Execut ive What do we know about Indonesia? Summ ar y • In terms of population size, Indonesia is fourth in the world. With almost 238 million people; Indonesia total population ranks between Brazil and the United States. (see, wikipedia) As a ﬁrm operating in Indonesia and • Indonesia is the world’s most populous Muslim nation. (see, wikipedia) focused on digital media, we watch the development of the Indonesian Internet • Indonesia’s Internet population is projected to be 45 million people; that is a penetration rate of 18.9%. (see, China Daily) market with interest. While everyone agrees the market is growing rapidly • To give you some idea of the growth in the Internet in Indonesia, the Internet and that the velocity of change is population in 2008 was 18 million. Put another way, 150% growth in the span signiﬁcant, there is a lack of available of 2 years. (see, World Bank) data documenting what is happening. Ofﬁcial statistics from the government • In terms of Internet penetration, Indonesia lags behind many countries in Asia, where the region’s average is 21.5%. (see, Internet World Stats) Contents are hard to ﬁnd and often out of date, audience measurement ﬁrms are few and far between (and loathe to share • Looking at Asia, only China, India and Japan have (numerically) more Internet users than Indonesia. (see, Internet World Stats) Top 10.....................3 their information freely). Put it all together, and you begin to see a picture of a fast growing Internet population that Social Networks........4 This year, we decided to step into the still has signiﬁcant room to grow. Add to that the fact that there are unique cultural issues gap and provide our own summary of and a distinct identity and you can see clearly that the Indonesian market merits some Portals......................5 the state of the Internet in Indonesia, attention. What happens here is going to impact the Internet globally. 2010. Our focus is on raising Microblogs & Status...6 awareness of what is happening online To be certain, the market faces challenges, particularly in the areas of infrastructure. -- where do people visit? What brands Internet connections here are slow, expensive and unreliable. To appreciate the limitations Blog Sites.................7 are emerging? Who are the players in fully you must also consider that Indonesia has low per capita income, varying education this dynamic market? To that end, we levels, and an unequal distribution of access to the Internet throughout the archipelago. Social Bookmarks......8 offer this paper and hope you ﬁnd it There’s so much potential, but there’s so much that must be done before it can be realized. useful. If ever there was an argument for a government working to bridge the digital divide, it is Gaming.................... 9 here. Shopping................10 Despite the challenges, 2010 saw a signiﬁcant strengthening of the online market and the - Ric Shreves, water&stone emergence of several strong local players, as the pages that follow document. This paper News......................11 looks ﬁrst at the top sites and search phrases for 2010, then seeks to identify the Top 5 sites in each of a number of key categories, as shown in the Contents list at right. Sports....................12 Finance...................13 About the Publisher..142 Indonesia on the Internet 2010 a water&stone white paper
top sites Top 1 0 personalities, including a fair number of << Alexa.com disasters -- of both the natural and the personal kind. Facebook Luna Maya takes the #1 slot in a year I’m sure she’d prefer to forget. Her Google.co.id video sexcapades provided moreLet’s start by seeing what people were exposure than she may have desired. Google.comlooking at and searching for in 2010. She was not, however, alone in makingFor a list of the Top Sites in Indonesia the list through personal drama; her video co-star Ariel Peterpan wound up Blogger.comwe turned to Alexa.com. The list, at top #4 on the list. Singer Krisdayanti cameright, contains a mix of search engines, in at #5, with a year that saw the public Yahoo!social networks, blogging sites and ﬁle intensely following the latest Kaskussharing sites, a mix not unlike that seenelsewhere in Asia. developments in her personal life. Gayus Tambunan, a tax ofﬁcial arrested top search terms for corruption came in at #8. Anggodo YouTubeThe popularity of Facebook, Google,Yahoo! and YouTube follows closely Widjojo, prominent businessman and WordPress.com Luna Maya power-broker, was the 10th mostglobal trends. Indonesia remainedsteadfastly loyal to Google, with both popular search, as people followed his trial and conviction. 4shared gempa bumithe global and the local versions of theGoogle search engine showing up in Disasters of the natural variety also Detik Keong Racunthe Top 3. made the list, with users concerned about earthquakes (gempa bumi) and, Ariel PeterpanLocal ﬂavours made their presence felt, oddly, solar storms (badai matahari).with three purely Indonesian sites in theTop 10. Social network Kaskus comes Krisdayanti Also on the list is Keong Racun, who’sin at #6. File sharing service 4sharedcomes in 8th and portal Detik rounds homemade music video went viral and Sri Mulyani become a local sensation. Sri Mulyani,out the Top 10. in the pages that followwe look at the top sites in different the popular Indonesian Finance Minister who’s resignation to join the badai mataharimajor categories World Bank sent a shockwave through the stock market in 2010. Pasha Ungu, Gayus TambunanThe Top Search Terms for Indonesia in singer and heartthrob, broke hearts2010, seen at bottom right, come from when he announced his wedding plans Pasha UnguYahoo.com’s 2010 Year In Review. The late in the year.list is dominated by popular news and Yahoo.com >> Anggodo Widjojo3 Indonesia on the Internet 2010 a water&stone white paper
Social whether Kaskus can maintain their growth through 2011 and whether they Network s will stay with the forums model, or fall in step with the global trend in social networking functionality. The site seems to have strong brand loyalty, but internet audiences are nothing if notNo surprise here, at least not in terms ﬁckle.of the category leader: Facebook isIndonesia’s social network of choice. Facebook, is clearly theWith almost 34 million users in category killer, butIndonesia, the country provides 5.8% Kaskus makes a Also noteworthy is who is absent from thisof Facebook’s global audience, surprisingly strong list: Global players like Bebo, Orkut and(second only to the U.S.). In contrast tothe pattern seen globally*, the vast showing. LinkedIn did not make the cut, nor did regional players like Hi5 or Habbo. The Top 5majority of Indonesian Facebook Multiply came in third in the research.users are youth, under 24 years of age.(See, http://www.checkfacebook.com) The site is one of the most interesting Facebook players in this space. What started as aWhat is surprising here is the strength blogging and ﬁle sharing platform has Kaskusof local social site Kaskus. The site not now morphed into the largest onlineonly outpaces other global offerings, social marketplace, with a large Multiplyincluding Multiply, Friendster and number of users setting up their ownMySpace, but has shown steady shops to sell online. Multiply, though Friendstergrowth in mindshare across 2010. based in Untied States, has foundKaskus is clearly doing something strength in Asia, particularly in the MySpaceright -- and it’s not merely a language Philippines and Indonesia.preference. (All the Top 5 social Friendster and MySpace are thenetworking sites offer users the option laggards in this set. Both wereto use the site in Bahasa Indonesia.) previously major players in the market,What’s unusual -- indeed unique with Friendster in particular enjoying aamong the Top 5 -- is that Kaskus loyal following in Indonesia. Over thefollows a more traditional model. Social course of 2010, however, both haveinteraction on Kaskus is centered on shown signiﬁcant deterioration in * Globally, the average age of a Facebook userthreaded discussion forums, rather is 38, with 61% of Facebook users 35 or older. marketshare.than Facebook style social See, http://www.ﬂowtown.com/blog/older-networking. It will be interesting to see people-ﬂocking-to-social-networks4 Indonesia on the Internet 2010 a water&stone white paper
P ortals e f f o r t s a c c o r d i n g l y. F r o m o u r perspective, the company appears to have signiﬁcant market share and is well-positioned to be the leader in the Indonesian content market. KapanLagi is, similarly, the owner ofThe portals category sees a strong multiple web properties, though fewershowing by local brands. Three of the in number and lesser in reach than theTop 5 in this category are locally Detik brand.based.* Three of the top ﬁve inWhile Yahoo! leads the group, we The gap between Detik and the other two the portal category arequestion how much of the trafﬁc to local players in this category is signiﬁcantYahoo! is focused on the portal locally-based, with Detik’s ﬂagship leading and seems to have remained steady throughout 2010. It will be interesting to The Top 5functionality (as opposed to visitingYahoo! for search or for mail services). the local players. see what 2011 brings. YahooWe would raise the same questions From our research, KapanLagi’s portalabout MSN’s presence on the list -- offering and OkeZone were very closely matched in market share in Detikhow much of this trafﬁc is actuallyfocused on the portal aspects of the 2010. MSN.comsite? In terms of focus, the OkeZone is theOf more interest are the local players. odd man out in this group. While others KapanLagiDetik turned in a strong showing, in this category are clearly focused oncoming in second in the survey. a broader portal play, OkeZone seems OkeZoneMoreover, by limiting our examination uncertain whether they are a news siteto only their ﬂagship site, Detik.com, or a portal site. The site bills itself aswe are actually under-estimating the “Indonesian News & Entertainmentreach of this brand. Detik runs a family Online” and offers not only newsof sites, many of which are players in coverage, but also videos, photos,their individual categories (as you can classiﬁed ads and a “myzone”see elsewhere in this report). The personalization option. They have also * Note that in this category, there was a conﬂicttopical sites give Detik a valuable spun off a dedicated food and between the ratings given by Google andchance to split their target audience restaurant listings site. Alexa. The variance concerns only the orderingand channel their marketing (and sales) of the sites, however, not the identity of the Top Five players.5 Indonesia on the Internet 2010 a water&stone white paper
Microblogs commentators, is a location-based social networking site. As you can see & Stat us in the Google Trends chart at top right, the Yahoo! PR machine pushed Koprol on to the chart by August of 2010. Sadly, however, that initial momentum hasn’t been sustained,We grouped together microblogging with trafﬁc levels seeming to plateau inand location-based services. Both rely Q4, after peaking in late September.on short messages, typically focusedon what the user is doing right now, In 18 months, Twitter hasand often, where they are. gone from littleTwitter completely dominates the consequence to marketcategory. The microblogging platform dominance. The Top 5has seen an incredible rise in popularity Plurk was the only other service toin Indonesia. In 18 months, Twitter hasgone from little consequence to market even register on the trend data. Plurk Twitter is probably the nearest thing to adominance. According to ComScore,Indonesia has the world’s highest competitor with Twitter but it appears Koprol their market share in this market hasTwitter penetration, with 20.8% of theInternet population using the micro- slowly eroded while Twitter has Plurk continued to rise to dominance.blogging service.* Foursquare Foursquare and identi.ca both faredIn Indonesia, as in most other markets,there is no clear threat to Twitter’s poorly, though still managing to make Identi.ca the Top 5. At this time, it’s a one horsemarket share. Moreover, as other race.services like Facebook or LinkedIn,add the ability to cross-post theirstatus messages to Twitter, it seemsthat the situation is unlikely to changein the near term.Yahoo!’s acquisition of Koprol in Mayof 2010 was one of the big IndonesianInternet stories of the year. Koprol,called “the Asian Foursquare” by some * S e e , h t t p : / / w w w. c o m s c o r e . c o m / P re s s _ E v e n t s / P re s s _ R e l e a s e s / 2 0 1 0 / 8 /6 Indonesia on the Internet 2010 a water&stone white paper
Blog Si tes enjoys a large Facebook Fan Page following as well. Kompasiana, the user-generated content offering from the Kompas group, varies somewhat in focus. The site labels itself a “Citizen Media”Indonesia has an incredibly vital offering and is more news and opinionblogging scene. It’s not surprisingly focused. The content is written by theirthen that, in addition to the major users and organized into browsableglobal players, we see local blogging topical categories. It’s an interestingsites in the Top 5. model and well-executed. Tumblr in many ways follows the well-Blogspot and WordPress* lead the Indonesia’s extensive worn path forged by Blogspot andblogging category. Both sites are blogging culture WordPress, that is, making it fast and easy for people to post their content The Top 5popular globally, offering basic free and supports a surprising online. Tumblr’s integration of mobilepremium subscription-based blogs tousers. number of sites. posting tools builds on this strength and Blogspot will likely help assure continued growth in In terms of marketshare, BLOGdetikBlogspot.com is the domain used by and Kompasiana are very closely 2011. WordpressGoogle’s Blogger service. A mainstay ranked, with BLOGdetik enjoying aof the Google empire, Blogger/ small lead for most of the year. BLOGdetikBlogspot is one of the Top Ten sites in However, by the end of 2010, the twothe world according to Alexa. sites were virtually tied and 2011 is KompasianaWordPress.com is the hosted anyone’s guess.blogging service backed by the Tumblr Another site that has shown growingAmerican company, Automattic. The marketshare in Indonesia is Tumblr.system’s massive global popularity is Though the site was a rather distantalso reﬂected in their marketshare in ﬁfth at the start of the year, but year’sIndonesia. end they were challenging BLOGdetikBLOGdetik, the local blogging and Kompasiana for marketshare.community run by the Detik group, The trend in Indonesia mirrors what wecomes in third in the rankings. The site see elsewhere, that is, Tumblr hasmaintains a large number of separate grown in popularity globally throughout * Note that our analysis of WordPress isspecial interest communities and 2010. focused on WordPress.com, the hosted blogging service, not on WordPress.org, the open source content management system.7 Indonesia on the Internet 2010 a water&stone white paper
Social chart, their marketshare seems to have suffered after Q1 of 2010. Book m arks The Top 5 is rounded out by two global brands, StumbleUpon and Delicious. Neither fared well compared to the top three sites. Given that the fate ofSocial bookmarking sites globally have Delicious is currently in limbo due tosuffered throughout 2010. As sites like changes at Yahoo! (the site owner),Twitter and Facebook have grown in 2011 may see more difﬁculties forpopularity, more people have elected to these sites.use those services to share links withtheir friends. Local site LintasBerita bucked the global trendThe year also saw social bookmarking and gained marketshare. The Top 5sites reacting to market changes byadding new features and functionality. It should be noted that none of theMany turned the focus to social sharing global sites in this category offer a LintasBeritaof news and items of interest, rather Bahasa Indonesian interface, leavingthan pure bookmarking. this category wide open to local players Digg to step in with a site tailored to theThat said, in Indonesia the local site market. infoGueLintasBerita bucked the global trend,gaining marketshare in 2010 and StumbleUponleading the category. Looking at thechart at right you can see the siteenjoyed a slow but steady upward delicioustrend in trafﬁc throughout 2010In contrast, the global leader in socialbookmarking, Digg, reﬂected thegeneral decline in this sector. ThoughDigg started the year as the leader inthis category, by year’s end it laggedLintasBerita by a signiﬁcant margin.Local site infoGue also made a goodshowing, though, as you can see in the8 Indonesia on the Internet 2010 a water&stone white paper
Gaming Travian comes in third and is out top ranked dedicated multi-player game. Travian is a global gaming site owned by a German company, but Indonesia represents one of its most popular markets. The company offers local .co.id access and a localThe Gaming category is dominated by language forum.local market players.* The oneexception, Zynga, has risen to Gemscool is an games portal based inprominence on the back of the Jakarta. The site saw growingsuccess of their phenomenally popular marketshare in 2010 and had aFacebook games, FarmVille and particularly good fourth quarter.MaﬁaWars. Local game portal Lytogame was the laggard in this group. While the site is The Top 5Three of our Top 5 are Indonesian sites;four of the Top 5 are available in quite active, the competition in thisBahasa Indonesia, which seems to space is ﬁerce and they showed no Zyngaindicate a clear preference in the appreciable change in marketshare inmarket to play local. 2010. Games.co.idWhile Facebook pushed TravianZynga to prominence,Indonesians stay local; Gemscoolplay local. LytogameN u m b e r Tw o o n t h e l i s t i sGames.co.id, a portal for accessingfree online games. While many of theirgames are single player and arcadestyle, they do offer multiplayer options.Games.co.id lagged behind Zyngamost of the year, but by year’s end hadclosed the gap and were actually in the#1 position in December. * Note that in this category, there was a conﬂict between the ratings given by Google and9 Indonesia on the Internet 2010 a water&stone white paper
Shopping show less volatility than the retail sites that made the Top 5. Bhinneka, despite their claim to be “Indonesia’s No.1 Webstore” only managed to ﬁnish fourth by our measures. Moreover, as you can see inShopping provides one of the most the chart, the site shows a marginalinteresting categories for 2010. The erosion in marketshare over the coursestory here is how Amazon and ebay of the year.are struggling to keep up with localshopping sites.* Amazon and ebay are struggling to keep upLocal shopping mega-site TokoBagusstarted the year in the middle of the with local shopping sites. The Top 5pack, the number three site. By the Not included on this list is Multiply,end of the ﬁrst quarter of 2010 they which has a strong social shoppinghad taken the lead -- and they never component and a large number of local TokoBaguslooked back, widening the gap to a storefronts. Given the site’s primarysigniﬁcant lead by year’s end. focus on social networking, we placed Amazon that site in a different category, but theIn contrast, global ecommerce titans commerce element on that site should IndonetworkAmazon and ebay had a much less not be overlooked.spectacular year in Indonesia. While BhinnekaAmazon saw some marketshare gain,ebay remained essentially ﬂat. It’sinteresting to note that ebay does offer ebayusers a Bahasa Indonesia interface,whereas Amazon does not provide alocal language interface for Indonesia.Indonetwork came in third in theanalysis but had an unremarkablegrowth year. Given the site’s focus onthe wholesale and bulk markets, it is * Note that in this category, there was a conﬂictnot surprising that the growth ﬁgures between the ratings given by Google and Alexa. The variance concerns only the ordering of the sites, however, not the identity of the Top10 Indonesia on the Internet 2010 a water&stone white paper
News spectacular year as they see-sawed back and forth in contention for the fourth slot. Watch this space in 2011. Everyone is ﬁghting for marketshare and the impact on advertising rates is signiﬁcant.The News category was one of the Expect more competition from the Topmost competitive in 2010. All of the Top 5 and don’t lose site of the fact that5 are local sites and all had a good there are a number of online news sitesyear. in Indonesia -- and that means there is always the chance that a new nameKompas held on to the lead for the could appear to challenge for top 5duration of 2010, but was threatened The Top 5 position.by DetikNews on more than oneoccasion. That said, by the end of theyear, it would seem that Kompas waswell-positioned to retain their position at Kompasthe top of the list. DetikNewsDetikNews is news portal portion ofthe Detik online group. It is yet another VivaNewsexample of that company’s strength inthe Indonesian content market. TempoInteraktifKompas puts in a strong Inilahshowing, but the raceremains heated.VivaNews had a particularly good year.Of all the sites on the list, they showedthe most growth and ﬁnished 2010 inthe number two position, after rising * Note that in this category, there was a conﬂictfrom a distant third at the start of the between the ratings given by Google andyear. Alexa. The variance concerns only the ordering of the sites, however, not the identity of the TopTempoInteraktif and Inilah were our Five players.two laggards. Neither had a particularly11 Indonesia on the Internet 2010 a water&stone white paper
S port s scoreboard), language issues are of little consequence to users. Bola.net comes in fourth in the group. The site is owned by KapanLagi. Despite the similarities in the names, Bola and BolaNews are not related.Indonesia loves sports and many turn Both site lagged signiﬁcantly behindto websites that mirror their the top three in this category, withenthusiasm. Three of the sites in the BolaNews a distant ﬁfth.Alexa Top 100 for Indonesia are sportssites.The leader in this segment, by a clearmargin is DetikSport -- part of the The Top 5Detik online publishing group. The siteis dominant in this category andremained the clear leader for the DetikSportentirety of 2010. Goal.comGoal.com, though an international siteb a s e d i n t h e U . S . , p ro v i d e s a LiveScorededicated Bahasa Indonesia site. Goaland the number three site, LiveScore Bolabegan the year very closely tied forsecond place but the end of the yearGoal came out on top. BolaNewsDetik scores again, withDetikSport leading theﬁeld.LiveScore provides scores for soccerand variety of other sports. The site isin English only, but given the nature ofits content (essentially just a12 Indonesia on the Internet 2010 a water&stone white paper
Finance In the fourth position is the international ﬁnancial news site, Bloomberg. Bloomberg manages to land in the Top 5 despite having no local language interface. Winding up the Top 5 is local bankThe Finance category is dominated by CIMB NIAGA. This site breaks theIndonesian banks. 2010 saw the pattern seen with the other Indonesiabeginnings of the move towards an banks in this category, as theonline banking culture -- an area in cimbniaga.com site does not providewhich Indonesia has lagged in the the gateway to their Internet bankingregion.* services; those duties are handled by a The Top 5 separate site. While the main bankingTopping the list was KlikBCA, the site made the Top 5, the Internetonline banking site of BCA. The site has banking site (cimbcliks.co.id) did not.consistently risen in marketshareacross the last 24 months. KlikBCA2010 - the year online BankMandiribanking began to gaintraction in Indonesia. BNIIn the number two slot is BloombergBankMandiri. Unlike BCA, BankMandiri does not maintain a separate CIMB NIAGAonline banking site; users who havesigned up for Bank Mandiri’s Internetbanking services access those servicesfrom the primary bank website.Number three is BNI. Like Mandiri, BNIInternet banking customers must loginto the system from the primary BNIbank website. * Note that in this category, there was a conﬂict between the ratings given by Google and Alexa. Alexa ranked in the Top 5 BRI and Citibank, but that conclusion was not supported by the data from Google.13 Indonesia on the Internet 2010 a water&stone white paper
A bo ut t h e Pu b l i s h e r Met ho d olog ywater&stone is a full service digital agency, Contact Details The chart and ranking data in this a site on a given day. Page views arelocated in Bali, Indonesia. The company is report were gathered from the following the total number of Alexa user pagefocused on helping clients realize increased 23a Jalan Raya Semer requests for a site... The site with the sources:value from the implementation of open Kerobokan, Kuta highest combination of users and pagesource tools and from the creative use of Bali, Indonesia views is ranked #1.” • Google Trendsnew media. 80361 While the Alexa userbase is large, +62 361 739 969 • Alexa Site Rankingswater&stone was formed in response to there is no information on the exact size firstname.lastname@example.org All data reported in this paper isthe growth and maturation of open source of the Indonesian population, andsolutions. The company has delivered available to the public; none of the whether the users in Indonesia arehundreds of web projects to clients located • Visit us on the web: conclusions are based on proprietary representative.all over the world. As an indication of their www.waterandstone.com data collection.expertise, many of the ﬁrms clients are Given the shortcomings of the Alexa • Visit us on Facebook:other web development and design studios measurement, we rely primarily on the www.facebook.com/waterandstonelocated in Australia, the UK, North America trafﬁc trend information provided byand Europe. • Follow us on Twitter: About The Sources Google Trends. www.twitter.com/waterandstoneIn addition to web design and development, The chart data seen in this report is Where there has been a conﬂictwater&stone provides consultancy services, sourced from Google Trends, which between the data sources, it has beensearch marketing services, print design, measures trafﬁc to sites and allows us highlighted in the text for that category.logo design and branding. to ﬁlter by geography (Indonesia) and Our typical response to a conﬂict date range (2010). between the data sources was to prefer the conclusions reached in the Google We used Google as our primary data. source, using Alexa rankings for corroboration and as a tool to help us To learn more about these services, or discover sources that may not have try them out for yourself visit: been obvious. Alexa’s methodology is somewhat more restrictive due to the • Alexa.com limitations of their data set. As they • Google.com/trends explain: This paper is released under the terms of “A site’s ranking is based on a Creative Commons Attribution Non-Commercial ShareAlike 3.0 combined measure of reach and page Read the licensing terms. views computed over a trailing 3 month period. Reach is determined by the number of unique Alexa users who visit14 Indonesia on the Internet 2010 a water&stone white paper
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