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Indonesia Must Connect to Compete
June 29, 2010

Given that WiMax is cheaper and faster than normal fixed-line services, it is not inconceivable that in the future, fixed-line telephones will become obsolete. This is the constantly changing nature of technology, and it is crucial that we keep up. Given that WiMax is cheaper and faster than normal fixed-line services, it is not inconceivable that in the future, fixed-line telephones will become obsolete. This is the constantly changing nature of technology, and it is crucial that we keep up.
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Being connected and being mobile are vital to getting ahead in today’s world of high-speed telecommunications and lightning-quick data exchanges.

Other countries in the region have realized this important fact. Singapore, for example, is one of the most connected countries in the world, with more than 90 percent of homes and offices wired.

Malaysia and Thailand have also taken great strides to connect residents and open vast new opportunities for businesses.

Indonesia has lagged behind in investing in its telecommunications infrastructure. While the mobile phone market has exploded, Internet connections have been slow to take off.

Today, there are only 30 million Internet users in the country, or just 13 percent of the population. Broadband users are even fewer, comprising only 18 percent of Internet users. These levels of Internet penetration are not enough for the country to compete.

With high-speed connectivity crucial to improving productivity and boosting economic growth, it is essential that the country invest in the right infrastructure.

Indonesia’s poor IT infrastructure is the primary reason why Internet and broadband usage is so low. Clearly this situation is no longer tolerable.

As technology improves, having the right platform in place will be important. This is why the rollout of the WiMax, or interoperability for microwave access, network this week is so exciting.

Not only will WiMax change the rules of the game, it will make working life easier and connecting with family and friends faster.

With the WiMax network in place, users will be able to connect to the Internet from practically any location in the Jakarta metropolitan area. Even when stuck in the city’s infamous traffic, users should be able to access the Internet with WiMax.

The network will initially be available only in Greater Jakarta and North Sumatra, but we hope that our sister company, PT First Media, which is rolling out the service, will quickly make it available in other parts of the country.

Given that WiMax is cheaper and faster than normal fixed-line services, it is not inconceivable that in the future, fixed-line telephones will become obsolete.

This is the constantly changing nature of technology, and it is crucial that we keep up.

Indonesia cannot afford to be left behind in this race. Technology and connectivity will be key to continued economic growth.

And as the country shifts from its overreliance on the natural resources sector, particularly extractive industries, to services as the main driver of growth, Internet penetration will be vital.

Research has shown that a 1 percent increase in Internet penetration translates into 0.01 percent GDP growth.

Given the country’s low penetration levels, there is enormous room for growth, but only if we are able to capitalize on the opportunities before us.