Presentation on theme: "Affordable & Effective ICT for Rural Indonesia"— Presentation transcript:
1 Affordable & Effective ICT for Rural Indonesia Challenge: Delivering Low cost ICT and better performance for servicesStrategic Project ManagementPT Telekomunikasi Indonesia Tbk.Jakarta, 23 March 2011, Indonesia Country Workshop on Rural ICT Development, ITU/ADB
2 Challenges for ICT in Indonesia 13,700 islands (no 1 in the world)300 ethnic groups (no 1)1,900 km x 5,100 km (no 1)240 Millions population (no 4)largely rural and poor areas (no 3)Desa/villageChallengeHow to provide affordable & Effective ICT with better performance at ruralPercentage of Poor peoplelow density of ICT, is a growth opportunitySource World Bank: Making the New Indonesia Work for the Poor, 2006
3 Source Badan pusat statistik, Berita Resmi Statistik No. 45/07/Th Source Badan pusat statistik, Berita Resmi Statistik No. 45/07/Th. XIII, 1 Juli 2010Garis Kemiskinan Nasional Rp per kapita per bulan, Maret 2010 (Rp 7,000/day)
4 Indonesia Competitiveness Index In the global context, Indonesia competitiveness index based on the Wolrd EconomicForum (WEF) ranked 54, WEF Competitiveness is based on the pillars :effectiveness of the functions ofpublic and private institutions,availability of infrastructure,macroeconomic framework is stable,health facilities and basic education,higher education and training,market efficiency,benefits of technology utilization,production process, innovation.Opportunity for improvementIncrease the competitiveness index will require technology as an accelerator.
5 Integrated Empowerment Model for Rural Energy: electricity, engineConnectivity: digitally & physically connectedEducation: knowledge, skill improvementFinancial: capital, transfer, save, transactionHealth: walk, drive, think5 mother industryCK PrahaladAffordable & effectiveness Technology , productive people, unlimited resourcesIncrease in Competitiveness indexFisheryAgriculturesFoodsCraftstourismManufac……..Industry to the prosperitydigital media services : e-finance, e-store, e-trade, e-paymnt, e-...Local & Global Markets
6 Case Indonesia Indonesia Raya Poor FishermanA fisherman, dreaming to own a fishing boat. There is no formal bank access for the poor in rural areas.ICT implementation for banks in rural areas requires a high cost ICTChallenge How can ICT address the needs of delivering low cost banking to reach all Indonesia's population ?The bank is part of mother industry for rural economic growth
7 ICT facts in Indonesia cellular 200 millions subsc Internet 242,968,342 population30,000,000 Internet users as of Sept/09, 12.3% penetration27,338,560 Facebook users on August 31/10, 91% internet userscellular200 millions subsc
8 Affordable & Effective ICT Technology Options Affordable & effectiveness technology Delivering low cost services Business models can run, sustain and grow at BoP marketDelivering low cost affordable & effective ICT ServicesBoP: Bottom of Pyramid (people who have low income per capita per month)
9 ICT for Productivity everything as a service sarana transaksi keuanganBanking & Payment Ecosystem servicesmoney transfer serviceseMoney serviceseducation ecosystem servicesdigital music ecosystem servicesElectronic voucher agent serviceseverything as a service
10 Delivering low cost affordable & effective ICT Services High CostLow CostICT InfrastructureOwnSharedICT operationBusiness ModelBuyPay as you goTime DeliverySlowFastService ApplicCustomParameterized
11 Case.. LIVE ! Low Cost ICT for rural BPR & Koperasi … with better performance for services… othersBillerSharedData CenterDRCServerSoftwareDevelopmentIct operationProcessingReporting engineCloudManaged Financial ServicesLive Since 28 Apr 2009400 branch online1 million people connected to the bankBusiness ModelPay as you goFast food modelBankKoperasiBankKoperasiBranchBranchBranchBranchelectronic channel: EDC, Mobile, Internet, ATMeverywhere, plug n play rural banking/koperasi
12 How Low Can You Go in Rural …with better performance… Affordable & Effective Technology for RuralHow Low Can You Go in Rural …with better performance…More standard = get more shareMore Share & simple = get lower costLower cost = get bigger marketSimple Green ScreenLow bandwidth 9,6 kbpslow spec PCsecure & stable
13 Business Model is the Key Cloud service ModelPay as you goPaymentPartnership/Self serviceEmpowering local enterpreneurChannelEcosystem ServicesServicesSharing OperationOperationSharing InfrastructureInfrastructure
14 Case M-Kios Recharge system for prepaid services (pay as you go) e-Recharge AgentTELKOMSELAuthorized DealerDelivering electronic recharge servicesAgentSubscriber
15 Industry Model National Focuses – Effective ICT Industries Creative Based value based priceCloud ServicesEverything as a servicesNational FocusesContent/App Service ProviderWeb social, market place, ecommerce, search, advertising, , chat, voice, Everything as a ServicePushing the affordable availability of ecosystem services, to encourage the acceleration of ICT usersGrow new service industries, The diversity and competition in ICT services, not infrastructure competition. Provision of services without having to build infrastructureConnectivity Service Provider(Virtual Network/ non Infrastructure)Telephony, Internet, vpnInfrastructure Consolidation for national efficiency Growing market wholesalers, Economies of scale infrastructure business cost per service is lower, avoid duplication of infrastructure , incentive for infrastructure providerInfrastructure Sharing Service ProviderFibers, Radio Channel, tower, BTS, ducting, Data Center, serverDevice Manufacture & Software Product:Server, CPE, Router, Modem, Cable, Radio, Sw ProductGranting special incentives to manufacturing industries of ICT devices and software . Availability of shared facilities necessary to grow the manufacturing industry.infrastructure sharing can be effectively leveraged to roll-out services at faster speed and at affordable cost.Capex based Cost based Price
16 ConclusionIndonesia has a unique geography and demography, and have an impact on the unique challenges for the deployment of ICTThe deployment of ICT in rural areas, require innovations that produce affordable and appropriate services for Indonesia ruralA cheaper service with better performance of services in rural areas, can be done by building a sustainable business model among the partnersTo get an affordable and effective ICT services , we need to develop industrial model of sharing infrastructure, operation sharing, and encouraging the growth of content and applications industry in the cloudCloud service is an appropriate ICT model for rural
17 Thank You……with the benefit of ICT let us prosper together…..
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