ICT FOR RURAL DEVELOPMENT
An Indonesian Case
ICT CENTER WORKSHOPYangon, 7 July 2014
MINISTRY OF COMMUNICATION AND
INFORMATION TECHNOLOGY (MCIT),
INDONESIA

Some Important Indicators
Socio-Economy
 Total Population : 245 million (2012)
 Approx 63% live in rural GDP: 2011 US $ 724 M, percap US$ 3542 ;2014 est US$ 1.2 B percap US$ 4800
 Business Unit : 55.2 million units, and Micro-SME :54.5 million units ( 99.8%) employing approx 100
million people – info Ministry UMKM
 Living in Poverty : 11.7% (2012) Literacy : 7% ( above 15 years in 2011 )Some Important Indicators
ICT - Infrastructure Telephone lines: PSTN : 8 million lines;
Fixed wireless access 32 million users ;mobile : 220 million users.
 Internet users : 82 million (2013).
Forecast: 107 million (2014) - APJII
 PC population: 10 million (2012) Total cost of Internet Access (telephone + ISPcharges) for 24 hours: US$ 10
 Broadband penetration : 5%

BACKGROUND UNDISTRIBUTEDCOMMUNICATIONACCESSANDINFORMATIONDEVELOPMENT PARTICULARLY FOR
UNSERVED AREAS, BORDER AREAS ANDUNECONOMICALLY VIABLE AREAS.

 EQUAL RIGHTS FOR ALL PEOPLE TO USE

TELECOMMUNICATIONFACILITIES.
 ACCELERATION

AND

IT

OF PEOPLE WELFARE
IMPROVEMENT
THROUGH
TELECOMMUNICATIONAND
IT
INFRASTRUCTURE DEVELOPMENT.

USO INFRASTRUCTURE PROVISION PROGRAM

Legislation :•- Telecommunication Act, 1999•- Government Regulations•- Ministerial Decrees

Objective :Priorities :•- To overcome information/digital gap•- To support the economy activities, to stabilize national• security and to educate the nation including to increase• prosperity of the society.
Provision of collective access to basic telephone and Internet
services for isolated areas, border areas, remote areas, pioneer
areas and for areas that economically unproper.

USO FUND•••

With the agreement of all Network Operators in 2005, All
Operators will contribute 0.75% of their gross revenue for
implementing the USO program. This was endorsed byGovernment Regulation no 28 year 2005, and Government takeresponsibility in implementing the USO programmers
Each telecom Operator then has to pay 0.75% for USO
contributions on top of 1% ( from Gross Revenue) Licensing
Fee that has to be paid annually which go directly to statetreasury.
By negotiation between MCIT and MoF, the Licensing Fee wasreduced to 0.5% and USO Fund increased to 1.25% to makesure that ICT could be implemented for all the people inIndonesia Government Regulation no 7 year 2009.

USO Implementing Agency
 The Government established Public Service Agency (BLU) BTIP under the Ministry of MCIT and report to both Ministerof MCIT and MoF
 The Agency which is semi-corporate agency, a notforprofit ‘company’ (under Law No 1/2004 on State Treasury,and Government Regulation no 23/2005 on Public ServiceAgency ).
 In 2009, BTIP was re-name BPPPTI with a bigger task of not
only building ICT in villages, but also other facilities to provide
cheaper cost of Internet and broadband as well to set up theeco –system to build up broadband in the country.
 BPPPTI collects USOF under Government Regulation from all
license Operators.

Public Service Agency – BLU - BPPPTIPP No.
28/2005
Law No. 3/1989

BPPPTIMCIT Decree No.18/ 2010

Law No.
36/1999

BTIP

Agreement between
MCIT & TelecomOperators
Establishment ofOperational USOAgency

MCIT Decree No. 35/2006

PP No. 7/2009

GOVERNMENT STRATEGIC PLAN 2010-2014
Ministerial Degree no 2 year 2010

IndicatorUnit2010

20112012

2013

2014

Optical Fiber
Network% Province Capitalconnected

10%30%50%70%100%Broadband
Network% District Capitalconnected

25%

30%50%60%75%

Regional Internet
Exchange% Province Capitalconnected

10%30%50%80%100%InternationalInternet
Exchange% Province capitals
installed

10%

30%

50%

80%

100%

Radio forCommunity

No of Villages covered

1576

200

350

500

% villages with telephonyaccess

100%

100%

100%

100%

100%% villages with internet
access5%20%40%

60%

80%

Telecommunicati
on AccessInternet Access

9

USO PROGRAMS (1) Desa Dering (Ringing Village) : telephone and SMS services for
unserved areas, border areas, remote areas, pioneering areas :33,184 villages.
 Desa pinter (internet village) : improvement from ringing villages,
additional for internet services : 1.330 villages.
 Pusat Layanan Internet Kecamatan(PLIK)/Public Internet Center:public facilities to access internet service at district level : 5.748
locations and improved to 6.358 locations.
 M-PLIK / Mobile Public Internet Service: vehicle equipped withpublic internet service at the city (kabupaten) level 1.907 units.
 SIMMPLIK / PLIK/MPLIK System Supports : monitoring PLIK usage,providing proper and beneficial content (push) as well as providing
proper bandwidth.

USO PROGRAMS (2) Nusantara Internet Exchange (NIX) : exchange for managing domestic
internet traffic in order to be efficient use and data center services (pushcontent) ICT Incubator at 32 cities (capital)
 Internasional Internet Exchange (IIX) : exchange for managing
international internet traffic : at 4 cities (capital).
 PLIK Sentra Produktif (Public Internet Center for ProductiveCommunity): pubic internet service for certain productive communities :1.235 locations.
 Wifi Kabupaten: providing free internet access (hotspot) : 745 locations incities (kabupaten)
 Telinfo Tuntas : providing BTS (cellular service) at the border areas : 198locations (district level).
 PALAPA RING PROJECT : project to complete broadband connectivity
infrastructure (fiber optic) at national level

Telecenter Project for RuralDevelopement

FUNCTIONS OF TELECENTER
SME development through website e-commerce

Increase region productDevelopment of ICT for public

Development of Business Retail(Payment Point) to pay electricity - PLN, water-PDAM, telephone- Telkom billon line .

Apps and Contents inTelecenters• Strategy– National Transformation• Focus– Promoting Experience Economy• Content of Training and Apps
– Collaborative technology• Example of Telecenters– Process and Outcome

Apps and content in Telecenter
Programs• Strategy:– Rural Telecenter is not only project for public
service, but a part of national transformation
program– It is not only about ITC Sector program but
also comprehend systems networks(programs in other sectors)

System Networks of Inter-sectoral and Interinstitutional for Rural Community Development
schedule of services, type ofservices, pricing etc

procedure forinvestment,
minimum qualityof commodity etc

Communication
networks

Regulatory
networks

training centers, on-lineconsultancy, field
instructors etc

access tocredit,
transport fortrading

Skill
networks

Rural
ICT

Bank, School, Hospital
etc

Fixed
facility
networks

Mobilesubject
networks

Auxialiary
service
networks

doctors,teachers,
parents, etcRole of economic sectors• Role of economic sectors (education, trading, agricultureetc) is more dominant than ICT sector to transform ruralcommunity into knowledge based economy.

Example of Community
Development in Telecenters

www.jogjamedianet.com

Telecenter as Community
Business Center

www.jogjamedianet.com

ICT Literacy Programs

Training of the Trainer

After ToT, E-literacy at Rembang Telecenter
http://www.youtube.com/watch?v=v2fMWlM3Te0
www.jogjamedianet.com

Technical AssistanceBanjarnegara

www.jogjamedianet.com

Puskud-Metaram

Content Training on Audio VideoBooks

www.jogjamedianet.com

Multimedia Training

Access for BYOD
(Bring Your Own Device)

Leasing/Credit for Netbook

www.jogjamedianet.com

Collaborative Works• Promoting Experience
Economy with One
Village One Product• Internet Marketing– Youtube– Google– Facebook– Website– Video conference– etc
www.jogjamedianet.com

Result of Collaboration

Virtual Farmer Markets

ExportAward and Recognition
USO Awards

Rural Community
Recognitionwww.jogjamedianet.com

Outcome of Promoting
Experience Economy withTelecenters
More on Youtube …

Outcome of Promoting
Experience Economy with Telecenters

More on Youtube

www.jogjamedianet.com

Nanggulan Telecenter (Crafts)

14.47 Minutes http://www.youtube.com/watch?v=ZDb6TFn3ZMU

Bambanglipuro Telecenter(Banana Roots Crackers)

14.55 Minutes http://www.youtube.com/watch?v=ixkeDFAkv00Trangkil Telecenter (Puppet)

11.49 Minutes http://www.youtube.com/watch?v=-MC0ij2XXoYSME-UMKM KALIMANTANKALBAR• 29.738 SMEUMKMKALTENGKALSELKALTIM• DES 2011
• 298.979 SMEUMKM• KAB. KAPUAS,
KOBAR,KOTIM• DES 2010
• 89.000 SMEUMKM• Des 2011
• 5.611 UMKM
• Aktif 2.897
UMKM

CASE STUDIESSME-embroided hijab• A group of 10 women in Muara Karang
producing embroided hijab.
• Previously 1 person made 1 hijab per day. It cost Rp
5000 to produce and they sold it for Rp 7500 in TanahAbang. One week one person earned Rp 2500 x7=Rp
175,000.
• After they were introduced to computer , they can madevarious design of embroidery , they print and distributed
to other member of the group and made more groups.
• They now already 8 group and sold it not only to TanahAbang.
• Surprisingly now each person can made 4x as many as
before and therefore could earn more than Rp 500,000 aweek.

Conclusion• ICT is catalyst for economic growth andbrings significant benefits for people.
• ICT will increased productivity and speed
up the economic development and welfareof the nation.
• People has many opportunities to work in
ICT industry and ICT as tool for people toenter labour force without leaving homeand family.

Thank You