Number of Internet users in RI expected to increase<\/p>\n
JAKARTA (JP): The number of Internet users in Indonesia are
\nprojected to increase from approximately 1 million in 1999 to
\n1.45 million in 2000 and 1.98 million in 2001, according to the
\nAssociation of Indonesian Internet Service Providers.<\/p>\n
The association attributed the sharp growth in the number of
\nInternet users to the increase in the people's awareness about
\nthe benefits of the service.<\/p>\n
The number of local Internet domains surged by nearly 80
\npercent throughout 1999, hitting 4,685 sites in December from
\nonly 2,624 sites in January, the association said in its report.<\/p>\n
The association said corporate domains recorded the most
\ndynamic growth last year with sites rising by about 75 percent to
\nreach 3,544 sites in December from 2,042 in January.<\/p>\n
And the U.S.-based telecoms and IT research firm,
\nInternational Data Corporation, estimated the number of Internet
\nusers in Indonesia who will make purchases through e-commerce
\nwill grow from approximately 70,000 in 2000 to 600,000 by 2003.<\/p>\n
Indra M. Utoyo, general manager of multimedia division at
\nstate telecoms company PT Telkom, said Internet and e-commerce
\nhad become more and more attractive to business enterprises due
\nto their potential gain.<\/p>\n
\"The potential gain offered by Internet and e-commerce
\nbusinesses have also made them favorite choices for stock market
\nplayers, a condition which I consider a natural consequence,\" he
\ntold The Jakarta Post over the week end.<\/p>\n
At least eight new players are set to enter the virtual
\nbusiness market during the first two months this year, including
\nlisted companies like the insurance firm Asuransi Lippo Life
\n(Lippo E-net) and electronics and office equipment suppliers
\nAstra Graphia, Multipolar and Metrodata Electronics.<\/p>\n
Multipolar plans to develop a high speed Internet access using
\nfiber optic with investment of Rp 130 billion (US$18.5 million);
\nMetrodata will create a portal site, Internet service and
\nbusiness-to-business e-commerce worth no less than $2.5 million;
\nand Lippo Life will expand business to Internet and e-commerce
\nbusinesses.<\/p>\n
Indra said it was a very good decision for companies
\ninterested in the Internet and e-commerce sectors to immediately
\nestablish their infrastructures and embark on the business.<\/p>\n
\"One of the keys to success in Internet business, besides the
\nprerequisite excellent infrastructures, is to be there earlier
\nthan your competitors,\" he said.<\/p>\n
\"Internet, e-commerce is a very competitive business and a
\nzero sum game -- either you are in the business or out of it
\ncompletely,\" he added.<\/p>\n
Indra said the more Internet and e-commerce services
\nestablished in the country, the more people would be aware and
\ninterested to utilize services to ranging from booking a cinema
\nticket to purchasing a cellular phone.<\/p>\n
However, Indra warned it was possible that the predicted
\nincrease in e-commerce users would not be achieved due to the
\nfact that Indonesia was still lacking in telephone lines and
\ncomputer access.<\/p>\n
Data from state-owned telecommunications company PT Telkom at
\nthe end of September last year showed there was only 5.94 million
\nfixed lines available for Indonesia's population of over 200
\nmillion.<\/p>\n
Whereas only about 250,000 of approximately two million
\ncomputer users in Indonesia last year actually possess computers
\nin their homes.<\/p>\n
Risa Merdekawati, executive director of the Indonesian
\nTelecommunications Society, said e-commerce, especially the
\nbusiness-to-customer, was actually still at early phase of
\ndevelopment in Indonesia since the facilities were mainly used
\nfor product display, information and orders, while payment for
\nthe commerce was still person-to-person.<\/p>\n
\"No total e-commerce system is in place yet because banking
\nsettlement to enable direct and secure credit card payment
\nthrough the Internet has not yet been established,\" Risa said.<\/p>\n
She estimated that business to business e-commerce
\nwould continue to dominate the service due to the lack individual
\ninvolvement.
\n It would be easier for companies to benefit from e-commerce in
\nbusiness deals with other companies because business entities
\ngenerally have similar access to the prerequisite
\ninfrastructures, she said.<\/p>\n
Both Indra and Risa agreed that in order to maintain the
\ncurrent healthy growth of Internet and e-commerce use, the
\ngovernment and Internet industry must further promote not only
\nthe awareness but also access to computers.<\/p>\n
They said the number of Internet and e-commerce users would
\nincrease to balance the supply of services only if there were
\nadequate and affordable access to telephone, computers and
\nInternet services. (cst)<\/p>",
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"sponsor": "Okusi Associates",
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