1. Indonesia Country Workshop on Rural ICT Development Summary of Indonesia Country Report Arif Wismadi ADB/ITU Project on “Rural Information and Communications Technology Policy Advocacy, Knowledge Sharing, and Capacity Building” 23rd – 24th March 2011 Menara Peninsula Hotel, Jakarta, Indonesia

2. Contents • Introduction to the workshop • The structure of country report • The expected contribution of the sessions

3. Introduction • The Workshop is organised within the framework of the joint ITU/ADB Project on “Rural ICT Policy Advocacy, Capacity Building and Knowledge Sharing”. • The project is envisaged to lead to the promotion and deployment of rural ICT development as well as to enhance the human capacities of regulators and policy makers in Asia-Pacific countries through development of toolkit for policy makers and knowledge sharing and human capacity building. • The project is undertaking of nine country case studies which include: Cambodia, Mongolia, India, Indonesia, Malaysia, People’s Republic of China, Republic of Korea, Philippines, and Thailand.

4. Workshop Objectives • Review and validate the interim country report; • Obtain additional data and information as well as comments and suggestions from local stakeholders, invited experts, participants of the Workshop with an aim to enrich and finalise the report; • Provide an opportunity for stakeholder discussions on issues and matters related to rural ICT development which would lead to some recommendations for policy makers; • Promote collaboration and partnerships among local and international organisations and private sector.

5. The Structure of Country Report • Chapter 1, Country Overview • Chapter 2, National ICT Industry Status • Chapter 3, Status of Rural ICT in Indonesia • Chapter 4, Rural ICT Policies, Programs, Initiatives • Chapter 5, Case Examples of successful and innovative rural ICT projects • Chapter 6, Lessons, Opportunities, Constraints

6. Chapter 1Country Overview • 1.1 National geographic, demographic status • Spatial disparity and decentralize process. • High unemployment ,9 out of 10 are unemployed (160.81 mio of workforces). • HH income level < 1200 USD/year. • Gini index: increased 0.343 to 0.374 • Poverty incident 15,42% (34,96 mio pop) 2008. • SESSIONS: • National Policy on Intersectoral Approach for Rural ICT Development • Rural ICT for increasing the capacity of rural community

7. Chapter 1Country Overview • 1.2 Scope and status of rural areas, population • 75.666 villages, 63.52 percent of the poor in rural areas. • SESSIONS: • National Policy on Intersectoral Approach for Rural ICT Development • Rural ICT for increasing the capacity of rural community • Role of ICT to promote tourism industry, post disaster experience in Jogja

8. Chapter 2National ICT Industry Status • 2.1 ICT Market Background of Indonesia • Liberalization and competition started where penetration and coverage is still inadequate. • 2.2 ICT Regulatory Body • Independent Regulatory Body (IRB) to protect public right and interest, to support and to protect telecommunication business competition. • SESSIONS: • Regulatory Framework to sustain Rural ICT services: managing competition to sustain national ICT infrastructure • National Policy on Rural ICT: the transition and its lesson learnt

9. Chapter 2National ICT Industry Status • 2.3 ICT Industry Role for Indonesian Economy • ICT sector with increased growth 29% and share 1.96 (% GDP) • 2.4 Telecommunication Industry Status • Big market. Big investment. Providers increase 2.2% . Network Capacity grows 42.5% - 156.2%. • SESSIONS: • Regulatory Framework to sustain Rural ICT services: managing competition to sustain national ICT infrastructure • National Policy on Rural ICT: the transition and its lesson learnt • How commercial Internet Provider deals with rural area • Lesson learnt on serving rural banking

10. Chapter 3Status of Rural ICT in Indonesia • 3.1 The Digital Divide • Infrastructure (86%) in Sumatera, Java and Bali. Only 14% in Eastern Indonesia. • 3.2 ICT Penetration in Rural Area • High potential demand, low economy • Tele-density of Urban 35%, or at least 11-25%, Rural 0.25%. • 3.3 Technology Utilization of Rural IC in Indonesia • Technology to technology neutral • SESSIONS: • Initiative to serve the unserved • Community Based ICT Center Initiative: a CSR initiative toward market maturity • Role of SME in Rural ICT development: contribution for affordable solutions • SME in ICT: local content, job-opportunity and the capacity

11. Chapter 4Rural ICT Policies, Programs, Initiatives • 4.1. Background • Rural: high capital, low RoI • Affordability and rural specific demand • 4.2. History • Monopoly: Operational Cooperation scheme, doubled rural access, ‘93-’97 • Liberalized : introduce USO program, USO Fund • Rural Telecommunication Authority • Auction process • Output to outcome: Performance based contract • SESSIONS: • Implementation of USO Program in Indonesia: from regulatory conformance toward development performance • Options for Rural ICT Applications: market pull or technology push? • The benefits of Broadband

12. Chapter 5Case Examples of successful and innovative rural ICT projects • Case 1: • Local Government Initiative for E-Gov, Regency of Sragen • Case 2: • Central Government Infrastructure Provision: USO Program • Case 3: • Private Initiative Rural ICT Provision: Community ICT Center • Case 4: • Central Government Activity Based Infrastructure: E-Learning (Jardiknas) • SESSIONS: • Lesson from Jardiknas Program, critical success factors for rural e-learning • E-government initiative: changing the mindset • Managing Community ICT Center: the important factors to scaling up the model

13. Chapter 6Lessons, Opportunities, Constraints • This section highlight lessons learned, opportunities for further development of national rural ICT policy, and constraints that may impede such development. • This section provides specific findings that can be transferred to other countries of the region, and potentially incorporated in toolkits and other resources. • SESSIONS: • Deployment Challenge of Rural ICTInfrastructure: critical aspects to avoid cost and time overrun • Performance based contract to sustain ICT service: operator’s perspective: the driving factors to business process re-engineering • ICT infrastructure to monitor rural ICT services: SIMMLIK: do they comply to the contract?

14. Thank You Interim Report available at: http://www.itu.int/ITU-D/asp/CMS/Events/2011/ITU-ADB/Indonesia/index.asp Email contact: pustral-ugm@indo.net.id