Indonesian Government to boost fixed access by 2019

The news that Broadband TV Connect Asia (12th-13th April, 2016) is moving to Jakarta, gives us a great opportunity to conduct a quick overview of the Indonesian fixed market.                               Jakarta-skyline-Indonesia

Broadband TV Connect Asia is Asia’s largest content-led telecoms and media event for telcos and broadcasters, making Indonesia – which represents the third largest mobile market in terms of subscriptions in the Asia-Pacific region (behind China and India) – a great host country.

Indeed, in October 2014, the Indonesian government launched its National Broadband Plan (2014-2019), which aims to provide fixed access in urban areas to 71% of households (at 20Mbps) and 30% of the population, and mobile access to the entire population (1Mbps). In rural areas, access to fixed broadband infrastructure is expected to reach 49% of households (10Mbps) and 6% of the population and mobile access to 52% of the population (1Mbps).

The total budget allocated for the program is IDR278tn ($23.2bn), with 10% of the total budget coming from the state.

Telkom is the largest fixed broadband provider in Indonesia, well ahead of competitors such as Kabelvision and Indosat. By end-April 2015, Telkom FTTx “IndiHome” had been made available in 60 towns and cities across the country, following its launch in 3Q14. By end-2015, Telkom aims to sign up 3 million fiber subscribers, by expanding its fiber network in eastern Indonesia.

Fiber market share will grow further as Singapore ISP, MyRepublic, launched a fiber broadband service in the country in July 2015. At launch, fiber service was available in nine locations in Indonesia, including Bahasa, Palembang, and Surabaya.

For a more detailed overview of market dynamics in Indonesia, download Ovum’s Indonesia Market Outlook 2015 for free. Written by Vivek Roy, Research Analyst, Asia-Pacific, Ovum 

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