TELECOMS INDONESIA
Despite a current lack of government regulations, network development and uptake has telecoms firms optimistic about Indonesia.
With our 2G, we already reach 95% of the population. For 3G and 4G, that figure is around 92%, with more than 400 3G cities and 338 4G cities. Although 60% of the economy is concentrated in Java, and our network fully covers Java, our main focus is now to expand outside of Java, both in network and infrastructure build up. In total, we are investing USD600 million, half of which is outside Java. We want to have the government redistribute the economy more uniformly. We have lobbied the government to be able to co-build with other operators, but unfortunately it still lacks the right regulations for us to do that. If we can share networks, we will be able to build more with the same amount of money. In other countries the government really does encourage industries and reduce foreign debt—the latter as the equipment is generally imported. Although there is very little movement, the government has plans for an Indonesian broadband plan.
We are trying to convince the government to re-designate towers as vital to national development. This would make operations much more effective and much smoother. It would also make it easier for certain government entities to operate. Permitting issues would also be greatly reduced, which would make our operations much smoother. The government has a program that is designed to improve the power grid in certain areas, and we plan to participate through solar energy. Solar energy is a great solution in areas that do not have strong grid systems. We expect many of our towers to be using solar in the near future. We believe that the expansion of the network will be the key to future success. Geographic expansion will provide a greater footprint for the industry while also providing more opportunities for Indonesians. We also expect our clients to be better positioned within the industry thanks to their financial position. I look forward to strong growth for the industry and Protelindo.
Our discussions on 4G started in 2014, when all the players in the industry recognized that CDMA was a dying network. All the major players appealed to the government to terminate CDMA. Fortunately, our frequency was suspected of interfering with 3G, which motivated the government to allow us to switch frequencies. After this, we negotiated hard; however, our frequency was migrated from 1,900MHz to 2,300MHz. We had no other choice but to switch to 4G, which requires a large investment of times and resources. However, by doing so we ensured that our company had longevity. This process began in 2015, and we were the first operator to provide 4G services at that time. We have now completely transitioned to 4G. We are extremely ambitious about 2018; our target is to grow at least 50%. We also plan to double network capacity and expand bandwidth. Our volume will be more than double its current levels. We are entering an important investment phase and are extremely excited about the coming year.
TELECOMS INDONESIA
TABLE OF CONTENTS
Interview
Dr. Bambang Brodjonegoro, Minister , National Development Planning (Bappenas)
TBY talks to Dr. Bambang Brodjonegoro, Minister of National Development Planning (Bappenas), on acquiring financing for infrastructure projects and boosting private sector involvement in the country.
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Thomas Trikasih Lembong, Chairman, Investment Coordinating Board (BKPM)
Thomas Trikasih Lembong is the Chairman of BKPM. He was a former Minister of Trade of Indonesia from 2015-2016. Prior his appointment in the cabinet, he had a long professional career. He was a Co-Founder, Chief Executive Officer, Managing Partner, and Partner at Quvat Management Pte Ltd and also served as President Commissioner at PT Graha Layar Prima Tbk (BlitzMegaplex) since 2012. He was previously employed with Principia Management Group and the Equity Division of Morgan Stanley (Singapore) Pte. Ltd, among others. He received a bachelor's degree in architecture and urban design from Harvard. He also was elected Young Global Leader by the World Economic Forum in 2008.
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Tevita Lavemaau, Former Minister of Finance and National Planning , Tonga
TBY talks to Tevita Lavemaau, Former Minister of Finance and National Planning of Tonga, on the effect of climate change on the country, its work to combat inequality, and further areas of cooperation with Indonesia.
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Dr. Tito Sulistio, President Director, Indonesia Stock Exchange (IDX)
TBY talks to Dr. Tito Sulistio, President Director of Indonesia Stock Exchange (IDX), on the strong performance of the capital markets, its goals to increase the number of listed companies, and the growing importance of digital innovation.
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Amien Sunaryadi, Chairman, Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)
TBY talks to Amien Sunaryadi, Chairman of Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), on preparing new block offerings, attracting greater investment into the sector, and pushing for exploration.
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Ronald Walla, President Director, PT Wismilak Inti Makmur
TBY talks to Ronald Walla, President Director of PT Wismilak Inti Makmur, on offering the public a more relevant value proposition, strengthening the ideology of Indonesia's founding fathers, and forging bigger profit margins.
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In the House
As strong economic growth, an optimistic political outlook, and a partially successful tax amnesty to repatriate offshore wealth continue to drive up housing prices in Indonesia's major urban centers, demand for new housing and shares in developers plummeted in 2017.
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Teddy Tjokrosaputro, President Director, PT Rimo International Lestari (RIMO)
TBY talks to Teddy Tjokrosaputro, President Director of PT Rimo International Lestari (RIMO), on stepping back forcefully from the brink, using affordable housing as a springboard, and laying the groundwork for the country's future.
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