Ringing in the era of cellular phones

The business of cellular telephones in Indonesia has grown impressively over the past several years. There are now hundreds of thousands of handphone subscribers in the country, mainly in big cities, and they are expected to grow to millions in a few years. Considered a luxury in the past, cellular phones have now grown to become part of an everyday life for urbanites. The Jakarta Post 's team of reporters, I. Christianto, Johannes Simbolon, Meidyatama Suryodiningrat, Dwi Atmanta and Stevie Emelia, and photographer Arief Suhardiman, have prepared several articles and photos related to this new lifestyle on this page, page 11 and page 13.

JAKARTA (JP): In the not too distant past, only executives or businesspeople used cellular telephones.

Today, more people are seen holding cellular phones. You can spot youngsters, students, and even baby sitters pushing baby carriages through some malls, carrying the phones.

The trend has changed. Cellular phones in Indonesia have become increasingly popular, and people from various fields and professions are using them.

There was a time when cellular phones, which are locally known as handphones, were considered luxury goods that only the haves could afford. Cellular phones have now become consumer goods rather than status symbols or luxury goods.

When cellular phones first entered Indonesia in the 1980s, people spent between Rp 18 million (US$7,679) and Rp 14 million to get one. The first cellular telephone provider was PT Era Mobitel with its Nordic Mobile Telecommunication system.

In 1990, three local companies, in cooperation with overseas investors, launched the United States-based Advanced Mobile Telephone Service. It was much cheaper than the Nordic Mobile Telecommunication system, but many Indonesians still could not afford the Rp 10 million to 13 million price tag.

People cheered when PT Satelindo, a joint-venture telecommunications operator, launched in Jakarta in 1994 the Global System for Mobile communication (GSM), which was developed in Europe. This system is currently the most favored.

Three months later the government granted PT Telkomsel a permit to operate a GSM system. The company started its operations in Sumatra and created competition in the cellular- phone market in Jakarta. Earlier this month, a third GSM operator, PT Excelcomindo, launched its services in the city.

Thanks to the elimination of import duty, cellular phones are now available at prices starting from less than Rp 800,000.

Obviously, cellular-phone agents enjoy lucrative business. Kusuma Widjaja of PT Wiriasih Sambara, said that every day, an average of 20 Motorola Startec cellular phones, 50 Ericsson GF388 cellular phones, 50 Nokia cellular phones and 30 Motorola 8700s cellular phones are sold in the city.

"Recently, some agents in Jakarta even lacked of Motorola Startec due to high demand," she said.

Businesspeople also run handphone rental services, with foreign visitors as the main target.

Arnaud Brandt of PhoneRent, a Jakarta-based GSM rental service, said that since the business started last year, about 40 customers rent handphones from his office here. An average of 12 people rent handphones from his Bali office.

The daily rental fee is about $25 with a $200 deposit required.

Users

Who are the users of the 450,000 cellular phones in Indonesia, about 60 percent of whom are GSM subscribers?

Several agents at the Mangga Dua and Hayam Wuruk commercial districts of the city said that most of the buyers are young professionals.

"They are under 30 years old. They are looking for the best, meaning they will pay for the most expensive ones," said Frida Tanuwijaya, an agent at Hayam Wuruk.

Adi R. Adiwoso, a telecommunications expert and top executive of PT Asia Cellular Satellite System, agreed. "Actually, people in Asia are looking for prestige," he said.

"Just look at the many international high-class boutiques in various shopping districts in Jakarta, Hong Kong, Singapore and elsewhere. They look for the best and most expensive ones. It's the same in the cellular business. There are people who look for the best and most expensive ones," he said.

Adiwoso said telecommunications has become a real need.

"We feel uncomfortable if we forget to take our cellular phones with us. We are accustomed to being accessible anytime, anywhere," he said.

Telkomsel's president, Koesmarihati Sugondo, also said professionals under 30 years old are the potential users.

"They are already established both at work and in society. We focus on them as potential users," she said.

Koesmarihati projected that there will be 615,000 cellular phone users in Indonesia by the end of this year. "The growth is fascinating," she said.

There were just 21,031 users in 1990; 24,528 in 1991; 35,548 in 1992; 53,546 in 1993; 78,024 in 1994; and 235,000 in 1995.

Telkomsel now claims to have some 135,000 subscribers, Satelindo 200,000 and Excelcomindo expects to gain 30,000 by the end of this year.

She said that cellular phone penetration per 100 people in Indonesia also grew significantly from 0.12 in 1995 to 0.31 this year.

In comparison, 25 out of every 100 Australians have cell phones, while in Malaysia, the figure almost reaches 8 percent of the population.

Function

Why do people want to use cellular telephones? Most users said daily activities command that they be mobile but reachable at the same time.

Kartono Mohammad, former chairman of the Indonesian Medical Association and editor in chief of Medika magazine, said cellular phones help him communicate with his office.

"I spend most of my time outside my office and this equipment makes it easier for my office to contact me, and for me to contact them anytime and anywhere," he said.

Kartono once had an unpleasant experience with his cellular phone. The telecommunications company at one time charged him three times his usual telephone bill. Kartono later found out that his cellular phone number had been duplicated.

Susanna, a young executive at a travel agent, said she bought a cellular phone so that her clients could easily contact her.

"It helps my business. I did not buy this because I was a showoff but because I needed it," she said.

She acknowledged the unpleasantness of a hefty telephone bill because of airtime charges of Rp 275 per minute and a monthly subscription of Rp 50,000, which are higher than conventional telephones.

Still, it's now the era of cellular phones.

With the planned Personal Handy-phone system and the Digital Cordless System to be adapted in 1997, competition among operators will be even fiercer. Hopefully, users will enjoy the result of the battle, namely cheaper monthly subscription and airtime charges. (team)