E-commerce boom expected in RI in three years<\/p>\n
JAKARTA (JP): E-commerce is expected to start booming in
\nIndonesia in three years thanks to a better telecommunications
\ninfrastructure, a growth in the number of computers and more
\nInternet users, an international consulting firm has said.<\/p>\n
President of Boston Consulting Group (BCG) in Indonesia Bernd
\nWaltermann said over the weekend Indonesia undoubtedly had high
\npotential as a market for e-commerce, but the business could not
\npick up that fast because of the problems of infrastructure.<\/p>\n
\"Indonesia is only a nascent e-commerce market at present. But
\nwe expect to see very steep growth in the near future in line
\nwith the country's full recovery,\" he said.<\/p>\n
According to a recent survey conducted by BCG in 14 Asia-
\nPacific countries, Indonesia, together with China, India,
\nThailand, Malaysia and the Philippines, is among one of the
\nnascent e-commerce markets in the region due to its undeveloped
\nInternet infrastructures that hamper the wide spread of e-
\ncommerce in the areas.<\/p>\n
According to state telecommunications firm PT Telkom, there
\nare now 2.06 million telephone lines, an estimated three to four
\nmillion personal computers and over one million Internet users in
\nIndonesia, which has a population of more than 200 million.<\/p>\n
BCG's survey found that in terms of online spending per
\ncapita, Indonesia with an online spending of only 0.01 U.S. cents
\nper capita in 1999 was left behind India, which during the period
\nrecorded 0.03 cents per capita in online spending, or Thailand
\nwith 0.2 cents per capita or Malaysia with 0.5 cents per capita.<\/p>\n
Singapore, one of the emerging markets according to the
\nsurvey, recorded an average $5 in online spending per capita last
\nyear, while the developed markets like Australia saw $20 per
\ncapita in online spending.<\/p>\n
The survey predicts Indonesia's Internet users will swell from
\nabout one million at present to over four million in 2003.<\/p>\n
BCG Indonesia's vice president Scott T. Desmarais said sales
\nfrom online transactions in Indonesia reached nearly $2 million
\nin 1999.<\/p>\n
He said there were 31 active online service providers in
\nIndonesia as of the end of 1999. That figure is expected to grow
\nto 60 within two to three years.<\/p>\n
He said travel-related web site operators had so far dominated
\ne-commerce in Indonesia, accounting for 80 percent of the total
\nonline transaction value.<\/p>\n
\"Most of the transactions are on ticket purchases and fees for
\ntravel agents,\" he said.<\/p>\n
He said Asia-Pacific countries were projected to experience a
\na 200 percent growth in e-commerce this year.<\/p>\n
Scott said should the regional growth have an impact on
\nIndonesia, the country could see total revenues from online
\ntransactions soar to $5 million by the end of this year. (cst)<\/p>",
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"sponsor": "Okusi Associates",
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