In this December edition the newsletter contains the acquittal bankruptcy for Telkomsel, regulation of content services, markets and a review of big data in Indonesia, as well as new rules into digital TV

1. 3rd Edition 1st Year December 2012
Indonesia ICT Institute
Research . Empowerment . Discussion
New Regulation for Content Market Review
The Government has issued a Draft Ministerial Decree on the Reviewing how the development of Big
Implementation of Content Services. New regulation is a Data in Indonesia, including what kind of
revision of the Ministerial Decree No. 1/2009. How is it? issues became the challenges
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Telkomsel Free from From Editor
Bankruptcy Indonesia ICT Institute again presents a
monthly newsletter to meet all readers who
want to know the development of ICT in
Telkomsel eventually acquitted by the Supreme Court (MA) from a Indonesia last month.
position of bankruptcy, as already decided by the Commercial Court,
last September. As you know, bankrupt decision issued by Central December issue would be the ultimate
Jakarta Commercial Court to Telkomsel following a business dispute edition for this year since the turn of the
between Telkomsel and PT Prima Jaya Informatika (PJI) for Prima year has had its day, and the beginning of
card. this month we also plan to bring information
about ICT Indonesia more complete in the
Agreements related to cards and vouchers Prima signed on June 1,
form of an e-magazine, although the
2011 which originated from a memorandum of understanding (MoU)
newsletter will still be present to meet all
between Telkomsel with Yayasan Olahraga Indonesia –Indonesia
Athletes Foundation (YOI). With this agreement, Telkomsel readers.
authorizes the YOI to sell prime cards and recharge vouchers. To In this edition, we raise some issues
execute the MoU, YOI then pointed PJI. In cooperation agreement drawing attention primarily free decision for
stated that PJI are targeted to sell 10 million cards, and 120 million
Telkomsel from bankruptcy by the Supreme
prime recharge voucher in the one of a year.
Court, as well as plans to change the rules
But after a year, Telkomsel evaluate PJI and decide that PJI unable to of implementation of the Premium SMS to
meet the target. So then, there was the same termination. Not accept content services. Happy reading.
the decision of Telkomsel, PJI sue Telkomsel to the court to decide
later Telkomsel Bankruptcy Court. Beside PJI another partner Extent
Media did the samething. Free from bankruptcy is final decision until
PJI has another new evidence so they can ask Supreme Court to Heru Sutadi
reconsider previous decision. Executive Director
Do you know from which countries telecommunication devices come to Indonesia? Based
on data from Ministry of Communications and Information Technology, in 2011 devices to
be tested and then traded in Indonesia come from China with 2275 devices (75% of the
3032 total), followed by Japan with 137 and Taiwan with 108 devices.

2. 3rd Edition 1st Year December 2012
ICT Fund will be Used to Build Fiber Optics
Ministry of Communications and Information Technology has
set the funds raised in the ICT Fund to build infrastructure in
eastern part of Indonesia. ICT Fund is a kind of subsidy for
operational funding provided to build telecommunications
facilities in non-commercial areas.
Background to the ICT Fund, among others, is that the
government is aware of the disparity or gap between the East and
the West, where for the West region has a lot of fiber optic In Which Frequency
network, while the East is still empty. LTE will Be Allocated?
The business model of the ICT Fund scheme for Palapa Ring
LTE ecosystem in Indonesia is not yet
project is through a tender conducted in two stages. The first formed. This is what makes LTE can
tender held related to the construction of a fiber optic network, not be adopted immediately. One
and the second tender conducted to determine the pattern of problem is the regulation governing
network operators “joint partner". the living spaces in the frequency
regulation where LTE will be placed.
Meanwhile, the Ministry of Finance confirmed that fund ICT The government plans to deploy LTE
funds reached Rp 5 trillion already be used for the development at 2.3 GHz.
of communication technology infrastructure across Indonesia. Indeed, the frequency of 700 MHz can
The mechanism of ICT Fund is different viability gap fund be used if there is an acceleration
(VGF), so according Ministry of Finance, Ministry of digitlisasi TV to not have to wait for
Communications and Information Technology can already 2018. Refarming 1800 MHz can also
execute with existing mechanisms. Basically, ICT Fund is USO be done with the realignment and
Fund that taken 1.25% from operators gross revenue. balance carrier frequency allocation.
A Glimpse of ICT
Development in Indonesia
Contribution communications subsector (Post and
Telecommunications) in the country's economy is still
relatively small, but it is likely to increase. Take a look,
if in 2007 contribution this sector to GDP just 2.91%,
but rising to 3.19% in 2011. The important thing is
this subsector growth turns over even the highest
compared to other sub-sectors or sectors, which the
trend has declined. In the year 2012 and the years
ahead, it is estimated contribution of communication
will increase following widespread use of telecommuni-
Table ICT contribution to the Gross Domestic Product
cations resources, an increasingly rapid development
(GDP) which shows that although small, the contribution of
the communications sector increased in the last four years of technology, as well as the more open public access
than other sectors that tend to decline to the use of information technology. Indonesia ICT
(Source: Ministry of Communication and Information Institute believe this sector will be pillar for economic
Technology, 2011, data is processed) growth especially in broadband era.
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3. 3rd Edition 1st Year December 2012
Content Regulation
in the Future
After a delay of more than a year, the government finally
issued a Draft Regulation of the Minister of
Communications and Information Technology to replace
Minister Decree No. 1/2009 regarding the Implementation
and Delivery Premium Short Messaging Service (SMS) and
SMS Broadcast. As we know, so many complaints in July
2011 and, where cash deposit prepaid card customers of
mobile telecommunications is reduced. Where one urging,
including committee work presented for this case in the
Commission I of the House of Representatives, is the content services. Regarding tariff, government wants
need for improvement of the rule that had existed.
there is no charge in content that offer prizes. Its
mean the cost is paid by content or network provider.
Comparing to the Ministerial Decree No. 1/2009,
this new draft changed the title to the Operation of Even this draft very complete, but unfortunately in
Services Providing Content On Mobile some text still there are strikethrough text. This can
Telecommunications Networks and Fixed Wireless be made some misinterpretation for the public when
Access. Another difference is that if Ministerial they want to give the input or criticize this draft.
Decree No. 1 Year 2009 stated that premium
Debate discussion regarding this draft will certainly
messaging service providers must have sufficient
be hard. Such rules about opt-in for SMS broadcast
permissions in the registration form before the
that correlated to forward mobile advertising service,
operation, in the new Ministerial Decree is much
numbering arrangements and dispute resolution.
more stringent licensing through three stages:
Telecom operators have interests, content service
principle license, operation test and then commercial
providers also have interests, while the public and the
license.
government is also concerned to this rule in the
In this new regulation also stipulates that service future. Who will win, of course, will depend on the
providers are prohibited to provide information or final outcome of the Ministerail Decree after it
offer content that contains: a trap sentence, signed by the Minister of Communication and
misleading information, coercion to receive content, Information Technology
and or information contrary to the provisions of the
Beside all of that, the most crucial is how fast the rule
legislation.
was adopted. Therefore, people need strong
This draft of Ministerial Decree also regulates the protection from naughty content players which take
tariff content services that consist of network cost, deposit money from customer, in the other side the
content provider cost and content it self. Still not industry has been waiting new rules set by the
clear how regulator set the maximum tariff for government to follow.
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4. 3rd Edition 1st Year December 2012
Big Data Era in Indonesia
Last November, Indonesia Cloud Forum held a seminar on Big Data
with titled "Trend 2nd Round: Infrastructure and Demand
Challenges". Besides the issue of Big Data on the rise, the trend in the
use of communications data daily activities, making traffic and data
management becomes a interesting issue.
Big Data is being so hot conversation in the industry. Not just a mere
discourse, but this is a real phenomenon. We can see that growth ofBig
Data is not from structured data types, but from unstructured data.
Unstructured data that is considered not have a hierarchy of relational
and do not fit the traditional database. Unstructured data includes Study About
everything, ranging from metadata Facebook photos to the tracking of
millions of RFID in the retail sector. Store and manage large amounts
Big Data
of data is a challenge. Based on the study of Indonesia ICT
Institute survey of 100 respondents in
For conditions in Indonesia, is currently heading the era of Big Data. Greater Jakarta, we got the result that
All sectors starting need large capacity storage needs. One of the Big Data is understood as a large data
factors driving Big Data in Indonesia is increasingly high adoption of (32%) and the data were derived from
cloud computing. Thus, just a matter of time to explode. It happened, social media (28%) or log files (23%).
The majority of respondents claimed
not just because it encouraged the growth of social media users, but
they have used of Big Data (73%) and
also data from the enterprise data, from client, products, until trade will use (19%).
transactions. Seeing this phenomenon, Big Data may be a great
business opportunity if anticipated accurately and quickly, but it can be The majority of respondents also noted
that Big Data will continue to grow
a disaster when infrastructure providers and telecom operators fail or
(100%) in Indonesia, citing factors
too late to anticipate.
based on the exchange of information
or data and the greater increase, new
Regarding Big Data, Indonesia ICT Institute based study found that applications such as social media and
unconsciously Big Data trends already familiar to the users so far. An application store, as well as the
example is the fact that more and more users connect Facebook, addition of users log files, applications
Twitter, and other social networks to communicate. Noted, Indonesia or exchange of information.
ranks fourth in the world for Facebook users (50.5 million) and Twitter The most challenges of Big Data in
(19.5 million). Besides social networking, Internet users in Indonesia as Indonesia is infrastructure, and
well as active in a number of forums, for example is Kaskus (3.7 followed by privacy and security,
million members by posting 463.6 billion). Furthermore, there are network quality and education.
more than 1.9 million uploaded photo to Instagram with members of Interestingly, when in other countries
Indonesia more than 1,500. here only 4V data dimension (Volume,
Velocity, Variety and Veracity), in
With the number of mobile phone users until third quarter (Q3) 2012 Indonesia its added become 5V with
reached 262.6 million (exceeding the population 237.5 million) and the Victory, who is leading the
user data / Internet of five mobile operators reach 115.7 million users, development Big Data business will be
it is quite possible that the communication traffic that’s already a Big the winner. Because of that, education
Data will be booming in the near future. and socialization of big data needs to be
done
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5. 3rd Edition 1st Year December 2012
Government will Set Licensing for Digital
Broadcasting Soon
To implement the provisions of Article 9, paragraph 2 Program Provider liable to pay license fee in
of the Ministry of Communication and Information accordance with the provisions of the
Technology Decree No. 22 Year 2011 regarding the Broadcasting Organisation. The rental fee or slot
Implementation of Free to air Digital Television
Terrestrial Broadcasting Reception, then the channels broadcast programs paid by the program
government will issue new regulations about Licensing broadcaster to multiplexer operator includes the
Procedures and Requirements for Implementation of cost of frequency usage rights.
Digital Terresterial Broadcasting in the new
Ministerial Decree. Related to this rule, it is clear that the government
is still going ahead with the TV digitalization
program even parliament still disagree and prefer
From the draft, we can see that the institute for
terrestrial digital television broadcasting will consist of to wait revision of Broadcasting Law No.
Broadcasting Program Operator/Provider. and 32/2002. And this Ministerial Decree actually is a
Broadcasting Multiplexing Operator. new arrangements some regulation that still not
anticipated in Broadcasting Act, 10 years ago.
Broadcasting Program Operator is an institution that Broadcasting Act No. 32/2002 just mention about
organizes free to air digital television terrestrial
analog broadcasting.
broadcasting, which administers the program broadcast
to the public in the area of broadcasting services For real industry, the faster the process of
through broadcast channels or slots in the radio digitalization, will be better so unused frequencies
frequency channel, while Broadcasting Multiplexing (digital dividend) can be allocated for the
Operator broadcast programs of several Broadcasting development of the telecommunications industry
Program Operator. Its mean Broadcasting Multiplexing that is currently in frequency crisis, to meet the
Operator just provide network that can be used by
needs and quality of broadband data services and
some Broadcasting Program Provider.
the development of new technologies that are
Broadcasting Program Provider will consist of hungry for bandwidth, such as Long Term
Television Indonesia as Public Broadcaster, Local Evolution technology.
Public Broadcaster, Private Broadcaster and
In several countries, LTE allocated in 700 MHZ,
Community Broadcaster. Establishment of broadcaster
should be in conformity with the provisions of laws and 1800 MHZ, 2.3 GHz or 2.6 GHz. For Indonesian
regulations governing the procedures for the case, to put LTE in 1800 MHz it need to refarm
establishment of broadcaster. this band, and rearrange the spectrum due to
uncontigous frequency for some operators and
Program broadcaster in organizing and providing
unbalance frequency allocation between the
broadcasting shall obtain license from the Minister.
operator. In 2.3 GHz it can be used for TD-LTE
The licensing procedure for program broadcaster mus
not cellular operator not really interest with this
follow procedure based on Ministerial Decree No.
band. And for 700 MHz still waiting digitalization
22.2011 regarding the Implementation of Free to air
TV program. To use this band, Government have
Digital Television Terrestrial Broadcasting Reception.
to accelerate this program not until 2018.
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6. 3rd Edition 1st Year December 2012
Flash Update
By the end of November, although Telkomsel has been won
by the Supreme Court from the decision of the bankruptcy, the
government has not opened the selection process of adding
blocks of 2.1 GHz or 3G. However, the government has said it
will announce the opening selection in mid-December. In the
initial document procedures for selection, it took two months
since the announcement of the opening of the selection to
determine who the winner selection.
***
CONTACT US:
The Government has announced that the tender Broadband
Wireless Access (BWA) to fill the abandoned zones winner If you have any question, input or
next year, in 2013. Tender will be made after the selection critic, please do not hesitate to
process adding 3G is completed. contact us by email to
editor@idicti.com