INDONESIA BROADBAND PLAN

Dr. Ir. Lukita Dinarsyah Tuwo, MA

Vice Minister of National Development Planning/Vice Chairman of BAPPENAS
presented at Meaningful Broadband Indonesia Congress
Jakarta, 13 November 2013

OUTLINE
1

BACKGROUND

3
2

THE CONCEPT OF INDONESIA BROADBAND

PLAN
CLOSING

BACKGROUND
Global Leaders on Broadband: UN Conference on Sustainable Development
(Rio+20), June 2012
We recognize that information and communication technology (ICT) is facilitating the flow of
information between governments and the public. In this regard, it is essential to work toward
improved access to ICT, especially broadband network and services, and bridge the digital divide,
recognizing the contribution of international cooperation in this regard.

Broadband and Development

Every 10% increase in access to broadband in developing economies, like Indonesia,

translates to a 1.38% growth in GDP (source: the World Bank)
Every 10% increase in broadband penetration in a year correlates with 1.5%
increase of work productivity in five years (source: Booz & Company)
Every 1% increase of broadband household penetration in Indonesia will decrease
unemployment growth by 8.6% points (source: Katz et al)
Participation in the global economy is increasingly dependent on the 21 st-century
skills which include the ability to use technology and navigate the digital world
(source: Broadband Commission). Thus, ICT has become a must in learning process.
Based on the Global Competitiveness Index 2011-2012, there is a correlation of 0.71
between quality of education and availability of internet access (source: Pustekkom,
Ministry of Education and Culture)

Broadband and Development (contd)

Closing the mobile gender gap and bringing 600 million more women online
could increase global GDP by US$ 12-18 billion (source: Broadband
Commission)
Smart use of ICT can reduce Green House Gas (GHG) emissions by up to 25%. Mobile
technology alone could lower GHGs by 2% by 2020. E-commerce could lower energy
consumption and GHG emissions by 30% over traditional retails. Teleconferencing
and telecomputing could replace air and land travel via video/audio conferences.
ICT could potentially save up to 7.8 Gigatons of carbon dioxide emissions by 2020.
Shifting newspapers online could potentially save 57.4 million tons of CO2 emissions
over the next decade (source: Broadband Commission)

The cooperation between the Government of Indonesia and United Nations

under Global Pulse initiative brings together researchers from the Government,
UN, non-governmental organizations, and private sectors to explore the use of
big data and real-time analysis methods for social development monitoring and
program planning
ICT, specifically broadband, plays increasingly significant roles in development.
Broadband has become an integral part of national strategy for development.
Incapability to adopt and utilize broadband will leave the nation in exclusion.
4

Indonesias Call for Broadband

MP3EI Leapfrog:

2025 Vision
The economic
masterplan (MP3EI)
aims at transforming
Indonesia from a US$
700 billion
economies in 2010
to that of US$ 4.5
trillion in 2025.
Such transformation
will not feasible
without broadband
support.

Nations Competitiveness

Planning Direction
for 2015-2019

Indonesia competitiveness has

improved in the last eight years,
leaping from 57th in 2006/07 to
38th in 2013/14 (source: World
Economic Forum).
As an efficiency-driven
economies, Indonesia ICT
however has not optimally
contributed to nations
competitiveness. Internet users
and fixed broadband
subscriptions are among the
lowest.
Substantial reforms in ICT
development and smart use of
ICT in national development are
required.

RPJMN 2015-2019
focuses on strengthening
development by
emphasizing the
development of economic
competitive advantage
based on natural
resources, qualified
human resources, as well
as science and
technology.
Broadband use in these
three platforms will give
an edge to the process as
well as the impact of
development.

The Landscape of Current Broadband

Development

THE CONCEPT OF INDONESIA

BROADBAND PLAN (IBP)
We fully understand that broadband is not a panacea, a remedy that
cures all. There are things to be prepared and done before we can truly
gain the benefit from broadband.
It becomes a mandatory for the Government together with private
sectors to unlock the potential of broadband. Without tangible actions,
broadband will remain as possibility but with no real values.
Indonesia Broadband Plan (IBP) provides policies and strategies as well
as directions and targets. The document is prepared through a robust
colaboration between the Government, private sectors, and society
which includes among others:

Kementerian PPN/
Kementerian
BAPPENAS
Koordinator Bidang

Perekonomian

IBP and Other Planning

Documents
Long-Term National
Development Plan (RPJPN)
2005 - 2025

Medium
Term
Plan
Medium
TermNat.
Nat.
Plan
Medium-Term
National
(Pres.Regulations)
(Pres.Regulations)
Development
Plan (RPJMN)

Medium
Term
Nat.
Medium
TermAnnual
Nat.Plan
Plan
Government
Plan
(Pres.Regulations)
(Pres.Regulations)
(RKP)

MP3EI 2011-2025

Indonesia Broadband Plan

Direction, policies, and strategies
for broadband development
Programs/projects required state
budget (APBN) support

IBP Framework
INDONESIA
VISION
2025

INDONESIA
BROADBAND
VISION
INDONESIA
BROADBAND
OBJECTIVES

MAIN
PILLARS
PREREQUISITE
9

Independent ,
progressive,
equal and
prosperous
Indonesian society

To support nations
transformation towards
becoming developed
economies through broadband
use as meta-infrastructure
1. To promote economic growth and nations
competitiveness
2. To support human capital development
3. To preserve nations sovereignty, defense, and
integrity
REGULATORY
INFRAADOPTION AND
AND
FUNDING
STRUCTURE
UTILIZATION
INSTITUTIONAL
AND SECURITY
FRAMEWORKS
Government leadership, national commitment, multi-sector synergy, and publicprivate partnership

IBP Main Policies

Infrastructure:
Acceleration of broadband infrastructure roll out including in un-served
and underserved areas to provide affordable services all over Indonesia
Utilization:
Further adoption and productive use of broadband in government,
business, and society
Regulatory Framework:
Policies and regulations to induce further market growth and to eliminate
unnecessary regulatory cost allowing conducive investment in broadband
development
Funding:

Government budget allocation to accelerate broadband development

without taking over private sectors role or competing with the operators
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IBP Main Strategies

NATIONAL BROADBAND DEVELOPMENT
1. Supply/Infrastructure:
availability, accessibility, affordability

Competition in wireline broadband

Optimal use of spectrum
Optimal use of right of ways
Infrastructure sharing
Neutral technology
Open access
Secured network and system

2. Demand/Adoption and Utilization:

awareness and ability

Digital literacy(e-literacy)
Aggregating demand, among others:
E-government
E-education
E-health
E-procurement
E-logistic
Green ICT and Green with ICT

Supported by:

3. Funding

Optimal use of USO Fund and Non Tax Revenue in ICT sector
Public-private partnership
Consolidated planning and budgeting for ICT on national level

4. Regulatory and Institutional Frameworks

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Regulatory frameworks to create condusive investment climate

Governance and institutional setting for the implementation of Indonesia Broadband Plan

IBP Staging
TARGET 2014
Telephony and internet services are
available in all USO areas

RPJMN 2020-2025:
TRANSFORMATION

Broadband is available in 88% of

kabupaten/kota and covers 30% of
population

Digital TV covers 35% of population

E-government index: 3.0 out of 4.0

RPJMN 2015-2019:
INNOVATION

12

2025 Vision:
independent ,
progressive,
equal and
prosperous
Indonesian
society

RPJMN 2010-2014:
CONNECTIVITY

Providing basic connectivity by

covering blank spot areas and
modernizing ICT infrastructure to
accommodate broadband services

Providing broadband services to all

kabupaten/kota, schools, and other public
facilities;
Strengthening government connectivity
by improving government secured
network and consolidating data
center/warehouse;
Promoting adoption and quality use of
broadband

IBP Targets 2013 2017*

2013

2017

Infrastructure
Fixed broadband :
15% households (1Mbps) , 30%
buildings (100 Mbps), and 5%
population;
Mobile broadband :
12% population (512 kbps)

Infrastructure (at least)

Fixed broadband :
40%-75% households (2Mbps), 50%80% buildings (1 Gbps), and 25%
population;
Mobile broadband :
75% population (1 Mbps)

Priority Sectors:
e-Government; e-education; e-health; e-logistic, e-procurement
* Calculation for 2019 targets is ongoing
Although IBP provides directions for broadband development until 2025, targets are set every 5 year

13

Acceleration of Broadband
Development
Government
intervention to
accelerate broadband
development

2012

14

2015

2025

Broadband development in Indonesia

relies on private sector investment.
However, the Government will make
intervention, as required, to accelerate
broadband development: infrastructure
roll
out
and
its
meaningful
adoption/use.
A careful assessment will be performed
to assure efficient and effective resource
allocation as well as its impact to the
market (whether such intervention will
create market failure).
As a start, Government intervention in
the form of policy/regulatory and/or
funding will be provided for flagship
programs.

IBP Flagships

INFRASTRUCTURE

FUNDING

HUMAN CAPITAL
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1. Palapa Ring
To provide fiber optic backbone inter-big islands and intraisland reaching to 497 kabupaten/kota by 2015 (ongoing)
2. Shared Duct
To construct a shared pipe/duct to accommodate fiber optics
from different operators (final stage of preparation)
3. Government Networks and Consolidated Data Warehouse
To build a secured, dedicated, high-speed government
networks and a consolidated data warehouse (finalization of
concept)
4. Regional Terrestrial Broadband Piloting in USO areas
To serve as extension of Palapa Ring in USO areas using
wireless solution (finalization of concept)

5. USO Fund Reform

To accommodate more extensive use of USO Fund to cover
broadband development beyond infrastructure (ongoing)
6. National Digital Literacy Program
To improve ICT literacy nationwide in order to promote
adoption and meaningful use of broadband (in preparation)

IBP Timeline

Jun - Jul
Drafting of the
Indonesia
Broadband Plan
(completed)

Jan - May

16

1st public
consultation:
forum and
online
(completed)

Bilateral
meetings with 8
ministries
identified as 5
priority sectors.
2nd public
consultation on
utilization.
(completed)

Aug - Oct

Nov - Dec
Finalization of
the document
and its
launching
(ongoing)

CLOSING
As a nation, we fully aware of the need for broadband not only to promote
more sustainable economic growth, to improve nations competitiveness
but also to enrich peoples quality of life.
Indonesias call for broadband is aligned with nations 2025 vision and
direction for the next medium-term national development plan (RPJMN
2015-2019) in which economic competitive advantage will be the main
focus.
Indonesia Broadband Plan, a document providing direction and guidance
for national broadband development, will be intertwined with the next
RPJMN. Thus, we are aiming at completing the formulation of IBP at the
end of this year.
Extensive infrastructure roll out, smart adoption, debottlenecking
regulations, and innovative business model with government budget
support are the main ingredients in broadband development.
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 In that context, we recognize the need for the Government to be more actively
involved in the broadband development. Therefore, the Government will
make intervention, as required, to accelerate broadband development. A
careful assessment will be performed to assure efficient and effective
resource allocation as well as its impact to the market (whether such
intervention will create market failure).
As a start, Government intervention in the form of policy/regulatory and/or
funding will be provided for six flagship programs, ranging from (1)
infrastructure programs to provide fiber optic backbone networks to
kabupaten/kota, shared duct, and government secured networks; (2) funding
program to reform the Universal Service Fund allowing development of
broadband ecosystem; to (3) capacity building program to improve ICT
literacy to enable smart and extensive adoption of broadband.

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THANK YOU
Secretariat of Indonesia Broadband Plan:
Directorate of Energy, Telecommunications, and IT
Ministry of National Development Planning/BAPPENAS
Jl. Taman Suropati No.2, Menteng, Jakarta 10310

Email
19

Tel
: (021) 314 9664
Fax
: (021) 391 2422
: broadband.plan@bappenas.go.id
mtayyiba@bappenas.go.id