Internet kiosks bridge the digital gap

By Imelda Anwar

JAKARTA (JP): Computer ownership may reach only some 1 million of the country's population of over 200 million, but that's no problem for the techno-conscious on tight budgets.

Housed in garages to malls, Internet kiosks, known here by their acronym Warnet, have mushroomed in Greater Jakarta.

The Indonesian Internet Kiosks Association (Awari), set up three months ago, has 350 members registered in major towns across the country. But there could be many more as a number of warnet owners admitted they had never heard of Awari.

The facilities, which enable access to the Internet without having to own a computer, are often combined with cafes, play stations, or public telephones to lure users, many of whom like to seek out the most attractive venues.

Even less technologically savvy people have forced themselves to become familiar with electronic mail, what with the higher costs of talking on the telephone, facsimile and postage stamps.

In a bid to raise their profit margins, some warnet have come up with strategies to make Internet access as cheap as possible by reducing telephone costs as well as connection expenses to the Internet service providers (ISP). For instance a warnet owner can use new ISPs for free during their promotional period.

A recently issued AC Nielson survey of Internet users reveals that warnet have become the most popular places to access the Internet; the workplace and schools are other alternatives. Homes are the last choice according to the survey which was conducted from March to April 2000, "reflecting a low level of home computer ownership."

The Blok M Plaza shopping center, for instance, houses seven Internet facilities. At lunch time, office workers are seen at the centers; after school hours the places are full of students.

Rudy Rahadiah, one of the owners of the Internet facilities housed in the Millenia Cafe in Blok M Plaza, said that with some Rp 400 million in capital, he planned to expand the business to other locations.

"A high speed Internet access and a cozy atmosphere which appeals to youngsters, is our main service to the customers," said Rudy, who established the business with his wife, actress Nurul Arifin, two years ago.

The Awari chairman charges Rp 10,000 an hour for Internet access and Rp 8,000 an hour for games facilities. Although expensive compared to other Internet facilities in the city, which charge an average of Rp 6,000 per hour, the cafe looks quite full.

Twice a week

One of the visitors, Fara, a student who studies in Bandung, said she usually spends two hours chatting and browsing at a warnet. She added she goes twice a week to different facilities.

"I always look for a different atmosphere with reasonable prices," Fara said, adding she had a limited budget.

Another proprietor at Plaza Indonesia, Agus Budiharjo, combines his warnet with other services to cater for guests staying at the nearby Grand Hyatt hotel and executives working in the area.

"We provide public telephones, FedEx courier services and a Natrabu travel agent as a one-stop-shop in Plaza Indonesia," said Agus, who said he had invested capital of Rp 120 million.

"More than 30 customers come to our warnet every day. Most are foreigners and local executives, who mostly came after lunch hours," said Agus, who charges Rp 11,000 per hour for Internet use.

Agus said he earns some Rp 12 million in profit each month, while he spends Rp 1.3 million on telephone charges and another Rp 1 million on dial-up access for CBN and Indosat.

He said he has another Internet facility located near a campus in Ciledug, South Jakarta, where he uses a public telephone connection for dial-up access. This reduces his telephone expenses by 30 percent, he said.

Setting up the business is relatively easy with no requirement to obtain a business permit.

In Rawa Belong, West Jakarta, information technology students are earning good money through their jointly-owned warnet.

Feris, one of the five owners of the Technosys Warnet near the private Bina Nusantara University, said despite the fact that there were already 20 such facilities in the area, the need was high among students.

They set up the facility with initial capital of Rp 60 million which they invested in 10 computers.

A common complaint, as everywhere, is slow Internet access.

Santi, a warnet owner in the Atrium Plaza, Senen, Central Jakarta, blames the complaint on the IPS or the telephone line. The only way out so far is for warnet to rely on a number of ISPs.

Other warnet owners say that Internet access is slow if one telephone line is used for more than 10 computers.

Rudy urges consumers to be selective as regards the prices charged compared to the quality of the services offered, and added that Awari is addressing the major problem of price wars, saying it aims to establish standard charges. However, some in the Association say that the question of fees should be left to the market, so customers "can choose their warnet according to their interests and financial ability," Rudy said.

He added that Awari is also trying to get discounts from the state-run telecommunications company Telkom.

"We're waiting for the results which are expected next week," Rudy said, adding that he expects a 30 percent discount.

"With lower telephone bills, we will be able to charge our customers lower rates," Rudy added.