Will Indonesia finally reach its full potential?
Isabelle Paradis
January 2005

With its population of 220 million people, the world's fourth largest country is one of the strategic growth markets in Asia. However, Indonesia’s population is also one of the least connected in the region with only 4.4%, 12.4% and 0.4% fixed, mobile and Internet penetration respectively at the end of September 2004. Its connectivity level compares poorly with neighbouring countries like Singapore, where fixed and mobile penetration are as high as 44.9% and 87.5% and Malaysia with fixed and mobile penetrations of 17.8% and 48.5%.

The rapid growth before of the early 1990s was temporarily suspended during the 1997-98 crisis, however it has since resumed. With the total number of mobile subscribers growing by 59.3% in 2003 and by 44.6% in the first 9 months of 2004, Indonesia is now viewed as one of the top mobile growth markets in the industry. The country’s mobile market is estimated to have reached 26.9 million subscribers at the end of September 2004. Telkomsel, Excelcom, and Indosat (through Satelindo and IM3) dominate this sector, collectively controlling over 98% of Indonesia’s mobile customers.

As of November 2004, the Indonesian government had allocated four 3G licenses. The first going to PT Cyber Access Communications (an affiliate of Telecom Asia Orange, a leading operator in Thailand) in October 2003, followed by three further licenses awarded to Natrindo, Indosat and Telkom in 2004. However, these four companies are yet to announce a launch date for their 3G service.

Find our more about this dynamic market in HOT TELECOM’s new 30-page country report.

More info: Indonesia - Country Profile