Indonesia Digital Life 3YFN
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1 Indonesia Digital Life 3YFN May, 2016 Alexander Rusli President Director & CEO PT Indosat, Tbk
2 Indonesia digital landscape in 2016 ACTIVE INTERNET USER ACTIVE SOCIAL MEDIA ACCOUNT ACTIVE MOBILE SOCIAL ACCOUNT MOBILE INTERNET PENETRATION AVERAGE SPENDING TIME ON MOBILE INTERNET 88.1 MILLION 79.0 MILLION 66.0 MILLION 25% 3H 30M AVERAGE DAILY TIME SPENT ON INTERNET (NORMALIZED BY AVERAGE GLOBAL NET CONNECTION SPEED) Source: we are social, Nielsen INDONESIA 4H 50M AVG GLOBAL 6H 35M TOP10 APPS Rank App Genre 1 Blackberry Messenger Chat/VOIP 2 LINE Chat/VOIP 3 Facebook Social Networking 4 WhatsApp Messenger Chat/VOIP 5 Google Chrome Browsers 6 Clash of Clans by Supercell Strategy Games 7 Instagram Multimedia 8 UC Browser Browsers 9 YouTube Multimedia 10 Opera Mini Browsers 1
3 Update status 22:00 23:00 00:00 01:00 02:00 Auto updates on Apps store using Wifi Connection Video streaming 21:00 Our device never sleeps 03:00 Listening to Music Online game 19:00 20:00 04:00 05:00 Check , instant messaging Got LBS notification Catching ride home with friends 18:00 17:00 16:00 Digital way of life 08:00 06:00 07:00 Browsing using Home Broadband Reading Media Online Checking traffic and Navigate Retrieve files from Cloud 15:00 14:00 13:00 12:00 11:00 10:00 09:00 Start campus/office activity using LAN Lunch : Post on Socmed
4 Today. ON-DEMAND ECONOMY Platforms that directly match customer needs with providers to immediately deliver good and services SHARING ECONOMY An economic system based on sharing underused assets or services, for free or fore a fee, directly from individuals. COLLABORATIVE ECONOMY An economic system of decentralized networks and marketplaces that unlocks the value of underused assets by matching need and haves, in ways that bypass traditional middlemen. COLLABORATIVE CONSUMPTION The reinvention of traditional market behaviors-renting, lending, swapping, sharing, bartering, gifting-through technology, taking place in ways and on a scale not possible before internet. Adapted from Collaborative Lab 3
5 Digital Ecosystem - Indonesia Smart Device 60:40 on smart device 4G device expensive More than 60% of new device 4G devices < Rp1mn No smartphone sold without 4G capability Network 3G 4G at 900MHz (end of 2014) Not many FTTX players 4G at 1800MHz More FTTX players (fix broadband) More 4G cities/extensive/dense Extended Network Sharing More 2G frequency allocated for 4G (faster) Regulatory (Telco & Industry) Foreign investment negative list on e- commerce Local content for smart devices (TKDN) Start building cheaper infrastructure Better e-commerce regulation OTT? Blocking Netflix Infra-sharing? Spectrum Sharing? Apps Investor Local family office angel Limited investor A lot of stupid money Financial investor (VC/PE) International/local More VCs More smart money More incubators More global funding Financial investor Developer Lack of developer Shortage of UI/UX data analytics Data Analytics Ideas Mainstream ideas (Chatting/Social media/banking) Local problems started (Go-jek, Qlue) More local problem apps Payment apps Digital Maturity Simple daily apps 2 hours/day with total data consumption of 2-3GB/month/user Higher awareness 4-5 hours/day with total data consumption of 6-7GB/month/user Better payment options Logistics solution in place Data consumption > 10GB/month/user
6 Enabling technology of digital style Music Training Shopping Big Data Analytic Travelling ERP Banking Education Information Exchange Cloud Storage Tracking Insurance Financing Stronger devices Advertising LBS m-health Surveillance Trading Entertainment Payment Logistic Market requires comprehensive, simpler & faster solutions 4
7 The existing value chain: collapsed! INTER BANK ACCOUNT TRANSACTION JOURNEY Yesterday Today Adapted from Customerthink.com 5
8 3YFN major drivers of changes 70% smart phone penetration in the market 120mn using mobile messenger 95mn people using mobile map services (LBS) Source: IoT, Indosat Analysis 6
9 3YFN major implications 90mn people using mobile entertainment 85mn people using m-commerce and 60% of them on financial services At least 10 unicorns 40% of apps are local number of daily messages/ads Source: Auxtek, Indosat Analysis 7
10 Watch the movie in theater with your spouse Get the kids to the bed 21:00 22:00 23:00 00:00 01:00 Automatic recording your favorite soccer match 02:00 Improve your life? 03:00 Dinner with family video call with your mom 20:00 04:00 Watching favorite channel 19:00 05:00 Wake up call!!! Time to spend 200kal Preparing dinner reminder on # of kal 18:00 3YFN 06:00 Your refrig tell you that you run out of veggie auto refill Con call with your clients 17:00 07:00 Preparing breakfast got reminder to take your daily pill 16:00 08:00 Grab your veggie otw home 15:00 09:00 Notification that your kids arrived at school Pick up kids at school 14:00 13:00 12:00 11:00 10:00 Things to do list from office Source: IoT, Indosat Analysis Watching your kids at school Lunch delivery Booking movie ticket and parking space
11 Indosat Ooredoo is consistently developing the basic platform, incubating and maintaining partnership to provide digital ecosystem Strong Infrastructure 2G 3G 4G next to 5G FTTH Develop Mobile Financial Services e-commerce mobile ads M2M platform Incubate Entertainment Shopping Cloud storage Billing Ads Platform Partnership 9
12 Closing Openness to newer ways of interaction What about you? Finding opportunities in digital world Be digital - participation in digital world 10
13 Thank You
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