Information and Communication Technology Service Industry Development in Indonesia

Abstract

With the Indonesian Commitment to fulfill the Millennium Development goals which are mainly aimed to improve quality of life, followed by similar commitments to empower Information and Communication Technology (ICT) to achieve those goals, ICT developments in Indonesia has been growing very fast.Basically, the developments of ICT Infrastructure are based on several basic methods. Firstly, the ICT backbones were developed with the support of the Government, then liberalization of the ICT Service Industries was caried out so that private companies are encouraged to develop ICT business, followed by subsidized ICT services for selected areas where ICT services cannot be carried out feasibly. In addition, with the growing democracy in Indonesia, application and content are also liberalized, resulting fast growth of application and content provider, and this has pushed also the development of ICT Infrastructures by private companies.This paper will review the development of ICT service Industries in Indonesia, the history of how the industries was developed, both the policy as well as the development itself. This is followed by the description of the current situation. The future plan of ICT development will be also included. A more in depth explanation is given for the Telecommunication sector.