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Indonesia ICT Institute NewsLetter - December Edition


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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

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Indonesia ICT Institute NewsLetter - December Edition

  1. 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 Page 3 Page 4Telkomsel Free from From EditorBankruptcy Indonesia ICT Institute again presents a monthly newsletter to meet all readers who want to know the development of ICT inTelkomsel 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 ultimateJakarta Commercial Court to Telkomsel following a business dispute edition for this year since the turn of thebetween Telkomsel and PT Prima Jaya Informatika (PJI) for Prima year has had its day, and the beginning ofcard. this month we also plan to bring information about ICT Indonesia more complete in theAgreements related to cards and vouchers Prima signed on June 1, form of an e-magazine, although the2011 which originated from a memorandum of understanding (MoU) newsletter will still be present to meet allbetween Telkomsel with Yayasan Olahraga Indonesia –IndonesiaAthletes Foundation (YOI). With this agreement, Telkomsel readers.authorizes the YOI to sell prime cards and recharge vouchers. To In this edition, we raise some issuesexecute the MoU, YOI then pointed PJI. In cooperation agreement drawing attention primarily free decision forstated that PJI are targeted to sell 10 million cards, and 120 million Telkomsel from bankruptcy by the Supremeprime recharge voucher in the one of a year. Court, as well as plans to change the rulesBut after a year, Telkomsel evaluate PJI and decide that PJI unable to of implementation of the Premium SMS tomeet 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 decidelater Telkomsel Bankruptcy Court. Beside PJI another partner ExtentMedia did the samething. Free from bankruptcy is final decision untilPJI has another new evidence so they can ask Supreme Court to Heru Sutadireconsider 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. 2. 3rd Edition 1st Year December 2012ICT Fund will be Used to Build Fiber OpticsMinistry of Communications and Information Technology hasset the funds raised in the ICT Fund to build infrastructure ineastern part of Indonesia. ICT Fund is a kind of subsidy foroperational funding provided to build telecommunicationsfacilities in non-commercial areas.Background to the ICT Fund, among others, is that thegovernment is aware of the disparity or gap between the East andthe West, where for the West region has a lot of fiber optic In Which Frequencynetwork, 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 yetproject is through a tender conducted in two stages. The first formed. This is what makes LTE cantender held related to the construction of a fiber optic network, not be adopted immediately. Oneand the second tender conducted to determine the pattern of problem is the regulation governingnetwork 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 LTEfunds 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 canThe 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 forCommunications and Information Technology can already 2018. Refarming 1800 MHz can alsoexecute with existing mechanisms. Basically, ICT Fund is USO be done with the realignment andFund 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 countrys 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. 2
  3. 3. 3rd Edition 1st Year December 2012 Content Regulation in the FutureAfter a delay of more than a year, the government finallyissued a Draft Regulation of the Minister ofCommunications and Information Technology to replaceMinister Decree No. 1/2009 regarding the Implementationand Delivery Premium Short Messaging Service (SMS) andSMS Broadcast. As we know, so many complaints in July2011 and, where cash deposit prepaid card customers ofmobile telecommunications is reduced. Where one urging,including committee work presented for this case in theCommission I of the House of Representatives, is the content services. Regarding tariff, government wantsneed 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 inServices Providing Content On Mobile some text still there are strikethrough text. This canTelecommunications Networks and Fixed Wireless be made some misinterpretation for the public whenAccess. 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 certainlymessaging service providers must have sufficient be hard. Such rules about opt-in for SMS broadcastpermissions 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 serviceprinciple license, operation test and then commercial providers also have interests, while the public and thelicense. government is also concerned to this rule in theIn this new regulation also stipulates that service future. Who will win, of course, will depend on theproviders are prohibited to provide information or final outcome of the Ministerail Decree after itoffer content that contains: a trap sentence, signed by the Minister of Communication andmisleading information, coercion to receive content, Information Technologyand or information contrary to the provisions of the Beside all of that, the most crucial is how fast the rulelegislation. was adopted. Therefore, people need strongThis draft of Ministerial Decree also regulates the protection from naughty content players which taketariff content services that consist of network cost, deposit money from customer, in the other side thecontent provider cost and content it self. Still not industry has been waiting new rules set by theclear how regulator set the maximum tariff for government to follow. 3
  4. 4. 3rd Edition 1st Year December 2012Big Data Era in IndonesiaLast November, Indonesia Cloud Forum held a seminar on Big Datawith titled "Trend 2nd Round: Infrastructure and DemandChallenges". Besides the issue of Big Data on the rise, the trend in theuse of communications data daily activities, making traffic and datamanagement becomes a interesting issue.Big Data is being so hot conversation in the industry. Not just a merediscourse, but this is a real phenomenon. We can see that growth ofBigData is not from structured data types, but from unstructured data.Unstructured data that is considered not have a hierarchy of relationaland do not fit the traditional database. Unstructured data includes Study Abouteverything, ranging from metadata Facebook photos to the tracking ofmillions of RFID in the retail sector. Store and manage large amounts Big Dataof data is a challenge. Based on the study of Indonesia ICT Institute survey of 100 respondents inFor conditions in Indonesia, is currently heading the era of Big Data. Greater Jakarta, we got the result thatAll sectors starting need large capacity storage needs. One of the Big Data is understood as a large datafactors driving Big Data in Indonesia is increasingly high adoption of (32%) and the data were derived fromcloud computing. Thus, just a matter of time to explode. It happened, social media (28%) or log files (23%). The majority of respondents claimednot just because it encouraged the growth of social media users, but they have used of Big Data (73%) andalso data from the enterprise data, from client, products, until trade will use (19%).transactions. Seeing this phenomenon, Big Data may be a greatbusiness opportunity if anticipated accurately and quickly, but it can be The majority of respondents also noted that Big Data will continue to growa disaster when infrastructure providers and telecom operators fail or (100%) in Indonesia, citing factorstoo late to anticipate. based on the exchange of information or data and the greater increase, newRegarding Big Data, Indonesia ICT Institute based study found that applications such as social media andunconsciously Big Data trends already familiar to the users so far. An application store, as well as theexample is the fact that more and more users connect Facebook, addition of users log files, applicationsTwitter, 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, andwell 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 countriesIndonesia more than 1,500. here only 4V data dimension (Volume, Velocity, Variety and Veracity), inWith the number of mobile phone users until third quarter (Q3) 2012 Indonesia its added become 5V withreached 262.6 million (exceeding the population 237.5 million) and the Victory, who is leading theuser data / Internet of five mobile operators reach 115.7 million users, development Big Data business will beit is quite possible that the communication traffic that’s already a Big the winner. Because of that, educationData will be booming in the near future. and socialization of big data needs to be done 4
  5. 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 preferFrom the draft, we can see that the institute forterrestrial 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 aBroadcasting 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 aboutorganizes free to air digital television terrestrial analog broadcasting.broadcasting, which administers the program broadcastto the public in the area of broadcasting services For real industry, the faster the process ofthrough broadcast channels or slots in the radio digitalization, will be better so unused frequenciesfrequency channel, while Broadcasting Multiplexing (digital dividend) can be allocated for theOperator broadcast programs of several Broadcasting development of the telecommunications industryProgram Operator. Its mean Broadcasting Multiplexing that is currently in frequency crisis, to meet theOperator just provide network that can be used by needs and quality of broadband data services andsome Broadcasting Program Provider. the development of new technologies that areBroadcasting Program Provider will consist of hungry for bandwidth, such as Long TermTelevision Indonesia as Public Broadcaster, Local Evolution technology.Public Broadcaster, Private Broadcaster and In several countries, LTE allocated in 700 MHZ,Community Broadcaster. Establishment of broadcastershould be in conformity with the provisions of laws and 1800 MHZ, 2.3 GHz or 2.6 GHz. For Indonesianregulations governing the procedures for the case, to put LTE in 1800 MHz it need to refarmestablishment of broadcaster. this band, and rearrange the spectrum due to uncontigous frequency for some operators andProgram broadcaster in organizing and providing unbalance frequency allocation between thebroadcasting shall obtain license from the Minister. operator. In 2.3 GHz it can be used for TD-LTEThe licensing procedure for program broadcaster mus not cellular operator not really interest with thisfollow procedure based on Ministerial Decree No. band. And for 700 MHz still waiting digitalization22.2011 regarding the Implementation of Free to air TV program. To use this band, Government haveDigital Television Terrestrial Broadcasting Reception. to accelerate this program not until 2018. 5
  6. 6. 3rd Edition 1st Year December 2012 Flash UpdateBy the end of November, although Telkomsel has been wonby the Supreme Court from the decision of the bankruptcy, thegovernment has not opened the selection process of addingblocks of 2.1 GHz or 3G. However, the government has said itwill announce the opening selection in mid-December. In theinitial document procedures for selection, it took two monthssince the announcement of the opening of the selection todetermine who the winner selection. *** CONTACT US:The Government has announced that the tender BroadbandWireless Access (BWA) to fill the abandoned zones winner If you have any question, input ornext year, in 2013. Tender will be made after the selection critic, please do not hesitate toprocess adding 3G is completed. contact us by email to