008, responsibility of JARDIKNAS operational management,

technical treatment and support handed‐over from Foreign Partnership Planning Bureau of

National Education Department to Center of Educational IT and Communication from same

department.

X. Open Source/Open Content Initiatives

Ilmukomputer.com (IKC)

Ilmukomputer.com/IKC (Ilmu Komputer = Computer Knowledge) is a website contains free

material and lecture with Bahasa in computer and technology information center. Free materials

with Open License Content are available in ready to download PDF format and also in CD‐ROM


format. IKC which born in April 17th 2003 got award from World Summit Information Society

(WSIS) as “The 21 Continental Best Practice Examples in the Category e‐Learning”. The article

filled up involves hundreds of volunteer contributors from all of cities in Indonesia and abroad.

Through the internet, contributors sent tutorial/lecture materials, translations, reviews, and

various practice tips presented in materials from introductory, general and serial lecturing

subject. The type of contributions not only gave online consultation through Yahoo Messenger

and them also being member of committee in seminars.

Open Source Initiative

In February 2007, the government supports the implementation of Open Source. Through

Ministry of Research and Technology, the government announced IDR 50 million relief fund for

small‐medium enterprise in technology, if they used Open Source software in their business. In

July 2007, two provinces in Indonesia, Nangroe Aceh Darussalam (NAD) and Special Territory

Yogyakarta state that they plan to use Open Source software. The migration process will be take‐

cared by Air Putih Foundation together with some others stakeholder from foundation, civil

society, non‐government organization, community and university.

IGOS (Indonesia Goes Open Source) that launched in 2004, now had many programs/derivate

applications equipped with infrastructure and helpdesk, and also model business which support

the growth of local technology information industry. Other community who is also developing

open source is Penggerak Linux Indonesia Foundation that established in 1990. The foundation

evolving BlankOn distro with Ubuntu based. The newest variant is BlankOn Linux Lontara, that

uses Bahasa as the interface primary language. Many local sites now provide open source

platform, such as www.linux.or.id, www.opensource‐indonesia.com, and

www.gudanglinux.com.

VoIP Rakyat

One of telecommunication with VoIP based that built up with open source platform is VoIP

Rakyat (Citizen VoIP) services in www.voiprakyat.or.id. This service develops for the first time by

Anton Rahardja. Now that Citizen VoIP already served over than 250,000 call with total duration

more than 400 minutes. On free service for on‐net there are more than 5,000 registered people,

with active account around 17,800.


The Citizen VoIP could also use to call fixed phone and so the cellular (GSM/CDMA) with relative

cheap price. Other open source programs created by Anton are sms gateway PlaySMS

(http://playsms.sourceforge.net), Banjar bandwidth management

(http://banjar.sourceforge.net) and web‐based billing software for internet café PlayBilling

(http://playbilling.sourceforge.net). Anton his self now is 30 years old and did not finish his

bachelor degree majoring in electricity.

XI. ICT and ICT for Research and Development

WajanBolic

Wajanbolic is a parabolic antenna technology made from fry pan. It invented by Gunadi, man

who lived in Purworejo – Indonesia. According to information from his blog, the wajanbolic

technology is a solution to get or to strengthen 2.4 Ghz wireless Internet signal. In clear line of

sight (LoS) condition the length range signal were about 2 km with 60 – 70% stability power and

the celerity up to 54 Mbps. Through some workshop roadshow by Onno Purbo this masses

technology became more popular and now became a trading commodity with price IDR 380.000

for each set. Some of institutions either private, schools or internet kiosks utilised this

wajanbolic technology. Photos of this wajanbolic technology could be seen in it inventor’s blog,

http://gun001.multiply.com/photos

Food Information System

Government through its Ministry of Research and Technology has determined some research

agenda in National Research Agenda 2006‐2009. Some of the research is related to Information

and Communication Technology development. The aim of food information system

development is to increase the food information fluency from production central to

domestic/international market for fresh market commodities and to food industry with need to

be processed food type, and it also for the opposite there is demand from

domestic/international market to production central and food industry. And it also designed to

be use as public education media about food and information for investors who need place for

food production.


R‐NGN

ICT research and development for countryside is based on Next Generation Networks (NGN)

communication system where internet protocol (IP) as the central. The development of NGN

technology application in countryside called with Rural NGN (R‐NGN). It expected could offer

achievable internet access for countryside people and so also supports domestic industry

development.

Digital Broadcasting

Research and Development (R&D) that should be done included Packetized Elementary Streams

(Coding, compression, formatting) and Stream Multiplex and Transport stream program, which

should be carried in two years (2006‐2007). Whereas for module: RF/Transmission System (8‐

VSB modulation), Cable Head‐End if used (16‐VSB) cable system, Receiver and Top Box Set will

be carried for two years, there are 2007‐2008.

XII. Specific Challenges and Opportunities

The software piracy rate in Indonesia is still main enemy for software industry development

nation‐wide. Even though Indonesia’s rate decrease 1% in 2007, from 85% in 2006 and become

84% in the next year but total lost value caused by software piracy in 2006 is US$ 350 million and

increased to US$ 411 million in 2007. According to Business Software Alliance, that because

there was a significant growth rate on software expenditure in Indonesia, but not followed by

the decrease of pirated software buying behavior in the equal rate.

In the other hand, as result from State Ministry of Research and Technology, there are seven

problems that potentially can slow down the growth of ICT industry in Indonesia, (1). Limited

access to information needed, (2). No systematic industry governance yet, (3). expensive on

investment permit, (4). limited access to capital, (5). overwhelmed procedure on patent right,

(6). limited access to education for human resources quality upgrading, and (7). unchained

business process.

Based on “Strategy & Policy on Communication and ICT Development” note from Indonesia

State Minister of State‐Owned Enterprise Indonesia, Sofyan Djalil (formerly Minister of

Communication and ICT) on Tuesday (19/6/2007), mention that Indonesia as an archipelago


country in one side it is a big advantage for Indonesia because of the huge resources either in

demographic or geographic. But somehow, as he emphasized, this great numbers of island

could become an obstacle in ICT build up and development. High cost becoming the most

important factor that cause the difficulty ICT build up and development in all over of country, so

that the developing more focusing in some areas which have high economic value like Java and

some of Sumatra.

How important is ICT for nation development? This question is throughout from Presiden Susilo

Bambang Yudhoyono in front of 2500 participants at Presidential Lecture on May 9th 2008 that

represents Chairman of Microsoft Corp, Bill Gates, as a speaker as well. Mr President believes

ICT could help to resolve many problems such as poverty, corruption, conflict, violence, deadly

diseases, natural disasters and mismanagement. As he quoted Thomas Friedmand, ICT made

world flatter, the information circulating very fast and no longer dominated by certain countries.

But in the other hand, he realized that more and more computers in the districts and villages,

but few understand how to usefully harness into better their lives, beyond just playing computer

games and chatting on the internet. He was underlined the fact that there is a lot of useful

know how and creativity of ICT out there, but they remain scattered and still not develop

coherently or evenly to help the poor.

XIII. References

[to be completed later…]


*) Donny B.U., is a senior researcher at Center for ICT Studies Foundation (well known as ICT Watch) which founded by him and his colleagues in 2001. He received bachelor’s degree in Computer Science from Gunadarma University (www.gunadarma.ac.id) and master’s degree in Communication Management from University of Indonesia (www.ui.ac.id). He is lecturing e-Business subject at Bina Nusantara University (www.binus.ac.id) and Communication Technology Development subject at Pelita Harapan University (www.uph.edu) as well as Cyber Journalism. Journalism is also one of his daily activities, by conducted as a Managing Editor for ICT Online Media ‘detikINET’ (www.detikinet.com) and Portal Publisher Manager for Detikcom Group, (www.detik.com) the biggest and reputable Indonesia online media. He is a invidual member of Indonesian Infocom Society (www.mastel.or.id) and Indonesian Communication Scholars Post-Graduate Association as well. Born in 1974 in Indonesia, he often traveling to many cities in Indonesia to promote ICT usefulness and encourage people to use it rightly and wisely. E-mail: dbu [at] donnybu.com / dbu [at] ictwatch.com **) Rapin Mudiardjo, is a senior researcher at ICT Watch. He is born in 1976 in Indonesia, is founder and practicing at the Indonesia law firm of Karim Mudiardjo & Partners Law Office as an advocate and solicitor. He has an area specialist in intellectual property, information technology, media and commercial litigation. Former Chairman of ASEAN Law Student Association (ALSA), he received his bachelor’s degree in law from University of Indonesia (www.ui.ac.id) and established Research Institute of Law and Technology. He has bachelor’s degree in System Information as well, majoring in cyber crime ICT Law and Policy from STIMIK Perbanas (www.perbanas.ac.id). Articles written by him often published at some reputable Indonesian mass media. Together with his colleagues, he founded Center for ICT Studies Foundation (well known as ICT Watch) in 2001 and active as a researcher. E-mail : rapin[at]ictwatch.com.

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