According to the Indonesian Internet Service Provider Association (APJII) there are currently 132.7 million Internet users in Indonesia or approximately 51.8 percent of the total Indonesian population. These figures, which are the result of a survey, are much higher compared to 2014 when APJII data show that there were 88 million Internet users in Indonesia. Meanwhile, APJII Chairman Jamalul Izza informed that about 70 percent of Indonesian Internet users use a mobile device to access the Internet.
The latest survey of the APJII indicates that 63.1 million people (or 47.6 percent of the total Indonesian population) access the Internet through their smartphone, while 67.2 million people (50.7 percent) access the Internet either through mobile phone or computer. Lastly, 2.2 million people (1.7 percent) only use the computer to access the Internet.
In terms of geographical distribution, the island of Java – Indonesia’s political and economic center (as well as the most populous island within the Archipelago) – has the highest concentration of Internet users. Around 65 percent of Indonesian users (or 86.3 million people) live on Java. In terms of quality, people can enjoy the fastest Internet in the urban areas of Java and Bali.
Regarding age, the survey of APJII signals that Internet penetration is 100 percent for the age group 10-14 years (which does not mean that all Indonesian children aged between 10 and 14 enjoy Internet access). Meanwhile, the biggest category that uses the Internet are students, followed by private sector employees and employees in the health sector.
Indonesia’s Internet community is most interested in social media (such as Facebook, Twitter, Instagram and YouTube), followed by entertainment and news-sites.
The survey of APJII was conducted between 1 and 11 June 2016 using a total of 3,250 samples.
Rapidly rising Internet and smartphone penetration is expected to boost Indonesia’s e-commerce industry in the years ahead. The Indonesian E-Commerce Association (idEA) said the e-commerce industry is set to become a pillar of the Indonesian economy. The online retail industry may account for five percent of Indonesia’s economy by 2020, from 0.7 percent in 2015. Meanwhile, Google Inc. and Temasek Holdings Pte recently stated that Southeast Asia’s digital economy (which includes e-commerce, online games, advertising and other economic activities related to the Internet) will surge to USD $200 billion by 2025. Indonesia’s digital market will account for 40.5 percent – or USD $81 billion – of this total market. With an estimated USD $46 billion, Indonesia’s e-commerce sector will contribute most to the total.
Source: Indonesia Investment