As Indonesia strives to avoid getting stuck in the middle-income trap that threatens emerging economies, its businesses need to tackle high logistics costs and improve operational efficiency. Information and communications technology (ICT) can address both of these areas simultaneously.
Although estimates vary, in Indonesia today, only about one out of every three people are connected to the web, and connection speeds are slow, largely thanks to challenging geography and a thinly spread population of around 255 million people.
Indonesia continues to serve as one of the world’s most promising markets for app-based businesses that are able to appeal to a youthful, smartphone-savvy consumer base by offering convenient solutions to the country’s day to day challenges.
Growing connectivity is the central theme of Indonesia's development roadmap. As business activity increases outside of the country's economic centre of West Java, so too does the need for effective communications.
Indonesia’s e-commerce market is fast becoming one of Asia’s most attractive destinations for investment. Driven by the sustained success of local pioneers in online B2C and C2C, as well as the emergence of new start-ups and the entry of international players, the industry is positioned to flourish as the number of internet users in the country rises.
Contribution to GDP: 3.47% (Information and Communications, Q3 2015)
Fixed Telephone Line Penetration: 11.72% (ITU, 2014)
Mobile Phone Penetration: 124.3% (2015)
Unique Mobile Phone Subscribers: 41.5% (2015)
Smartphone Penetration: 43% (Google, 2015)
Internet Penetration: 34.9% (APNIC, 2015)
Fixed Line Broadband Penetration: ±2% (2015)
Main Operators: Telkom, Indosat Ooredoo, XL Axiata, Axis Telekom, Hutchison 3 Indonesia, Bakrie Telecom, First Media, Smartfren Telecom.