Johannesburg, South Africa, 11 - 13 November 2013

1. MOBILE BROADBAND POLICY IN INDONESIA:
IMPLEMENTATION CHALLENGES
Ministry of Communication and Information Technology (Kominfo)
Republic of Indonesia
Broadband Workshop
Pretoria, South Africa, 11-12 November 2013

2. Outline
 Indonesia ICT Statistics
 National Broadband Plan
 Target and action plan
 Implementation: Spectrum refarming
Cases of 2100 MHz, 700 MHz and 1800 MHz
 National Submarine Backbone Project
 Conclusions
2

3. Indonesia: A Brief Overview
3
Telephone lines per 100
inhabitants
15.52 7.94
Mobile subscribers per 100
inhabitants
115.2 134.80
Percentage of individuals using
Internet
15.36 41.00
Fixe-wired broadband subs. per
100 inhabitants
1.22 2.18
Percentage of household with
computer
15.1 21.5
Population (millions) 237.4 52.9
Surface Area (thousand km2) 1,904.5 1,221.0
GDP (PPP) per capita (USD) 5,182 11,525
Human Development Index (HDI) 0.629 0.629
GDP growth (annual %) 6.2 2.5
INDONESIA SOUTH
AFRICA
Source: ITU statistics (2012) & Wikipedia
Population is unevenly distributed, 55% of
population lives in Java island (7% of total
area).

4. Services Unit 2004 2009 2010 2014 *
1. Telephone
Fixed Line Unit 8,703,218 8,423,973 8,429,180 8,429,180
Mobile Line Unit 32,009,688 190,062,615 200,636,587 222,853,663
Total Line Unit 40,712,906 198,486,588 209,065,767 307,145,463
Teledensity
Per 100
inhabitants 18,82 86,06 89,79 100
2. Internet
Subscriber Person 1.087,428 2,000,000 2,700,000 7,000,000
User Person 11,226,143 30,000,000 45,000,000 130,000,000
3. Broadband
Subscriber Person 84,900 4,520,000 7,290,000 17,000,000
*) Prediction
Source: Mastel, Kominfo dan Bappenas 4
Indonesia will depend on mobile broadband
Indonesia ICT Statistics

5. MOBILE BROADBAND COVERAGE (90% BROADBAND)
Source: MCIT (Kominfo) Statistics 2009
5

6. 6
2013
Infrastructure
Fixed broadband :
15% households (1Mbps) , 30%
buildings (100 Mbps), and 5%
population;
Mobile broadband :
12% population (512 kbps)
Infrastructure (minimum)
Fixed broadband :
40-75% households (2Mbps),
50%-80% buildings (1 Gbps), dan
25% population;
Mobile broadband :
75% population (1 Mbps)
2017
Utilization / Adoption Priority:
e-Government; e-learning; e-health; e-logistics, e-procurement
NATIONAL BROADBAND PLAN: TARGET 2013 - 2017

7. Implementation Strategy
7
REGULATION INFRASTRUCTUREPOLICY
Transitional regulation
(short-term)
Market review and
analysis – competition,
license, tariffs etc.
Regulation on
spectrum and backbone
Improving broadband
access
Development of
backbone, core network
dan internasional link
Reduce the
dependency on
international link.
USO / ICT Fund for
ecosystem development
Broadband Plan
Review (strategy, target,
goals, stakeholders etc.)
STRATEGY
 Market driven
Community involvement &
ownership
Universal access
Affordability
Leadership
Principles:

8. Target and Action Plan (Capacity)
Speed 2013 2014 2015 2016 2017
Fixed
Houseld 1 Mbps 1 Mbps 2 Mbps 2 Mbps 2 Mbps
Building 100 Mbps 200 Mbps 500 Mbps 800 Gbps 1 Gbps
Mobile 512 kbps 512 kbps 512 kbps 1 Mbps 1 Mbps
Ministry of
Kominfo
Regulation on
standards and
quality of broadband
Regulation on
standards and
quality of
broadband
Regulation on
standards and
quality of
broadband
Regulation on
standards and
quality of
broadband
Regulation on
standards and
quality of
broadband
Ministry of
Finance
Incentive and
capital
Incentive and
capital
Incentive and
capital
Incentive and
capital
Incentive and
capital
Telecom
Operators
To provide
networks and
quality of services
To provide
networks and
quality of services
To provide
networks and
quality of services
To provide
networks and
quality of services
To provide
networks and
quality of services
Local
government
To provide right of
way (RoW)
To provide right of
way (RoW)
To provide right of
way (RoW)
To provide right of
way (RoW)
To provide right of
way (RoW)
Community Quality monitoring Quality monitoring Quality monitoring Quality monitoring Quality monitoring
Vendor
To provide devices
and systems
To provide devices
and systems
To provide devices
and systems
To provide devices
and systems
To provide devices
and systems
Fixed and Mobile Target Source: Indonesia Broadband Plan (2013)
8

9. 2013 2014 2015 2016 2017
Fixed 45% 55% 75% 85% 100%
Mobile
Broadband
70% 80% 90% 100% 100%
Ministry of
Kominfo
To create regulation
for broadband
dissemination
To encourage
operators to expand
networks
To encourage
operators to expand
networks
To encourage
operators to expand
networks
To encourage
operators to expand
networks
Ministry of
Finance Incentive and
capital
Incentive and capital Incentive and capital
Incentive and
capital
Incentive and capital
Operator
To provide
networks
To provide networks To provide networks To provide networks To provide networks
Local
government To provide right of
way (RoW)
To provide right of way
(RoW)
To provide right of way
(RoW)
To provide right of
way (RoW)
To provide right of way
(RoW)
People - Captive market
- Supervisory of
Quality of Service
- Captive market
- Supervisory of
Quality of Service
- Captive market
- Supervisory of Quality
of Service
- Captive market
- Supervisory of
Quality of Service
- Captive market
- Supervisory of Quality
of Service
Vendor
To provide devices
and systems
To provide devices
and systems
To provide devices and
systems
To provide devices
and systems
To provide devices and
systems
Access Target
Target and Action Plan (Coverage)
Source: Indonesia Broadband Plan (2013)
9

10. 2013 2014 2015 2016 2017
Fixed 40% 50% 75% 85% 100% (517 district or
municipalities)
City or regency
connected to
backbone
75% 80% 100% 100%
Ministry of
Kominfo
To create regulation for
broadband dissemination
To encourage operators
to develop backbone
network to regency level
To regulate tariff which
encourages community
to use broadband
services
To encourage operator to
expand backbone
coverage
To ensure all city and
regencies accessed by
optical backbone
Ministry of
Finance Incentive and capital
Incentive and capital Incentive and capital Incentive and capital
Incentive and capital
Operator
To provide networks To provide networks To provide networks To provide networks To provide networks
Local
government To provide right of way
(RoW)
To provide right of way
(RoW)
To provide right of way
(RoW)
To provide right of way
(RoW)
To provide right of way
(RoW)
People - Captive market
- To allow right of way
(RoW) and land
acquisition/ usages
- Captive market
- To allow right of way
(RoW) and land
acquisition/ usages
- Captive market
- To allow right of way
(RoW) and land
acquisition/ usages
- Captive market
- To allow right of way
(RoW) and land
acquisition/ usages
- Captive market
- To allow right of way
(RoW) and land
acquisition/ usages
Vendor
To provide devices
and systems
To provide devices and
systems
To provide devices
and systems
To provide devices
and systems
To provide devices and
systems
Target and Action Plan (Backbone Access)
Backbone Target (City and Regency) Source: Indonesia Broadband Plan (2013)
10

11. 11
Implementation Strategy through
Spectrum Policy

12. Mobile Broadband: Spectrum Issues
 Traffic is growing exponentially (Ipad, Iphone, tablet, android,
etc.)
 Demand of mobile broadband spectrum:
 ITU-R Report M.2078, the world would require 1,280 – 1,700 MHz bandwidth
in year 2020
 Some countries prioritized to acquire more bandwidth
 Band < 1 GHz (best for capacity and coverage)
 Band > 1 GHz (best for main business or economic development
areas), including WiFi off-loading
12

13. Mobile Broadband: Business Issues
 The growth of data has increased rapidly but the voice declined.
 Cellular operators around the world has experienced the decrease of revenue
growth.
 Flexibility of License become a key issue (time to market, regulatory cost): Spectrum Sharing, MVNO,
flexible use of spectrum.
13
Scissor effect

14. Current IMT-Band in Indonesia
(Existing and Future Potential)
Band Bandwidth Current Use
450 – 470 MHz 2 x 7.5 MHz Mobile Cellular (CDMA)
694 – 820 MHz 2 x 45 MHz
Analog TV (Potential of Digital Dividend
LTE 700 MHz)
825 – 845 dan
870 – 890 MHz
2 x 20 MHz FWA and Mobile Cellular (CDMA)
890 – 915 dan
935 – 960 MHz
2 x 25 MHz Mobile Cellular (GSM)
1710 – 1785 dan
1805 – 1880 MHz
2 x 75 MHz Mobile Cellular (GSM)
1903.125 – 1910 dan
1983.125 – 1990 MHz
2 x 8.675 MHz Mobile Cellular (PCS-1900/CDMA)
1920 – 1980 dan
2110 – 2170 MHz
2 x 60 MHz Mobile Cellular (UMTS)
2300 – 2390 MHz 90 MHz
Broadband Wireless Access. 2360 – 2390
MHz licensed issued for 15 Regional
Zones (Wimax / LTE TDD)
2500 – 2690 MHz
2 x 15 MHz BWA (TDD)
150 MHz
2520 – 2670 MHz is currently used by
Broadcasting Satellite Services
14
Total = 552.35 MHz

15. Spectrum refarming: Case of Indonesia
Service level:
refarming process
Fixed Mobile
Applications
level:
P-P links PMP links PMR Cellular
Technical
level (1) :
2G 3G
12.5 kHz25 kHzDigitalAnalogue
Freq BFreq A
Technical
level (2) :
Change of allocation plan
Change of band plan
Change of channelling plan
15
Current PMR 400 MHz
(analog to digital)
Future 800 MHz
rearrangement
Current 2100 MHz
Current BWA 2300 MHz

16. Spectrum Refarming Strategy
 Short-term: Refarming 450 MHz, 850 MHz, 900 MHz, 1800 MHz,
2.1 GHz dan 2.3 GHz.
 Mid-term: Digital Dividend 700 MHz, extended 850 MHz
(Trunking Band), 2.6 GHz, 3.5 GHz, and other bands identified by
ITU IMT band
 Unlicensed (Class Licensed) Band : 2.4 GHz, 5.1 GHz, 5.8 GHz, 26
GHz, 60 GHz, for traffic off-loading.
16
Criteria: government direction, priority, refarming complexity, business need and international
regulation.
To reach the targets of national broadband plan:

17. 1920MHz (UL) 1980 MHz (DL)
HCPT HCPTAxis Axis Tsel Tsel Isat Isat XL XL Blank Blank
New
(Tsel)
New
(XL)
1 2 3 4 5 6 7 8 9 10 11 12
Objectives: Contiguous band and level of competition
Benefits: optimal uses of bandwidth with less guard band, lower number of base tranceiver station (BTS).
Implementation: 2013 (completed within 6 months), except merger between two operators.
Short-term Strategy: 2100 MHz Rearrangement
Isat
1920MHz (UL) 1980 MHz (UL)
IsatHCPT Tsel Tsel XL XL Blank Blank
1 4 5 9 10
AxisHCPT
2 6
Axis Isat
7
Tsel XL
3 8 11 12
Axis
11
merger
2110 MHz (DL) 2170 MHz (DL)
2110 MHz (DL) 2170 MHz (DL)
before
after

18. 18
192 MHz
Analog TV
Free To Air (FTA)
478 806 MHz
328 MHz
112 MHz
DIGITALIZATION OF BROADCASTING PROCESS
TV ANALOG
Digital Terestrial TV
Free To Air (FTA)
526 694
Future
DTV
DIGITAL
DIVIDEND
478 806 MHz
TV DIGITAL ERA
• LTE 700 MHz is beneficial to accelerate Broadband particularly in
rural areas with the existing BTS
• It can be implemented after the completion of digital switchover
end of 2017
Mid-term Strategy: Digital Dividend 700 MHz
Analog Switch-Off (ASO), 1 Jan 2018

19. Mid-Term Strategy: Refarming GSM 1800 MHz
UPLINK
DOWNLINK
Evolution: GSM/EDGE, UMTS, HSPA, HSPA+, LTE
LTE is most effective if the Bandwidth is more than 20 MHz
19
Best spectrum for LTE in terms of coverage and ecosystem, the most bands owned by operators are not
contiguous. Complexity is high as 70% of handset is GSM 2G .

20. 20
National Backbone Project
Total undersea cables 35,280 km; Total underground cables 21,807 km
First stage: Total installation> 10,000 km; Total cost: USD 300 millions

21. Conclusions
 Indonesia has developed national broadband plan but strong commitment
and collaboration are needed for the successful implementation.
 From year 2013 to 2017, the target for national broadband infrastructure
has been set which include strategy, coverage, capacity, and the roles of
stakeholders.
 In terms of implementation, broadband infrastructure development in
Indonesia has currently focused on spectrum refarming of mobile
broadband to reach targeted coverage and capacity.
 To meet the growing demand of spectrum, government should identify
candidate bands for mobile broadband and find the best spectrum policy
and strategy to acquire and to refarm the band.
21

22. Nyoman Adhiarna
Ministry of ICT, Indonesia
E-mail: i.nyoman.adhiarna@kominfo.go.id
Phone: +62 (21) 29576455