Indonesia Digital Life – 3YFN
May, 2016
Alexander Rusli
Indonesia digital landscape in 2016
ACTIVE
INTERNET USER
MEDIA ACCOUNT
ACTIVE SOCIAL
SOCIAL ACCOUNT
ACTIVE MOBILE
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
TOP10 APPS
Rank App
Genre
1
Blackberry Messenger
Chat/VOIP
2
LINE
Chat/VOIP
3
Social Networking
4
WhatsApp Messenger
Chat/VOIP
5
Google Chrome
Browsers
6
Clash of Clans by Supercell Strategy Games
7
Multimedia
8
UC Browser
Browsers
9
YouTube
Multimedia
INDONESIA
4H 50M
AVG GLOBAL
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
Digital way of life
Update status Video streaming Online game Got LBS notification Browsing using Home Broadband Catching ride home with friends Checking traffic and Navigate Retrieve files from Cloud
Lunch : Post on Socmed Reading Media Online Start campus/office activity using LAN Check email, instant messaging Auto updates on Apps store using Wifi Connection
Listening to Music
Today….
Adapted from Collaborative Lab
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
2014
2015
2016
Smart Device
60:40 on smart device4G device expensive More than 60% of new device4G devices < Rp1mn No smartphone sold without 4G capabilityNetwork
3G4G 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 angelLimited 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 appsPayment appsDigital Maturity
Simple daily apps2 hours/day with total dataconsumption 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
Big Data Analytic
Enabling technology of digital style
Shopping
Advertising
Surveillance
Trading
Travelling
Information Exchange
Payment
ERP
Banking
Cloud Storage
Training
m-health
Logistic
Music
Insurance
Tracking
Education
Entertainment
Financing
Market requires comprehensive, simpler & faster solutions
The existing value chain: collapsed!
5
INTER BANK ACCOUNT
TRANSACTION JOURNEY
Yesterday
Today
3YFN – major drivers of changes
70% smart
phone
penetration in
the market
120mn using
mobile
messenger
95mn people
using mobile map
services (LBS)
3YFN – major implications
7
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
daily messages/ads
200-250 number of
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
Your refrig tell you that you run out of veggie – auto refill Wake up call!!! Time to spend 200kal
Automatic recording your favorite soccer match
Notification that your kids arrived at school
Preparing breakfast got reminder to take your daily pill
Things to do list from office
Dinner with family – video call with your mom
Pick up kids at school
Booking movie ticket Grab your veggie
otw home
Watch the movie in theater with your spouse
Con call with your clients
Get the kids to the bed
Watching your kids at school
Preparing dinner – reminder on # of kal
Watching favorite channel
3YFN
Indosat Ooredoo is consistently developing the basic
platform, incubating and maintaining partnership to provide
digital ecosystem
9
Mobile Financial
Services
e-commerce
mobile ads M2M platform
Entertainment Shopping Cloud storage
Billing
Develop
Incubate
Partnership
Ads Platform
What about you?
Closing
Openness to
newer ways of
interaction
Finding
opportunities in
digital world
Be digital