Internet users expected to double to 4 million in 2001

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)