11 October 2019 (closed)
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Research institute Frost & Sullivan expects that broadband internet penetration in Indonesia (fixed and wireless) will grow to 25% at the end of 2013 and, depending on the development of the Palapa Ring, to 45% by 2018. Internet growth in Indonesia is particularly supported by the mobile broadband segment due to high demand for social media applications and mobile videos among the younger generation of Indonesians. By 2015, about 145 million Indonesians will have internet access. Currently, Indonesia's population numbers about 250 million people.
Similar to other characteristics in Indonesia's economy, highest internet usage density is found on the western islands of Java (particularly cities such as Jakarta and Surabaya), Bali and Sumatra where telecommunication infrastructure is much more developed. In order to connect Indonesians on the eastern islands to the country's internet network, the government is developing the Palapa Ring program, a nationwide fiber optic network that is part of the government's MP3EI masterplan. Part of this Palapa Ring program is to connect 56 districts on Papua to the internet network. This project is scheduled to be tendered in September 2013.
Data from the Indonesian Internet Service Providers Association (APJII) indicates that at end-2012, internet penetration reached 24 percent of the population, equal to 63 million users. APJII estimates that the number will grow to 139 million by 2015.
According to Frost & Sullivan, "the 'mobile internet fever' will contribute to the growth of the country's telecom industry and benefit the players. Helping to drive the growth are the cheaper smartphones price and rapid social network adoption in the country."