Indonesia internet usage for business sector

ii
INDONESIA INTERNET USAGE FOR BUSINESS 2013
INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION & INDONESIA STATISTICS
Indonesia Internet Usage for Business Sector 2013; Parlindungan Marius and Freddie Pinontoan;
Jakarta: APJII, 2013. x + 41 pages.; 21 x 30 cm.
ISBN 978-602-19596-3-3
Writers : Parlindungan Marius and Freddie Pinontoan
Editors : DR. Ir. Didit Herawan, MBA and Content is The King
Layout and Infographics : Content is The King
Cover Design : Content is The King
Publisher : Asosiasi Penyelenggara Jasa Internet Indonesia
Publication :
The printing house is not responsible for the contents of this publication
All Rights Reserved
APJII
Asosiasi Penyelenggara Jasa Internet Indonesia
Jl. Kuningan Barat No. 8 Jakarta 12710
Tlp. (021) 52960634
www.apjii.or.id
BPS
Badan Pusat Statistik
Jl. dr. Sutomo No. 6-8 Jakarta 10710
Tlp. (021) 3841195, 3842508, 3810291-4
www.bps.go.id

iii
TABLE OF CONTENTS
Foreword ........................................................... v
Executive Summary........................................... vii
Background and Research Objectives ............... x
CHAPTER 1
METHODOLOGY- p.1
CHAPTER 4
PURPOSES OF INTERNET
USERS - p.21
CHAPTER 2
BUSINESS SECTOR’S
INTERNET USERS - p.5
CHAPTER 3
INTERNET NETWORK
FACILITIES - p.11
PENETRATION OF INDONESIAN
INTERNET USERS IN 2013
27.58%20.10% 43.17%
Extrapolation Method
p.31

iv
B
adan Pusat Statistik (BPS) menyambut baik atas disusunnya
buku publikasi hasil Survei Penyerapan dan Penggunaan
Sarana Komunikasi dan Teknologi Informasi (P2SKTI) 2013
yang diterbitkan oleh Asosiasi Penyelenggara Jasa Internet Indonesia
(APJII). Buku yang menyajikan data hasil survei ini akan lebih
bermanfaat dan bermakna apabila dapat dijadikan sebagai rujukan
bagi para pengguna data, khususnya pelaku usaha jasa internet,
untuk memanfaatkannya dalam merencanakan dan mengambil
keputusan terkait dengan ekspansi bisnis maupun inovasi dalam
penyediaan jasa internet di Indonesia.
This book can be used as complementary by data users who need
accurate and up-to-date information regarding usage and utilization of
internet services by business sector,which previously in 2012 the similar
book was published to present the survey limited to internet penetration
in households and individuals. While for BPS, I hope this book can be
used as baseline to improve the quality and quantity of available Core
ICT Statistics data which nowadays is required more than before, by
various data users including private institutions, government agencies,
and international organizations.
Last but not least, I express my gratitude to the God Almighty and
thank you to APJII and all BPS teams, in particular the Communication
and Information Technology Statistics Sub-Directorate, which has been
working hard and successfully establishing cooperation with the APJII
in visualizing the analysis of P2SKTI 2013 survey in this book. Hopefully
this cooperation will benefit not only the BPS and APJII, but it will also
benefit the general public and data users in Indonesia and in the world.
God bless us in the publication of this book.
Jakarta, January 2014
Dr. Suryamin, M Sc.
Head of Central Bureau of Statistics
OPENING REMARKS
HEAD OF CENTRAL
BUREAU OF STATISTICS

v
E
ach year the Indonesia Internet Service Provider Association
(APJII) conducted a survey of internet users. In 2012 the survey
was performed on individual users, while in 2013 the survey
highlighted the business users. The 2013 survey was conducted in
cooperation with the Central Bureau of Statistics (BPS).
The surveys were conducted to provide greater benefits to our mem-
bers which are internet service providers (ISPs) from all regions in In-
donesia. Positive responses to previous survey had encouraged APJII to
provide better, comprehensive report.
For APJII, internet becomes an essential part of our daily activities,
acts as an enabler and transformer for all industrial changes, therefore
internet research is considered an important requirement. For the ISPs,
the research is necessary especially the corporate market segment. In
collaboration with the BPS, a state bereau that bound to the law, the
research results will only display the functions and generic names. Spe-
cific products or names such as facebook and twitter in this research are
not mentioned individually and they are grouped in one category (social
media).
The research covers all provinces in Indonesia with the hope that the
broad coverage will provide sensible results that have real benefit. Re-
search method and sample size are adjusted to the International Tele-
communication Union (ITU) as a UN agency. It is a part of national pro-
gram in accordance with MDGs (Millennium Development Goals) target
launched by the UN that in 2015, 50% population of each country shall
be connected to internet.
After reviewing the results, penetration of Indonesian internet users
are still at 28%, far below the target of 50%. In a year the figure should
grow at least twice to achieve the international standard. Although it is
not the party responsible to achieve the standard, APJII constantly en-
courages the growth of internet users in Indonesia.
It is expected that the survey results will provide a strong impulse for
the industry to increase the penetration of internet users throughout
Indonesia. It will also provide a valuable documentation for internet de-
velopment in Indonesia.
Semuel A. Pangerapan
APJII Chairman
OPENING REMARKS
Chairman of Indonesia
Internet Service Provider
Association

vi
A
s a continuation of the previous year program, the Indonesia
Internet Service Provider Association (APJII) Committee 2012-
2015 once again publishes Personal Internet Users Survey
2013. In contrast to 2012, in this edition, the scope of the survey is
broader. The current survey includes Business Sector’s Use of Inter-
net in 2013 and the Profile of Internet Users 2013.
The report presented in infographics is prepared from Survey on
Usage and Absorption of Communication and Information Technology
Facilities 2013. The survey was resulted from the cooperation between
Central Bureau of Statistics (BPS) of the Republic of Indonesia and APJII
in organizing the Survey on Usage and Absorption of Communication
and Information Technology Facilities (P2SKTI).
In responding to the increasing demand on internet survey data from
the public,APJII hopes this book can be used as a reference in providing
internet services for APJII members, industry, academic stakeholders, the
Government, and general public.
The survey will not succeed without supports of various parties. For
the supports,we really appreciate and thank to Mrs.Sylvia W.Sumarlin as
Chair of APJII Supervisory Board; Mr. Samuel Pangerapan, Mr. Sapto Ang-
goro, and Mr. Freddie Pinontoan as APJII Executive Boards; Mr. Suryamin
as the Head of Central Bureau of Statistics and all supporting staff, Mr.
Didit Heryawan and Mr. Rachmat. We would also like to thank all parties
who directly and indirectly had supported the survey.
We do hope this good faith may benefit to all parties, especially to the
development of internet industry in Indonesia.
Parlindungan Marius
APJII Survey Manager
FOREWORD
Survey Manager of
Indonesia Internet Service
Provider Association

vii
S
urvey on Usage and Absorption of Communication and
Information Technology Facilities 2013 was conducted by
the Central Bureau of Statistics (BPS) in cooperation with
the Indonesia Internet Service Provider Association (APJII) focused
on business sector in Indonesia. The business sector includes
manufacturing industry, hotels, and restaurants with a total of
1,108 business respondents. The survey conducted in all provinces
in Indonesia illustrates the positive development of penetration
and use of internet by business sector in supporting their main
activities.
How will significant increase of Indonesian internet users affect the
industry? By the end of 2013, internet users in Indonesia were 71.19
million and in first quarter of 2014 the figure increases to 82 million.
Although trend of increase in business sector has not been identified,
it can be estimated that the internet users in this sector also grow
positively.
The survey indicates that hospitality is the business sector with
the largest percentage of internet use. Approximately 71.06% hotels
are using internet, while manufacturing industry and restaurants are
68.9% and 57.77% consecutively. The greatest opportunity to provide
internet connection is restaurant by 11.15%, followed by manufactur-
ing industry by 8.65%, and hotel by 3.53%. In the aspect of server use
to support main activities, the greatest opportunity is restaurant by
10.71%, manufacturing industry by 9.93% in the second position, and
“The availability of
adequate data has simi-
lar importance with the
way data is visualized to
make it easy to under-
stand and benefit to all
parties.”
EXECUTIVE SUMMARY
HTTP://BLOGS.ITB.AC.ID/

viii
the last is hotel by 7.65%.
Opportunity to provide internet connection service based on regions
can also be observed from this survey. The greatest opportunity in Su-
matera, Java, and Bali regions is Bangka-Belitung Islands by 14.28%.
While in other regions (Nusa Tenggara, Kalimantan, Sulawesi, Maluku,
and Papua),Central Sulawesi is on top with the potential as high as 30%.
Human resources requirement in information technology in the busi-
ness sector is also interesting to observe. Compared with all internet us-
ers in business sector, hospitality is on top with 29.88% gap to be filled
with IT personnel, while restaurants’ gap is 13.70% and manufacturing
industry is 13.34%.
Based on speed of internet access, 90.07% hotels use fixed-broad-
band internet access. There are 25.29% manufacturing industry which
still using narrowband access. While broadband access is used by 9.34%
manufacturing industry. In fixed-broadband access, WiFi/WiMAX/Micro-
wave group is mostly used, followed by dial-up connection, while VSAT
is the last option.
Internet access speed based on regions:
1. Java island is dominated with WiFi/WiMax/Microwave broadband in-
ternet connection. Largest users using WiFi/WiMax/Microwave access is
found in Yogyakarta (55.17%). While East Java is dominated with users
using cellular access (10.17%). Most users in Central Java use dial-up
access (27.71%).
2. Sumatera island is dominated with DSL broadband internet connec-
tion. In Jambi most users use DSL access (71.43%). While in Bengkulu is
dominated with cellular access (33.33%). Dial-up access is commonly
used in Bengkulu (66.67%).
3. In Nusa Tenggara, Bali, and Kalimantan regions, WiFi/WiMax broad-
band internet connection is dominant. WiFi/WiMax access is commonly
used in Central Kalimantan (66.67%).Cellular access is dominant in West
Kalimantan and East Nusa Tenggara (12.50% each). Dial-up connection
HTTP://CDN2.AGODA.NET/

ix
is used by most users in Central Kalimantan (33.33%).
4.In Sulawesi island most users use WiFi/WiMax broadband internet
connection without indication of cellular access. While WiFi/WiMax
and dial-up accesses are commonly found in Gorontalo (66.67%).
5. Maluku and Papua regions are dominated with WiFi/WiMax
broadband internet connection without indication of cellular access.
All user samples in North Maluku (100%) use WiFi/WiMax access.
Dial-up access is also commonly used in North Maluku by 50% users.
P2SKTI 2013 survey also shows largest percentage of manufac-
turing industry (36.96%) pay subscription of internet access below
Rp 500 thousand per month.The figure is relatively similar with sub-
scription fee between Rp 500 thousand and Rp 1 million per month
(29.19%) and above Rp 1 million per month (33.85%). In hospitality
business, most hotels (40.06%) spend internet access subscription
above Rp 1 million per month. While 54.97% restaurants pay the
subscription fee below Rp 500 thousand per month. Approximately
73% business sectors use one ISP,but there are 0.6% businesses use
four ISPs simultaneously.
In a year the business sectors purchase information and commu-
nication technology equipments in an average of less than Rp 10
million: restaurants 80.93%, hotels 67.06%, and manufacturing in-
dustry 53.87%.
The survey shows top five purposes of internet use as follows:
send/receive e-mails (95.75%); search for news (78.49%); search for
goods/services (77.81%); search for government agencies (66.07%);
and provide customer services (61.23%). The figure of last purpose
is similar with social media use.
The profile of survey results above is both a challenge and op-
portunity for internet service providers to participate in developing
penetration and use of internet in Indonesia. It is worth to men-
tion that Millenium Development Goals set 50% population in In-
donesia or 107 million in 2014 and 139 million at the end of 2015
must be connected to the internet. It is a great duty that can be
accomplished only by establishing comprehensive collaboration of
all stakeholders.

x
T
oday’s development of information and
communication technology in Indonesia
benefits many people including general
public, the government, and businesses. Demand
from various parties for statistical data of Infor-
mation and Communication Technology (ICT) is
increasingly high. International agencies such as
International Telecommunication Union (ITU) and
United Nations Conference on Trade and Devel-
opment (UNCTAD) regularly require ICT statistics
from the BPS for the purpose of preparation of ICT
Development Index and calculation of Core ICT
Indicators.
At the other end, APJII which accommodates 300
members of internet service providers has real re-
quirement to expand their markets and to provide in-
ternet access for general public. By conducting com-
petent survey, it is expected that all APJII members
may increase their productivity, their market pene-
tration will accelerate, and internet use will increase
rapidly. With similar requirement and spirit, BPS
through Communication and Information Technolo-
gy Statistics Sub-Directorate had an initiative to in-
crease the availability and variability of ICT statistics
by establishing cooperation with APJII.
Cooperation in the survey on Use and Absorption
of Communication and Information Technology Fa-
cilities (P2SKTI) 2013 had been focused on business
sector to obtain data and information regarding the
availability of ICT facilities and infrastructures, ac-
cess to ICT facilities, as well as use and utilization of
ICT facilities in business sector. P2SKTI survey covers
business sector in three business activites including
large and medium manufacturing industry,hotels,and
restaurants. Respondents are defined using sampling
method from all provinces in Indonesia based on
sampling frame of the directory of Large and Medium
Manufacturing Industry, Hotels, and Restaurants.
In general, the objectives of Survey on Use and Ab-
sorption of Communication and Information Technol-
ogy Facilities 2013 are as follows:
a.To meet the requirement of data users in the aspect
of the availability of ICT statistics data variability.
b.To provide supporting data for the preparation of
ICT Indicators and the calculation of ICT Develop-
ment Index.
c.To provide a reference for the government in estab-
lishing and evaluating relevant policies particularly
in communication and information technology sec-
tor.
d.To provide an illustration of the penetration of use
and absorption of communication and information
technology facilities and infrastructures,particular-
ly in relation with the availability of ICT infrastruc-
tures, access to ICT, as well as use and utilization of
ICT in business sector.
P2SKTI 2013 survey was conducted in 33 provinces in
Indonesia,and derived to 78 regencies/municipalities
and integrated in BPS routine business-based surveys.
The survey was taken place in provincial capital city
and nearby regencies/municipalities.
a. Enterprises categorized as large and medium man-
ufacturing industry.
b. Enterprises providing accommodations including
star and jasmine class hotels.
c. Enterprises providing food and beverage namely
restaurants.
To maintain continuity of ICT statistics data availa-
bility, particulary in relation with the use and utiliza-
tion of ICT facilities in business sector, it is expected
that P2SKTI survey will be routinely conducted on a
yearly basis.

xi
In the first National Conference on 15 May 1996,the declaration date of APJII establishment,the board
members assigned for the first 3 years term were asked to execute several strategic, key programs to
develop internet networks in Indonesia.The programs were:
• Internet service tariff
• Establishment of Indonesia-Network Information Center [ID-NIC]
• Establishment of Indonesia Internet Exchange [IIX]
• Negotiation of telecommunication service infrastructure tariffs
• Proposal for number and type of providers
Both programs were successfully executed including Internet service tariff proposal and negotiation
of telecommunication service infrastructure tariffs with the issuance of several Government decisions
namely:
• Decision of the Minister of Tourism,Post,and Telecommunications of the Republic of Indonesia
No. KM.59/PR.301/MPPT-96 dated 30 July 1996 on Internet Service Tariff.
• Decision of the Minister of Tourism, Post, and Telecommunications of the Republic of Indone-
sia No. KM.2/PR.301/MPPT-97 on Leased Circuit Service Tariff including the elaboration, in
accordance with Letter of the Secretary General of Ministry of Tourism,Post,and Telecommuni-
cations No. Pr.301/9/5/PPT-97 dated 28 February 1997 which stated that the Internet Service
Providers are Telecommunication Service Operators.
APJII’s Role in Internet Tariff Regulation
illustration: danpontefract.com

xii

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION 1
Chapter I
METHODOLOGY

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION2
1.1 SCOPE OF SURVEY
Survey on Use and Absorption of Communication
and Information Technology Facilities 2013 was
conducted in 33 provinces in Indonesia, and derived
in 78 regencies/municipalities.
Scope of business sector in the survey covers 3
business categories that refer to the Indonesian
Standard Industrial Classification (KBLI, Klasifikasi
Baku Lapangan Usaha Indonesia)*
The Indonesian Standard Industrial
Classification (KLBI) means standard
classification of economic activites conducted in
Indonesia which is detailed based on categories.
KLBI only classifies production units based
on economic activities without distinguishing
production units based on ownership, type of
legal entity, formal or informal.
Business Categories in the Survey
MANUFACTURING INDUSTRY
Enterprises categorized
as large and medium
manufacturing industry
HOTELS
Enterprises providing
accommodations including
jasmine and star class hotels
RESTAURANTS
Enterprises providing
food and beverage namely
restaurants
1 2 3
This includes economic
or business activities in
transforming materials,
elements, or components using
chemical or physical processes
into new products. Raw
materials for manufacturing
industry are obtained from
agriculture, forestry, fishery,
mining, or excavation products,
and products from other
manufacturing industry.
Included in this category of
manufacturing industry is unit
that transforms materials into
new products.
A business that utilizes a
building or part of a building
that specifically provided where
people may stay, eat, and obtain
services and other facilities with
payment. The business includes
one to five-star hotels and
jasmine class hotels.
This includes providing food
and beverage services to be
consumed immediately, and
including traditional restaurants,
self-service restaurants, or
take away restaurants, either
located in fixed or temporary
location and without seats.
Providing food and beverage
service means providing food
and beverage to be consumed
by order.
illustration: kilurahsemar.wordpress.com illustration: asiarooms.com illustration: okefood.com

EastJava
WestJava
CentralJava
Jakarta
Bali
NorthSumatera
Banten
Yogyakarta
EastKalimantan
SouthSulawesi
Riau
SouthSumatera
RiauIslands
Lampung
WestNusaTenggara
WestSumatera
WestKalimantan
Aceh
SouthKalimantan
EastNusaTenggara
NorthSulawesi
CentralKalimantan
SoutheastSulawesi
CentralSulawesi
Jambi
Papua
Maluku
BangkaBelitungIslands
WestPapua
NorthMaluku
Gorontalo
Bengkulu
WestSulawesi
1.2 DATA SAMPLES
1.108
TOTAL SAMPLES
DATA COLLECTION METHOD
Sample allocation
based on business
category
36% 36%
28%
MANUFACTURING
INDUSTRY
RESTAURANTS
185
148
144
110
Sample Allocation Based On Provincial Regions
Number of enterprises
53
43
38
28 27
22 21 20 19 18 18 17 16
14 13 12 12 11 10 10 8 8 7 5 55 5 4
52
Sample
allocation
based on main
islands
Java and Bali
regions
Sumatera
regions
HOTELS
65.1%
17.1%
6.4%
6.2%
5.1%
Kalimantan
regions
Sulawesi
regions
Nusa Tenggara,
Maluku
dan Papua
regions
enterprises
Data is collected from
selected samples by face-
to-face interview between
the surveyors and the
respondents.
Determination of sample
distribution is based on number
of relevant businesses in the
regions.The number of samples
is highest in Java region given
the number of businesses
located in Java is the highest
than other regions in Indonesia.

Aceh
Aceh Besar, Banda Aceh
West Kalimantan
Kubu Raya, Kota
Pontianak
Central Kalimantan
Katingan, Palangka Raya
South Kalimantan
Banjarmasin, Banjar Baru
East Kalimantan-
Kutai Kartanegara,
Balikpapan, Samarinda
South Sulawesi
Gowa, Maros, Makassar
Southeast Sulawesi
Konawe, Kendari
North Sulawesi
Minahasa, Manado
Central Sulawesi
Parigi Moutong, palu
Gorontalo
Kota Gorontalo
West Sulawesi
Mamuju
Maluku
Ambon
North Maluku
Ternate
West Papua
Sorong
Papua
Jayapura,
Kota Jayapura
North Sumatera
Deli Serdang, Langkat,
Medan, Binjai
Riau
Pelalawan, Pekan Baru
West Sumatera
Padang, Solok
Bengkulu
Bengkulu
Lampung
Pasawaran, Bandar Lampung
Jakarta
South, East, Central,
West, North Jakarta
Banten
Serang, Cilegon, Kota Serang
West Java
Kab. Bandung, Garut,
Ciamis, Kota Bandung,
Bekasi, Cimahi
DIYogyakarta
Sleman,Yogyakarta
Central Java
Jepara, Kab. Semarang, Kendal,
Kota Semarang, Pekalaongan
East Java
Pasuruan, Sidoarjo,
Gresik, Pasuruan,
Mojokerto, Surabaya
Bali
Badung, Gianyar,
Denpasar
West NusaTenggara
Lombok Barat, Mataram
East NusaTenggara
Kupang, Kota Kupang
South Sumatra
Banyu Asin, Palembang
Jambi
Jambi
Bangka Be-
litung Islands
Pangkal Pinang
Regencies/Municipalities Coverage Based on Provinces
In conducting this survey, BPS as an official government
bureau should not mention brand or product name. In
case of social media for example, the survey did not
specifically mention facebook, twitter, or kaskus forum.
Such survey ethics should be adhered to by the BPS
therefore it not allowed mentioning specific brand to
maintain the objectivity of survey results.
BPS Survey

Chapter II
BUSINESS SECTOR’S
INTERNET USERS

Internet Users in Industry
2013
(Restaurants, Hotels and Manufacturing
Industry)
In responding ICT data requirement demanded by various stakeholders,
both domestic and international (namely ITU), the BPS has a program
to conduct Survey on Use and Absorption of Communication and
Information Technology Facilities in 2013. In the occasion, APJII had
established cooperation with BPS in the survey.

BPS used Core ICT Indicators 2010 as a reference for measurement
parameter. Core ICT Indicators were used in order to get the results can
be compared internationally. In this matter APJII refered to the interest
of internet industry stakeholders and data requirements that in turn
will benefit its members, the Internet Service Providers.

The survey was conducted by BPS internal personnel in 33 provinces
and involving 1175 business respondents and took place in September
(1 month), while the process was already started in May 2013. Data
collection and processing were conducted since October to November
2013.
Manufacturing Industry
Hotel Industry
/WWW.TRIPADVISOR.CO.UK/
WWW.TRIBUNNEWS.COM/

Internet in Business World
Fadjar Efendy Rasjid, S.Kom
Internet has triggered a revolution by changing the world in conducting local
and global businesses. It started from collecting data for employee recruitment
in a company, and today internet is used by many businesses, so internet
benefits business communities. People find ways to optimize internet for their
businesses. Many websites had been developed and equipped with back-office
system including database, accounting packages, and finally small and big
companies are capable to utilize internet in supporting their businesses. Online
business emerges where internet is the main business.
Many companies, especially that implement online trading, have integrated
their inventory control and customer tracking. This step ensures reduced
administrative cost and increased customer services by providing fast and
accurate information regarding order processing updates to the customers.
source: ubaya.ac.id
By the growth of advanced technology, internet
seems becomes the ‘nutrition’ in human and business
daily life. Head of Central Bureau of Statistics (BPS)
Suryamin presupposed the internet as a basic need
for business world.“Internet is very important for
businesses and the community, it is similar to our
basic needs,” said Suryamin in an event ‘Latest Profile
of Industrial Internet and Its Growth’ in Jakarta, on
Wednesday (15/1/2014).
In the event organized by the Indonesia Internet
Service Provider Association (APJII) and BPS, Suryamin
even said that needs for internet in the community
and industry have been equal to the needs for food.
Understandably, now almost all activities of human
life are associated with the internet.
“With internet, people may get the information
instantly. Even a part of the community and
industry owners have put the internet as their first
priority, similar to food,” said Suryamin. According
to him, internet may fulfill the sense of curiosity of
the people in fast, easy, and affordable ways. For
businesses, the internet may speed up information
and data flow from their users.
Outside businesses, Suryamin explained, internet
may also help in educating the nation. What’s more, a
survey conducted with APJII has shown that 78.49%
industry owners in Indonesia use the internet to
search for news information.
He hoped, in the future there will be better internet
services particularly for business sector in order
to increase the productivity of domestic business
owners.
source: www.apjii.or.id
Internet is ‘Nutrition’ for the Business World

2.1 USE OF COMPUTERS INTERNET
Information obtained from these parameters are:
Use of Computers, Internet, and Servers
Multiple answers - percentage
MANUFACTURING INDUSTRY HOTELS RESTAURANTS
1 2 3
77.8%
68.9%
59.0%
74.6%
68.9%
71.1%
57.8%
63.4%
47.1%
Using
Computers
Using Computers
Connected to
the Internet
Using
Servers
Enterpresises those use computers
in their main business activities. The
computers include desktops, laptops,
and tablets but excluding cellular
phones and televisions.
Enterpresises those use
computers in their main business
activities, and the computers are
connected to the internet.
Server computer is computer
equipment that functions as data
center or terminal to distribute
resources, permission, and
others that connected to other
computers.
USING COMPUTERS CONNECTED
TO THE INTERNET
USING COMPUTERS USING SERVERS
Gap percentage of the use of computer and internet for main business activity:
manufacturing industry 8.65%; hotels 3.53%, and restaurants 11.15%.
The gap reflects the opportunity to provide internet connection services.
Prasabri Pesti, Deputy Executive General Manager (Business Service Division) Telkom
In the future internet access and its applications will be
an integral part of a hotel. It is important to support the
service improvement and the growth of hotel’s business
value. Internet will be useful for promotional events to hotel
management.
Internet in Hospitality Industry
illustration: starwoodshotel.com
P2TIK 2013 survey, a cooperation between BPS and APJII

Use of Computers, Internet, and Servers in Each Province
01
02
03 04
06
07
05
Using computers connected
to the internet
Using computers
connected to the
internet
Java and Bali
Sumatra
01
02
04
03
07
05
09
06
08
01. Aceh
02. North Sumatra
03. West Sumatra
04. Riau
05. Jambi
06. South Sumatra
07. Bengkulu
08. Lampung
09. Bangka Belitung Islands
10. Riau Islands
75
64,7
70,5
81,8
60
80
63,1
85,7
80
70
01. Jakarta
02. Banten
03. West Java
04. Central Java
05. Yogyakarta
06. East Java
07. Bali
90,8
81,4
68,7
65,7
83,7
72,6
86,5
01. West
Kalimantan
02. Central
Kalimantan
03. South
Kalimantan
04. East
Kalimantan
94,1
71,4
67.8
58,3
to the internet
Kalimantan
01 02
04
03
68,7
54,9
70,5
81,8
60
70
65
57,8
71,4
80
Using
computers
Using
computers
Using
computers
81,6
74,4
59
58
78,3
80,7
64,4
50
71.4
60,7
94.1

Sulawesi 01. North
Sulawesi
02. Central
Sulawesi
03. South
Sulawesi
04. Southeast
Sulawesi
05. Gorontalo
06. West
Sulawesi
90
55,5
72,7
75
60
40
87,5
01. West Nusa
Tenggara
02. East Nusa
Tenggara
03. Maluku
04. North Maluku
05. West Papua
06. Papua
66,6
85,7
to the internet
to the internet
Nusa Tenggara, Maluku
and Papua
Use of Computers, Internet, and Servers in Each Province
50
60
63,4
51,8
60
Using
computers
02
02
05
03
01
04
71,4
50
61,5 61,5
40
80
87,5
80
Using
computers
01
03
04
06
05
The obtained figure of penetration is based on number of
samples in the survey.

11
Chapter III
INTERNET NETWORK
FACILITIES

12
INTERNET NETWORK FACILITIES
In this survey, use of internet network facilities
is categorized based on internet speed and
position mobility (mobile or fixed).
2. MOBILE BROADBAND1. NARROW BAND 3. FIXED BROADBAND
Internet facilities with speed
below 256 Kbps, including:
dial-phone lines, ISDN, DSL,
CDMA 1X, GPRS, and WAP.
Mobile internet facilities using
wireless technology, including:
WCDMA, UMTS, HSDPA, HSUPA,
and CDMA 2000.
Internet facilities with speed
above 256 Kbps and fixed
location, including: DSL, cable
modem, fixed wireless, WLAN, and
WiMAX.
=

256
256
Kbps
KbpsSPEED
Fixed Mobile
NARROWBAND
MOBILE
BROADBAND
FIXED/MOBILE
FIXED
BROADBAND
TECHNOLOGY APPLICATION
NARROW BAND MOBILE BROADBAND
Internet Network Facilities
Dial-up
Internet access using fixed telephone line or mobile
telephone. Computer through modem dials the connection
to the Internet Service Provider.
Cellular
A communication system providing internet services where
subscriber’s access can be performed in mobility.
FIXED BROADBAND
1. Wifi
Technology utilizing electronic devices to
exchange data using radio wave (wireless)
through a computer network, including
high-speed internet connection.
4. VSAT (Very Small Aperture
Terminal)
Terminal that receives signal from the
satellite using disc receiver antenna
with diameter of less than 3 meters.
6. Leased Line
Fixed telephone connection line
between two points provided by
public telecommunication company.
7. DSL (Digital Subscriber Line)
A set of technology that provides
digital data transmission through
cables in a location near local
telephone network.
5. Fiber Optics
Transmission line or type of cable made
of glass (silica) or plastic , slightly thicker
than a human hair, and it can be used
to transmit light signal between the two
ends of the fiber. Light sources commonly
used are laser or LED.
2. Wimax
Broadband wireless access technology
with high-speed access and broad
coverage.
3. Microwave
Electromagnetic wave with super-high
frequency (SHF) above 3 GHz (3x109 Hz).

13
Business Sector’s Use of Internet Network Facilities
1 2 3
Mobile
Broadband
Narrowband
Fixed
Broadband
9.3
25.3 17.6 22.8
70.8 90.1 76.0
4.3 6.4
Wifi/
Wimax DSL
Leased Line
Fiber Optics
35.8 35.8
13.2
12.1
VSAT 5.5
Fiber Optics
13.9
Leased
Line 4.6
VSAT 4.6
Wifi/Wimax
Wifi/Wimax
64.2
50.9
DSL
34.8
Leased
Line
VSAT
Fiber
Optics
DSL
32.8
8.8
2.9
2.3
Fixed broadband technology used in the
manufacturing industry
Fixed broadband technology used in hotels
Fixed broadband technology used in restaurants
Access technology used by
the industry is predominantly
wireless access. This is evident
in many ISPs that use 5.8 GHz
frequency for their services.
WiMAX access technology is
not separated from BWA in
this survey. BWA/Wifi access
is counterbalanced by ADSL
in almost all sectors, in a
proportion around 30 percent.
B
N

14
Provincial Internet Network Facilities
06 East Java 07 Bali
Cellular
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
10,1
51,6
2,5
5,9
6,7
38,9
22,8
11,9
0
26,1
2,3
28,5
23,8
83,3
Java and Bali
Cellular
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
9,3 4,7 2,4 6,95,6
44,931,2 50,5 49,4 55,1
6,2 3,5 1,2 3,44,4
15,6 15,2 8,4 10,324,7
6,2 12,9 7,2 6,910,1
40,6 42,1 27,526,9
9,3 23,5 27,7 27,520,2
01 Banten 02 Jakarta 03 West Java 04 Central Java 05 Yogyakarta
The regions are dominated by WiFi/WiMax/Microwave
broadband internet connection. WiFi/WiMax/Microwave
access is mostly used in Yogyakarta (55.17%). Cellular
access is mostly used in East Java (10.17%). While in Central
Java, most users are connected with dial-up acces (27.71%).
Although internet access in Java is dominated by wireless
technology, fiber optic such as metro Ethernet and FTTH
are already introduced as potential access technology.

Fixed broadband technology with higher speed namely
10Mbps will be more efficient with fiber optic access
technology.
It is true that the speed to extend fiber optic much ‘slower’
than wireless technology, but there is increasing number of
providers that manage fiber optic and several big operators
had started long before this technology becomes mature in
Indonesian market.
Wifi/Wimax VSAT Dial Up Fiber OpticsDSL Leased Line Cellular
02
03
04
06
05
07
01

15
06 Riau Islands 07 Bangka Belitung 09 Bengkulu 10 South Sumatra08 Lampung
Cellular 0 20 0 33,3 7,6
25 20 45,4 100 69,2
12,5 0 18,1 0 0
6,2 0 9 0 0
18,7 20 18,1 0 7,6
31,2 20 36,3 0 30,7
25 40 9 66,6 0
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
90,9
01 Jambi 02 Riau 04 North Sumatra 05 Aceh03 West Java
Cellular 5,514,2 0 03,5
55,542,8 33,2
16,60 8,3 03,5
5,50 8,3 03,5
00 8,3 07,1
44,471,4 58,3 046,4
11,114,2 25 917,8
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
28,5
Sumatra
This region is dominated by DSL
broadband internet connection.
Largest percentage of DSL
access can be found in Jambi
(71.43%). Cellular access is
dominant in Bengkulu (33.33%).
While dial-up access is also
dominant in Bengkulu (66.67%).
05
04
01
07
06
02
03
09
10
08

16
Sulawesi
05 Gorontalo 06 Southeast Sulawesi02 West Sulawesi
Cellular
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
0 0 28,5
50 0
0 0
0 0 0
50 0 42,8
50 66,6 21,4
0 66,6 42,8
03 South Sulawesi 04 Central Sulawesi
7,1 0
7,1 0
0 0
28.6 0
42,8 16,6
21,4 33,3
35,7 50
Cellular
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
01 North Sulawesi
8,3
0
16,6
0
8,3
41,6
58,3
This region is dominated by WiFi/WiMax broadband internet
connection without indication of cellular access. Largest
percentage of WiFi/WiMax and dial-up accesses can be found in
Gorontalo (66.67%).
01
05
04
02
03
06
Dominan:
VSAT
DSL
Dial Up
Dominan:
Wifi
Dial Up
Dominan:
Wifi
DSL
Kalimantan
21,7 0Dial Up 33,3 6,2
03 East Kalimantan 04 South Kalimantan
Cellular 0 10
23,5 10
0 0
5,8 0
35,2 40
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
41,1 60
01 Central Kalimantan 02 West Kalimantan
0 12,5
0 0
0 0
16,6 25
33,3 18,7
66,6 62,5
All provinces in Kalimantan are dominated by the
use of WiFi/WiMax access. Largest WiFi/WiMax
access used by the business sector can be found in
Central Kalimantan (66.67%) and West Kalimantan
(62.50%).
01
01
03
02

17
Wifi/Wimax VSAT Dial Up Fiber OptikDSL Leased Line Seluler
01 North Maluku
Cellular
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
0
0
50
0
0
50
100
Maluku, Papua and Nusa Tenggara
04 Papua 05 West Papua
Cellular
Wifi/Wimax
VSAT
Fiber Optics
Leased Line
DSL
Dial Up
0 0
28,5 0
0 0
0 25
42,8 25
28,5 25
42,8 50
02 East NT 03 West NT
12,5 0
0 0
0 11,1
25 11,1
37,5 0
25 22,2
52,5 88,8
06 Maluku
xx
0
0
0
20
0
60
These regions are dominated by
WiFi/WiMax broadband internet
connection without indication
of cellular access. Largest
percentage of WiFi/WiMax access
is North Maluku (100%). Dial-up
access is also dominant in North
Maluku (50%).
01
06
04
02 03
06

18
Cost of Internet Access Paid by the Enterprises
persentage
1 2 3
Cost of Internet Access
1 million
0.5 - 1 million
0.5 million
33.9 40.1
34.4 36.8
55.025.5
29.2
37.0
8.2
Survey results that suggest average monthly
subscription fee paid by the enterprises to the
internet service providers.
Research conducted by Ookla suggests that
cost of internet in Indonesia is USD 26.04 per
Mbps, or ranked 62 of 64 countries included
in the research. Indonesia is only better from
Venezuela (USD 28.96 per Mbps) and the
Philippines (USD 30 per Mbps). In comparison,
the price is almost 9 times more expensive than
neighboring Singapore (USD 2.93 per Mbps) and
twice than Malaysia (USD 11.54 per Mbps).
Expensive Internet Cost in Indonesia
source: infokomputer.com
Largest percentage of manufacturing industry
(36.96%) had paid subscription of internet
access below Rp 500 thousand per month. The
figure is relatively similar with subscription fee
between Rp 500 thousand and Rp 1 million per
month (29.19%) and above Rp 1 million per
month (33.85%). While 54.97% restaurants pay
the subscription fee below Rp 500 thousand per
month.

19
Today,theavailabilityofinternetaccess/servicesinhotelsbecomes
a liability. There are guests who left the hotel and unwilling to
pay because the hotel’s internet service is unsatisfactory.

Hotel managers nowadays are aware of reviews written by the
customers in the form of direct complaints or post of comments
in social media, tripadvisor for example.

This reflects in internet subscription cost which is dominantly
above Rp 1 million/month in hospitality industry.

In recent years, internet subscription fee is decreasing drastically,
so the survey suggests that more than 60% business respondents
pay below Rp 1 million/month.But a conclusion can not be made
whether it is a matter of cost or interest and requirements for
faster internet access are represented in the portion of 40%.

Restaurants are supported by internet with a relatively high
availabilitybut the capacityis not large and it seems the service is
not yet a liability (in SLA and its capacity).This matter is reflected
in dominant internet cost below Rp 500 thousand per month.
Jakarta, 1 October 2013
Higher internet traffic due to the increasing number of
subscribers has encouraged the internet service providers
to improve the quality and capacity of their infrastructures.
To improve the service quality of its members, the
Indonesia Internet Service Provider Association (APJII) has
revitalized its infrastructures by improving device quality
in internet data traffic exchange terminal with Indonesia
Internet Exchange (IIX) which is newly operated.
In the revitalization APJII uses Brocade MLXe-16 router
which has capability to serve traffic up to 7.68 Tbps (tera
bit per second) with total port of 528 x 1 GBe (Gigabit
Ethernet) and 16 x 10 GBe (Ten Gigabit Ethernet).
The capacity is added with 100 Gbe (Hundred Gigabit
Ethernet) modules that redundantly configured in several
data centers connected to IIX APJII.
According to Head of IIX APJII, Harianto Pribadi, IIX is one
of Indonesian internet backbones and it becomes the main
focus of APJII services to accommodate more than 280
internet service providers including telecommunication
operators.
As addition to improving IIX capability, he continued, APJII
also establishes partnership with data centers namely Cyber
CFS (Jakarta), Biznet Technovillage (Cibubur, Bogor) in Tier-3
category and Omadata (Surabaya), and XL Data Center (East
Java).
The availability of reliable IIX infrastructures with large
capacity will avoid errors that may result in Indonesian
internet services collapsed. Total traffic of IIX APJII is 8-10
Gbps with a total of 181 peers. According to Harianto, the
migration will improve the traffic growth at the end of 2013
up to threefold.
APJII Improves Internet Exchange Capacity
source: apjii.or.id

20
MANUFACTURING
INDUSTRY
73.5
0.8
3.9
21.8
HOTELS
14.6
2.3
0.6
81.8
RESTAURANTS
0.6
2.3
7.6
89.5
NUMBER OF INTERNET SERVICE PROVIDER USED
Using 4 ISPs or more
Using 3 ISPs
Using 2 ISPs
Using 1 ISP
ISP (Internet Service Provider) means a service business offered by an enterprise to its
subscribers to access internet by providing interface to the internet network.
Survery results on number of ISP used by the enterprise.
Most of the businesses in the
sector use one ISP, and there
are few businesses use four ISPs
simultaneously.

21
Chapter IV
PURPOSES OF
INTERNET USERS

22
In the aspect of internet utilization by business sector,
the survey suggests that e-mail (receive and send)
is on top (95.7%), second utilization of internet is to
search for news or information (78.49%), third is search
for goods and services (77.81%), fourth is search for
government agencies information/tender (77.81%), and
the fifth utilization of internet is social media (61.23%).
The figures may differ with the results of previous
APJII’s survey on internet use in households/consumers
where social media is the top internet utilization (88%)
while e-mail stands in fifth position. Social media used
in business sector is not necessarily for personal use
of the employee considering that nowadays many
enterprises use social media as a tool for promotion
and customer service.
The unique result is the news media (search for news
information) in Indonesia, both in the consumer and
industrial surveys it is ranked the second or the third
(68%).
WHAT ACTIVITIES PERFORMED BY INDUSTRIAL INTERNET USERS
WHEN ACCESSING THE INTERNET?
Deliver/receive e-mails
Search for news information
Search for goods/services
Search for government agencies
Provide customer services
Social media
Receive good/service orders
Internet banking
Purchase goods/services
Employee recruitment
Access other financial facilities
VOIP
State-Owned Enterprises electronic
procurement
Video conferencing
Personnel training
Others
95.7
78.4
77.8
65
61.2
61.2
55.7
47.2
45
38
37.6
20.6
25.6
19.5
17.1
4.1

23
PURPOSES OF INTERNET USE
Search for goods/services
Search for news information
Search for government agencies
Internet banking
Receive good/service orders
Purchase goods/services
Social media
Access other financial facilities
Provide customer services
VOIP
State-Owned Enterprises electronic
procurement
Video conferencing
Personnel training
Others
74.7 76.2 31.0
84.4 89.4 52.1
54.5 52.7 26.9
50.6 48.3 31.0
28.4 27.2 18.7
38.9 45.0 22.8
84.1 86.8 50.9
54.1 65.2 38.6
40.9 42.7 25.7
19.1 24.5 11.7
3.9 4.6 3.5
50.6 78.8 46.2
19.5 21.2 6.4
14.4 28.5 16.4
38.1 82.8 57.9
MANUFACTURING
INDUSTRY
HOTELS RESTAURANTS
95.7 97.0 93.6
Purposes of internet use: activities or needs related to
enterprise’s business those require internet network
facilities.
Main purpose of internet use in business sector is dominated by the activity
to send or receive e-mails and search for goods or services. While providing
customer services is the main purpose of internet use in restaurants.

24
Social Media
Purposes of Internet Use in Sumatera
Aceh North Sumatera West Sumatera Riau Jambi
72.7
54.5
30.3
18.1
66.6
48.4
66.6
36.3
27.2
9.0
33.3
33.3
54.5
36.3
30.3
3.0
83.3
66.6
8.30
8.30
83.3
50.0
91.6
66.6
50.0
33.3
41.6
33.3
66.6
16.6
8.3
8.3
94.4
72.2
27.7
16.6
66.6
50.0
72.2
50.0
50.0
16.6
44.4
22.2
38.8
16.6
22.2
5.5
100
75.0
8.3
8.3
83.3
75.0
91.6
75.0
58.3
25.0
33.3
41.6
75.0
41.6
-
-
87.5
50.0
12.5
-
75.0
75.0
75.0
37.5
25.0
25.0
37.5
25.0
50.0
50.0
25.0
-
Highest Second Highest
VOIP
Video Conferencing
Search for goods
services
Search for
government agencies
Search for news
information
Receive goods/service
orders
Purchase goods/
service orders
State-Owned
Enterprises electronic
Internet Banking
Access other financial
facilities
Provide Customer
services
Personnel training
Others

25
Social Media
South Sumatera Bengkulu Lampung Bangka Riau
Belitung Islands
66.6
66.6
33.3
-
50.0
33.3
66.6
50.0
50.0
33.3
66.6
33.3
50.0
16.6
33.3
-
100
50.0
18.7
6.2
68.7
43.7
50.0
62.5
43.7
6.2
50.0
37.5
75.0
43.7
18.7
-
91.6
66.6
33.3
16.6
58.3
50.0
58.3
41.6
33.3
16.6
33.3
25.0
41.6
25.0
16.6
-
100
33.3
-
33.3
100
100
100
66.6
66.6
33.3
33.3
33.3
100
-
-
-
87.5
50.0
12.5
-
75.0
75.0
75.0
37.5
25.0
25.0
37.5
25.0
50.0
50.0
25.0
-
Purposes of Internet Use in Sumatera
VOIP
Video Conferencing
Search for goods
services
Search for government
agencies
Search for news
information
orders
Purchase goods/service
orders
State-Owned
Internet Banking
facilities
Provide Customer
services
Personnel training
Others

26
West Central East Banten Bali
Jakarta Java Java Yogyakarta Java
82.9
51.0
15.9
14.8
68.0
62.7
72.3
51.0
40.4
13.8
40.4
30.8
54.2
32.9
17.0
4.2
93.5
70.9
22.5
16.1
87.1
74.1
87.1
74.1
54.8
12.9
51.6
45.1
77.4
51.6
16.1
9.6
85.7
49.6
18.0
14.2
66.9
55.6
62.4
42.8
35.3
14.2
45.1
27.8
39.8
31.5
13.5
4.5
83.8
46.4
27.2
19.1
66.6
55.5
63.6
45.4
39.3
20.2
49.4
38.3
54.5
41.4
27.2
3.0
81.8
58.5
18.1
22.2
75.7
69.7
73.7
48.4
40.4
14.1
41.4
36.3
59.6
27.2
13.1
4.0
91.4
57.1
28.5
20.0
77.1
65.7
74.2
60.0
40.0
17.1
25.7
34.2
54.2
31.4
22.8
5.7
93.3
62.2
35.5
24.4
77.7
57.7
91.1
51.1
46.6
15.5
64.4
35.5
71.1
60.0
20.0
-
Purposes of Internet Use in Java and Bali
Social Media
VOIP
Video Conferencing
Search for goods
services
Search for
government agencies
Search for news
information
orders
Purchase goods/
service orders
State-Owned
Internet Banking
facilities
Provide Customer
services
Personnel training
Others

27
West Central South East
Kalimantan Kalimantan Kalimantan Kalimantan
93.7
43.7
18.7
-
75.0
62.5
87.5
37.5
31.2
-
31.2
18.7
50.0
25.0
-
-
85.7
71.4
-
-
71.4
71.4
71.4
71.4
71.4
28.5
28.5
42.8
71.4
42.8
42.8
-
89.4
73.6
31.5
42.1
73.6
68.4
73.6
57.8
63.1
31.5
57.8
57.8
68.4
52.6
42.1
5.2
100
40.0
20.0
30.0
50.0
50.0
60.0
30.0
30.0
10.0
40.0
40.0
70.0
20.0
20.0
-
Purposes of Internet Use in Kalimantan
Social Media
VOIP
Video Conferencing
Search for goods
services
Search for
government agencies
Search for news
information
orders
Purchase goods/
service orders
State-Owned
Internet Banking
facilities
Provide Customer
services
Personnel training
Others

28
West Central North South Southeast Gorontalo
Sulawesi Sulawesi Sulawesi Sulawesi Sulawesi
66.6
66.6
-
-
66.6
33.3
66.6
33.3
-
-
-
-
33.3
-
-
33.3
55.5
44.4
11.1
11.1
44.4
33.3
44.4
33.3
22.2
-
11.1
11.1
22.2
22.2
11.1
11.1
100
91.6
66.6
25.0
75.0
66.6
83.3
66.6
50.0
8.3
41.6
66.6
58.3
33.3
41.6
-
86.6
60
26.6
33.3
86.6
60.0
86.6
60.0
46.6
20.0
60.0
33.3
46.6
40.0
33.3
6.6
87.5
25.0
25.0
12.5
25.0
25.0
50.0
25.0
25.0
12.5
12.5
12.5
37.5
25.0
25.0
-
100
33.3
-
33.3
33.3
66.6
66.6
-
-
-
-
-
66.6
-
-
-
Purposes of Internet Use in Sulawesi
Social Media
VOIP
Video Conferencing
Search for goods
services
Search for
government agencies
Search for news
information
orders
Purchase goods/
service orders
State-Owned
Internet Banking
facilities
Provide Customer
services
Personnel training
Others

29
NTT NTB Maluku North West Papua
Maluku Papua
75.0
25.0
25.0
16.6
58.3
41.6
50.0
41.6
50.0
8.3
25.0
33.3
41.6
25.0
25.0
-
87.5
87.5
37.5
25.0
87.5
50.0
87.5
62.5
50.0
12.5
25.0
62.5
75.0
25.0
-
-
83.3
50
16.6
16.6
66.6
16.6
33.3
33.3
33.3
16.6
16.6
16.6
50.0
33.3
-
-
100
100
100
50.0
100
100
100
100
100
-
100
100
100
50.0
50.0
-
100
100
25.0
50.0
100
75.0
100
100
100
75.0
100
50.0
75.0
25.0
-
-
85.7
42.8
28.5
14.2
57.1
42.8
57.1
57.1
42.8
14.2
14.2
28.5
42.8
28.5
14.2
14.2
Purposes of Internet Use in Nusa Tenggara, Maluku and Papua
Social Media
VOIP
Video Conferencing
Search for goods
services
Search for
government agencies
Search for news
information
orders
Purchase goods/
service orders
State-Owned
Internet Banking
facilities
Provide Customer
services
Personnel training
Others

30
ADVERTISE HERE
Jakarta, 26 September 2013
This time the Indonesia Internet Service Provider
Association (APJII) is revitalizing its important
infrastructure by improving device quality in internet
data traffic exchange terminal (IIX - Indonesia Internet
Exchange). The revitalization is marked with the launch of
IIX APJII using Brocade MLXe-16 router which has capability
to serve traffic up to 7.68 Tbps (tera bit per second) with
total port of 528 x 1 GBe (Gigabit Ethernet) and 16 x 10
GBe (Ten Gigabit Ethernet).
IIX is one of Indonesian internet backbones and it becomes
the main focus of APJII services to accommodate more than
280 internet service providers including telecommunication
operators. Massive investment made by APJII is driven by
the trend of internet users that increasingly grows.
As addition to improving IIX capability, APJII realizes that
data storage requirements have the same weigh. With its
limitation in data storage, APJII has established partnership
with data centers namely Cyber CFS (Jakarta), Biznet
Technovillage (Cibubur, Bogor) in Tier-3 category and
Omadata (Surabaya), and XL Data Center (East Java).
With the operation of two MLXe-16 in APJII data center at
Cyber Building first floor and Cyber CFS data center, both
data centers have been integrated using metro-ethernet
technology with 256-core fiber optic media end-to-end and
also function as IIX single cloud. Therefore ISP members
of APJII may establish direct peer at Cyber Building first
floor and Cyber CSF, or Biznet Technovillage data center.
Furthermore, IIX APJII will also be connected to Nusantara
eXchange (NIX) located in Bali, Surabaya, Palembang, and
Medan.
This is the biggest revitalization and massive investment
ever made by the APJII since IIX was deployed in 1997 and
connecting 15 pioneering ISPs. At the time, APJII received
device infrastructure assistance from Cisco, Intel, and HP.
The availability of reliable IIX infrastructures with large
capacity is expected to improve public services by avoiding
the occurrence of single point of failure that may result in
Indonesian internet services collapsed.
Also, in APJII’s data center on the first floor of Cyber
Building, there is Meet Me Room (MMR) equipped with
cat6 cabling system and adequate backup UPS where
APJII members may set up the switch to facilitate
interconnection between carrier operator (Telco) and the
ISPs.
Today total traffic of IIX APJII is 8-10 Gbps with a total
of 181 peers. According to Harianto, the migration will
improve the traffic growth at the end of 2013 up to
threefold.“We hope IIX traffic at the end of 2013 will
grow threefold,” said Harianto.
Previously IIX APJII implements VRRP (Virtual Router
Redundant Protocol) in two Juniper M7i routers and for
the next generation it implements GLBP (gateway load
balancing protocol) in two Brocade MLXe-16. IIX traffic is
expected to grow threefold by the end of 2013. However,
it depends on the amount of data and connectivity rate
of traffic owners to IIX APJII.
Through the socialization of IIX and Data Center APJII
Connect, APJII members may immediately fill the SO to
utilize 120 racks capacity in Cyber CSF and APJII racking
capacity in Biznet Technovillage, and data center partners
outside Jakarta.
APJII Revitalizes IIX to Anticipate the Wave
of Traffic Growth
source: apjii.or.id

INTERNET USER
PENETRATION IN 2013

32
INTERNET USER PENETRATION IN 2013
Indonesian internet users will reach 71.19 million in
2013
The Indonesia Internet Service Provider Association (APJII) and Central Bureau
of Statistics (BPS) reveals internet users in Indonesia had reached 71.19 million
at the end of last year.
The figure means 13 percent growth compared to the end of 2012 with 63
million users, said APJII Chairman, Sammy Pangerapan in the presentation of
cooperation between APJII and BPS, on Wednesday 15 January 2014.
When comparing the figure with total population then, according to Sammy,
internet penetration in Indonesia is approximately 28 percent.
“Thank you BPS for the cooperation in conducting the internet survey, with this
way the Indonesia government and general public know the position of internet
industry today,” said Sammy.
Based on survey result, APJII estimates that it is hard for Indonesia to achieve
an alignment with the target of Millennium Development Growth (MDGs) which
has also been agreed by the International Telecom Union (ITU), that in 2015 half
population on earth must connected to the internet.
Based on population in Java region, the highest number
of internet users is West Java province with 13.2 million
users, followed by East Java with 9.8 million users, and
Central Java with 8.6 million users.
While in other regions, based on population, the
lowest internet users are found in West Papua and
North Maluku. Understandably, it is due to limited
infrastructures and internet network availability in the
regions.
Some IT experts and observers through in-depth
interviews had suggested several factors that drive
the growth of internet service business in Indonesia.
The factors can be concluded in three main factors as
follows:
source: merdeka.com
1. Economics (consideration to choose low-cost
internet access with affordable devices)
2. Technology (tendency to easy of use or user
friendly)
3. Culture (culture of Indonesian people who
tend to engage in long conversation or
gathering)
These three factors are simultaneously visible on
the lifestyle of Indonesian internet users who like
to access social media using smartphone devices
that are relatively easy to use, and affordable
device and prepaid access, thus supporting the
gathering culture.

33
37.9%
1.ACEH
2. NORTH SUMATERA 4. RIAU
19.3%
26.7%
3. WEST
SUMATERA
9. BANGKA
BELITUNG
5. JAMBI 7. BENGKULU
01
02
03
04
06
05
07
08
09
Internet Users
Population
Internet User Penetration in Sumatera Region
5.14
14.50
1.95
5.41
6.43
3.51
8.36
1.94
8.47
1.40
1.98
2.79
1.44 1.44
1.00
2.14
0.55
2.73
0.36
0.63
Unit: Million
22.5%
28.6%
25.6%
28.2%
32.2%
25.8%
32.0%
6. SOUTH
SUMATERA
8. LAMPUNG 10. RIAU
ISLANDS
PENETRATION
The figures of internet user penetration in
Indonesia which described for each province are
determined using extrapolation method based
on historical data of internet users obtained from
APJII’s previous surveys.

34
Internet User Penetration in Java and Bali Regions
1. JAKARTA 3. CENTRAL JAVA 5. EAST JAVA 7. BALI
2. WEST JAVA 4. YOGYAKARTA 6. BANTEN
Internet Users
Population
Unit: Million
PENETRATION
42.8%
27.4%
23.9%
21.7%
24.4%
41.5%
37.5%
48.37
35.44
3.38
40.90
12.23
1.87
10.64
4.55
13.24
8.64
1.59
9.79
2.65
1.62
01
02
03 04
0605

35
1. WEST
KALIMANTAN
3. SOUTH
KALIMANTAN
5. NORTH
SULAWESI
2. CENTRAL
KALIMANTAN
4. EAST
KALIMANTAN
9. GORONTALO7. SOUTH
SULAWESI
Internet Users
Population
Kalimantan Sulawesi
Unit: Million
6. CENTRAL
SULAWESI
8. SOUTHEAST
SULAWESI
10. WEST
SULAWESI
01 02
04
03
PENETRATION
17.8% 23.8% 27.8% 34.1% 26.1%
23.2% 23.3% 27.6% 23.5% 34.0%
4.95
0.88
0.59
2.54
4.11 4.12
0.98 0.96
Internet
Users
Population
Unit: Million
2.52
0.70 0.82
2.97
8.90
2.55
1.17 1.31
3.03
0.60
0.31 0.45
Internet User Penetration in Kalimantan and Sulawesi Regions
05
06
07
08
09
10

36
Internet User Penetration in Nusa Tenggara, Maluku, and Papua Regions
01. WEST NUSA
TENGGARA
03. MALUKU 05. WEST PAPUA
02. EAST NUSA
TENGGARA
04. NORTH MALUKU 06. PAPUA
Internet Users
Population
Unit: Million
PENETRATION
38.3%
21.6%
15.7%
28.9%
22.3%
18.7%
5.26
1.73
1.19
0.88
3.24
5.02
1.92
1.14
0.39
0.22
0.14
0.93
01 02
03
05
04
06

37
ANNEX
PROFILE

38
APJII ESTABLISHMENT
The Indonesia Internet Service Provider Association (APJII) was established in Jakarta on 15 May 1996 by the Deed of
Establishment No.148 dated 16 August 1996 made by Notary Darbi, SH.
APJII was established by Internet Service Providers that had obtained official licenses from the Government,
considering that internet as global information and communication media is a strategic technology and facility
that needs to be controlled properly so it can be optimally utilized in supporting various development activities in
Indonesia as well as educating the nation.
APJII Founders
APJII Missions APJII Objectives
APJII’s Principle and Foundations
• PT. Rahajasa Media Internet ;
• PT. Indosat, Tbk ;
• PT. IndoInternet ;
• PT. Cyberindo Aditama ;
• PT. Melvar Lintasnusa ;
• PT. Bitnet Komunikasindo ;
• PT. Grahasedaya Serasi ;
• PT. Khasanah Timur Indonesia ;
• PT. Jasa Jejaring Wasantara ;
• PT. Centrin Utama (Saat Ini PT. Centrin
Online Tbk) ;
• To support internet development in
Indonesia;
• To manage internet resources to
internet community in Indonesia; and
• To improve human resources potential
in internet technology.
a) APJII adopts Pancasila as the sole principle;
b) APJII foundations:
• PT. Transmedia Mitra Indonesia (Saat Ini
PT. Transmedia Indonesia) ;
• PT. Sejahtera Globalindo ;
• PT. Pos Indonesia (Saat Ini PT. Bhakti
Wasantara Net) ;
• PT. Visionindo Network Perdana ;
• PT. Promindo Global Internet ;
• PT. Uninet Bhaktinusa ;
• PT. Meganusa Lintasbuana ;
• PT. Carakayasa Binekatara ;
• PT. Alpha Netindo Pratama.
• To facilitate its members in providing quality
internet services for the people of Indonesia;
• To promote internet in supporting human
resources development in Indonesia;
• To support the creation of business
opportunities for Indonesian entrepreneurs
by providing global information and
communication facilities;
• To support the Government in its effort to realize
economic equality in Indonesia by providing
equal access opportunities to information and
communication in all regions in Indonesia;
• To facilitate its members in providing sources of
information about Indonesia; and
• To improve people participation in international
cooperations.
c) APJII is not involved in politics, not
affiliated with any political group or party,
and not pursuing material gain (non-profit
association).
1
3
2
• The 1945 Constitution as constitutional
foundation;
• Law Number 1 of 1987 on Chamber of
Commerce and Industry as structural
foundation; and
• APJII’s Articles of Association as
operational foundation.

39
APJII Structure and Instruments
APJII Main Duties
• National Conference;
• Extraordinary National Conference;
• National Working Meeting;
• APJII Open Policy Meeting (AOPM);
• Supervisory Board;
• Executive Board;
• Regional Executive Board; and
• Daily Executive Board.
5
4
• To maintain and develop a sense of unity
among its members;
• To protect the interests of its members in
carrying out their business in accordance with
applicable laws and regulations;
• To facilitate arbitration efforts by means
of mediating, reconciling, and settling the
disputes of interest among its members;
• To organize communication and consultation
among members, between members and
the Government, and between members and
domestic and foreign partner associations/
organizations, and business in general;
• To participate in determining relevant
policies in internet industry;
• To establish relationship with economic
and other agencies, both national and
international agencies related to and
beneficial to APJII; and
• To be Government partner in developing
national and international information and
communication facilities in order to mobilize
all available resources in integrated,
efficient, and effective ways;

40
APJII SERVICES
MEMBERSHIP
NUSANTARA INTERNET EXCHANGE (NIX)
INDONESIA INTERNET EXCHANGE (IIX)
1 2
• APJII member shall be business
entity that has obtained Internet
Service Provider License issued
by the Government and/or
authorized agencies and has
legitimate official business as
provided in laws and regulations
of the Republic of Indonesia
is represented by its owner or
director; and
• APJII honorary member means
individual figure, government
official, and organization/
body/institution whose
considered having merits and/or
participation in the progress of
the organization (APJII).
•
NIX is a Government program through the Ministry of Communication and Information of the Republic of
Indonesia which will be built and enabled by 33 (thirty-three) provinces in Indonesia.
Currently APJII has established cooperation with the telecommunication company the winning bidder to
operate NIX at the Institute for Telecommunication and Information Financial Provision and Management,
Directorate General of Post and Information Operations, Ministry of Communication and Information of the
Republic of Indonesia.
Currently the results of such cooperation have been realized in the following cities: Medan (North
Sumatera), Surabaya (East Java), Denpasar (Bali), and Palembang (South Sumatera), followed by Jakarta,
Batam (Riau Islands), Bandung (West Java), Semarang (Central Java), Yogyakarta, Solo, and the possibility of
other provincial capital cities.
IIX is national interconnection service between Internet Service
Providers (ISPs) in Indonesia, so that subscriber of one ISP may
communicate with other ISP subscriber located in Indonesia
with easy access and affordable cost. IIX management is a
strategic program that became one of APJII’s main services
to its members which was initiated in 1996. IIX service
management has been gradually developed professionally.
Current locations of IIX nodes:
• 3 (three) nodes, one is located in Jakarta and independently
managed by APJII;
• 2 (two) nodes each in Jakarta and Surabaya are results of
cooperation between APJII and Data Center Provider in both
cities;
• 1 (one) node in Yogyakarta Regional Executive Board;
• 1 (one) node in East Java Regional Executive Board;
• 1 (one) node in Bali Regional Executive Board;
• 1 (one) node in Central Java Regional Executive Board;
• 1 (one) node in North Sumatera Regional Executive Board;
• 1 (one) node in Southern Sumatera Regional Executive Board;
and
• Following are West Jave, Riau, and Riau Islands Regional
Executive Boards.
3

41
4
INDONESIA NETWORK INFORMATIAN CENTRE (ID-NIC)
ID-NIC is part of APJII which has responsibility to manage IP address
allocation in Indonesia. ID-NIC is one of National Internet Registries
under Asia Pacific Network Information Center (APNIC) which is Regional
Internet Registry based in Brisbane, Australia. The internet functions
properly because of communication between devices (machines) in a
numbering-based network which is now known as Internet Protocol
version 4.
Services
• Allocation of Internet Protocol version 4 (IPv4) and version 6 (IPv6);
• Reverse DNS;
• Route Object; and
• Other related data.
Services are intended for
• Internet Service Providers, Network Access Points, and holders of
other telecommunication licenses issued by the regulator or the
Government;
• Government or private agencies;
• Educational institutions; and
• Individuals;
Benefits of having own IP Allocation
• Relatively large allocation (minimum of 256 IPs);
• No need to change IP address when changing Internet Service
Provider;
• Clear company identity in ‘Who-Is’ data; and
• Can do multi-homing which use 2 (two) or more Internet Service
Providers as gateway or to connect to the Internet Exchange.
Trainings
ID-NIC regularly organizes trainings related to Internet Protocol
utilization in cooperation with APNIC and other competent institutions.
The trainings are intended for technical personnel who work at Internet
Service Providers, general companies, government agencies, and
academic institutions.
For further information please contact:
Cyber Building I, 3A floor 11th floor
Jl. Kuningan Barat No.8, Jakarta 12710
Phone : 021.52960634,
Fax : 021.52960635
Email : info@apjii.or.id
parlin.marius@apjii.or.id
WebSite : www.apjii.or.id
www.idnic.net

42

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