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Indonesians pressure the country’s largest telco to lower data costs

By Rajiv MenonIndonesia
2 min read
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Indonesians are pissed off about Telkomsel’s data package pricing policy. While they’re considered expensive for Jakartans, Telkomsel – Indonesia’s state-owned and largest mobile carrier – charges up to twice as much for the same amount of data if you happen to live in a bad “zone.”

To protest this, activist Djali Gafur started a petition called “Internet for the people“. It has already accumulated over 10,000 signatures.

Telkomsel divides the archipelago into 12 districts. Jakarta, as well as most parts of Java and the surrounding islands are in Zone 1, and tariffs actually go up as the areas get more remote. West Papua’s Raja Ampat district, for example, is in Zone 12.

“We in Zone 12 don’t have a choice,” says Gafur in the petition on Change.org. It’s true because Telkomsel is often the sole carrier in remote areas. The others don’t even bother because the infrastructure costs outweigh the opportunities.

Gafur demands that people in his area get access to the internet for an equal price, so that they too can participate in things like education, tourism, government, and creative industries online. “If [the connection] is a little slow, that doesn’t even matter so much,” he adds.

Indonesia’s ICT Minister Rudiantara has since responded to the petition, and met with Telkomsel’s president director to discuss the matter, according to local media.

Rudiantara said that the government is looking into subsidizing Telkomsel in areas where it is the only operator on the ground, supported by the Universal Service Obligation (USO) fund.

The USO in its current form has been in place since 2005. Mobile phone carriers operating in Indonesia have to contribute 1.25 percent of their gross revenue into a shared pool, which non-profit government agencyBP3TI deploys toward connectivity programs in remote areas.

Apparently, BP3TI is not quick enough to keep up with the demand for affordable mobile internet connectivity in the remote parts of Indonesia.

Indonesia currently has no regulation on data tariffs, but according to Rudiantara, discussions on this will take place in 2016. In order to allocate funds from the USO to support Telkomsel in said remote zones, USO’s structure has to be changed. That will take time. For now, it’s up to Telkomsel to respond to the increasing frustration from people in zone 12.

Questions & Answers

Q.

What is the primary reason for the protest against Telkomsel's data pricing policy?

A.

Telkomsel charges customers in remote regions significantly more for data than those in cities like Jakarta. People in 'bad zones' can pay up to twice as much for the same data package, despite often having no alternative provider.

Q.

What action has the Indonesian government taken in response to the public's concerns?

A.

Indonesia's ICT Minister Rudiantara has met with Telkomsel's president director to discuss the issue. The government is exploring the possibility of subsidising Telkomsel in remote areas where it is the sole operator.

Q.

How does Indonesia's existing Universal Service Obligation (USO) fund operate?

A.

Mobile carriers in Indonesia contribute 1.25 percent of their gross revenue to the USO fund, which a government agency then uses for connectivity programmes in remote areas. However, this fund is reportedly too slow to meet current demand.

Q.

What changes would be required to use the USO fund to subsidise Telkomsel?

A.

The structure of the Universal Service Obligation (USO) fund would need to be changed to allow its funds to be allocated to support Telkomsel in remote zones. This process is expected to take time.

Reader pulse

Will Telkomsel change its pricing?

19,331 votes so far

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