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Affordable & Effective ICT for Rural Indonesia Challenge: Delivering Low cost ICT and better performance for services Strategic.

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Presentation on theme: "Affordable & Effective ICT for Rural Indonesia Challenge: Delivering Low cost ICT and better performance for services Strategic."— Presentation transcript:

1 Affordable & Effective ICT for Rural Indonesia Challenge: Delivering Low cost ICT and better performance for services Strategic Project Management PT 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/village Source World Bank: Making the New Indonesia Work for the Poor, 2006 Percentage of Poor people low density of ICT, is a growth opportunity Challenge How to provide affordable & Effective ICT with better performance at rural

3 Source Badan pusat statistik, Berita Resmi Statistik No. 45/07/Th. XIII, 1 Juli 2010 Garis 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 Economic Forum (WEF) ranked 54, WEF Competitiveness is based on the pillars : 1.effectiveness of the functions of public and private institutions, 2.availability of infrastructure, 3.macroeconomic framework is stable, 4.health facilities and basic education, 5.higher education and training, 6.market efficiency, 7.benefits of technology utilization, 8.production process, innovation. Increase the competitiveness index will require technology as an accelerator. Opportunity for improvement

5 Integrated Empowerment Model for Rural 1.Energy: electricity, engine 2.Connectivity: digitally & physically connected 3.Education: knowledge, skill improvement 4.Financial: capital, transfer, save, transaction 5.Health: walk, drive, think AgriculturesFoodsCraftstourism Affordable & effectiveness Technology, productive people, unlimited resources Local & Global Markets Increase in Competitiveness index digital media services : e-finance, e-store, e-trade, e-paymnt, e mother industry ManufacFishery…….. Industry to the prosperity CK Prahalad

6 Indonesia Raya Poor Fisherman A 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 ICT Case Indonesia Challenge 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 Internet 242,968,342 population 30,000,000 Internet users as of Sept/09, 12.3% penetration 27,338,560 Facebook users on August 31/10, 91% internet users Internet 242,968,342 population 30,000,000 Internet users as of Sept/09, 12.3% penetration 27,338,560 Facebook users on August 31/10, 91% internet users cellular 200 millions subsc cellular 200 millions subsc ICT facts in Indonesia

8 Affordable & Effective ICT Delivering low cost affordable & effective ICT Services Technology Options Affordable & effectiveness technology Delivering low cost services Business models can run, sustain and grow at BoP market BoP: Bottom of Pyramid (people who have low income per capita per month)

9 ICT for Productivity sarana transaksi keuangan money transfer services Banking & Payment Ecosystem services eMoney services digital music ecosystem services Electronic voucher agent services education ecosystem services everything as a service

10 Delivering low cost affordable & effective ICT Services High CostLow Cost ICT InfrastructureOwnShared ICT operationOwnShared Business ModelBuyPay as you go Time DeliverySlowFast Service ApplicCustomParameterized

11 Case.. LIVE ! Low Cost ICT for rural BPR & Koperasi … with better performance for services… everywhere, plug n play rural banking/koperasi Cloud Managed Financial Services Cloud Managed Financial Services BankKoperasi BankKoperasi Branch electronic channel: EDC, Mobile, Internet, ATM Shared Data Center DRC Server Software Development Ict operation Processing Reporting engine Biller others Business Model - Pay as you go - Fast food model Live Since 28 Apr branch online 1 million people connected to the bank

12 How Low Can You Go in Rural …with better performance… 1.More standard = get more share 2.More Share & simple = get lower cost 3.Lower cost = get bigger market Affordable & Effective Technology for Rural Simple Green Screen - Low bandwidth 9,6 kbps - low spec PC - secure & stable

13 Business Model is the Key Pay as you go Sharing Infrastructure Ecosystem Services Payment Services Infrastructure Sharing Operation Operation Channel Partnership/ Self service Empowering local enterpreneur Cloud service Model

14 Case M-Kios TELKOMSEL Authorized Dealer Agent Subscriber Recharge system for prepaid services (pay as you go) e-Recharge Agent Delivering electronic recharge services

15 Industry Model National Focuses – Effective ICT Industries Device Manufacture & Software Product: Server, CPE, Router, Modem, Cable, Radio, Sw Product Device Manufacture & Software Product: Server, CPE, Router, Modem, Cable, Radio, Sw Product Infrastructure Sharing Service Provider Fibers, Radio Channel, tower, BTS, ducting, Data Center, server Infrastructure Sharing Service Provider Fibers, Radio Channel, tower, BTS, ducting, Data Center, server Content/App Service Provider Web social, market place, ecommerce, search, advertising, , chat, voice, Everything as a Service Content/App Service Provider Web social, market place, ecommerce, search, advertising, , chat, voice, Everything as a Service Connectivity Service Provider (Virtual Network/ non Infrastructure) Telephony, Internet, vpn Connectivity Service Provider (Virtual Network/ non Infrastructure) Telephony, Internet, vpn Infrastructure Consolidation for national efficiency Growing market wholesalers, Economies of scale infrastructure business cost per service is lower, avoid duplication of infrastructure, incentive for infrastructure provider Granting special incentives to manufacturing industries of ICT devices and software. Availability of shared facilities necessary to grow the manufacturing industry. Grow new service industries, The diversity and competition in ICT services, not infrastructure competition. Provision of services without having to build infrastructure Pushing the affordable availability of ecosystem services, to encourage the acceleration of ICT users Capex based Cost based Price Creative Based value based price National Focuses infrastructure sharing can be effectively leveraged to roll-out services at faster speed and at affordable cost. Cloud Services Everything as a services Cloud Services Everything as a services

16 Conclusion 1.Indonesia has a unique geography and demography, and have an impact on the unique challenges for the deployment of ICT 2.The deployment of ICT in rural areas, require innovations that produce affordable and appropriate services for Indonesia rural 3.A cheaper service with better performance of services in rural areas, can be done by building a sustainable business model among the partners 4.To 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 cloud 5.Cloud service is an appropriate ICT model for rural

17 Thank You ……with the benefit of ICT let us prosper together…..


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