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The Needs of Internet Literacy in

An Ongoing Process of Economic Stability

Theresia D. Wulandari
Universitas Atma Jaya Yogyakarta
Jl. Babarsari No.6 Yogyakarta
Email: wulandaricupriantoro@yahoo.com.au

Abstract: Internet is relatively new communication media that grows more in many decades. In
many countries, especially in growing country in South Asia region, internet use is rarely low or
almost non-existent. It is because internet is an integral part of telecommunications infrastructure
of a society. But internet user in Indonesia is still running in its infancy. The number of Internet user
is projected to grow at an even faster rate in the future. It is integrated with the macroeconomic
indicator goals by 2050; Indonesia is projected to become the 6th largest economy in the world after
China, US, India, Brazil, and Japan. For sure it is in line with the growing of internet user among
Indonesian people because there will be communication shifting among them. The communication
among Indonesian people is no longer directly but change into internet literacy. It seems that
internet growing user is related to macro economy indicators through Indonesian people in latest
decades, since the first time Indonesian people had been identified internet web communication.

Keywords: internet user, macroeconomic, internet literacy, communication

Abstrak: Internet adalah media komunikasi yang relatif baru namun terus mengalami perkembangan
terus menerus. Di beberapa negara, terutama wilayah Asia Selatan, penggunaan internet masih
sangat rendah, bahkan hampir tidak ada. Ini karena internet dianggap integral sebagai sarana
komunikasi sosial saja. Namun di Indonesia, pengguna internet terus berkembang dengan pesat.
Jumlah pengguna internet diprediksi akan semakin berkembang ke masa yang akan datang. Ini
sejalan dengan perkembangan indikator ekonomi makro 2050 di mana Indonesia diprediksi akan
menjadi negara dengan kekuatan ekonomi terbesar ke-6 di dunia setelah Cina, Amerika Serikat,
India, Brazil, dan Jepang. Tentu hal ini akan sejalan dengan perkembangan pengguna internet di
Indonesia karena akan ada pergeseran pola komunikasi di antara mereka. Komunikasi di antara
orang Indonesia tidak lagi dilakukan secara langsung namun berubah melalui kecerdasan mereka
melihat internet. Hal ini tampaknya ada hubungannya dengan indikator makro ekonomi selama
satu dekade ini, di mana orang Indonesia sudah mulai mengenal internet.

Kata Kunci: pengguna internet, makro ekonomi, cerdas berinternet, komunikasi

In Indonesia, internet is relatively new users, a 1,400% increase in the last 9 years.
communication media that grows more Based on Communication Ministry data, at
in many decades. The number of Internet the end of June 2011, there are 45 million
users in Indonesia also grows at a lightning internet users in Indonesia. Based on TNS
speed. From 2000 to 2009, Internet users research, Indonesia is the worlds second
have grown from 2 million to 30 million largest number of Facebook users and the

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third largest number of Twitter users. 87 % Indonesia. This condition is quite different
of Indonesians who go online have social with 30-40 past years, which people
networking site accounts. doing their communication and sharing
Internet user in Indonesia is still information directly without literacy based
running in its infancy. The number of internet. In many perspectives, Indonesia
Internet user is projected to grow at an will be the most potential information
even faster rate in the future. It is integrated technology market in the world. The
with the macroeconomic indicator goals population, communication shifting, and
by 2050; Indonesia is projected to become economic growing are the main reason why
the 6th largest economy in the world after Indonesian people need such as growing
China, US, India, Brazil, and Japan. For media, information, and communication
sure it is in line with the growing of internet literacy in the future.
user among Indonesian people. That is why Present study examined the role
the communication among Indonesian that various socioeconomic attributes of
people is no longer directly but change nations that may effect to internet usage,
into internet literacy. Online shopping and which one of the measurement was of
product offering by internet web blog are economic growth to developt the necessary
some of communication based internet that infrastructure for an internet system. Result
can be used. As well as Information process of the present study generally confirmed
among people, also shifting to internet based the following hypothesis that nations that
communication. People prefer to reach retard economic activity have less internet
information and news media by internet usage, holding all other variables constant.
connection. Internet players are changing Regarding other important determinants
their business models out of the traditional of internet usage, result suggest that those
ones. Their businesses are converging. nations with greater per capita gross
Either bricks & mortar business are turning national product also have higher level of
into the click business (kompas.com)1, or internet usage (Gius & Ceccucci, 2010).
from click business to click and mortar Dasgupta, Lali, and Wheeler (2001)
business (detik.com)2. were the first group researchers that
The idea of our paper is to relate among examined internet usage in 44 nations
media, information, and communication for period 1990 to 1997. The study
literacy in Indonesia. This is also strong encompassed in very early years of internet
related with economic stability in identification, so the result indicated that
per capita income people in 44 nations
had negative effect on their measure of
1 www.kompas.com was an Indonesian news
media online which has been reportedly many internet usage. But the next research had
research-based technologi and information
improvement news regulerly been published by Kiiski and Pohjola
2 www.detik.com was also Indonesia news media (2002) who used a data set for the period
online

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1995-2000 for over 60 nations. Based on significant in both statistical and economic
their dependent variable from the number terms. They were interpret internet use as
of internet hosts per 1.000 residents, they a general proxy for constellation of factors
identified that internet growth is positively that influence the rate at which economic
related to per capita income, telephone adopt and absorb emerging technologies.
access cost, and years of schooling. But
the most recent study and the main point Communication by Internet
to this paper was found by Chinn and For the first step of the paper, lets talk
Failie (2007) that looking at 161 nations about the theory of communication. Many
in the world over the period 1999-2001, communications experts provide theories
per capita income and access to electricity about communication theory. But recent
is very important determinants of internet theory by West and Turner (2007:5) come
usage. The greater the per capita income up with the definition of communication is a
of a nation, the more likely the people of social process in which individuals employ
that nation will be internet users (Chinn & symbols to establish and interpret meaning
Failie, 2007). in their environment. Its mean that the
The emergence of internet technology communication process is involves people
have created many activities among people. and interactions. Neither its dynamic,
Including communication based internet complex, and continually changing. But
activities among them that has been known many expertise would be strongly agree
as internet communication technology that the nature process of communication
(ICT). Internet communication technology also means that much can happen from the
become the main reason Indonesian people beginning of the conversation to the end.
also likely to be internet users. Romiszowki Communication theory came up since
(1997) coined the term computer-mediated- many years later, from the Platos Dialectic
communication which is defined as any Method, shifting to communication theories
form of organized interaction between on the new age which there was technology
people, utilizing computers or the computer interaction and web communication
network as mediums of communication. among people (Littlejohn & Foss, 2008).
Electronic communication is defined as any Mark Poster (1990) said that interaction
non face-to-face communication, including technology and web communication has
but not limited to telephone conversations, change communication phenomenon
email, instant text messages through mobile among people (Littlejohn & Foss,
telephones and web-based applications, 2008:413). Communication is no longer for
video-conferencing and internet. interaction only. Communication shifting
Recent research in fact, were Altig & is going to be information sharing among
Rupert (1999) said a positive relaionship people, knowledge exploration, and self
between growth and internet use in individual information. Pierre Levy (1997)

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said that world wide web (www) was the can be received from anywhere in the
most provided information environment, world, a shared sense of time and physical
dynamic, and flexible communication, that location, time, and physical space is reduced
he gives its title as digital networks and in even more significant ways. Third, the
hypertextual communication. nation of feedback is altered in virtual
Chresebro (1999) said that internet is reality system, functioning predominantly
the single most persuasive, involving, and in an asynchronistic fashion. Compared
global communication system ever created of the other kinds of communication
by human beings with a host of untapped and exchange, these exchanges are relatively
unknown political, economic, sociocultural simple, direct, and devoid of contextually
implications. But there are three of these confusing noise.
implications aptly illustrate the unique But the main question why internet
nature of communication within a virtual is so popular among people, because one
reality system. First, the virtual realities of the most important benefits offered
created by internet, concepts such as source from the wide applications of the internet
and receiver lost their power. Everyday is communication. The internet managed
face to face interpersonal communication to eliminate distances and provide people
exchanges provide a complete and with a unique opportunity to talk, watch
immediate sociological presentation of the and have fun with their loved ones, friends
self. The nonverbal channels are frequently or acquaintances. Chat rooms, messenger
missing. Internet communication also services, emails and conferencing
possible to imply or actually lie about ones programs are the most common uses for
sociological internet users characteristics. communicating over the internet.
In computer chat rooms, people are
Internet Information Literacy
seldom aware of the social and demographic
characteristics of the people they are chatting According to Webster, literacy is the
with. While technology possible, actually ability to read and write. Individual who can
few computer exchange provide a visual read and write printed words, are deemed
channel for viewing nonverbal features of literate. Internet literacy has been started
other communicators. The communication by California Department of Education on
channels are predominantly verbal only 1996 who had found that computers have
modes (Chresebro (1999: 10). improved academic achievement in reading.
Seconds, the concepts of context and Some of studied of literacy has been related
culture are dramatically altered during to technology advance such as inventions of
communication exchange on internet writing, the printing press, the typewriter,
communication system. During internet and the computer have made it impossible for
communication, the environment of other is people to accomplish these goals efficiently
unknown, because computer transmissions and effectively (Barr, 1997).

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Previously, the Association of Colleges Asia Country region, also how its numbers.
and Research Libraries (2000) defines As well as literature study is concerned
information technology literacy skills as with literary behavior of internet, related
those associated with an individuals use to macroeconomic condition among those
of computers, softwares applications, countries.
database, and other technologies to achieve
an academic, work-related, or personal goal. Indonesia in Numbers
To distinguish information literacy from In late of 2010, Indonesia identified has
one of its component skills, technology become the 4th world most populous country
literacy (i.e., competence in using in the world. With more than 245million
information technology), the Association total population, Indonesia is the 4th world
has re-defined information literacy as a most populous country after China, India,
set of abilities requiring individuals to and United States. With 245million total
recognize when information is needed and population in Indonesia, 65,4% of the
have the ability to locate, evaluate, manage, population was productive age group with
and use effectively the needed information 15-64years range age (http://gs.statcounter.
(Farmer & Henri, 2008:4). com). The rest of population number was
Recent definition of information the group with age up to 14years (29.7%
technology literacy is an integration of ) and over 65years old one (4,9%). The
what are commonly known as two separate population in Indonesia is also growing
literacies are: technology literacy and in many decades. In 1970, Indonesia total
information literacy. Technology literacy is population was 122million, 5th rank world
having ability to use technology as a tool most populous. But the position has been
to research, organize, and communicate shifted by the number of population in 1990
information. Being technology literate was 181million, become 4th rank world
alone is not enough to be a competent most populous. And now, late of 2010
individual is an information society (Badke, Indonesia total population was 242 million.
2008). Information workers should also Despite its large population and
be information literate-able to indentify densely populated regions, Indonesia has
information needs, locate, and retrieve been enjoying a stable, high real GDP
information, evaluate it and present it to growth. For the last couple years, Indonesia
others (Cochran, 2006). has been enjoying a stable, high real GDP
growth. During the world crisis in 2009,
METHODOLOGY when most of the countries in the region
The research used comparative and had a negative or almost zero real GDP
study of literature method. A comparative growth (Singapore -2.10%, Malaysia
investigation tries to understand the growth 2.20%, Thailand -2.80%, Philippine 0.90%,
of internet user among people in South South Korea 0.20%, Japan -5.30%, and the

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United States -2.40%), Indonesia managed page includes a chart with historical data for
to protect itself from the global economic Indonesias GDP Per Capita. (Definition of
recession and achieved a positive growth GDP - per capita (PPP): This entry shows
of 4.5%. Indonesias real GDP is estimated GDP on a purchasing power parity basis
to continue growing by 5.9%, 6.2%, and divided by population as of 1 July for the
6.3% in 2010, 2011, and 2012 respectively same year).
(Source: World Bank). IMF economists said Indonesia had
The GDP per capita in Indonesia was emerged strongly from the global financial
last reported at 1144 US dollars in December crisis due to robust domestic consumption
2010, according to the World Bank. and investment, and greater exports. Last
Previously, the GDP per capita in Indonesia year Indonesia was the only country in the
standed at 1089 US dollars in December of Group of 20 leading economies to lower
2009. The GDP per capita in Indonesia is its public debt-to-GDP ratio-a reflection
obtained by dividing the countrys gross of improved economic management over
domestic product, adjusted by inflation, recent years, as well as appropriate policy
by the total population. Historically, from responses during the crisis. But during
1960 until 2010, Indonesias average GDP global crisis in 1997, Indonesia had been
Per Capita was 543.62 dollars reaching recovered quickly after being hard by
an historical high of 1143.83 dollars in contagion from global financial crisis
December of 2010 and a record low of (Ferhani & Lim: 2010).
194.43 dollars in December of 1967. This

Figure 1. GDP per capita

(Source: www.indexmundi.com, 2010)

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Theresia D. Wulandari. The Needs of...

Many years forward, some of world The history of internet in Indonesia


fund institution predicted that Indonesia was begun on early 1990, when some
has big opportunities. Indonesia may of University of Indonesia Jakarta and
attract much-needed foreign investment Bandung Technology Institute stand their
by strengthening its business environment, internet based communication from England
particularly through reform of its unreliable on June 24, 1998. The first step internet
legal system. Indonesia also has a big invasion to Indonesia was begun when
opportunity to push the economic growing internet operational connect to amateur
going faster to reduce unemployment, radio connection in four universities, are
force to work in the informal sector, Bandung Technology Institute, University
and established the national physical of Indonesia, Gadjah Mada University
infrastructure. Besides, Indonesias Yogyakarta, and Surabaya Technology
strategic location between the Indian and Institute on 1986.
Pacific Oceans and its adjacency to major Internet in Indonesia is going faster
East-West trade routes make it an important for the next years after. Especially when
economy in the region, even thought internet dial up come up with limited access
Indonesia currently compares unfavorably services for public on 1997. Two years after,
with its ASEAN peers (Business Monitor Indonesian government was established
International, 2012). telecommunication law on 1999 and made
the great milestones of internet invasion
The History of Internet in Indonesia
among Indonesian people. Now, Indonesian
The internet has become an people has become an indispensable tool in
indispensable tool in everyday life of human everyday life also, seems like Americans.
beings. Americans people can be one of There are four major IT users in
the examples. Fallows said, Americans Indonesia, are: financial institutions,
internet user go online to conduct some of trade & business institutions, media &
their ordinary day-to-day activities, from newspapers industries, and travel, hotel &
mundane tasks to social arrangements to tourist industries. The main reasons why
personal recreation (Fallows, 2004:2). they has been using internet as part of their
There was 88% of online Americans said the business because the internet connection
internet plays a role in their daily routines. can be able to attract most of Indonesian
The internet invasion also happens in the web surfers, to be the most internet industry
world. In 2011, the number of internet putting their profile in internet, and easier
users in the world is 6,93billions. And neither cheaper communication activity
Asia has 3,88billions internet users, 56% around the world. Of course therere so
compared to world total numbers. Many many other industries are going to improve
people activities depend to internet web their business by using internet for many
connection to running their needs. years forwards, exceed the numbers of

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household internet user that cant be in 2000. In 2005, Indonesian internet user
mention one by one, neither government is going strong to 8,2 million-3,6% of total
institutions (Purbo, 2011). population-and become 22 million-9,1% to
total population-in 2010 and 39,6 million
FINDING total internet users on December 2010.
Miniwatts Marketing Groups shows on
Indonesian Internet User December 2011, Indonesia was the fourth
When Indonesian people identified country who occupy internet user in Asia,
internet program since mid of 1990s, after China, India, and Japan. Total internet
Indonesia internet user has been growing users in the world estimated on 2011Q4
massively. Based on World Bank data (2012), was 2,267billions. China has 513 millions
the number or internet user in Indonesia of internet users. India has 121millions
is growing very infancy in early 2000s. internet users, Japan has 101,2millions
From 98.500 internet user-0,05% to total internet users, Indonesia has 55millions
population- in 1995, it was growing faster user.
to 1,98 million -0,93% to total population-

Figure 2. Asia top internet countries

Telecommunication device is also user-6th of the world with 2,41% user and
growing very well. The number of social 3rd in Asia after Japan and India. Also in
media user has also boosted by internet Blackberry, Indonesia has 3 million users
user in Indonesia. There was more than which 6% from total user in the world. Based
38million facebook user -2nd numbers on Boston Consulting Group research,
after United States- and 6,2million Twitter Indonesia in 2015 will have triple internet

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Theresia D. Wulandari. The Needs of...

user that fuelled by media companies and is about $72 per month till $226 per
phone carrier. SIM card user will be twice month, rarely expensive price for most
to total population. But between 2011 and Indonesian.
2012, number of internet users in Indonesia Due to its expensive price, there
is going to be expected reach to175,18 were a limited number of broadband
millions, or average 21% growing annually wired Internet subscribers in Indonesia.
(Business Monitor International, 2012). As of June 2010, PT Telkom, the largest
Indonesians are very enthusiastic to broadband wired Internet service
access social networking. Thus, number provider, has only about 2 million
above excludes visitation from public subscribers in 378 cities in Indonesia.
computers such as internet cafes or access Meanwhile, PT First Media has a target to
from mobile phones. In other wise, BMI reach 260 thousand subscribers by 2010.
Reports (2009) shows that there was But the number of wired broadband
estimated 210 millions mobile phone Internet subscribers is projected to have
subscribers by end 2009, has 5 times a significant growth in the near future,
internet users. Indonesia is also among the especially there will be charge regulation
highest in the world in consuming mobile to make its price cheapest.
browsing intensity, 661 pages per month/ b. Wireless/Mobile Internet
per person. Mobile user are the biggest number
of internet in Indonesia. As of 2009,
Indonesian Access to Internet
there were about 159 million mobile
Since the internet has been recognized cellular subscriptions in Indonesia,
by Indonesian people several years ago, 15 million of them are mobile cellular
Indonesian government has set up many subscriptions with broadband access
technologies tools access the Internet (Source: ITU). In less than five years,
service easily. about half of total Indonesia population
a. Wired Internet (120 million) will use Internet from
Broadband wired Internet mobile access. Young Indonesians, aged
connection is still pricey for most 8 24 years old, have the highest level of
Indonesians. The cheapest unlimited mobile phone ownership in the region,
Internet access service available from at 80% penetration (Source: Monetizing
PT Telkom with a connection speed Indonesia Internet & Mobile). Indonesia
only up to 1Mbps. PT First Media offers also ranks among the highest in the
unlimited Internet access service with world for mobile browsing intensity:
connection speed varies from 1.5Mbps 633 pages per month/person (Source:
to 10 Mbps, however, these services are Opera).
only available for users in Jakarta area There are three primary reasons
(http://coolfounders.com). The price why mobile is really big in Indonesia:

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price, infrastructure, and culture. time on the road. Mobile Internet access
Wireless/mobile Internet service is is becoming a must to have, not a nice to
much cheaper compared to wired have anymore.
broadband. Subscribers can get a c. Warung Internet
Blackberry Internet service for as low as The remaining Indonesians access
$7.7 per month. Unlike wired Internet the Internet in Warung Internet or
infrastructure, mobile infrastructure is Internet Kiosk. Those who cant afford
much more developed in Indonesia. The to pay for monthly subscription fee will
infrastructure covers 90% of Indonesias go to Warung Internet and pay an hourly
population and offers fast connection fee. According to a study conducted by
through 3G networks. Yahoo and Taylor Nelson Sofres (TNS)
Starting June 2010, a WiMax or Indonesia, about 53% of Indonesians
4G connection is also available for access the Internet in Warung Internet.
subscribers in Jakarta area. Many
young Indonesians spend most of their Hereby internet user data as percentage
free time hanging out with their friends of population, means people with access to
outside their home. In addition, bad the internet per 100 inhabitants, comparison
traffic condition is a daily menu for with peer region of South East Asia.
most Indonesian workers, forcing them
to spend a significant amount of their Figure 3. Internet User in Region

The most favourable question their access internet for social networking
through the great phenomenon of fast sites (Kominfo, 2011). From the media
growing internet user in Indonesia was, perspective, the massive use of new media
what do Indonesian do online or access their and social media may represent a response
internet connection? This question was in to the lack of public space (Habermas,
line with the internet technology that more 1989) which should have provided by the
widely available and had multifunction conventional media. Maybe its the main
among people activities. The Ministry of reason why for most of Indonesian people
Communication and Informatics apparently who had internet usage, interest in the
has the answer. Most Indonesian people do internet seems to have been shaped around

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Theresia D. Wulandari. The Needs of...

the use of social media in that has become in traditional media spills over into social
a cultural trend (Nugroho, et.al., 2012). The media in blogs, wikis, facebook, etc.,
public interest which is not accommodation among others.

Figure 4. Indonesian internet user activities

However, ICT infrastructures is internet access devices. The number was


the basic infrastructure for all online most increased level of gadget ownership
media. There will be no internet usage and the sharpest decline in the cost of
when theres no ICT infrastructure which services (include internet data package) in
encompasses hardware, bandwidth or South-East Asia, even amidst the economic
frequency, and some level of services. The recession (http://idsirtii.or.id, on April 25,
ICT infrastructure is provided jointly by 2012).
the state and the private sector to ensure The cable infrastructure has been
wide coverage. Of course its all need such costly to provide because of Indonesias
a big investment by the state to provided archipelago geographic condition. And it
the most proper ICT infrastructure to its has been mostly confining the urban internet
publics. But, even thought the density of user, particularly on Java and Bali islands.
internet user in Indonesia is still lower than Unfortunately, the number of broadband
the average among other ASEAN countries, internet connection has double since
with only 6,61 users per 100 citizens, most 2006 but the broadband services remains
of whom are broadband internet consumers prohibitively expensive or otherwise
(BPPT, 2008), in 2010 Indonesia reported unavailable to many Indonesians (Freedom
had the highest ratio for the ownership of House, 2011). However, the number of

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ISP permits granted by the Directorate culture behaviour..


General of Post and Telecommunications World finance institution has been
at the Ministry of Communication and predicted that Indonesia is going stable
Informatics has been increasing since the with recent economic, especially when
year 2000 (Kominfo, 2011). Indonesias strenght against global crisis
In November 2009, President Susilo past view years. Indonesia was emerged
Bambang Yudhoyono officially declared strongly from the global financial crisis
the beginning of the construction of optic due to robust domestic consumption and
fiber project for the Palapa Ring Network investment, and greater exports, instead
in the southern part of Eastern Indonesia the number of internet literacy is growing
that will link Kupang and Mataram. Palapa massively. Investment volume to internet
Ring Network is a national optic fiber technology is going increasing, reflected
network (at 320 Gbps) that will reach by number of permits granted in Indonesia
33 provincial capitals and 440 cities or better than ever.
regencies throughout Indonesia. As many Economic forecast of Indonesian
as 31,824 villages in Indonesia will have global condition is made Indonesia has a
access and afford telecommunications great potential for many business sectors,
system by the end of 2010. And there was internet technology especially. With the
two main telecommunication projects number of total population and potential
extend telecommunications and broadband market internet user, internet technology is
Internet services to remote areas. He project going to be the best part of communication
was provision of national WiMax services media. The communication behaviour
in 2010. These two projects boosted the among Indonesian people, create potential
number of Internet users in Indonesia even market of internet usage. Internet
further. connection by mobilephone, household
personal computer, even internet business
CONCLUSION AND SUGGESTION office interconnection, are made the internet
is growing massively. Strong economic
Conclusion capability each person, has create the
Considering its high economic and communication based internet so familiar
Internet user growths, Indonesia has a great among them. Even they are so consider
potential for Internet business. Moreover, about pricy tariff of internet, communication
the Internet business there is still in a very based internet trends in Indonesia can not
early stage with a limited number of local shifting by another one. People specially
players and products or services offered. urban people- are likely to communicate
There will be potential growing of internet by internet because it is relatively more
user in Indonesia, which in line with cheapest than various communication
internet usage trends and communication tools. Internetconnection by social media

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is also boosted by communication culture Chesebro. J.W. (1999). Communication technologies


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