Internet Industry is Predicted to Contribute US$ 26 billion to Indonesia’s GDP in 2016

Avi Tejo Bhaskoro - 21 October 2014

In the midst of government’s attempts to level up Indonesia’s internet ecosystem, internet-based businesses are predicted to be major contributor of the country’s revenue in the future. This is in line with the Indonesia Internet Provider Association’s (IIPA) prediction which stated that in two years, the business will contribute up to US$ 26 billion (around Rp 314 trillion) to the country’s GDP.

Theoretically, that fantastic number doesn’t come out of nowhere. It is in line with the increasing number of Indonesian internet users.  

The number of internet users here reaches 28% of the total population, and they have contributed to 1,3% of the country’s GDP. Thus, we are positive that the number may raise up to $26 million, since we predict that there will be 120 million internet users by 2016,” Samuel Pangerapan, IIPA’s Head, told The Jakarta Post.

He went on by saying that he, as well as every single internet ecosystem practitioners, do really hope that the new government, who is about to get inaugurated, will be on their side. Pangerapan added that he wants to see the new government taking Indonesia’s internet industry even higher.

Just to remind you, during the presidential election campaign period, Joko Widodo never went through any single stage without saying that he would take Indonesia’s IT scene even higher, in order to help him running a transparent governance. To achieve this noble goal, Pangerapan suggested that an equal distribution of internet is something non-negotiable. He wished that in the next five years, 80% of Indonesia’s total population would get connected through internet. He also stated that this unequal internet distribution has resulted on unequal distribution of internet connection price all over Indonesia.

“We also wish that the price of internet connection in Eastern part of Indonesia can be as cheap as in the Western part of Indonesia. In Java Island, people can have 2 Mb internet connection with only Rp 300,000, while it takes Rp 6 million for people in Eastern part of Indonesia to have the same speed. This is one of problems that must be solved by the new government,” Pangerapan added.

At least, that hope is not unrequited. The Indonesia Broadband Plan 2014-2019 which has just been launched by SBY reflects that there is a way to make the distribution of internet connection equal. Telkom International’s move to join SEA-US not so long ago, which aims to connect people from the U.S. to Eastern part of Indonesia, also indicated that the equal internet distribution has been the main theme of government’s work plan.

[Header illustration: Shutterstock]

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