Indonesian ICT Market

Sector Report

June 2015
ASEAN ICT Network Readiness Index

The Indonesian IT
market is expected
to grow at a
compound annual
1]
growth rate (CAGR)
World Economic Forum compiled by IMC Institute, 2014
of 17% over the
2011- 2015 period
 ASEAN Mobile Phone User

[1] US Census Bureau, InternetWorldStats, Facebook, ITU, 2014

ASEAN Mobile phone market size would reach 391 million in 2015. Indonesia is the fastest growing
mobile phone market in the Asia Pacific region with its current demographic bonus of 250 million people
 Indonesian ICT Market Structure
Indonesian IT spending will continue
Provider to record double digit year-on-year
growth, achieving overU$ 16.5
billion end of 2014

System/
OEM Solution
Software

The market potential for providing enterprises with ICT services in Indonesia is expected to reach US$ 3 billion
by 2015, while for the consumer services market revenue is estimated at approximately US$ 1.5 billion.
 Indonesian ICT Infrastructure

The quadrupling of Internet users in Indonesia by 2016 will translate into a US$4.5 billion business opportunity
for not only mobile operators, but also others providing Internet-based services to consumers and enterprises
 Indonesian MNO Composition

[1] Tribun News, 2014

• Telkomsel is the mobile arm of the main incumbent PT Telkom. 65% owned by
Telkom while the remaining 35% belong to Singapore Telecommunications (SingTel)
• Indosat is 20.1% owned by public, 65% by Qtel Ooredoo from Qatar and 14.9% by
Indonesian government
• XL Axiata belonged to Axiata Group Berhad (66.5%), and Etisalat (16%).
 Indonesian Mobile users
subscribers preference
9 (nine) licensed operators
providing services at national
level

Dominated by three of them:

•PT Telkomsel with its

products Halo and Simpati

•PT Indosat with Matrix and

Mentari

•XL Axiata with XL

[1]
With majority of subscribers
Wireless Intelligence, 2013
use prepaid SIM card
 Indonesian Mobile Phone User vs
Internet Penetration
•An established
Google office in
Jakarta since 2012

•#1 twitter city in

2013 for Jakarta

• the country is 4th

world largest
Facebook subscribers

[1] Indonesian Internet Governance Forum, 2013

The number of Internet users in Indonesia is expected to rocket from 40 million in 2011 to 175 million by 2016,
accompanied by a boom in data connection subscribers growth from 52 million in 2011 to 167 million in 2016.
 Smartphone vs Standard Phone

[1] The Nielsen Company Survey, 2013

Smartphone users has now increased in total for 34% (57 million) from total mobile phone owner by 2014
Indonesian Smartphone Utilization

[1] Google’s “Our Mobile Planet” Report, 2014

Of the 167 million data connection by 2016, 109 million will be on smart phones,
while the remaining 22 million will be on tablets and large screen devices.
Indonesian Banking Penetration
[1] Euromonitor, 2012
 Internet as a Payment Partner?

[1] Sharing VisionTM , 2013

In an era of modern technology where only 47% from the total population own bank account,
branchless banking is an instant solution for efficient & effective cashless society
 Indonesian Cards vs m-Banking

[1] Bank Indonesia, 2012

Credit and Debit/ATM card transactions reached IDR 3,698 Trillion compared to IDR 3,642 Trillion via internet banking
 Percentage of Online Retailers
[1] Frost & Sullivan, July 2014

The enterprise service market in Indonesia is expected to reach $3.86 billion by 2019 at a CAGR of 18.6%.
Indonesian E-Commerce Timeline

[1] UBS Global Research, June 2014

Indonesian e-Retail Actual & Projection

[1] Euromonitor Retailing In Indonesia, 2012

The market potential for consumer services is estimated at approximately US$ 1.5 billion by 2019.
 Indonesian Insurance
Market Projection
Life Insurance Growth Property & Casualty Insurance Growth

[1] Munich Re-assurance Economic Research, 2014

Number of Indonesian covered by health insurance is 176 million by June 2013, 28% from total is still uncovered
Indonesian Auto i-Insurance Potential
Numbers of Vehicle

90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
-
1990

2001
1987
1988
1989

1991
1992
1993
1994
1995
1996
1997
1998

2000

2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1999*)

Year
[1] Indonesian Central Bureau of Statistics, 2014

Numbers of vehicles at 104,2 million total in 2013, only 0.5% are fully insured according to Ernst&Young latest report
e-Government in Jakarta city parking
CONSTRICTED ROAD TYRES≥4 VEHICLE NUMBERS
ROAD VEHICLES ESCALATION
(in thousand)\

[1] Jakarta Municipal Transportation Agency, 2014

Numbers of vehicles with 4 or more tires in Indonesia reached 16 million total in 2014,
average rise in Jakarta itself is 1500 units per day.
 Parking rates in Major Cities
5.25
[1] Smart City: Parking Solution, Mata Biru, 2014

4.41

3.81
US $/Hour

2.838

2.335
2.106

1.2 1.174
1.143
0.704
0.265
0.215 0.15
0.128

12,550 on street parking sites mostly covered by organized illegal “parker” , though in average
every vehicles paid merely USD 1.2-1.4 per annum to the city administration.
 Do it e-Ndonesian way!

The city target revenues from on-street parking this year USD 75 million, more than triple last year’s take.
 Summary
• INDONESIA IS WITHIN THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS ECONOMIC COMMUNITY WHICH HAS OVER THAN 600 MILLION INHABITANTS

• COUNTRY FOREIGN DIRECT INVESTMENT (FDI) REALIZATION IN 2014 WAS UP 16.2% FROM 2013 WHICH IN TOTAL EXCEEDED U$37 BILLION

• ICT SECTOR CONTRIBUTED FOR MORE THAN 3% OF ASEAN GDP AT THE VALUE ABOVE US$32 BILLION AND EMPLOYS AROUND 11.7 MILLION PEOPLE

• JAKARTA IS THE #1 TWITTER CITY IN 2013 AND INDONESIA IS THE 4TH LARGEST FACEBOOK SUBSCRIBERS IN THE WORLD

• OVER THAN 169.7 MILLION MOBILE PHONE USERS IN 2014 IN WHICH 34% OF THEM USE SMARTPHONE IN THE COUNTRY

• MAJOR MNOs: TELKOMSEL HAD NEARLY 40% OF MARKET SHARE , PT INDOSAT AND XL AXIATA BOTH TWO HAVING 17-18% OF SUBSCRIBERS

• IT SPENDING IN INDONESIA CONTINUED TO RECORD DOUBLE DIGIT YEAR-ON-YEAR GROWTH, ACHIEVING U$ 16.5 BILLION BY THE END OF 2014

• OPTIMIZATION OF FINANCIAL: E-COMMERCE AND I-BANKING SECTORS MAXIMIZE UTILIZATION NUMBERS OF 60 MIO SMART PHONE USERS

• i-INSURANCE IS A PERFECT INSTANT SOLUTION LOOKING AT HUNDRED OF MILLIONS UNINSURED PEOPLE,VEHICLES AND PROPERTY
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