THE ACCELERATION OF ECONOMIC DEVELOPMENT THROUGH FIXED BROADBAND NETWORK SETYANTO P. SANTOSA CHAIRMAN MASYARAKAT TELEMATIKA INDONESIA [MASTEL] 08 April 2010

sps From Agricultural to Conceptual

sps The Information Revolution, Driver of the Knowledge Economy in a Global World

sps ROLE OF BROADBAND "for every one percentage point increase in broadband penetration in a state, employment is projected to increase by 0.2 to 0.3 percent per year” (brooking institute)

sps ROLE OF BROADBAND  Broadband needs to be considered as basic national infrastructure, as it will fundamentally reshape the world in the 21st century and change the way services are delivered – from e-health to e-education to e-commerce to e- government.  Broadband is the most powerful tool ever devised to drive social and economic development, and accelerate progress towards the Millennium Development Goals.  Broadband is becoming a prerequisite to economic opportunity for individuals, small businesses and communities. Those without broadband and the skills to use broadband-enabled technologies are becoming more isolated from the modern American economy.  Broadband can provide significant benefits to the next generation of entrepreneurs and small businesses—the engines of job creation and economic growth for the country.

sps BROADBAND & SMEs  It allows small businesses to achieve operational scale more quickly. Broadband and associated ICTs can help lower company start-up costs through faster business registration and improved access to customers and suppliers.  It gives SMEs access to new markets and opportunities by lowering the barriers of physical scale and allowing them to compete for customers who previously turned exclusively to larger suppliers.  It allow small businesses to increase efficiency, improve market access, reduce costs and increase the speed of both transactions and interactions.  E-commerce solutions eliminate geographic barriers to getting a business's message and product out to a broad audience.  60 million Americans go online every day to find a product or service, but only 24% of small businesses use e-commerce applications to sell online

sps BROADBAND & ECONOMIC SECTORS OECD report urges governments to invest in open-access high-speed national fiber networks that can serve as the future delivery mechanism for a huge range of new and innovative public sector services. And despite the large initial capital investment needed – typically US$ 1,500- 2,500 per household connected – the report shows that National Broadband Networks can pay for themselves within ten years, through dramatic savings in just four key economic sectors: electricity healthcare road transport Education cost savings across the four sectors of just 0.5%-1.5% would be sufficient to justify the cost of laying high-speed fiber-to-the- home via a national point-to-point network.

sps The Positive Side of Indonesian ICT Development Mobile and Internet Tariffs are among the cheapest in SE Asia Large growths in Mobile Subscribers for several years The growing applications and contents in Internet and Mobile services, such as IP-TV, streaming videos, games, entertainments, BlackBerry, etc. Indonesia is among the World's largest users of Web 2.0 Social Networking, such as Blogs, Facebook, Multiply, Youtube, YM, Chatting, etc

sps The Negative Side of the Indonesian ICT Development The declining profit margins of Operators due to very intense tariff competition The lowering of Quality of Service, especially 3G and mobile Internet services Low or little profits from Web, Internet and Social Networks, due to average low income of Indonesians ICT growth has not been accompanied by economic growth; little value added results

sps ICT Indicators Population in 2008 = 228,523,300 Households in 2008 = 57,716,100 Income per Capita = Rp 7.5 millions PDB per Capita = Rp 8.7 millions per year % of Households with Fixed Phones = 12.69% (24.51% in cities, 3.72% in villages)‏

sps INFRASTRUKTUR DATA 2008 INDONESIA (UN E-Gov Survey 2008) Internet / 100 Users7.18 PC / 100 Users1.47 Cellular Subs /100 users28.30 Main Telephone Lines/100 Users6.57 Broadband / 100 Users0.05

sps Negara Peringkat Kesiapan Teknologi (Sumber: Global Competitiveness Report , World Economic Forum) Daya Saing Daya Saing Teknologi Tekno- logi Maju Daya Serap Teknologi Regulasi TIK FDI dan Transfer Teknologi Jasa Seluler Pengguna Internet Jumlah Komputer Broad- band Thailand Indonesia Vietnam Philipina Sri Lanka Kamboja e- Readiness 2008 (Sumber: The Economist Intelligence Unit, 2007) NegaraPeringkatNilai TotalAksesBisnisSos BudHukumKebijakan Adopsi Bisnis Thailand475,223,806,995,075,905,255,10 Philipina554,903,206,564,534,505,205,45 Sri Lanka604,352,955,804,806,304,103,70 Vietnam654,032,256,313,804,404,603,75 Indonesia683,592,306,493,533,203,403,20 E-Readiness Sumber : RPJMN

sps Sumber : Bappenas 2009 paparan RPJMN  Target pertumbuhan ekonomi 7% pada 2014 membutuhkan dana rata- rata Rp triliun setiap tahun dengan komposisi:  Pemerintah: 20%  Swasta : 80%  Bagaimana mengamankan 80% dana yang berasal dari swasta? PERTUMBUHAN EKONOMI 7% YANG BERKEADILAN Kepercayaan kepada Pemerintah Iklim Investasi yang Kondusif Dukungan Ketahanan Sosial  Reformasi birokrasi  Perbaikan pelayanan publik  Pemberantasan korupsi, dst  Penyederhanaan prosedur perijinan  Stabilitas makro ekonomi  Perbaikan sistem logistik nasional, dst  Pengentasan kemiskinan  Peningkatan kesehatan masyarakat  Peningkatan kualitas pendidikan, dst Penguatan Pertahanan Pembangunan Infrastruktur Ketahanan Energi Ketahanan Pangan

sps MENGAPA FIXED BROADBAND ?  Mostly dedicated sampai ke last-miles  Wireless pada umumnya untuk low-traffic  Infrastruktur Dasar  Long-term investment  Public Private Partnership  Optimalisasi Pemanfaatan Palapa Ring  Industri Kreatif sangat membutuhkan

sps TERIMAKASIH Broadband for All