End of the great Indonesian Internet age?
End of the great Indonesian Internet age?
Vishnu K. Mahmud, Contributor, Jakarta
Four years ago, in the aftermath of the Asian economic crisis, a
virtual industry exploded, promising to change the world.
With former U.S. vice president Al Gore's declaration of the
so-called "information superhighway", the Internet was meant to
make our lives easier. It was supposed to enhance communications,
promote cultural exchanges and educate the masses. The "Worldwide
Web" would eliminate middlemen and empower small mom-and-pop
shops, turning their small neighborhood brick and mortar stores
into virtual storefronts with global reach.
In Indonesia, the 'Net led to a "trickle-down" effect. Web-
related businesses began to spring up, cyber cafes became
commonplace, as did Internet portals, web-hosting services and
data centers. Internet Service Providers (ISP) increased from
fewer than half-a-dozen to over 50. Graphic designers, Web
programmers, content providers, marketing agents and brand
managers all had a field day, demanding huge salaries and getting
them.
Now, in 2003, in the aftermath of the dot-com bust, the ruins
of the Internet economy can easily be seen. Small Internet cafes
are closing by the dozen, information technology-related
businesses have been abandoned by the hundred and Internet
companies are laying off people by the thousand. The busy cyber
cafes now stand mostly empty while multiplayer game shops are
only patronized by their most loyal customers.
It seems that people are no longer interested in getting
"online" to chat with their friends, exchange e-mail or read the
latest news. All the great stalwarts of the Indonesian Internet
age, such as Astaga!, Lipposhop and Satunet are either gone or
shells of what they once were.
Does this mean the great Indonesian Internet experience is all
over? Actually, this is perhaps a good time to get into it.
Practically everyone who signed up to a dot-com-related
company knew that the ride wouldn't last. At some point there was
going to be a market correction that would bring some good sense
into that insane world of IPOs, venture capital and millionaire
shareholders.
We just hoped that we were on the top before the bottom fell
out.
Now, the "Last Man Standing" principle is in effect. Whoever
stands now has the possibility of becoming the leader (or perhaps
sole survivor) in an industry that still has enormous potential:
An industry that no one else wants to enter.
Those who have lived through this thrill ride are now older,
wiser and more experienced. These are the type of people who
embrace new technology and could lead Indonesia to rejoin the
global race toward an information-based society, to complement
the agriculture and manufacturing sectors that exist today.
Despite the rise in telephone and electricity costs, Indonesia
still has a market for the Internet. Or perhaps more
specifically, the "mobile 'Net". With a market saturation of
cellular phones in Indonesia, it is only a matter of time before
someone sets up a mobile "home page" filled with the latest
content and entertaining games. It could be a medium for
communicating news, market information, government policy and
ads. All of which could bring in tons of revenue to the
participating partners.
The market may be small compared with China or even Singapore,
but the Indonesian "mindshare" does exist. It just has to be
developed further. With the cost of cell phones and computers
decreasing almost daily, more and more people can get online.
Like the previous dot-com revolution, this new medium can be
used to teach, inform and entertain. The masses are now more
open to the concept of paying for things that used to be free:
It's just a matter of how much and with what.
Now is the moment to seize the opportunity to start a company
with clear goals and revenue streams. With an army of former Web
workers in this country, we can get the jump before one of the
global conglomerates such as Yahoo! or Vivendi comes in. It could
be a unique news site, an event-driven community program or a
company that offers unique supporting services.
As with the Internet age, the IT-linked economy is vast.
Establish a market base and develop it. Offer products and
services within reasonable costs and continue to innovate. By
the time others begin to take notice, you hopefully would have a
six-month lead and what you do during this period would either
make or break the company.
As with the end of any era, we can build a new structure on
the foundations of the old. I wouldn't be surprised if Indonesia
experiences an IT renaissance.