ICT Sector

An Expert's View about IT and Telecommunications in Indonesia

Posted on: 25 Aug 2012

Demand for information, media and edutainment services is growing at an unprecedented pace in Indonesia.

ICT in Indonesia Demand for information, media and edutainment services is growing at an unprecedented pace in Indonesia, with the country emerging as a major market in global terms: Indonesia is now the world’s second largest market for both Facebook and Blackberry, and has Twitter’s third largest user base. Market overview The Indonesian IT market is expected to grow at a compound annual growth rate (CAGR) of 17% over the 2011- 2015 period. The market potential of providing enterprises with ICT services in Indonesia is expected to reach US$3 billion by 2015, while the market potential for consumer services is estimated at approximately US$1.5 billion. With nine mobile network players, and 98% prepaid in the mobile telecom sector, this market is one of the most attractive telecommunications markets for foreign companies. The number of Internet users in Indonesia is also expected to rocket from 40 million in 2011 to 175 million by 2016, accompanied by a boom in data connection subscribers, which is expected to grow from 52 million in 2011 to 167 million in 2016. Key opportunities The significant market growth translates into business opportunity for mobile operators and companies providing Internet-based services to consumers and enterprise, including. ξ Mobile broadband IT ξ Web-enabled mobile VAS such as social networking applications, mobile Internet products ξ Digital content ξ E-commerce ξ Cloud services ξ Data centre ξ Risk and compliance management ξ Governance security ξ Asset management/wealth management solutions ξ Advance electronic payment solutions (E-Payment) Latest export opportunities - ICT Latest export opportunities - Indonesia Getting into the market Finding a local partner is recommended as a key to market entry. To take advantage of the opportunities available, it is crucial that companies: ξ Appoint the right business partner (after undertaking due diligence work) ξ Visit the market on a regular basis (face-to-face contact and the development of relationships is critical to business success) ξ Prepare comprehensive information packs profiling your company, product specifications, pricing and terms of payment ξ Participate in major trade exhibitions to showcase products/ services to relevant audience/ buyers Indonesia’s telecom sector is regulated by the Badan Regulasi Telekomunikasi Indonesia (BRTI). The maximum limit of foreign ownership in telecommunication companies in Indonesia is 49% in the fixed sector and 65% in the mobile sector More about doing business in Indonesia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. Pooja Thawani, British Embassy Jakarta, Indonesia. Tel :+62 21 2356 5257, Fax : +62 21 2356 5352 or email : Pooja.Thawani@fco.gov.uk Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – sector Major Events INDOCOMTECH 2012, 31 October – 04 November 2012, Jakarta Convention Centre Useful links More about OMIS and other UKTI services for exporters
Posted: 25 August 2012

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