DR. IR. IWAN KRISNADI MBACommissioner

BRTI – Badan Regulasi Telekomunikasi IndonesiaIndonesia Telecommunications Regulatory Authority

Jakarta , 16 April 2010

THE ICT TRACK OF INFRASTRUCTURE : “MEANINGFUL

BROADBAND”

Outline

• ASEAN VISION AND STATEGIC THRUSTS

• APT BROADBAND ECONOMIC

• ORGANIZING ICT FOR BROADBAND ECONONIC

• Lesson learn : THE INDONESIA ‘s USO project

ASEAN ICT Vision and Strategic Thrusts

“Towards an Empowering and Transformational ICT: Creating an Inclusive, Vibrant and Integrated

ASEAN”Economic Transformation People Empowerment

& Engagement Innovation

Infrastructure Development

Human Capital Development

To promote trade, investment and entrepreneurship in the ICT sectorTo build an ICT engine for sectorial transformation

To enhance quality of life through affordable and equitable ICT

To nurture a creative, innovative, and green ICT sector

To build the infrastructure backbone, and enabling policies and legislation

To develop a skillful ICT workforce and knowledgeable community

1 2 3

4

5

Bridging the Digital Divide

To elevate countries and people through ICT capabilities6

Selected Sectors Impacted: Transportation Agricultural Manufacturing

Selected Sectors Impacted: Healthcare Education Media & Entertainment

Financial Services

SME

Selected Sectors Impacted: ICT New Media Content

Research & Development

Financial Services

Bali Statement of the Asia-Pacific Ministers on Strengthening Regional Collaboration towards a Broadband Economy in the Asia-Pacific

• We believe, the full potential of ICT can only be realized through a broadband economy that stimulates sustainable economic growth and prosperity

• We recognize, the governments are primarily to facilitate, while it is the ICT industry that plays a key role in the physical realization of the policy decisions and contributes significantly towards the goals that we set for the sector

• We are determined, to work collaboratively as a region to achieve the most effective and efficient use of our regional resources and share our experiences and expertise in reaping the full benefit of a broadband economy for our people and the ICT industry

• We will, work collectively with all stakeholders to review and to implement, as appropriate, the following objectives that are considered crucial for a successful broadband economy in the region: – Widen broadband connectivity– Provide a secure, safe and sustainable environment through ICT

initiatives– Facilitate effective convergence of services– Encourage development of content and applications – Develop human resources capacity

13 November 2009

Organizing ICT for broadband economy (3/5)

Creating network for collabo

ration

ICT

Infrastructure

5

Creating netwotk for collaboration:

Br oa db an d E co no my

Act

ivit

ies

Transport level

Palapa Ring Project Introduced since 2006 : Sub marine optical fiber network to cover whole island in the eastern part of the counttrysinergy

MCIT

Requirements for broadband economy 1/2

ICT

Security

QoS

Affordability

6

Requirement of ICT to support broadband economy activities:

Bro

ad ba nd

Eco

no my

Act

ivit

ies

• Cyber law as a legal framework for transaction;• Security and QoS need to be standardized and guareanted to meet

broadband application requirement.• Price policy should encourage price competition in providing network,

service application and content application.

Cyber law

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Requirements for broadband economy 2/2

7

Accelarating convergence regulation and implementation for a new ecosystem :

Bro

ad ba nd

Eco

no my

Act

ivit

ies

• Mobile N/W operator

• Content Delivery Network

• Architecture Control

Consumer- Rise user take up

and stimulate usage by more transparent in pricing

- Direct customers to its own portal So we can benefit the mobile ads

Technology Enabler

Content Publisher & Aggregators• Value-priced model

• User Generated Content• Multiplayer Online Games

• etc

Advertiser- Exploit customer

profile & behavior to provide information that useful to offer relevant service/ads

Revenue stream

Revenue stream

Revenue

stream

Revenue

stream

Mobile Handset Manufacturer

Network EquipmentProvider

Business Enabler

Source : Indosat Presentation

MCIT

Role of ICT in Indonesian Economy

8

Field of industry 2008Q1

2009Agro industry, farming, forresty and fishing 14,4% 15,8%Mining 11,0% 8,8%Manufactures 27,9% 27,3%Electricity, gas and water 0,8% 0,9%Construction 8,4% 9,6%Trading, hotel and resto 14,0% 13,4%Transportation and communication (ICT) 6,3% 6,6%Financial, rental and corporate services 7,4% 7,6%services 9,8% 10,0%

Field of industryGrowth (%yoy)

Agro industry, farming, foresty and fishing 4,8%Mining 2,2%Manufactures 1,6%Electricity, gas and water 11,4%Construction 6,3%Trading, hotel and resto 0,6%Transportation and communication (ICT) 16,7%Financial, rental and corporate services 6,3%services 6,8%

Growth of GDP

ICT in GDP : Highest growth but the portion still relative small

MCIT

Creating Indonesia as a broadband bridge network for the region

9

SulawesiKalimantan

о

о

о

оо

Banda Aceh

Sabang

Medan

Palembang

Jakarta

о

Cirebon

о

Semarang

оSurabaya

ооо

Ketapang

Gilimanuk

о

Karangasem

о

Mataram

о

Sumbawa

о о о

ReoMaumereLarantuka

оKupang

о

о

Singkawang

оoSampit

Banjarmasin

оо

о

о

Balikpapan

Samarinda

Tarakan

оPalu

оо

о

о

о

о

оBatam

о

ManadoToli-toli

Gorontalo

Luwuk

о

Kendari

оUjungpandang

o

Sibolga

оо

MeulabohTapaktuan

оNatal

Padang

Bengkulu

Kalianda

оBelitung

o

Waingapu

Kalabahi

o

Merauke

o

oo

o

Biak

Nabire

Ambon

o

o

Saumlaki

oDobooTual

o

o o

Manokwari

Salawati

Tobelo

oPalopo

Sumatera

JawaNusa Tenggara

Maluku - Papua

Pontianak

Atambua

to Thailand

to Perth, Australia

to Asia Pacific

to India and arab

о

o

o

oo

oo

o

oo

o

o o

to Perth, Australia

to Guam , US

Indonesia will be a high capacity broadband bridge for the region by empowring Palapa Ring Project

MCIT

10

Chalenges : Socio Readiness

10

• Law regarding on informations and electronic transaction was enacted on 2008. Having the law, will have a legal action to prevent cyber crime and misuse of information.

• Public education on cyber crime and misuse of information;

11

The Indonesia’s USO

• Background:– 2 March 2009, ITU (International Telecommunication Union)

announced that using the ICT growth index stated that the position of Indonesia is within the rank of 108 of 154 countries, under Gabon and above Botswana. It is in the medium catogory.

• The USO pronciples :– The lowest subsidized– Affordability : Willingness to pay ; Ability to pay– Sustainability

• The target of the USO project :– The availability of the “Ringing Village” of the 33,259 SSL

(Phone)– The availabiltity of the “Smart Village “ of the 5,748 SSL

(Internet)

Internet Access Service in the village

The target includes : Pusat Layanan Internet

Kecamatan (PLIK) all over Indonesia with total 5.748 SSL (No. 1).

PLIK : The village Internet Service Center

SIMMPLIK as the PLIK gateway. (No. 2).

internet PLIK Connection by ISP upstream SIMMMPLIK to provide healthy and safe internet (No. 3).

No. 3

No. 2

No. 1

PLIK

Thank you.