Internet kiosks bridge the digital gap

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.