Post on 27-Mar-2015
Affordable & Effective ICT for
Rural Indonesia
Challenge: Delivering Low cost ICT and better performance for services
Syailendra@telkom.co.idStrategic Project Management
PT Telekomunikasi Indonesia Tbk.
Jakarta, 23 March 2011, Indonesia Country Workshop on Rural ICT Development, ITU/ADB
Challenges for ICT in Indonesia• 13,700 islands (no 1 in the world)• 300 ethnic groups (no 1)• 1,900 km x 5,100 km (no 1) • 240 Millions population (no 4)• largely rural and poor areas (no 3)• 62.806 Desa/village
Source World Bank: Making the New Indonesia Work for the Poor, 2006
Percentage of Poor people
low density of ICT, is a growth opportunity
ChallengeHow to provide affordable & Effective ICT with better performance at rural
Source Badan pusat statistik, Berita Resmi Statistik No. 45/07/Th. XIII, 1 Juli 2010
Garis Kemiskinan Nasional Rp211.726 per kapita per bulan, Maret 2010 (Rp 7,000/day)
Indonesia Competitiveness Index
In the global context, Indonesia competitiveness index based on the Wolrd EconomicForum (WEF) 2009-2010 ranked 54, WEF Competitiveness is based on the pillars : 1. effectiveness of the functions of public and private institutions,2. availability of infrastructure,3. macroeconomic framework is stable,4. health facilities and basic education,5. higher education and training,6. market efficiency,7. benefits of technology utilization,8. production process, innovation.
Increase the competitiveness index will require technology as an accelerator.
Opportunity for improvement
Integrated Empowerment Model for Rural
1. Energy: electricity, engine
2. Connectivity: digitally & physically connected
3. Education: knowledge, skill improvement
4. Financial: capital, transfer, save, transaction
5. Health: walk, drive, think
Agricultures Foods Crafts tourism
Affordable & effectiveness Technology , productive people, unlimited resources
Local & Global Markets
Increase in Competitiveness index
digital media services : e-finance, e-store, e-trade, e-paymnt, e-...
5 m
othe
r in
dust
ry
ManufacFishery ……..
Indu
stry
to
the
pro
sper
ity
CK Prahalad
Indonesia RayaPoor Fisherman
A fisherman, dreaming to own a fishing boat. There is no formal bank access for the poor in rural areas.
ICT implementation for banks in rural areas requires a high cost ICT
Case Indonesia
ChallengeHow can ICT address the needs of delivering low cost banking to reach all
Indonesia's population ?
The bank is part of mother industry for rural economic growth
Internet• 242,968,342 population • 30,000,000 Internet users as of Sept/09, 12.3% penetration • 27,338,560 Facebook users on August 31/10, 91% internet users
Internet• 242,968,342 population • 30,000,000 Internet users as of Sept/09, 12.3% penetration • 27,338,560 Facebook users on August 31/10, 91% internet users
www.internetworldstats.com
cellular200 millions subsc cellular200 millions subsc
ICT facts in Indonesia
Affordable & Effective ICT
Delivering low cost affordable & effective ICT Services
Technology Options
Affordable & effectiveness technology
Delivering low cost services
Business models can run, sustain and grow at BoP market
BoP: Bottom of Pyramid (people who have low income per capita per month)
ICT for Productivity
sarana transaksi keuangan
money transfer servicesBanking & Payment Ecosystem services
eMoney services
digital music ecosystem services Electronic voucher agent services
education ecosystem services
everything as a service
Delivering low cost affordable & effective ICT Services
High Cost Low CostICT Infrastructure Own SharedICT operation Own SharedBusiness Model Buy Pay as you goTime Delivery Slow FastService Applic Custom Parameterized
Case.. LIVE ! Low Cost ICT for rural BPR & Koperasi
… with better performance for services…
everywhere, plug n play rural banking/koperasi
Cloud Managed Financial Services
Cloud Managed Financial Services
Bank KoperasiBank Koperasi
Branch Branch Branch Branch
electronic channel: EDC, Mobile, Internet, ATM
Shared•Data Center•DRC•Server•Software•Development•Ict operation•Processing•Reporting engine
Biller others
Business Model- Pay as you go- Fast food model
Live Since 28 Apr 2009400 branch online 1 million people connected to the bank
How Low Can You Go in Rural…with better performance…
1.More standard = get more share2.More Share & simple = get lower cost3.Lower cost = get bigger market
Affordable & Effective Technology for Rural
Simple Green Screen - Low bandwidth 9,6 kbps- low spec PC- secure & stable
Business Model is the Key
Pay as you go
Sharing Infrastructure
Ecosystem Services
Payment
Services
Infrastructure
Sharing OperationOperation
ChannelPartnership/Self service
Empowering local enterpreneur
Cloud service Model
Case M-Kios
TELKOMSEL
Authorized Dealer
Agent
Subscriber
Recharge system for prepaid services (pay as you go)
e-Recharge Agent
Del
iver
ing
elec
tron
ic r
echa
rge
serv
ices
Industry Model National Focuses – Effective ICT Industries
Device Manufacture & Software Product: Server, CPE, Router, Modem, Cable, Radio, Sw ProductDevice Manufacture & Software Product: Server, CPE, Router, Modem, Cable, Radio, Sw Product
Infrastructure Sharing Service Provider Fibers, Radio Channel, tower, BTS, ducting, Data Center,
server
Infrastructure Sharing Service Provider Fibers, Radio Channel, tower, BTS, ducting, Data Center,
server
Content/App Service ProviderWeb social, market place, ecommerce, search, advertising, email, chat,
voice, Everything as a Service
Content/App Service ProviderWeb social, market place, ecommerce, search, advertising, email, chat,
voice, Everything as a Service
Connectivity Service Provider (Virtual Network/ non Infrastructure)
Telephony, Internet, vpn
Connectivity Service Provider (Virtual Network/ non Infrastructure)
Telephony, Internet, vpnInfrastructure Consolidation for national efficiency Growing market wholesalers, Economies of scale infrastructure business cost per service is lower, avoid duplication of infrastructure , incentive for infrastructure provider
Granting special incentives to manufacturing industries of ICT devices and software .Availability of shared facilities necessary to grow the manufacturing industry.
Grow new service industries,The diversity and competition in ICT services, not infrastructure competition. Provision of services without having to build infrastructure
Pushing the affordable availability of ecosystem services, to encourage the acceleration of ICT users
Capex based Cost based Price
Creative Based value based price
National Focuses
infrastructure sharing can be effectively leveraged to roll-out services at faster speed and at affordable cost.
Cloud ServicesEverything as a services
Cloud ServicesEverything as a services
Conclusion 1. Indonesia has a unique geography and demography, and have an impact
on the unique challenges for the deployment of ICT2. The deployment of ICT in rural areas, require innovations that produce
affordable and appropriate services for Indonesia rural3. A cheaper service with better performance of services in rural areas, can
be done by building a sustainable business model among the partners4. To get an affordable and effective ICT services , we need to develop
industrial model of sharing infrastructure, operation sharing, and encouraging the growth of content and applications industry in the cloud
5. Cloud service is an appropriate ICT model for rural
Thank You……with the benefit of ICT let us prosper together…..