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The Connected Archipelago

The role of the Internet in Indonesia’s economic development

Deloitte, The Connected ArchipelagoThe report explores different dimensions of how the Internet is evolving and transforming the economy and society in Indonesia. The Internet is present, to some degree, in most aspects of Indonesian commerce and society. Currently, the Internet accounts for 1.6% of Indonesia’s gross domestic product with some sectors of the Indonesian economy already recognising the potential of the more sophisticated roles that the Internet can play. The Internet’s contribution to the Indonesian economy is forecast to grow at a rate three times that of the overall economy over the next five years and is expected to account for at least 2.5% of GDP by 2016.

The evolution of the Internet will be multi-faceted and dependent on:

  • Reduced cost of access and falling handset prices
  • Larger businesses and government leading the way
  • Mobile phones driving more regular but more basic uses, and expanding rapidly
  • Education about the Internet, through Internet in schools and perhaps a PC or tablet at home, and the benefits of features such as search.

Over the coming years change will also be driven by users becoming progressively more familiar with the broader array of content available on the Internet. Creating local language content will be a key driver to realising the potential of the Internet in Indonesia and in narrowing the gap in living standards with more developed economies.

Download the 'The Connected Archipelago' The Connected Archipelago
Deloitte Access Economics Report, December 2011 | 61 pages
Download the 'The Connected Archipelago' The Connected Archipelago - Indonesian
Deloitte Access Economics Report, December 2011 | 61 pages

  

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