MASYARAKAT TELEMATIKA INDONESIAIndonesian ICT’s Society

by: KristionoChairman of MASTEL

88.1 million internet user(34% population)

63.4 million smartphone user(24,7% population)

308.2 million mobile phoneuser (121% population)

3 hrs/day, average ofinternet access via mobiledevice

2 hours 52 minutes/day,average of social mediausage

74 million social media user(29% population)

69 million facebook user

50 million twitter user

3 million fixed broadbanduser (1,5% population)

will grow to IDR 140 Trillion by 2020, fuelled by data revenue growth

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TLKM2010 TLKM2014 EXCL2010 EXCL2014 ISAT2010 ISAT2014

Fixed Line Cellular Data

Growth in data services will change the business modelof the ICT industry in Indonesia

Source: Company Annual Report

Revenue Composition ofTelecommunications Operator CAGR 2010-2014

TLKMFixed Line -9,0%Cellular 4,2%Data 17,5%

EXCLCellular 1,4%Data 28,1%

ISATFixed Line -4,0%Cellular 5,0%Data 9,1%

Masyarakat Telematika Indonesia

Based on MASTEL Study Income elasticity of demand indicate that

smartphone as necessary goodscell phone subscriber create added value for

the economy amounted to 5.52% of GDP National ICT Master PlanLack of National Broadband Ecosystem

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2.

Resolve Infrastructure BottleneckToo many playersSupportive RegulationReview Policies on Spectrum (Neutral

Technology, spectrum re-farming, digitaldividend, white spectrum/unlicensed spectrum)

Infrastructure sharing (passive and active) Industry Efficiencies

3.

Digital DivideLack of successful roll out modelNetwork segment priorities

Regulatory EnvironmentEstablish convergent regulationGrey Area in OTT Phenomenon

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5.

Developing Upstream and Downstream Industry Technology (hardware & software) cluster link to

engineering school Fostering creative Industry media, e-services,

digital application Increase Supply of Skilled ICT Workforce Shortfall 9 millions skill/semi skill workers until 2030

Potential growth of e-commerce is quite large inIndonesia

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ICT Adoption by SME 55 millions SME, with 108 million employee (95% of

firm)GDP Contribution per employee $139 vs $3.514

ICT to support Priority Sectors (transportation, agro business, health,

education) Service Industry (Internet Access, financial inclusion)Quality and Efficiency Improvement in Public Service

(E-Government, Smart City)

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By resolving the challenges and taking theopportunities, Indonesia potentially becomethe biggest digital economy player in theRegion

MASYARAKAT TELEMATIKA INDONESIAIndonesian ICT’s Society