INDUSTRIAL CAPSULE: COMPUTER AND

RELATED SERVICES IN INDONESIA

24 Apr 2017

OVERVIEW
Continuing development of the Indonesian internet infrastructure and rising consumer interest in digital
services drove up the Indonesian computer and related services industry by 7% in 2016, to IDR83.0 trillion.
All of the major product groups recorded increasing penetration among consumers, which made
investments in digital platforms such as e-commerce and banking systems reasonable. In the consumer
segment mobile in particular attained a significant amount of interest due to stronger mobile infrastructure,
compared with broadband connections, while business clients opted for software solutions, cloud
computing and data centre services.
Expanding use of computers and the internet represented a major driving force for the industry, as the
expanding potential client base motivated investments in IT services’ capabilities. In 2016 possession of
personal computers among households grew by one percentage point to 20%, and that of smartphones by
two percentage points to 8%. Subscriptions to fixed-line broadband internet grew by 13% over the year to
3.2 million, while subscriptions to mobile were up by 28% to 137.8 million. In addition, among businesses,
70% of enterprises used a computer in 2016, up from 66% a year earlier, while 63% of all businesses used
the internet, up from 58%.
Internet usability in Indonesia, however, stood at a low level, which remained a major issue for the
computer and related services industry’s expansion during 2016. As of 2016, just 25% of the total
Indonesian population were using the internet, up from 22% a year earlier. This represented a considerably
lower figure compared with China, where usability stood at 53% in 2016, and Australia, where the indicator
was at 86%. Furthermore, internet speeds in Indonesia was as low as 4Mbps, on par with China, although
half the average speed in Australia, based on various metrics websites.
Internet infrastructure, therefore, was under expansion in Indonesia. Over 2016, the country’s
telecommunications companies ramped up capital spending, aiming to expand their coverage of higher-
speed internet services, based on 3G, 4G and fibre-optic technologies. For instance, the country’s largest
local telecom company, Telekomunikasi Indonesia Tbk PT, increased its investments by 17% year-on-year
to IDR19.9 trillion over Q1-3 2016. Furthermore, the Indonesian Government was implementing the
Indonesia Broadband Plan 2014-2019 programme with the goal of addressing the issue of inadequate access
to broadband internet in the country.

© Euromonitor International 2017 www.euromonitor.com

MARKET DEMAND

PRODUCER SHARES

© Euromonitor International 2017 www.euromonitor.com

PRODUCER PROFITABILITY

DEFINITIONS
Computer and Related Services
Computer and related services is an aggregation of Software and hardware consultancy, Data
processing and database services and Other computer-related services.

Software and Hardware Consultancy

This category includes consultancy on type and configuration of hardware with or without associated
software applications by analysing the users' needs and problems and presenting the best solution;
production, supply and documentation of ready-made (non-customized) software.

Data Processing and Database Services

This category includes processing of data employing either the customer's.

Other Computer-Related Services

This category includes maintenance and repair of computer, typewriters, photocopy and thermo copy
machines, electronic calculating machines, cash registers as well as such services as computer disaster
recovery, software installation services, other computer-related services n.e.c.

© Euromonitor International 2017 www.euromonitor.com