Internet users expected to double to 4 million in 2001

JAKARTA (JP): The number of Internet users in Indonesia will double to four million in 2001, even if e-commerce is only picking up slowly due to problems with online payments, the Indonesian Association of Internet Service Providers (APJII) says.

APJII Chairman Heru Nugroho explained that his optimistic projection was based on the rapid growth of the Internet industry in Asia, including Indonesia, over the past two years.

"The growth curve is exponential," Heru said.

The number of Internet users in Indonesia grew by 180 percent in 2000, India saw a 4,500 percent increase, China 1,600 percent, South Korea 120 percent, Singapore 115 percent, and Malaysia 90 percent, he said.

In spite of the rapid growth, the number of Internet users in most Asian countries is still less than 10 percent of their total population, he said.

He noted that the Internet penetration rate in Indonesia remains at 0.71 percent of its total population, slightly higher than India with 0.45 percent, but way behind Singapore with 41.9 percent, South Korea (32.3 percent), Malaysia (6.88 percent) and China (1.34 percent).

The number of Indonesians connected to the Internet will be bolstered in 2001 with the further development of APJII's program to introduce the Internet into high schools.

The "Sekolah2000" project involves APJII members, the association of warnet (Internet cafe) owners, the Ministry of National Education, the Ministry of Transportation and Telecommunication, and PT Telkom, the state-owned telecommunications company. The project aims to connect senior high schools to the Internet allowing students to tap into the many advantages which the information superhighway has to offer.

Computer studies, however, are not yet part of the national curriculum, and schools that already have computer facilities only offer the subject as part of their extra-curricular activities.

The Sekolah2000 project is essentially aimed at building warnet facilities in schools, Heru said.

In 2000 the project provided 600,000 students from 1,200 senior high schools access to the Internet, while in 2001 Heru hopes for 900,000 new users from 1,800 senior high schools, including religious schools.

The mushrooming of warnet businesses has helped propel the growth of Internet users in Indonesia at a time when most people still find personal computers too expensive, and when having telephone access is also considered a luxury.

Between 850,000 to one million Indonesians access the Internet through warnet outlets, he said.

AC Nielsen, in a survey in August, said that 52 percent of Indonesia's Internet users gain access through a warnet, 42 percent through their workplace, 13 percent from home, and 12 percent from schools, universities or colleges.

In spite of the rapid growth of Internet users, few people, including businesses, are using the Internet to conduct financial transactions due to payment security problems, Heru said.

Several dotcoms offering online transactions also suggested that e-commerce will grow slowly next year due to technical problems and peoples' shopping habits.

M. Suryadi, CEO of Rileks.com, which is developing an online shopping plaza, said that high credit card charges and inadequate security when using credit cards are obstructing the growth of e- commerce in Indonesia. (05)