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INDONESIA INTERNET USAGE FOR BUSINESS 2013

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION & INDONESIA STATISTICS


Indonesia Internet Usage for Business Sector 2013; Parlindungan Marius and Freddie Pinontoan;
Jakarta: APJII, 2013. x + 41 pages.; 21 x 30 cm.
ISBN 978-602-19596-3-3
Writers

: Parlindungan Marius and Freddie Pinontoan

Editors

: DR. Ir. Didit Herawan, MBA and Content is The King

Layout and Infographics

: Content is The King

Cover Design

: Content is The King

Publisher

: Asosiasi Penyelenggara Jasa Internet Indonesia

Publication

The printing house is not responsible for the contents of this publication
All Rights Reserved

APJII
Asosiasi Penyelenggara Jasa Internet Indonesia
Jl. Kuningan Barat No. 8 Jakarta 12710
Tlp. (021) 52960634
www.apjii.or.id
ii

BPS
Badan Pusat Statistik
Jl. dr. Sutomo No. 6-8 Jakarta 10710
Tlp. (021) 3841195, 3842508, 3810291-4
www.bps.go.id

INDONESIA INTERNET USAGE FOR BUSINESS 2013

TABLE OF CONTENTS

Foreword .......... ............. .................................... v


Executive Summary ........................................... vii
Background and Research Objectives ............... x

CHAPTER 1
METHODOLOGY- p.1

CHAPTER 2
BUSINESS SECTORS
INTERNET USERS - p.5

CHAPTER 3
INTERNET NETWORK
FACILITIES - p.11

CHAPTER 4
PURPOSES OF INTERNET
USERS - p.21

PENETRATION OF INDONESIAN
INTERNET USERS IN 2013
Extrapolation Method

20.10%

27.58%

43.17%

p.31

iii

INDONESIA INTERNET USAGE FOR BUSINESS 2013

OPENING REMARKS

adan Pusat Statistik (BPS) menyambut baik atas disusunnya


buku publikasi hasil Survei Penyerapan dan Penggunaan
Sarana Komunikasi dan Teknologi Informasi (P2SKTI) 2013
yang diterbitkan oleh Asosiasi Penyelenggara Jasa Internet Indonesia
(APJII). Buku yang menyajikan data hasil survei ini akan lebih
bermanfaat dan bermakna apabila dapat dijadikan sebagai rujukan
bagi para pengguna data, khususnya pelaku usaha jasa internet,
untuk memanfaatkannya dalam merencanakan dan mengambil
keputusan terkait dengan ekspansi bisnis maupun inovasi dalam
penyediaan jasa internet di Indonesia.

HEAD OF CENTRAL
BUREAU OF STATISTICS

This book can be used as complementary by data users who need


accurate and up-to-date information regarding usage and utilization of
internet services by business sector, which previously in 2012 the similar
book was published to present the survey limited to internet penetration
in households and individuals. While for BPS, I hope this book can be
used as baseline to improve the quality and quantity of available Core
ICT Statistics data which nowadays is required more than before, by
various data users including private institutions, government agencies,
and international organizations.
Last but not least, I express my gratitude to the God Almighty and
thank you to APJII and all BPS teams, in particular the Communication
and Information Technology Statistics Sub-Directorate, which has been
working hard and successfully establishing cooperation with the APJII
in visualizing the analysis of P2SKTI 2013 survey in this book. Hopefully
this cooperation will benefit not only the BPS and APJII, but it will also
benefit the general public and data users in Indonesia and in the world.
God bless us in the publication of this book.

Jakarta, January 2014

Dr. Suryamin, M Sc.


Head of Central Bureau of Statistics
iv

INDONESIA INTERNET USAGE FOR BUSINESS 2013

OPENING REMARKS

ach year the Indonesia Internet Service Provider Association


(APJII) conducted a survey of internet users. In 2012 the survey
was performed on individual users, while in 2013 the survey
highlighted the business users. The 2013 survey was conducted in
cooperation with the Central Bureau of Statistics (BPS).
The surveys were conducted to provide greater benefits to our members which are internet service providers (ISPs) from all regions in Indonesia. Positive responses to previous survey had encouraged APJII to
provide better, comprehensive report.

Chairman of Indonesia
Internet Service Provider
Association

For APJII, internet becomes an essential part of our daily activities,


acts as an enabler and transformer for all industrial changes, therefore
internet research is considered an important requirement. For the ISPs,
the research is necessary especially the corporate market segment. In
collaboration with the BPS, a state bereau that bound to the law, the
research results will only display the functions and generic names. Specific products or names such as facebook and twitter in this research are
not mentioned individually and they are grouped in one category (social
media).
The research covers all provinces in Indonesia with the hope that the
broad coverage will provide sensible results that have real benefit. Research method and sample size are adjusted to the International Telecommunication Union (ITU) as a UN agency. It is a part of national program in accordance with MDGs (Millennium Development Goals) target
launched by the UN that in 2015, 50% population of each country shall
be connected to internet.
After reviewing the results, penetration of Indonesian internet users
are still at 28%, far below the target of 50%. In a year the figure should
grow at least twice to achieve the international standard. Although it is
not the party responsible to achieve the standard, APJII constantly encourages the growth of internet users in Indonesia.
It is expected that the survey results will provide a strong impulse for
the industry to increase the penetration of internet users throughout
Indonesia. It will also provide a valuable documentation for internet development in Indonesia.

Jakarta, January 2014

Semuel A. Pangerapan
APJII Chairman
v

INDONESIA INTERNET USAGE FOR BUSINESS 2013

FOREWORD

s a continuation of the previous year program, the Indonesia


Internet Service Provider Association (APJII) Committee 20122015 once again publishes Personal Internet Users Survey
2013. In contrast to 2012, in this edition, the scope of the survey is
broader. The current survey includes Business Sectors Use of Internet in 2013 and the Profile of Internet Users 2013.

Survey Manager of
Indonesia Internet Service
Provider Association

The report presented in infographics is prepared from Survey on


Usage and Absorption of Communication and Information Technology
Facilities 2013. The survey was resulted from the cooperation between
Central Bureau of Statistics (BPS) of the Republic of Indonesia and APJII
in organizing the Survey on Usage and Absorption of Communication
and Information Technology Facilities (P2SKTI).
In responding to the increasing demand on internet survey data from
the public, APJII hopes this book can be used as a reference in providing
internet services for APJII members, industry, academic stakeholders, the
Government, and general public.
The survey will not succeed without supports of various parties. For
the supports, we really appreciate and thank to Mrs. Sylvia W. Sumarlin as
Chair of APJII Supervisory Board; Mr. Samuel Pangerapan, Mr. Sapto Anggoro, and Mr. Freddie Pinontoan as APJII Executive Boards; Mr. Suryamin
as the Head of Central Bureau of Statistics and all supporting staff, Mr.
Didit Heryawan and Mr. Rachmat. We would also like to thank all parties
who directly and indirectly had supported the survey.
We do hope this good faith may benefit to all parties, especially to the
development of internet industry in Indonesia.

Jakarta, January 2014

Parlindungan Marius
APJII Survey Manager
vi

INDONESIA INTERNET USAGE FOR BUSINESS 2013

EXECUTIVE SUMMARY

The availability of
adequate data has similar importance with the
way data is visualized to
make it easy to understand and benefit to all
parties.

HTTP://BLOGS.ITB.AC.ID/

urvey on Usage and Absorption of Communication and


Information Technology Facilities 2013 was conducted by
the Central Bureau of Statistics (BPS) in cooperation with
the Indonesia Internet Service Provider Association (APJII) focused
on business sector in Indonesia. The business sector includes
manufacturing industry, hotels, and restaurants with a total of
1,108 business respondents. The survey conducted in all provinces
in Indonesia illustrates the positive development of penetration
and use of internet by business sector in supporting their main
activities.
How will significant increase of Indonesian internet users affect the
industry? By the end of 2013, internet users in Indonesia were 71.19
million and in first quarter of 2014 the figure increases to 82 million.
Although trend of increase in business sector has not been identified,
it can be estimated that the internet users in this sector also grow
positively.
The survey indicates that hospitality is the business sector with
the largest percentage of internet use. Approximately 71.06% hotels
are using internet, while manufacturing industry and restaurants are
68.9% and 57.77% consecutively. The greatest opportunity to provide
internet connection is restaurant by 11.15%, followed by manufacturing industry by 8.65%, and hotel by 3.53%. In the aspect of server use
to support main activities, the greatest opportunity is restaurant by
10.71%, manufacturing industry by 9.93% in the second position, and
vii

INDONESIA INTERNET USAGE FOR BUSINESS 2013

the last is hotel by 7.65%.


Opportunity to provide internet connection service based on regions
can also be observed from this survey. The greatest opportunity in Sumatera, Java, and Bali regions is Bangka-Belitung Islands by 14.28%.
While in other regions (Nusa Tenggara, Kalimantan, Sulawesi, Maluku,
and Papua), Central Sulawesi is on top with the potential as high as 30%.
Human resources requirement in information technology in the business sector is also interesting to observe. Compared with all internet users in business sector, hospitality is on top with 29.88% gap to be filled
with IT personnel, while restaurants gap is 13.70% and manufacturing
industry is 13.34%.
Based on speed of internet access, 90.07% hotels use fixed-broadband internet access. There are 25.29% manufacturing industry which
still using narrowband access. While broadband access is used by 9.34%
manufacturing industry. In fixed-broadband access, WiFi/WiMAX/Microwave group is mostly used, followed by dial-up connection, while VSAT
is the last option.
Internet access speed based on regions:
1. Java island is dominated with WiFi/WiMax/Microwave broadband internet connection. Largest users using WiFi/WiMax/Microwave access is
found in Yogyakarta (55.17%). While East Java is dominated with users
using cellular access (10.17%). Most users in Central Java use dial-up
access (27.71%).
2. Sumatera island is dominated with DSL broadband internet connection. In Jambi most users use DSL access (71.43%). While in Bengkulu is
dominated with cellular access (33.33%). Dial-up access is commonly
used in Bengkulu (66.67%).
3. In Nusa Tenggara, Bali, and Kalimantan regions, WiFi/WiMax broadband internet connection is dominant. WiFi/WiMax access is commonly
used in Central Kalimantan (66.67%). Cellular access is dominant in West
Kalimantan and East Nusa Tenggara (12.50% each). Dial-up connection
HTTP://CDN2.AGODA.NET/

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INDONESIA INTERNET USAGE FOR BUSINESS 2013

is used by most users in Central Kalimantan (33.33%).


4. In Sulawesi island most users use WiFi/WiMax broadband internet
connection without indication of cellular access. While WiFi/WiMax
and dial-up accesses are commonly found in Gorontalo (66.67%).
5. Maluku and Papua regions are dominated with WiFi/WiMax
broadband internet connection without indication of cellular access.
All user samples in North Maluku (100%) use WiFi/WiMax access.
Dial-up access is also commonly used in North Maluku by 50% users.
P2SKTI 2013 survey also shows largest percentage of manufacturing industry (36.96%) pay subscription of internet access below
Rp 500 thousand per month. The figure is relatively similar with subscription fee between Rp 500 thousand and Rp 1 million per month
(29.19%) and above Rp 1 million per month (33.85%). In hospitality
business, most hotels (40.06%) spend internet access subscription
above Rp 1 million per month. While 54.97% restaurants pay the
subscription fee below Rp 500 thousand per month. Approximately
73% business sectors use one ISP, but there are 0.6% businesses use
four ISPs simultaneously.
In a year the business sectors purchase information and communication technology equipments in an average of less than Rp 10
million: restaurants 80.93%, hotels 67.06%, and manufacturing industry 53.87%.
The survey shows top five purposes of internet use as follows:
send/receive e-mails (95.75%); search for news (78.49%); search for
goods/services (77.81%); search for government agencies (66.07%);
and provide customer services (61.23%). The figure of last purpose
is similar with social media use.
The profile of survey results above is both a challenge and opportunity for internet service providers to participate in developing
penetration and use of internet in Indonesia. It is worth to mention that Millenium Development Goals set 50% population in Indonesia or 107 million in 2014 and 139 million at the end of 2015
must be connected to the internet. It is a great duty that can be
accomplished only by establishing comprehensive collaboration of
all stakeholders.

ix

INDONESIA INTERNET USAGE FOR BUSINESS 2013

odays development of information and


communication technology in Indonesia
benefits many people including general
public, the government, and businesses. Demand
from various parties for statistical data of Information and Communication Technology (ICT) is
increasingly high. International agencies such as
International Telecommunication Union (ITU) and
United Nations Conference on Trade and Development (UNCTAD) regularly require ICT statistics
from the BPS for the purpose of preparation of ICT
Development Index and calculation of Core ICT
Indicators.
At the other end, APJII which accommodates 300
members of internet service providers has real requirement to expand their markets and to provide internet access for general public. By conducting competent survey, it is expected that all APJII members
may increase their productivity, their market penetration will accelerate, and internet use will increase
rapidly. With similar requirement and spirit, BPS
through Communication and Information Technology Statistics Sub-Directorate had an initiative to increase the availability and variability of ICT statistics
by establishing cooperation with APJII.
Cooperation in the survey on Use and Absorption
of Communication and Information Technology Facilities (P2SKTI) 2013 had been focused on business
sector to obtain data and information regarding the
availability of ICT facilities and infrastructures, access to ICT facilities, as well as use and utilization of
ICT facilities in business sector. P2SKTI survey covers
business sector in three business activites including
large and medium manufacturing industry, hotels, and
restaurants. Respondents are defined using sampling
method from all provinces in Indonesia based on
sampling frame of the directory of Large and Medium

Manufacturing Industry, Hotels, and Restaurants.


In general, the objectives of Survey on Use and Absorption of Communication and Information Technology Facilities 2013 are as follows:
a. To meet the requirement of data users in the aspect
of the availability of ICT statistics data variability.
b. To provide supporting data for the preparation of
ICT Indicators and the calculation of ICT Development Index.
c. To provide a reference for the government in establishing and evaluating relevant policies particularly
in communication and information technology sector.
d. To provide an illustration of the penetration of use
and absorption of communication and information
technology facilities and infrastructures, particularly in relation with the availability of ICT infrastructures, access to ICT, as well as use and utilization of
ICT in business sector.
P2SKTI 2013 survey was conducted in 33 provinces in
Indonesia, and derived to 78 regencies/municipalities
and integrated in BPS routine business-based surveys.
The survey was taken place in provincial capital city
and nearby regencies/municipalities.
a. Enterprises categorized as large and medium manufacturing industry.
b. 
Enterprises providing accommodations including
star and jasmine class hotels.
c. Enterprises providing food and beverage namely
restaurants.
To maintain continuity of ICT statistics data availability, particulary in relation with the use and utilization of ICT facilities in business sector, it is expected
that P2SKTI survey will be routinely conducted on a
yearly basis.

INDONESIA INTERNET USAGE FOR BUSINESS 2013

APJIIs Role in Internet Tariff Regulation


In the first National Conference on 15 May 1996, the declaration date of APJII establishment, the board
members assigned for the first 3 years term were asked to execute several strategic, key programs to
develop internet networks in Indonesia. The programs were:




Internet service tariff


Establishment of Indonesia-Network Information Center [ID-NIC]
Establishment of Indonesia Internet Exchange [IIX]
Negotiation of telecommunication service infrastructure tariffs
Proposal for number and type of providers

Both programs were successfully executed including Internet service tariff proposal and negotiation
of telecommunication service infrastructure tariffs with the issuance of several Government decisions
namely:

Decision of the Minister of Tourism, Post, and Telecommunications of the Republic of Indonesia
No. KM.59/PR.301/MPPT-96 dated 30 July 1996 on Internet Service Tariff.
Decision of the Minister of Tourism, Post, and Telecommunications of the Republic of Indonesia No. KM.2/PR.301/MPPT-97 on Leased Circuit Service Tariff including the elaboration, in
accordance with Letter of the Secretary General of Ministry of Tourism, Post, and Telecommunications No. Pr.301/9/5/PPT-97 dated 28 February 1997 which stated that the Internet Service
Providers are Telecommunication Service Operators.

illustration: danpontefract.com

xi

INDONESIA INTERNET USAGE FOR BUSINESS 2013

xii

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Chapter I

METHODOLOGY

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

1.1 SCOPE OF SURVEY


Survey on Use and Absorption of Communication
and Information Technology Facilities 2013 was
conducted in 33 provinces in Indonesia, and derived
in 78 regencies/municipalities.

The Indonesian Standard Industrial


Classification (KLBI) means standard
classification of economic activites conducted in
Indonesia which is detailed based on categories.
KLBI only classifies production units based
on economic activities without distinguishing
production units based on ownership, type of
legal entity, formal or informal.

Scope of business sector in the survey covers 3


business categories that refer to the Indonesian
Standard Industrial Classification (KBLI, Klasifikasi
Baku Lapangan Usaha Indonesia)*

Business Categories in the Survey

MANUFACTURING INDUSTRY
Enterprises categorized
as large and medium
manufacturing industry

HOTELS
Enterprises providing
accommodations including
jasmine and star class hotels

RESTAURANTS
Enterprises providing
food and beverage namely
restaurants

This includes economic


or business activities in
transforming materials,
elements, or components using
chemical or physical processes
into new products. Raw
materials for manufacturing
industry are obtained from
agriculture, forestry, fishery,
mining, or excavation products,
and products from other
manufacturing industry.
Included in this category of
manufacturing industry is unit
that transforms materials into
new products.

A business that utilizes a


building or part of a building
that specifically provided where
people may stay, eat, and obtain
services and other facilities with
payment. The business includes
one to five-star hotels and
jasmine class hotels.

This includes providing food


and beverage services to be
consumed immediately, and
including traditional restaurants,
self-service restaurants, or
take away restaurants, either
located in fixed or temporary
location and without seats.
Providing food and beverage
service means providing food
and beverage to be consumed
by order.

illustration: asiarooms.com

illustration: okefood.com

illustration: kilurahsemar.wordpress.com

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

1.2 DATA & SAMPLES


MANUFACTURING
INDUSTRY

TOTAL SAMPLES

1.108
enterprises

RESTAURANTS

36%

DATA COLLECTION METHOD


Data is collected from
selected samples by faceto-face interview between
the surveyors and the
respondents.

28%

HOTELS

Sample Allocation Based On Provincial Regions


Number of enterprises

148

Java and Bali


regions

Determination of sample
distribution is based on number
of relevant businesses in the
regions. The number of samples
is highest in Java region given
the number of businesses
located in Java is the highest
than other regions in Indonesia.

185

144

36%

Sample allocation
based on business
category

65.1%

Nusa Tenggara,
Maluku
dan Papua
regions

110

5.1%
6.2%

Sulawesi
regions

Sample
allocation
based on main
islands

6.4%
17.1%
Kalimantan
regions

52

West Papua

Gorontalo

Bengkulu

West Sulawesi

North Maluku

Maluku

Jambi

Papua

Central Sulawesi

Southeast Sulawesi

North Sulawesi

Central Kalimantan

South Kalimantan

14 13
12 12 11 10 10

East Nusa Tenggara

16

Aceh

West Kalimantan

West Sumatera

Lampung

West Nusa Tenggara

22 21
20 19 18 18 17

Riau Islands

South Sulawesi

Yogyakarta

East Kalimantan

Banten

North Sumatera

Bali

Jakarta

West Java

Central Java

East Java

28 27

Bangka Belitung Islands

38

South Sumatera

43

Riau

53

Sumatera
regions

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Regencies/Municipalities Coverage Based on Provinces

Aceh
Aceh Besar, Banda Aceh
North Sumatera
Deli Serdang, Langkat,
Medan, Binjai

South Kalimantan
Banjarmasin, Banjar Baru

East KalimantanKutai Kartanegara,


Balikpapan, Samarinda

Central Kalimantan
Katingan, Palangka Raya

West Sulawesi
Mamuju
South Sulawesi
Gowa, Maros, Makassar

Riau
Pelalawan, Pekan Baru
Jambi
Jambi

North Sulawesi
Minahasa, Manado

Central Sulawesi
Parigi Moutong, palu

West Kalimantan
Kubu Raya, Kota
Pontianak
Bangka Belitung Islands
Pangkal Pinang

Gorontalo
Kota Gorontalo

North Maluku
Ternate

West Sumatera
Padang, Solok
Bengkulu
Bengkulu

Southeast Sulawesi
Konawe, Kendari

South Sumatra
Banyu Asin, Palembang
Lampung
Pasawaran, Bandar Lampung
Jakarta
South, East, Central,
West, North Jakarta
Banten
Serang, Cilegon, Kota Serang

West Papua
Sorong

Bali
Badung, Gianyar,
Denpasar
East Java
Pasuruan, Sidoarjo,
Gresik, Pasuruan,
Mojokerto, Surabaya

East Nusa Tenggara


Kupang, Kota Kupang

Maluku
Ambon

Papua
Jayapura,
Kota Jayapura

West Nusa Tenggara


Lombok Barat, Mataram
West Java
Central Java
Kab. Bandung, Garut,
Jepara, Kab. Semarang, Kendal,
Ciamis, Kota Bandung,
DI Yogyakarta Kota Semarang, Pekalaongan
Bekasi, Cimahi Sleman,Yogyakarta

BPS Survey
In conducting this survey, BPS as an official government
bureau should not mention brand or product name. In
case of social media for example, the survey did not
specifically mention facebook, twitter, or kaskus forum.
Such survey ethics should be adhered to by the BPS
therefore it not allowed mentioning specific brand to
maintain the objectivity of survey results.

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Chapter II

BUSINESS SECTORS
INTERNET USERS

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013


WWW.TRIBUNNEWS.COM/

Manufacturing Industry

Internet Users in Industry


2013
(Restaurants, Hotels and Manufacturing
Industry)

In responding ICT data requirement demanded by various stakeholders,


both domestic and international (namely ITU), the BPS has a program
to conduct Survey on Use and Absorption of Communication and
Information Technology Facilities in 2013. In the occasion, APJII had
established cooperation with BPS in the survey.

BPS used Core ICT Indicators 2010 as a reference for measurement


parameter. Core ICT Indicators were used in order to get the results can
be compared internationally. In this matter APJII refered to the interest
of internet industry stakeholders and data requirements that in turn
will benefit its members, the Internet Service Providers.

The survey was conducted by BPS internal personnel in 33 provinces


and involving 1175 business respondents and took place in September
(1 month), while the process was already started in May 2013. Data
collection and processing were conducted since October to November
2013.

/WWW.TRIPADVISOR.CO.UK/

Hotel Industry
6

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Internet in Business World


Fadjar Efendy Rasjid, S.Kom
Internet has triggered a revolution by changing the world in conducting local
and global businesses. It started from collecting data for employee recruitment
in a company, and today internet is used by many businesses, so internet
benefits business communities. People find ways to optimize internet for their
businesses. Many websites had been developed and equipped with back-office
system including database, accounting packages, and finally small and big
companies are capable to utilize internet in supporting their businesses. Online
business emerges where internet is the main business.
Many companies, especially that implement online trading, have integrated
their inventory control and customer tracking. This step ensures reduced
administrative cost and increased customer services by providing fast and
accurate information regarding order processing updates to the customers.
source: ubaya.ac.id

Internet is Nutrition for the Business World


By the growth of advanced technology, internet
seems becomes the nutrition in human and business
daily life. Head of Central Bureau of Statistics (BPS)
Suryamin presupposed the internet as a basic need
for business world. Internet is very important for
businesses and the community, it is similar to our
basic needs, said Suryamin in an event Latest Profile
of Industrial Internet and Its Growth in Jakarta, on
Wednesday (15/1/2014).
In the event organized by the Indonesia Internet
Service Provider Association (APJII) and BPS, Suryamin
even said that needs for internet in the community
and industry have been equal to the needs for food.
Understandably, now almost all activities of human
life are associated with the internet.

to him, internet may fulfill the sense of curiosity of


the people in fast, easy, and affordable ways. For
businesses, the internet may speed up information
and data flow from their users.
Outside businesses, Suryamin explained, internet
may also help in educating the nation. Whats more, a
survey conducted with APJII has shown that 78.49%
industry owners in Indonesia use the internet to
search for news information.
He hoped, in the future there will be better internet
services particularly for business sector in order
to increase the productivity of domestic business
owners.
source: www.apjii.or.id

With internet, people may get the information


instantly. Even a part of the community and
industry owners have put the internet as their first
priority, similar to food, said Suryamin. According

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

2.1 USE OF COMPUTERS & INTERNET


Information obtained from these parameters are:

USING COMPUTERS CONNECTED


TO THE INTERNET

USING COMPUTERS
Enterpresises those use computers
in their main business activities. The
computers include desktops, laptops,
and tablets but excluding cellular
phones and televisions.

P2TIK 2013 survey, a cooperation between BPS and APJII

MANUFACTURING INDUSTRY

Using Computers
Connected to
the Internet

Server computer is computer


equipment that functions as data
center or terminal to distribute
resources, permission, and
others that connected to other
computers.

Enterpresises those use


computers in their main business
activities, and the computers are
connected to the internet.

Use of Computers, Internet, and Servers


Multiple answers - percentage

Using
Computers

USING SERVERS

77.8%
68.9%

HOTELS

RESTAURANTS

74.6%
71.1%

68.9%

63.4%
59.0%

57.8%

Using
Servers

47.1%

Gap percentage of the use of computer and internet for main business activity:
manufacturing industry 8.65%; hotels 3.53%, and restaurants 11.15%.
The gap reflects the opportunity to provide internet connection services.

Internet in Hospitality Industry


In the future internet access and its applications will be
an integral part of a hotel. It is important to support the
service improvement and the growth of hotels business
value. Internet will be useful for promotional events to hotel
management.
illustration: starwoodshotel.com

Prasabri Pesti, Deputy Executive General Manager (Business Service Division) Telkom

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Use of Computers, Internet, and Servers in Each Province


Multiple answers - percentage

P2TIK 2013 survey, a cooperation between BPS and APJII

Sumatra
01

01. Aceh

02
04

02. North Sumatra


05

68,7
54,9

64,7

03. West Sumatra


09

75

70,5

70,5

04. Riau

81,8

81,8

03

05. Jambi
06

07

08

70

06. South Sumatra

65

07. Bengkulu

60

08. Lampung

57,8

Using
computers

70

60
63,1

09. Bangka Belitung Islands


Using computers
connected to the
internet

80

85,7

71,4

10. Riau Islands

80

01. Jakarta

81,6

80

Java and Bali


02. Banten

01
03

04

04. Central Java


05

74,4

03. West Java

02
06

59

65,7

58

05. Yogyakarta

Kalimantan

64,4

07. Bali

01. West
Kalimantan
02. Central
Kalimantan
03. South
Kalimantan
04. East
Kalimantan

83,7

78,3

06. East Java


Using
computers

81,4

68,7

07

Using computers connected


to the internet

90,8

72,6
86,5

80,7

94.1
50

58,3
71.4
60,7

71,4
67.8

04

01

02

03

Using computers connected


to the internet

Using
computers

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

94,1

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Use of Computers, Internet, and Servers in Each Province


Multiple answers - percentage
Sulawesi

01. North
Sulawesi

05

01

02

02. Central
Sulawesi

60

03. South
Sulawesi

02

03

P2TIK 2013 survey, a cooperation between BPS and APJII

51,8

55,5

04. Southeast
Sulawesi
04

72,7

63,4

05. Gorontalo

60

06. West
Sulawesi
Using computers connected
to the internet

90

60

50

75

Using
computers

Nusa Tenggara, Maluku


and Papua

04

05

03

01
06

01. West Nusa


Tenggara
02. East Nusa
Tenggara

66,6

50
61,5

03. Maluku
04. North Maluku

71,4
40

05. West Papua


06. Papua

Using computers connected


to the internet

Using
computers

The obtained figure of penetration is based on number of


samples in the survey.

10

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION

61,5
85,7

40
80

80
87,5

87,5

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Chapter III

INTERNET NETWORK
FACILITIES

11

INDONESIA INTERNET USAGE FOR BUSINESS 2013

INTERNET NETWORK FACILITIES


In this survey, use of internet network facilities
is categorized based on internet speed and
position mobility (mobile or fixed).

FIXED/MOBILE

Fixed

SPEED

<=
256

NARROWBAND

Kbps

>
256

Mobile

FIXED
BROADBAND

Kbps

MOBILE
BROADBAND

Internet Network Facilities

1. NARROW BAND

2. MOBILE BROADBAND

3. FIXED BROADBAND

Internet facilities with speed


below 256 Kbps, including:
dial-phone lines, ISDN, DSL,
CDMA 1X, GPRS, and WAP.

Mobile internet facilities using


wireless technology, including:
WCDMA, UMTS, HSDPA, HSUPA,
and CDMA 2000.

Internet facilities with speed


above 256 Kbps and fixed
location, including: DSL, cable
modem, fixed wireless, WLAN, and
WiMAX.

TECHNOLOGY APPLICATION

NARROW BAND

MOBILE BROADBAND

Dial-up
Internet access using fixed telephone line or mobile
telephone. Computer through modem dials the connection
to the Internet Service Provider.

Cellular
A communication system providing internet services where
subscribers access can be performed in mobility.

FIXED BROADBAND
1. Wifi
Technology utilizing electronic devices to
exchange data using radio wave (wireless)
through a computer network, including
high-speed internet connection.

2. Wimax
Broadband wireless access technology
with high-speed access and broad
coverage.
3. Microwave
Electromagnetic wave with super-high
frequency (SHF) above 3 GHz (3x109 Hz).

12

4. VSAT (Very Small Aperture


Terminal)
Terminal that receives signal from the
satellite using disc receiver antenna
with diameter of less than 3 meters.

5. Fiber Optics
Transmission line or type of cable made
of glass (silica) or plastic , slightly thicker
than a human hair, and it can be used
to transmit light signal between the two
ends of the fiber. Light sources commonly
used are laser or LED.

6. Leased Line
Fixed telephone connection line
between two points provided by
public telecommunication company.

7. DSL (Digital Subscriber Line)


A set of technology that provides
digital data transmission through
cables in a location near local
telephone network.

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Business Sectors Use of Internet Network Facilities


Multiple answers - percentage
1

MANUFACTURING INDUSTRY

Mobile
Broadband

P2TIK 2013 survey, a cooperation between BPS and APJII

HOTELS

RESTAURANTS

9.3

4.3

Narrowband

25.3

17.6

22.8

Fixed
Broadband

70.8

90.1

76.0

6.4

Fixed broadband technology used in the


manufacturing industry

Leased Line

Wifi/
Wimax

35.8

13.2

DSL

Fiber Optics

35.8

12.1

VSAT 5.5

Fixed broadband technology used in hotels

Access technology used by


the industry is predominantly
wireless access. This is evident
in many ISPs that use 5.8 GHz
frequency for their services.
WiMAX access technology is
not separated from BWA in
this survey. BWA/Wifi access
is counterbalanced by ADSL
in almost all sectors, in a
proportion around 30 percent.

Wifi/Wimax

64.2

Fiber Optics

DSL

34.8

13.9
Leased
Line

4.6

VSAT

4.6

Fixed broadband technology used in restaurants

Wifi/Wimax

50.9

DSL

32.8

Leased
Line

8.8
VSAT 2.9
Fiber
Optics 2.3

13

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Provincial Internet Network Facilities

01 Banten
Cellular

24,7

40,6

06 East Java

07 Bali

2,5

Fiber Optics

5,9

Leased Line

6,7

27,5
27,5

27,7

23,5

01

02
03
04

06

0
26,1
2,3

DSL
Dial Up

6,9
42,1

83,3

51,6

VSAT

7,2

11,9

10,1

Wifi/Wimax

10,3

26,9
20,2

Cellular

3,4

8,4

12,9

9,3

55,1

1,2
15,2

10,1

DSL

49,4

3,5

15,6

Leased Line 6,2


Dial Up

50,5

4,4

05 Yogyakarta
6,9

2,4

44,9

6,2

04 Central Java

4,7

31,2

Fiber Optics

03 West Java

02 Jakarta
5,6

9,3

Wifi/Wimax
VSAT

P2TIK 2013 survey, a cooperation between BPS and APJII

38,9

05

28,5

22,8

07

23,8

Java and Bali


The regions are dominated by WiFi/WiMax/Microwave
broadband internet connection. WiFi/WiMax/Microwave
access is mostly used in Yogyakarta (55.17%). Cellular
access is mostly used in East Java (10.17%). While in Central
Java, most users are connected with dial-up acces (27.71%).
Although internet access in Java is dominated by wireless
technology, fiber optic such as metro Ethernet and FTTH
are already introduced as potential access technology.

Wifi/Wimax
14

VSAT

Dial Up

DSL

Fixed broadband technology with higher speed namely


10Mbps will be more efficient with fiber optic access
technology.
It is true that the speed to extend fiber optic much slower
than wireless technology, but there is increasing number of
providers that manage fiber optic and several big operators
had started long before this technology becomes mature in
Indonesian market.

Fiber Optics

Leased Line

Cellular

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Provincial Internet Network Facilities

P2TIK 2013 survey, a cooperation between BPS and APJII

Sumatra
This region is dominated by DSL
broadband internet connection.
Largest percentage of DSL
access can be found in Jambi
(71.43%). Cellular access is
dominant in Bengkulu (33.33%).
While dial-up access is also
dominant in Bengkulu (66.67%).

05
04

02

06

01
07
03

08

09
10

01 Jambi

02 Riau

14,2

Cellular

5,5

5,5
0

DSL

71,4

Dial Up

06 Riau Islands

VSAT

25

DSL
Dial Up

Wifi/Wimax

3,5

8,3

7,1

08 Lampung
0

31,2

VSAT

9
20

18,1

20

25

36,3
40

Dial Up

17,8

09 Bengkulu

10 South Sumatra
7,6

45,4
18,1

DSL

33,3

20

18,7

46,4

58,3

Fiber Optics 6,2


Leased Line

8,3

25

20

12,5

07 Bangka Belitung

Wifi/Wimax

3,5

11,1

100

69,2

7,6

Fiber Optics

90,9

28,5

8,3

44,4

14,2

05 Aceh
0

33,2

16,6

Leased Line 0

04 North Sumatra
3,5

55,5

0
VSAT
Fiber Optics 0

Cellular

42,8

Wifi/Wimax

03 West Java

30,7
66,6

Leased Line

Cellular

15

INDONESIA INTERNET USAGE FOR BUSINESS 2013


Dominan:
Wifi
Dial Up 05

Provincial Internet Network Facilities


Sulawesi

01

04

This region is dominated by WiFi/WiMax broadband internet


connection without indication of cellular access. Largest
percentage of WiFi/WiMax and dial-up accesses can be found in
Gorontalo (66.67%).
01 North Sulawesi
02

8,3

Cellular

Dominan:
VSAT
DSL
Dial Up

58,3

Wifi/Wimax
0
VSAT
Fiber Optics

06 Dominan:

16,6

Wifi
DSL

Leased Line 0
DSL

03

8,3

Dial Up

41,6

02 West Sulawesi
Cellular

03 South Sulawesi
7,1

Leased Line 0

28.6

DSL

50

Dial Up

50

02 West Kalimantan

66,6

0
VSAT
Fiber Optics 0

Leased Line

33,3

Dial Up

33,3

04 South Kalimantan

41,1

60

23,5

10

0
25

5,8

18,7
6,2

0
35,2

40

21,7

03

Kalimantan
All provinces in Kalimantan are dominated by the
use of WiFi/WiMax access. Largest WiFi/WiMax
access used by the business sector can be found in
Central Kalimantan (66.67%) and West Kalimantan
(62.50%).

02
01

Wifi/Wimax
16

21,4

10

62,5

16,6

42,8
66,6

03 East Kalimantan

DSL

16,6

42,8

33,3

12,5

Wifi/Wimax

21,4

66,6

42,8

01 Central Kalimantan

06 Southeast Sulawesi
28,5

50

7,1

50

VSAT
Fiber Optics 0

05 Gorontalo
0

35,7

Wifi/Wimax 0

Cellular

04 Central Sulawesi

VSAT

Dial Up

DSL

Fiber Optics

Leased Line

01

Cellular

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Provincial Internet Network Facilities

P2TIK 2013 survey, a cooperation between BPS and APJII

Maluku, Papua and Nusa Tenggara


These regions are dominated by
WiFi/WiMax broadband internet
connection without indication
of cellular access. Largest
percentage of WiFi/WiMax access
is North Maluku (100%). Dial-up
access is also dominant in North
Maluku (50%).

06
01

06

02

03

04

01 North Maluku
Cellular

0
100

Wifi/Wimax
0
VSAT
Fiber Optics

50

Leased Line 0
DSL

Dial Up

50

02 East NT
12,5

Cellular

52,5

0
VSAT
Fiber Optics 0
25

Wifi/Wimax

37,5

VSAT

11,1

11,1

Dial Up

DSL

xx

0
25

0
20

25

28,5

Fiber Optik

60

50

42,8
22,2

06 Maluku

28,5

25

05 West Papua

42,8

88,8
0

DSL
Dial Up

Wifi/Wimax

Leased Line

04 Papua

03 West NT

25

Leased Line

Seluler
17

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Cost of Internet Access


Survey results that suggest average monthly
subscription fee paid by the enterprises to the
internet service providers.

Cost of Internet Access Paid by the Enterprises


persentage

P2TIK 2013 survey, a cooperation between BPS and APJII

MANUFACTURING INDUSTRY

HOTELS

RESTAURANTS

> 1 million

33.9

40.1

8.2

0.5 - 1 million

29.2

34.4

36.8

< 0.5 million

37.0

25.5

55.0

Expensive Internet Cost in Indonesia


Research conducted by Ookla suggests that
cost of internet in Indonesia is USD 26.04 per
Mbps, or ranked 62 of 64 countries included
in the research. Indonesia is only better from
Venezuela (USD 28.96 per Mbps) and the
Philippines (USD 30 per Mbps). In comparison,
the price is almost 9 times more expensive than
neighboring Singapore (USD 2.93 per Mbps) and
twice than Malaysia (USD 11.54 per Mbps).
source: infokomputer.com

18

Largest percentage of manufacturing industry


(36.96%) had paid subscription of internet
access below Rp 500 thousand per month. The
figure is relatively similar with subscription fee
between Rp 500 thousand and Rp 1 million per
month (29.19%) and above Rp 1 million per
month (33.85%). While 54.97% restaurants pay
the subscription fee below Rp 500 thousand per
month.

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Today, the availability of internet access/services in hotels becomes


a liability. There are guests who left the hotel and unwilling to
pay because the hotels internet service is unsatisfactory.

Hotel managers nowadays are aware of reviews written by the


customers in the form of direct complaints or post of comments
in social media, tripadvisor for example.

This reflects in internet subscription cost which is dominantly


above Rp 1 million/month in hospitality industry.

In recent years, internet subscription fee is decreasing drastically,


so the survey suggests that more than 60% business respondents
pay below Rp 1 million/month. But a conclusion can not be made
whether it is a matter of cost or interest and requirements for
faster internet access are represented in the portion of 40%.

Restaurants are supported by internet with a relatively high


availability but the capacity is not large and it seems the service is
not yet a liability (in SLA and its capacity). This matter is reflected
in dominant internet cost below Rp 500 thousand per month.

APJII Improves Internet Exchange Capacity


Jakarta, 1 October 2013
According to Head of IIX APJII, Harianto Pribadi, IIX is one
Higher internet traffic due to the increasing number of

of Indonesian internet backbones and it becomes the main

subscribers has encouraged the internet service providers

focus of APJII services to accommodate more than 280

to improve the quality and capacity of their infrastructures.

internet service providers including telecommunication


operators.

To improve the service quality of its members, the


Indonesia Internet Service Provider Association (APJII) has

As addition to improving IIX capability, he continued, APJII

revitalized its infrastructures by improving device quality

also establishes partnership with data centers namely Cyber

in internet data traffic exchange terminal with Indonesia

CFS (Jakarta), Biznet Technovillage (Cibubur, Bogor) in Tier-3

Internet Exchange (IIX) which is newly operated.

category and Omadata (Surabaya), and XL Data Center (East


Java).

In the revitalization APJII uses Brocade MLXe-16 router


which has capability to serve traffic up to 7.68 Tbps (tera

The availability of reliable IIX infrastructures with large

bit per second) with total port of 528 x 1 GBe (Gigabit

capacity will avoid errors that may result in Indonesian

Ethernet) and 16 x 10 GBe (Ten Gigabit Ethernet).

internet services collapsed. Total traffic of IIX APJII is 8-10


Gbps with a total of 181 peers. According to Harianto, the

The capacity is added with 100 Gbe (Hundred Gigabit

migration will improve the traffic growth at the end of 2013

Ethernet) modules that redundantly configured in several

up to threefold.

data centers connected to IIX APJII.


source: apjii.or.id

19

INDONESIA INTERNET USAGE FOR BUSINESS 2013

NUMBER OF INTERNET SERVICE PROVIDER USED


ISP (Internet Service Provider) means a service business offered by an enterprise to its
subscribers to access internet by providing interface to the internet network.
Survery results on number of ISP used by the enterprise.

0.8

Most of the businesses in the


sector use one ISP, and there
are few businesses use four ISPs
simultaneously.

3.9

21.8

0.6

2.3

MANUFACTURING
INDUSTRY

14.6

73.5
0.6

2.3
7.6

HOTELS

81.8

RESTAURANTS

Using 4 ISPs or more


Using 3 ISPs

89.5

Using 2 ISPs
Using 1 ISP

20

P2TIK 2013 survey, a cooperation between BPS and APJII

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Chapter IV

PURPOSES OF
INTERNET USERS

21

INDONESIA INTERNET USAGE FOR BUSINESS 2013

WHAT ACTIVITIES PERFORMED BY INDUSTRIAL INTERNET USERS


WHEN ACCESSING THE INTERNET?
In the aspect of internet utilization by business sector,
the survey suggests that e-mail (receive and send)
is on top (95.7%), second utilization of internet is to
search for news or information (78.49%), third is search
for goods and services (77.81%), fourth is search for
government agencies information/tender (77.81%), and
the fifth utilization of internet is social media (61.23%).
The figures may differ with the results of previous
APJIIs survey on internet use in households/consumers
where social media is the top internet utilization (88%)

while e-mail stands in fifth position. Social media used


in business sector is not necessarily for personal use
of the employee considering that nowadays many
enterprises use social media as a tool for promotion
and customer service.
The unique result is the news media (search for news
information) in Indonesia, both in the consumer and
industrial surveys it is ranked the second or the third
(68%).

95.7

Deliver/receive e-mails
Search for news information

78.4

Search for goods/services

77.8
65

Search for government agencies


Provide customer services

61.2

Social media

61.2
55.7

Receive good/service orders

47.2

Internet banking

45

Purchase goods/services
Employee recruitment

38

Access other financial facilities

37.6
25.6

VOIP
State-Owned Enterprises electronic
procurement

20.6

Video conferencing

19.5

Personnel training
Others
P2TIK 2013 survey, a cooperation between BPS and APJII

22

17.1
4.1

INDONESIA INTERNET USAGE FOR BUSINESS 2013

PURPOSES OF INTERNET USE


Purposes of internet use: activities or needs related to
enterprises business those require internet network
facilities.
MANUFACTURING
INDUSTRY

HOTELS

RESTAURANTS

Deliver/receive e-mails

95.7

97.0

93.6

Search for goods/services

84.4

89.4

52.1

Search for news information

84.1

86.8

50.9

Search for government agencies

74.7

76.2

31.0

Internet banking

54.5

52.7

26.9

Receive good/service orders

54.1

65.2

38.6

Purchase goods/services

50.6

48.3

31.0

Social media

50.6

78.8

46.2

Employee recruitment

40.9

42.7

25.7

Access other financial facilities

38.9

45.0

22.8

38.1

82.8

57.9

VOIP

28.4

27.2

18.7

State-Owned Enterprises electronic


procurement

19.5

21.2

6.4

Video conferencing

19.1

24.5

11.7

Personnel training

14.4

28.5

16.4

3.9

4.6

3.5

Provide customer services

Others
P2TIK 2013 survey, a cooperation between BPS and APJII

Main purpose of internet use in business sector is dominated by the activity


to send or receive e-mails and search for goods or services. While providing
customer services is the main purpose of internet use in restaurants.

23

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Purposes of Internet Use in Sumatera

Aceh

North Sumatera

Deliver/receive e-mails

83.3

72.7

Social Media

66.6

VOIP

Riau

Jambi

100

94.4

87.5

54.5

75.0

72.2

50.0

8.30

30.3

8.3

27.7

12.5

Video Conferencing

8.30

18.1

8.3

16.6

Search for goods


services

83.3

66.6

83.3

66.6

75.0

Search for
government agencies

50.0

48.4

75.0

50.0

75.0

Search for news


information

91.6

66.6

91.6

72.2

75.0

Receive goods/service
orders

66.6

36.3

75.0

50.0

37.5

Purchase goods/
service orders

50.0

27.2

58.3

50.0

25.0

33.3

9.0

25.0

16.6

25.0

Internet Banking

41.6

33.3

33.3

44.4

37.5

Access other financial


facilities

33.3

33.3

41.6

22.2

25.0

Provide Customer
services

66.6

54.5

75.0

38.8

50.0

Employee recruitment

16.6

36.3

41.6

16.6

50.0

8.3

30.3

22.2

25.0

8.3

3.0

5.5

State-Owned
Enterprises electronic

Personnel training
Others

West Sumatera

P2TIK 2013 survey, a cooperation between BPS and APJII

Highest

24

Second Highest

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Purposes of Internet Use in Sumatera

South Sumatera
Bengkulu Lampung Bangka
Riau
Belitung
Islands

Deliver/receive e-mails

87.5

100

91.6

66.6

100

Social Media

50.0

33.3

66.6

66.6

50.0

VOIP

12.5

33.3

33.3

18.7

Video Conferencing

33.3

16.6

Search for goods


services

75.0

100

58.3

50.0

68.7

Search for government


agencies

75.0

100

50.0

33.3

43.7

Search for news


information

75.0

100

58.3

66.6

50.0

Receive goods/service
orders

37.5

66.6

41.6

50.0

62.5

Purchase goods/service
orders

25.0

66.6

33.3

50.0

43.7

State-Owned
Enterprises electronic

25.0

33.3

16.6

33.3

6.2

Internet Banking

37.5

33.3

33.3

66.6

50.0

Access other financial


facilities

25.0

33.3

25.0

33.3

37.5

Provide Customer
services

50.0

100

41.6

50.0

75.0

Employee recruitment

50.0

25.0

16.6

43.7

Personnel training

25.0

16.6

33.3

18.7

Others

6.2

P2TIK 2013 survey, a cooperation between BPS and APJII

Highest

Second Highest

25

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Purposes of Internet Use in Java and Bali


Jakarta

West
Java

Central
Java

Yogyakarta

East
Java

Banten

Deliver/receive e-mails

83.8

81.8

82.9

93.5

85.7

91.4 93.3

Social Media

46.4

58.5

51.0

70.9

49.6

57.1

VOIP

27.2

18.1

15.9

22.5

18.0

28.5 35.5

Video Conferencing

19.1

22.2

14.8

16.1

14.2

20.0 24.4

Search for goods


services

66.6

75.7

68.0

87.1

66.9

77.1

Search for
government agencies

55.5

69.7

62.7

74.1

55.6

65.7 57.7

Search for news


information

63.6

73.7

72.3

87.1

62.4

74.2 91.1

Receive goods/service
orders

45.4

48.4

51.0

74.1

42.8

60.0 51.1

Purchase goods/
service orders

39.3

40.4

40.4

54.8

35.3

40.0 46.6

20.2

14.1

13.8

12.9

14.2

17.1

Internet Banking

49.4

41.4

40.4

51.6

45.1

25.7 64.4

Access other financial


facilities

38.3

36.3

30.8

45.1

27.8

34.2 35.5

Provide Customer
services

54.5

59.6

54.2

77.4

39.8

54.2 71.1

Employee recruitment

41.4

27.2

32.9

51.6

31.5

31.4 60.0

Personnel training

27.2

13.1

17.0

16.1

13.5

22.8 20.0

3.0

4.0

4.2

9.6

4.5

State-Owned
Enterprises electronic

Others

P2TIK 2013 survey, a cooperation between BPS and APJII

Highest

26

Bali

Second Highest

5.7

62.2

77.7

15.5

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Purposes of Internet Use in Kalimantan

West Central South East


Kalimantan
Kalimantan
Kalimantan
Kalimantan
Deliver/receive e-mails

93.7

85.7

100

89.4

Social Media

43.7

71.4

40.0

73.6

VOIP

18.7

20.0

31.5

Video Conferencing

30.0

42.1

Search for goods


services

75.0

71.4

50.0

73.6

Search for
government agencies

62.5

71.4

50.0

68.4

Search for news


information

87.5

71.4

60.0

73.6

Receive goods/service
orders

37.5

71.4

30.0

57.8

Purchase goods/
service orders

31.2

71.4

30.0

63.1

28.5

10.0

31.5

Internet Banking

31.2

28.5

40.0

57.8

Access other financial


facilities

18.7

42.8

40.0

57.8

Provide Customer
services

50.0

71.4

70.0

68.4

Employee recruitment

25.0

42.8

20.0

52.6

Personnel training

42.8

20.0

42.1

5.2

State-Owned
Enterprises electronic

Others

P2TIK 2013 survey, a cooperation between BPS and APJII

Highest

Second Highest

27

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Purposes of Internet Use in Sulawesi

West
Sulawesi

Central
Sulawesi

Deliver/receive e-mails

66.6

55.5

100

86.6

87.5

100

Social Media

66.6

44.4

91.6

60

25.0

33.3

VOIP

11.1

66.6

26.6

25.0

Video Conferencing

11.1

25.0

33.3

12.5

33.3

Search for goods


services

66.6

44.4

75.0

86.6

25.0

33.3

Search for
government agencies

33.3

33.3

66.6

60.0

25.0

66.6

Search for news


information

66.6

44.4

83.3

86.6

50.0

66.6

Receive goods/service
orders

33.3

33.3

66.6

60.0

25.0

Purchase goods/
service orders

22.2

50.0

46.6

25.0

8.3

20.0

12.5

Internet Banking

11.1

41.6

60.0

12.5

Access other financial


facilities

11.1

66.6

33.3

12.5

Provide Customer
services

33.3

22.2

58.3

46.6

37.5

66.6

Employee recruitment

22.2

33.3

40.0

25.0

Personnel training

11.1

41.6

33.3

25.0

33.3

11.1

State-Owned
Enterprises electronic

Others

North
Sulawesi

South
Sulawesi

6.6

P2TIK 2013 survey, a cooperation between BPS and APJII

Highest

28

Second Highest

Southeast Gorontalo
Sulawesi

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Purposes of Internet Use in Nusa Tenggara, Maluku and Papua

NTT NTB Maluku North West Papua

Maluku Papua

Deliver/receive e-mails

75.0

87.5

83.3

100

100

85.7

Social Media

25.0

87.5

50

100

100

42.8

VOIP

25.0

37.5

16.6

100

25.0

28.5

Video Conferencing

16.6

25.0

16.6

50.0

50.0

14.2

Search for goods


services

58.3

87.5

66.6

100

100

57.1

Search for
government agencies

41.6

50.0

16.6

100

75.0

42.8

Search for news


information

50.0

87.5

33.3

100

100

57.1

Receive goods/service
orders

41.6

62.5

33.3

100

100

57.1

Purchase goods/
service orders

50.0

50.0

33.3

100

100

42.8

8.3

12.5

16.6

75.0

14.2

Internet Banking

25.0

25.0

16.6

100

100

14.2

Access other financial


facilities

33.3

62.5

16.6

100

50.0

28.5

Provide Customer
services

41.6

75.0

50.0

100

75.0

42.8

Employee recruitment

25.0

25.0

33.3

50.0

25.0

28.5

Personnel training

25.0

50.0

14.2

Others

14.2

State-Owned
Enterprises electronic

P2TIK 2013 survey, a cooperation between BPS and APJII

Highest

Second Highest

29

INDONESIA INTERNET USAGE FOR BUSINESS 2013

APJII Revitalizes IIX to Anticipate the Wave


of Traffic Growth
Jakarta, 26 September 2013

Indonesian internet services collapsed.

This time the Indonesia Internet Service Provider

Also, in APJIIs data center on the first floor of Cyber

Association (APJII) is revitalizing its important

Building, there is Meet Me Room (MMR) equipped with

infrastructure by improving device quality in internet

cat6 cabling system and adequate backup UPS where

data traffic exchange terminal (IIX - Indonesia Internet

APJII members may set up the switch to facilitate

Exchange). The revitalization is marked with the launch of

interconnection between carrier operator (Telco) and the

IIX APJII using Brocade MLXe-16 router which has capability

ISPs.

to serve traffic up to 7.68 Tbps (tera bit per second) with


total port of 528 x 1 GBe (Gigabit Ethernet) and 16 x 10

Today total traffic of IIX APJII is 8-10 Gbps with a total

GBe (Ten Gigabit Ethernet).

of 181 peers. According to Harianto, the migration will


improve the traffic growth at the end of 2013 up to

threefold. We hope IIX traffic at the end of 2013 will


ADVERTISE HERE
grow threefold, said Harianto.

IIX is one of Indonesian internet backbones and it becomes

the main focus of APJII services to accommodate more than

280 internet service providers including telecommunication


operators. Massive investment made by APJII is driven by

Previously IIX APJII implements VRRP (Virtual Router

the trend of internet users that increasingly grows.

Redundant Protocol) in two Juniper M7i routers and for


the next generation it implements GLBP (gateway load

As addition to improving IIX capability, APJII realizes that

balancing protocol) in two Brocade MLXe-16. IIX traffic is

data storage requirements have the same weigh. With its

expected to grow threefold by the end of 2013. However,

limitation in data storage, APJII has established partnership

it depends on the amount of data and connectivity rate

with data centers namely Cyber CFS (Jakarta), Biznet

of traffic owners to IIX APJII.

Technovillage (Cibubur, Bogor) in Tier-3 category and


Omadata (Surabaya), and XL Data Center (East Java).

Through the socialization of IIX and Data Center APJII


Connect, APJII members may immediately fill the SO to

With the operation of two MLXe-16 in APJII data center at

utilize 120 racks capacity in Cyber CSF and APJII racking

Cyber Building first floor and Cyber CFS data center, both

capacity in Biznet Technovillage, and data center partners

data centers have been integrated using metro-ethernet

outside Jakarta.

technology with 256-core fiber optic media end-to-end and


also function as IIX single cloud. Therefore ISP members
of APJII may establish direct peer at Cyber Building first
floor and Cyber CSF, or Biznet Technovillage data center.
Furthermore, IIX APJII will also be connected to Nusantara
eXchange (NIX) located in Bali, Surabaya, Palembang, and
Medan.
This is the biggest revitalization and massive investment
ever made by the APJII since IIX was deployed in 1997 and
connecting 15 pioneering ISPs. At the time, APJII received
device infrastructure assistance from Cisco, Intel, and HP.
The availability of reliable IIX infrastructures with large
capacity is expected to improve public services by avoiding
the occurrence of single point of failure that may result in

source: apjii.or.id

30

INTERNET USER
PENETRATION IN 2013

INDONESIA INTERNET USAGE FOR BUSINESS 2013

INTERNET USER PENETRATION IN 2013


Indonesian internet users will reach 71.19 million in
2013
The Indonesia Internet Service Provider Association (APJII) and Central Bureau
of Statistics (BPS) reveals internet users in Indonesia had reached 71.19 million
at the end of last year.
The figure means 13 percent growth compared to the end of 2012 with 63
million users, said APJII Chairman, Sammy Pangerapan in the presentation of
cooperation between APJII and BPS, on Wednesday 15 January 2014.
When comparing the figure with total population then, according to Sammy,
internet penetration in Indonesia is approximately 28 percent.
Thank you BPS for the cooperation in conducting the internet survey, with this
way the Indonesia government and general public know the position of internet
industry today, said Sammy.
Based on survey result, APJII estimates that it is hard for Indonesia to achieve
an alignment with the target of Millennium Development Growth (MDGs) which
has also been agreed by the International Telecom Union (ITU), that in 2015 half
population on earth must connected to the internet.

source: merdeka.com

Based on population in Java region, the highest number


of internet users is West Java province with 13.2 million
users, followed by East Java with 9.8 million users, and
Central Java with 8.6 million users.
While in other regions, based on population, the
lowest internet users are found in West Papua and
North Maluku. Understandably, it is due to limited
infrastructures and internet network availability in the
regions.
Some IT experts and observers through in-depth
interviews had suggested several factors that drive
the growth of internet service business in Indonesia.
The factors can be concluded in three main factors as
follows:

32

1. Economics (consideration to choose low-cost


internet access with affordable devices)
2. Technology (tendency to easy of use or user
friendly)
3. Culture (culture of Indonesian people who
tend to engage in long conversation or
gathering)
These three factors are simultaneously visible on
the lifestyle of Indonesian internet users who like
to access social media using smartphone devices
that are relatively easy to use, and affordable
device and prepaid access, thus supporting the
gathering culture.

INDONESIA INTERNET USAGE FOR BUSINESS 2013


The figures of internet user penetration in
Indonesia which described for each province are
determined using extrapolation method based
on historical data of internet users obtained from
APJIIs previous surveys.

01

02
03

Internet User Penetration in Sumatera Region

05

07

Population
Internet Users

14.50

04

Unit: Million

08

06

09

8.36

8.47

6.43
5.14
5.41

3.51

2.79
1.95

1.44

1.44

1.94

2.14

2.73
1.98

1.40

1.00

0.55

0.63

0.36

PENETRATION

26.7%

37.9%
1. ACEH

28.6%

3. WEST
SUMATERA

19.3%
2. NORTH SUMATERA

28.2%

5. JAMBI

25.8%

7. BENGKULU

22.5%

25.6%

4. RIAU

6. SOUTH
SUMATERA

9. BANGKA
BELITUNG

32.2%
8. LAMPUNG

32.0%
10. RIAU
ISLANDS

33

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Internet User Penetration in Java and Bali Regions

01
03

48.37

Population
Internet Users
Unit: Million

04

02
05

06

40.90

35.44

13.24
8.64

10.64

9.79
3.38

12.23
1.87

4.55

2.65

1.59

1.62

PENETRATION

34

42.8%

24.4%

1. JAKARTA

3. CENTRAL JAVA

23.9%

37.5%

5. EAST JAVA

27.4%

41.5%

2. WEST JAVA

4. YOGYAKARTA

7. BALI

21.7%
6. BANTEN

INDONESIA INTERNET USAGE FOR BUSINESS 2013

Internet User Penetration in Kalimantan and Sulawesi Regions


Kalimantan

Sulawesi

04

09

Population
Internet Users

Population
Internet
Users
Unit: Million

05

Unit: Million
06

8.90
10

08
01

02

03
07

4.95
4.11

4.12

2.54

0.88

2.52
0.98

0.59

0.96

0.70

3.03

2.97

2.55

0.82

0.60

1.17

1.31

0.31

0.45

PENETRATION

17.8%
1. WEST
KALIMANTAN

23.8%

27.8%

3. SOUTH
KALIMANTAN

34.1%

5. NORTH
SULAWESI

26.1%

7. SOUTH
SULAWESI

23.2%

23.3%

27.6%

2. CENTRAL
KALIMANTAN

4. EAST
KALIMANTAN

6. CENTRAL
SULAWESI

9. GORONTALO

23.5%
8. SOUTHEAST
SULAWESI

34.0%
10. WEST
SULAWESI

35

INDONESIA INTERNET USAGE FOR BUSINESS 2013


03

Internet User Penetration in Nusa Tenggara, Maluku, and Papua Regions

05
06

5.02

5.26

Population
Internet Users

04

Unit: Million

01

02

3.24

1.92

1.14

1.73
0.93

1.19
0.39

0.22

0.88
0.14

PENETRATION

38.3%

22.3%

15.7%

01. WEST NUSA


TENGGARA

03. MALUKU

05. WEST PAPUA

36

21.6%

18.7%

28.9%

02. EAST NUSA


TENGGARA

04. NORTH MALUKU

06. PAPUA

INDONESIA INTERNET USAGE FOR BUSINESS 2013

ANNEX

PROFILE

37

INDONESIA INTERNET USAGE FOR BUSINESS 2013

APJII ESTABLISHMENT
The Indonesia Internet Service Provider Association (APJII) was established in Jakarta on 15 May 1996 by the Deed of
Establishment No.148 dated 16 August 1996 made by Notary Darbi, SH.
APJII was established by Internet Service Providers that had obtained official licenses from the Government,
considering that internet as global information and communication media is a strategic technology and facility
that needs to be controlled properly so it can be optimally utilized in supporting various development activities in
Indonesia as well as educating the nation.

APJII Founders

PT. Rahajasa Media Internet ;


PT. Indosat, Tbk ;
PT. IndoInternet ;
PT. Cyberindo Aditama ;
PT. Melvar Lintasnusa ;
PT. Bitnet Komunikasindo ;
PT. Grahasedaya Serasi ;
PT. Khasanah Timur Indonesia ;
PT. Jasa Jejaring Wasantara ;
PT. Centrin Utama (Saat Ini PT. Centrin
Online Tbk) ;

PT. Transmedia Mitra Indonesia (Saat Ini


PT. Transmedia Indonesia) ;
PT. Sejahtera Globalindo ;
PT. Pos Indonesia (Saat Ini PT. Bhakti
Wasantara Net) ;
PT. Visionindo Network Perdana ;
PT. Promindo Global Internet ;
PT. Uninet Bhaktinusa ;
PT. Meganusa Lintasbuana ;
PT. Carakayasa Binekatara ;
PT. Alpha Netindo Pratama.

APJIIs Principle and Foundations


c) APJII is not involved in politics, not
affiliated with any political group or party,
and not pursuing material gain (non-profit
association).

a) APJII adopts Pancasila as the sole principle;


b) APJII foundations:

APJII Missions

APJII Objectives

The 1945 Constitution as constitutional


foundation;
Law Number 1 of 1987 on Chamber of
Commerce and Industry as structural
foundation; and
APJIIs Articles of Association as
operational foundation.

To support internet development in


Indonesia;
To manage internet resources to
internet community in Indonesia; and
To improve human resources potential
in internet technology.

38

To facilitate its members in providing quality


internet services for the people of Indonesia;
To promote internet in supporting human
resources development in Indonesia;
To support the creation of business
opportunities for Indonesian entrepreneurs
by providing global information and
communication facilities;
To support the Government in its effort to realize
economic equality in Indonesia by providing
equal access opportunities to information and
communication in all regions in Indonesia;
To facilitate its members in providing sources of
information about Indonesia; and
To improve people participation in international
cooperations.

INDONESIA INTERNET USAGE FOR BUSINESS 2013

APJII Main Duties



To maintain and develop a sense of unity


among its members;
To protect the interests of its members in
carrying out their business in accordance with
applicable laws and regulations;
To facilitate arbitration efforts by means
of mediating, reconciling, and settling the
disputes of interest among its members;
To organize communication and consultation
among members, between members and
the Government, and between members and
domestic and foreign partner associations/
organizations, and business in general;

To participate in determining relevant


policies in internet industry;
To establish relationship with economic
and other agencies, both national and
international agencies related to and
beneficial to APJII; and
To be Government partner in developing
national and international information and
communication facilities in order to mobilize
all available resources in integrated,
efficient, and effective ways;

APJII Structure and Instruments

National Conference;

Extraordinary National Conference;

National Working Meeting;

APJII Open Policy Meeting (AOPM);

Supervisory Board;

Executive Board;

Regional Executive Board; and

Daily Executive Board.

39

INDONESIA INTERNET USAGE FOR BUSINESS 2013

APJII SERVICES

1
MEMBERSHIP

APJII member shall be business


entity that has obtained Internet
Service Provider License issued
by the Government and/or
authorized agencies and has
legitimate official business as
provided in laws and regulations
of the Republic of Indonesia
is represented by its owner or
director; and
APJII honorary member means
individual figure, government
official, and organization/
body/institution whose
considered having merits and/or
participation in the progress of
the organization (APJII).

2
INDONESIA INTERNET EXCHANGE (IIX)
IIX is national interconnection service between Internet Service
Providers (ISPs) in Indonesia, so that subscriber of one ISP may
communicate with other ISP subscriber located in Indonesia
with easy access and affordable cost. IIX management is a
strategic program that became one of APJIIs main services
to its members which was initiated in 1996. IIX service
management has been gradually developed professionally.
Current locations of IIX nodes:
3 (three) nodes, one is located in Jakarta and independently
managed by APJII;
2 (two) nodes each in Jakarta and Surabaya are results of
cooperation between APJII and Data Center Provider in both
cities;
1 (one) node in Yogyakarta Regional Executive Board;
1 (one) node in East Java Regional Executive Board;
1 (one) node in Bali Regional Executive Board;
1 (one) node in Central Java Regional Executive Board;
1 (one) node in North Sumatera Regional Executive Board;
1 (one) node in Southern Sumatera Regional Executive Board;
and
Following are West Jave, Riau, and Riau Islands Regional
Executive Boards.

NUSANTARA INTERNET EXCHANGE (NIX)


NIX is a Government program through the Ministry of Communication and Information of the Republic of
Indonesia which will be built and enabled by 33 (thirty-three) provinces in Indonesia.
Currently APJII has established cooperation with the telecommunication company the winning bidder to
operate NIX at the Institute for Telecommunication and Information Financial Provision and Management,
Directorate General of Post and Information Operations, Ministry of Communication and Information of the
Republic of Indonesia.
Currently the results of such cooperation have been realized in the following cities: Medan (North
Sumatera), Surabaya (East Java), Denpasar (Bali), and Palembang (South Sumatera), followed by Jakarta,
Batam (Riau Islands), Bandung (West Java), Semarang (Central Java), Yogyakarta, Solo, and the possibility of
other provincial capital cities.

40

INDONESIA INTERNET USAGE FOR BUSINESS 2013

INDONESIA NETWORK INFORMATIAN CENTRE (ID-NIC)


ID-NIC is part of APJII which has responsibility to manage IP address
allocation in Indonesia. ID-NIC is one of National Internet Registries
under Asia Pacific Network Information Center (APNIC) which is Regional
Internet Registry based in Brisbane, Australia. The internet functions
properly because of communication between devices (machines) in a
numbering-based network which is now known as Internet Protocol
version 4.
Services
Allocation of Internet Protocol version 4 (IPv4) and version 6 (IPv6);
Reverse DNS;
Route Object; and
Other related data.
Services are intended for
Internet Service Providers, Network Access Points, and holders of
other telecommunication licenses issued by the regulator or the
Government;
Government or private agencies;
Educational institutions; and
Individuals;
Benefits of having own IP Allocation
Relatively large allocation (minimum of 256 IPs);
No need to change IP address when changing Internet Service
Provider;
Clear company identity in Who-Is data; and
Can do multi-homing which use 2 (two) or more Internet Service
Providers as gateway or to connect to the Internet Exchange.
Trainings
ID-NIC regularly organizes trainings related to Internet Protocol
utilization in cooperation with APNIC and other competent institutions.
The trainings are intended for technical personnel who work at Internet
Service Providers, general companies, government agencies, and
academic institutions.

For further information please contact:

Cyber Building I, 3A floor & 11th floor


Jl. Kuningan Barat No.8, Jakarta 12710
Phone : 021.52960634,
Fax : 021.52960635
Email : info@apjii.or.id
parlin.marius@apjii.or.id
WebSite : www.apjii.or.id &
www.idnic.net

41

INDONESIA INTERNET USAGE FOR BUSINESS 2013

42