News Views Life Outlook October 2014 was a blessed month for Indonesia. It witnessed the transition period to a new president and new government to rule the nation, to carry on efforts so that Indonesia becomes a developed country by 2025 as stipulated in the MP3EI, the Master Plan for Acceleration and Expansion of Indonesian Economic Development. Recently the media carried the news of a blusukan (impromptu visit) made by President Joko “Jokowi” Widodo and Mark Zuckerberg — CEO of Facebook. The visit signaled their shared hopes that Indonesia should use advances in information and communication technology (ICT) to boost its economy. Their visit to Tanah Abang, the crowded Central Jakarta market in the heat of mid October reflected that the Internet will play a significant role in implementing Jokowi’s vision delivered in his presidential campaign this year. Citing “egovernment”, among other things, Jokowi will also use the Internet to improve several basic public services and increase transparency in his new government. Nowadays Indonesia has become among the most populous countries both in terms of population and also in the ownership of mobile telephones after China, India and the European Union. It is estimated that today Indonesia has about 300 million active mobile telephone numbers with over 120 percent penetration rate. In addition Indonesians are among the most loyal users of Facebook and Twitter and any kind of brand new applications on social media such as Path, LINE and WhatsApp. Ten telecommunications operators and a couple of cable TV providers have successfully empowered and connected all Indonesian cities with affordable mobile Internet facilities. However in terms of using ICT for more productive economic activities, Indonesia still lags behind peer countries due to limitations in connection speed and local content. Therefore, the launch of the Indonesia Broadband Plan (IBP) as stated in Presidential Regulation No. 96 /2014 in Jakarta on Oct. 15 marks an important milestone in Indonesia’s ICT history. The IBP sets the target of broadband deployment for a minimum speed of 2 megabits per second (Mbps) for fixed broadband and 1 Mbps for mobile broadband. Providing a highspeed Internet service will ensure people maximize the benefit of using ICT for their economic, educational, health and other activities. The IBP also details five priority areas i.e. e government; eeducation; ehealth; elogistics; and eprocurement until 2019. In February this year in Barcelona, thousands of telecommunications CEOs and government officials listened as Zuckerberg unfolded the reason why he priced WhatsApp at US$19 billion, one of the biggest deals on earth for a startup company. He said WhatsApp was a great Jokowi, Zuckerberg and broadband Eddy Satriya, Jakarta | Opinion | Thu, November 06 2014, 11:01 AM Editor's Choice Headlines Business National Archipelago Jakarta World Sports Photos Videos Search
Transcript
11/7/2014 Jokowi, Zuckerberg and broadband | The Jakarta Post
October 2014 was a blessed month for Indonesia. It witnessed thetransition period to a new president and new government to rule thenation, to carry on efforts so that Indonesia becomes a developedcountry by 2025 as stipulated in the MP3EI, the Master Plan forAcceleration and Expansion of Indonesian Economic Development.
Recently the media carried the news of a blusukan (impromptu visit)made by President Joko “Jokowi” Widodo and Mark Zuckerberg —CEO of Facebook. The visit signaled their shared hopes thatIndonesia should use advances in information and communicationtechnology (ICT) to boost its economy.
Their visit to Tanah Abang, the crowded Central Jakarta market in theheat of mid October reflected that the Internet will play a significantrole in implementing Jokowi’s vision delivered in his presidentialcampaign this year. Citing “egovernment”, among other things,Jokowi will also use the Internet to improve several basic publicservices and increase transparency in his new government.
Nowadays Indonesia has become among the most populous countriesboth in terms of population and also in the ownership of mobiletelephones after China, India and the European Union. It is estimatedthat today Indonesia has about 300 million active mobile telephonenumbers with over 120 percent penetration rate.
In addition Indonesians are among the most loyal users of Facebookand Twitter and any kind of brand new applications on social mediasuch as Path, LINE and WhatsApp. Ten telecommunications operatorsand a couple of cable TV providers have successfully empowered andconnected all Indonesian cities with affordable mobile Internetfacilities. However in terms of using ICT for more productive economicactivities, Indonesia still lags behind peer countries due to limitations inconnection speed and local content.
Therefore, the launch of the Indonesia Broadband Plan (IBP) as statedin Presidential Regulation No. 96 /2014 in Jakarta on Oct. 15 marks animportant milestone in Indonesia’s ICT history. The IBP sets the targetof broadband deployment for a minimum speed of 2 megabits persecond (Mbps) for fixed broadband and 1 Mbps for mobile broadband.Providing a highspeed Internet service will ensure people maximizethe benefit of using ICT for their economic, educational, health andother activities. The IBP also details five priority areas i.e. egovernment; eeducation; ehealth; elogistics; and eprocurementuntil 2019.
In February this year in Barcelona, thousands of telecommunicationsCEOs and government officials listened as Zuckerberg unfolded thereason why he priced WhatsApp at US$19 billion, one of the biggestdeals on earth for a startup company. He said WhatsApp was a great
Jokowi, Zuckerberg and broadbandEddy Satriya, Jakarta | Opinion | Thu, November 06 2014, 11:01 AM
Editor's Choice Headlines Business National Archipelago Jakarta World Sports Photos Videos
fit for Facebook and he also valued the halfbillion people connected tothe application. Being connected and a networked economy havebeen the main reasons for Zuckerberg ‘s expansion of his businessaround the globe. It could be also one of the main reasons why he metour President Jokowi.
Jokowi successfully won over people when he declared a series ofdifferent ICT applications such as eKTP or eID, eprocurement, eeducation, etc. Moreover, he has also showed his concern for creativeeconomic activities such as music, animation and entertainment. Hefurther assured voters that he would increase the transparency of hisgovernance by using different ICT applications.
So the rare event of the young billionaire Zuckerberg meeting thenewly elected Indonesian president should be treated as a good signalfor both sides. While the Facebook CEO expands his business, Jokowicould also draw benefits for the nation’s ICT ecosystem.
Indonesia has a big chance to improve its local ICT products, services,hardware and other equipment.
In July this year Indonesia launched the first Indonesian 4G/LTE handset manufactured locally in Batam. Producing more local smartphoneswill definitely eliminate the need for imported products costing billionsof rupiah. Last September in Brussels, witnessed by the Indonesianambassador to Belgium, the GrandDuchy of Luxembourg and theEuropean Union, a German IT company signed a memorandum ofunderstanding with a local company from Bandung to develop an openBase Transmission Receiver system.
Indonesia is blessed not only with its rich natural resources, but alsoits talented and brilliant human resources. Thousands of youngIndonesians have already dedicated their life to helping ICT growaround the globe.
Many are behind highquality animation films produced fromSingapore to Hollywood. They are competing with millions of youngtalented people from China, India, and Eastern Europe in techno parksand in Silicon Valley for new worldclass application’s.
Zuckerberg’s visit, Jokowi’s vision on ICT use, and the IBP shouldboost the local ICT industry and also the nation’s economy in the nearfuture.
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The writer is a senior infrastructure economist who graduated from theUniversity of Connecticut, in the US. He is the deputy assistant of ICTand utility at the Office of the Coordinating Ecomomic Minister.
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