Indonesia’s Digital Creative Profile & Opportunities

Indra PurnamaBandung Digital Valley

Bilpen NainggolanPT. Telekomunikasi Indonesia

Market Profile

the size

ID

PH

VN

MY

THSG

More than half of Indonesia’s Internet Users are younger than 20 years old

Twitter User

Mobile Internet

Facebook User

Internet User

Middle Class

Mobile Users

Population

29

45

63

75

156

200

240

Internet Users in SEA Indonesia’s Key Figures

Source: TechinAsia, November 2013

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

20

40

60

80

100

120

8 11.216 20 20

2530

42

5563

74.683.6

94103

the growth driver20% Y-Y Growth 30% Penetration

mobile internet

Feature Phones

Smart Phones

TabletGaming Devices Media Players

AndroidBlack berry

Windows

IOS

Source: www.emarketer.com & IDC Indonesia

mobile behavior

Shopping

Social Gatheirng

Bathroom

Commuting

Family Time

Watching TV

Waiting

Lying in Bed

5

5

6

14

17

29

35

69

Local Search

Shopping

Games

Email

Information

Entertainment

Social Media

6

8

12

14

16

20

24

Printed; 24

Radio; 28

Desktop; 59

TV; 80

Mobile; 106

Media Consumption (Minutes / Day)

Where to Access Mobile (%)

Activities (%)

Source: inMobi

digital [un]divide

GeographicPromising market is now shifting to eastern region

DemographicLow-End users could spent up to 30% of their salary for mobile services

e-commerce market

2013 2016

4.6

8.7

2013 2016

1.8

4.5 70% of Indonesian online users intend to make an online purchase

Buyer (Million) Trx (US$ Billion)

Source: eMarketer,March 2013

ecosystem & key players

startup communities

industry’s associations

software content animation digital creative

game telematics e-commerce

ICT incubators

i2TY

Corporation

Venture Capital

University

Government

venture capitals

enterprise initiatives

Telco Operator Mobile Operator Mobile Operator

Bank Consumer Corporation

opportunities

#1: Payment Solution

Bank Transfer; 57%

Cash on De-livery; 28%

Others; 8%

Credit Card; 7%

Credit Card

Bank Account

Mobile Account

Population

14.7

60

200

240

Payment Method for e-commerce

in Million

Source: Indonesia Credit Card Association, 2013, VelaAsia

in search of Indonesian Paypal

Bank

Payment Gateway

Telco Operator

#2: Solution for Low-End Users

The only touch point is Mobile Phone

Feature-phone optimized apps

• SAAS is now only feasible to SME

• 40 Million SMEs in Indonesia

• Represents 99% of all companies

• Retail sales US$ 134 Billion

#3: software as a service

• E-commerce market size will be US$ 4.5 Billion in 2016

• No dominant player yet• Vertical e-commerce is

believed to have a good opportunity in Indonesia.

#4: [vertical] e-commerce

regulations

related regulations

• Law of The Republic of Indonesia No. 11 / 2008Electronic Information & Transaction

• Government Regulation No. 82Implementation of Electronic System & Transaction

• Draft Government Regulation – Electronic Commerce Ministry of Trade

• Draft Government Regulation – Foreign Investment – Ministry of Trade

Thank You

Indra Purnamaindra@mikti.org

Bilpen Nainggolanbil@telkom.co.id