EIBN Presentation ICT Indonesia
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Indonesian ICT Market June 2015 Sector Report
Transcript of EIBN Presentation ICT Indonesia
Indonesian ICT Market
June 2015
Sector Report
ASEAN ICT Network Readiness Index
1] World Economic Forum compiled by IMC Institute, 2014
The Indonesian IT market is expected to grow at a compound annual growth rate (CAGR) of 17% over the 2011- 2015 period
ASEAN Mobile Phone User
ASEAN Mobile phone market size would reach 391 million in 2015. Indonesia is the fastest growing
mobile phone market in the Asia Pacific region with its current demographic bonus of 250 million people
[1] US Census Bureau, InternetWorldStats, Facebook, ITU, 2014
Indonesian ICT Market Structure
Provider
System/ Software
Solution OEM
The market potential for providing enterprises with ICT services in Indonesia is expected to reach US$ 3 billion
by 2015, while for the consumer services market revenue is estimated at approximately US$ 1.5 billion.
Indonesian IT spending will continue to record double digit year-on-year growth, achieving overU$ 16.5 billion end of 2014
Indonesian ICT Infrastructure
The quadrupling of Internet users in Indonesia by 2016 will translate into a US$4.5 billion business opportunity
for not only mobile operators, but also others providing Internet-based services to consumers and enterprises
Indonesian MNO Composition
• Telkomsel is the mobile arm of the main incumbent PT Telkom. 65% owned by
Telkom while the remaining 35% belong to Singapore Telecommunications (SingTel)
• Indosat is 20.1% owned by public, 65% by Qtel Ooredoo from Qatar and 14.9% by
Indonesian government
• XL Axiata belonged to Axiata Group Berhad (66.5%), and Etisalat (16%).
[1] Tribun News, 2014
Indonesian Mobile users subscribers preference
9 (nine) licensed operators
providing services at national
level
Dominated by three of them:
•PT Telkomsel with its
products Halo and Simpati
•PT Indosat with Matrix and
Mentari
•XL Axiata with XL
With majority of subscribers
use prepaid SIM card [1] Wireless Intelligence, 2013
Indonesian Mobile Phone User vs Internet Penetration
The number of Internet users in Indonesia is expected to rocket from 40 million in 2011 to 175 million by 2016,
accompanied by a boom in data connection subscribers growth from 52 million in 2011 to 167 million in 2016.
•An established Google office in Jakarta since 2012 •#1 twitter city in 2013 for Jakarta • the country is 4th world largest Facebook subscribers
[1] Indonesian Internet Governance Forum, 2013
Smartphone vs Standard Phone
[1] The Nielsen Company Survey, 2013
Smartphone users has now increased in total for 34% (57 million) from total mobile phone owner by 2014
Indonesian Smartphone Utilization
Of the 167 million data connection by 2016, 109 million will be on smart phones,
while the remaining 22 million will be on tablets and large screen devices.
[1] Google’s “Our Mobile Planet” Report, 2014
Indonesian Banking Penetration [1] Euromonitor, 2012
Internet as a Payment Partner?
In an era of modern technology where only 47% from the total population own bank account,
branchless banking is an instant solution for efficient & effective cashless society
[1] Sharing VisionTM , 2013
Indonesian Cards vs m-Banking
Credit and Debit/ATM card transactions reached IDR 3,698 Trillion compared to IDR 3,642 Trillion via internet banking
[1] Bank Indonesia, 2012
Percentage of Online Retailers
The enterprise service market in Indonesia is expected to reach $3.86 billion by 2019 at a CAGR of 18.6%.
[1] Frost & Sullivan, July 2014
Indonesian E-Commerce Timeline
[1] UBS Global Research, June 2014
Indonesian e-Retail Actual & Projection
The market potential for consumer services is estimated at approximately US$ 1.5 billion by 2019.
[1] Euromonitor Retailing In Indonesia, 2012
Indonesian Insurance Market Projection
Number of Indonesian covered by health insurance is 176 million by June 2013, 28% from total is still uncovered
[1] Munich Re-assurance Economic Research, 2014
Life Insurance Growth Property & Casualty Insurance Growth
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10,000,000
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Year
Numbers of Vehicle
Indonesian Auto i-Insurance Potential
Numbers of vehicles at 104,2 million total in 2013, only 0.5% are fully insured according to Ernst&Young latest report
[1] Indonesian Central Bureau of Statistics, 2014
e-Government in Jakarta city parking
Numbers of vehicles with 4 or more tires in Indonesia reached 16 million total in 2014, average rise in Jakarta itself is 1500 units per day.
[1] Jakarta Municipal Transportation Agency, 2014
ROAD VEHICLES
CONSTRICTED ROAD ESCALATION
TYRES≥4 VEHICLE NUMBERS
(in thousand)\
5.25
4.41
3.81
2.838
2.335 2.106
1.2 1.174 1.143
0.704 0.265
0.215 0.15 0.128
US
$/H
ou
r Parking rates in Major Cities
12,550 on street parking sites mostly covered by organized illegal “parker” , though in average every vehicles paid merely USD 1.2-1.4 per annum to the city administration.
[1] Smart City: Parking Solution, Mata Biru, 2014
Do it e-Ndonesian way!
The city target revenues from on-street parking this year USD 75 million, more than triple last year’s take.
Summary
• INDONESIA IS WITHIN THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS ECONOMIC COMMUNITY WHICH HAS OVER THAN 600 MILLION INHABITANTS • COUNTRY FOREIGN DIRECT INVESTMENT (FDI) REALIZATION IN 2014 WAS UP 16.2% FROM 2013 WHICH IN TOTAL EXCEEDED U$37 BILLION • ICT SECTOR CONTRIBUTED FOR MORE THAN 3% OF ASEAN GDP AT THE VALUE ABOVE US$32 BILLION AND EMPLOYS AROUND 11.7 MILLION PEOPLE • JAKARTA IS THE #1 TWITTER CITY IN 2013 AND INDONESIA IS THE 4TH LARGEST FACEBOOK SUBSCRIBERS IN THE WORLD • OVER THAN 169.7 MILLION MOBILE PHONE USERS IN 2014 IN WHICH 34% OF THEM USE SMARTPHONE IN THE COUNTRY • MAJOR MNOs: TELKOMSEL HAD NEARLY 40% OF MARKET SHARE , PT INDOSAT AND XL AXIATA BOTH TWO HAVING 17-18% OF SUBSCRIBERS • IT SPENDING IN INDONESIA CONTINUED TO RECORD DOUBLE DIGIT YEAR-ON-YEAR GROWTH, ACHIEVING U$ 16.5 BILLION BY THE END OF 2014 • OPTIMIZATION OF FINANCIAL: E-COMMERCE AND I-BANKING SECTORS MAXIMIZE UTILIZATION NUMBERS OF 60 MIO SMART PHONE USERS • i-INSURANCE IS A PERFECT INSTANT SOLUTION LOOKING AT HUNDRED OF MILLIONS UNINSURED PEOPLE,VEHICLES AND PROPERTY
Thank you for your attention!
