Telecommunications

Indonesia 

Overview                                                                                           

 

USD Millions                  2004            2005            2006 (estimated)

Total Market Size           2,852            3,565            3,920

Total Local Production       363              417                458

Total Exports                       40                45                  50

Total Imports                  2,570            3,084            3,512

Import from the U.S.        1156            1,387            1,525

Note: The above statistics are unofficial estimates.

 

The country’s telecommunications sector underwent major regulatory restructuring leading to the previously exclusive domain of PT Telkom began to open up with the entry of Indosat, and Telkom starting to have a major impact on the international call business.  At present Indonesia has around 9 million fixed-lines telephones, representing a teledensity of only 4.0 lines per 100 people.  To stimulate the development of country’s teledensity rate, PT Telkom, PT Indosat and PT Bakerie Telecom deployed CDMA fixed-wireless service. 

 

The Indonesian cellular market is heating up and potentially lucrative as demand for mobile phones continues to increase.  With around 64 million subscribers in early 2007, a penetration of 28% indicates there is still plenty of room for growth.  The number of subscribers is forecasted to reach 76  to 80 million by the end of 2007.  The shape of the market is expected to undergo change as a number of new operators, with foreign partners, like Singapore Telecommunications Limited (Singtel), Singapore Technologies Telemedia (STT), Telecom Malaysia, Maxis, and Hutchinson, enter the market.  Three cellular operators – Telkomsel, Indosat and Excelcomindo - introduced Third Generation (3G) services in 2006.

 

 

Best Products/Services                                                                    

 

Base transceiver stations, switching, ancillary and transmission equipment, and cellular handsets, content providers.

 

 

Opportunities                                                                           

 

Indonesia’s telecommunication infrastructure market has good potential for wireless equipment, services and content provider companies.  The rapid expansion of the country’s cellular and fixed-wireless networks has driven increased spending for telecom infrastructure. 

 

Resources                                                                                   

 

Indonesian State Ministry of Communication and Information: www.kominfo.go.id