INDONESIA DIGITAL LANDSCAPE 2013 By
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01
ONLINE POPULATION
DEMOGRAPHICS
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OVERVIEW 250 th 4 73
MILLION PEOPLE LARGEST POPULATION IN THE WORLD MILLION ONLINE POPULATION BY THE END OF 2013 Source: eMarketer, Indonesia Online, March 2013 3

OVERVIEW 93.4 INTERNET USERS in
millions 83.6 72.7 59.6 INDONESIA ONLINE POPULATION IS GROWING RAPIDLY Source: eMarketer, Indonesia Online, March 2013 4

DEMOGRAPHICS BY GENDER 48.4% male
female FEMALE INTERNET USERS STARTED TO CATCH UP WITH THE PROPORTION OF MALE INTERNET USERS 51.6% Source: APJII, Profil Internet Indonesia, December 2012 5

DEMOGRAPHICS BY AGE 60-65 55-59
2.5% 3.1% 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 12-15 DIGITAL IMMIGRANT 6.0% 9.1% 10.1% 10.9% 11.8% 14.2% 11.6% 10.9% 9.9% This older generation knew internet when they were an adult. They often feel the need to always learn to adapt with the new technologies. DIGITAL NATIVE This younger generation born and living in the internet era. They tend to make trends in cyberspace. YEARS OLD Source: APJII, Profil Internet Indonesia, December 2012 6

DEMOGRAPHICS BY AGE 60-65 55-59
2.5% 3.1% 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 12-15 6.0% 9.1% 10.1% 10.9% 11.8% 14.2% 11.6% 10.9% 9.9% INTERNET USERS IS DOMINATED BY YOUNGER GENERATION 12-34 YEARS OLD (58.4%) YEARS OLD Source: APJII, Profil Internet Indonesia, December 2012 7

DEMOGRAPHICS BY EDUCATION 7.5% 11.3%
ELEMENTARY SCHOOL MIDDLE SCHOOL HIGH SCHOOL DIPLOMA 47.9% 11.1% 20.8% GRADUATE POST-GRADUATE INTERNET USERS IS DOMINATED BY PEOPLE WITH HIGHER EDUCATION 1.3% Source: APJII, Profil Internet Indonesia, December 2012 8

DEMOGRAPHICS BY ACTIVITY 16.6% 15.3%
STUDENTS HOUSEWIVES COLLEGE STUDENTS 9.0% 5.8% 53.3% UNEMPLOYMENTS WORKERS PROPORTION OF HOUSEWIVES AS A GROUP OF INTERNET USERS CONTINUES TO INCREASE BECAUSE OF THE NEED TO SOCIALIZE, SEEK INFORMATION OR CONDUCT A BUSINESS Source: APJII, Profil Internet Indonesia, December 2012 9

DEMOGRAPHICS BY PROFESSION 21.5% ENTREPRENEUR
BLUE COLLAR WHITE COLLAR BLUE COLLAR IS USING INTERNET TO SOCIALIZE RATHER THAN DIRECTLY RELATED TO WORK 15.1% 63.4% Source: APJII, Profil Internet Indonesia, December 2012 WHITE COLLAR INTENSELY ACCESSING THE INTERNET ANYTIME & ANYWHERE TO OBTAIN INFORMATION DIRECTLY TO WORK OR INDIRECTLY TO SELFDEVELOPMENT 10

DEMOGRAPHICS BY MONTHLY SPENDING 33.1%
1 - 2 MILLIONS PER MONTH 2 - 3 MILLIONS PER MONTH > 3 MILLIONS PER MONTH 39% INTERNET PENETRATION IS BARELY SEGMENTED BY ECONOMY CLASS 28% Source: APJII, Profil Internet Indonesia, December 2012 11

02
INTERNET USERS
BEHAVIOR
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DEVICE USED 65.7% SMARTPHONE DESKTOP
PC 52% NOTEBOOK TABLET 45% 1.9% MOBILE INTERNET IS MAKING GAINS, AIDED BY THE PROLIFERATION OF AFFORDABLE SMARTPHONES MANUFACTURED IN CHINA, ALONG WITH MORE AFFORDABLE DATA PACKAGES Source: APJII, Profil Internet Indonesia, December 2012 13

LOCATION BY DEVICE TYPE 92%
83% 50% 24% 14% 24% 26% 16% 16% HOME PUBLIC PLACES OFFICE 13% 13% 06% 11% 03% 16% 09% 14% 10% SCHOOL/UNIV. ON THE GO SMART PHONE MALL 05% 20% CAFE 08% 02% 05% 0% 0% 02% 0% INTERNET CAFE NOTEBOOK TABLET RESTAURANT Source: APJII, Profil Internet Indonesia, December 2012 14

REASONS TO GO ONLINE SOCIAL
MEDIA BROWSING NEWS DL/UL VIDEO EMAIL CHATTING ONLINE GAME VIDEO CALL BLOG VOIP FILE SHARING BUY/SELL 22.4% 18.5% 5.9% 5.3% 3.6% 2.6% 0.1% 87.8% 68.9% 68.3% 62.1% 57.9% INTERNET USERS IN INDONESIA HAS NOT BEEN SERIOUSLY HARNESS THE POWER OF TECHNOLOGY FOR PRODUCTIVE ACTIVITIES INTERNET IS STILL LARGELY USED JUST FOR SOCIAL MEDIA, BROWSING OR TO FIND THE LATEST NEWS UPDATES Source: APJII, Profil Internet Indonesia, December 2012 15

INTERNET SPENDING PER MONTH >
IDR 500 IDR 450 - 500 IDR 400 - 450 IDR 350 - 400 IDR 300 - 350 IDR 250 - 300 IDR 200 - 250 0.7% 0.9% 0.4% 0.9% 1.6% MOST PEOPLE SPEND IDR 50,000 - IDR 100,000 PER MONTH FOR INTERNET CONNECTION 6.9% 6% IDR 150 - 200 IDR 100 - 150 13.7% 17.9% 28.4% IDR 50 - 100 < 50 21.8% IN THOUSANDS Source: APJII, Profil Internet Indonesia, December 2012 16

03
MOBILE INTERNET
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DEMOGRAPHICS BY GENDER 29% male
female INDONESIA HAS ONE OF THE HIGHEST MALE TO FEMALE RATIO AMONG MOBILE INTERNET USERS IN SOUTH EAST ASIA 71% Source: APJII, Profil Internet Indonesia, December 2012 18

DEMOGRAPHICS BY AGE 21% <
18 32% 18-24 33% 25-35 > 35 INDONESIA HAS THE YOUNGEST MOBILE INTERNET USER BASE IN SOUTH EAST ASIA 14% YEARS OLD Source: MMA & VSERV.mobi, The Mobile Internet Consumer Indonesia, 2013 19

DEMOGRAPHICS BY EDUCATION 30% 29%
31% 9% GRADUATE / POST-GRADUATE DIPLOMA / UNDER-GRADUATE SCHOOLING UP TO 12 YEARS UNEDUCATED 30% OF MOBILE INTERNET USERS IN INDONESIA ARE GRADUATES / POSTGRADUATES Source: MMA & VSERV.mobi, The Mobile Internet Consumer Indonesia, 2013 20

DEMOGRAPHICS BY ACTIVITY 4% 4%
FULL-TIME JOB BUSINESS 16% ENTREPRENEUR 39% PART-TIME JOB STUDENT HOUSEWIVES RETIRED 12% 9% 16% 1/4TH OF MOBILE INTERNET USERS IN INDONESIA ARE BUSINESSMEN OR ENTREPRENEUR Source: MMA & VSERV.mobi, The Mobile Internet Consumer Indonesia, 2013 21

DOWNLOADED CONTENTS 70% 49% GAME
/ APP VIDEO 44% MUSIC 33% THEMES GAME / APP IS THE MOST DOWNLOADED MOBILE CONTENT Source: MMA & VSERV.mobi, The Mobile Internet Consumer Indonesia, 2013 22

MOBILE PHONE USERS 148.9 169.7
160.5 179 in millions MOBILE PHONE USERS SMARTPHONE USERS 23.8 38.5 57.7 71.6 IN 2015, SMARTPHONE USERS IN INDONESIA WILL REACH 71.6 MILLION PEOPLE Source: eMarketer, April 2012 23

OPERATING SYSTEMS 53% ANDROID BLACKBERRY
35% WINDOWS IOS 9% 4% ALTHOUGH ANDROID HAS QUICKLY BECOME MAJORITY, UNTIL NOW, BLACKBERRY REMAINS A SIGNIFICANT PLAYER. Source: IDC Indonesia via Jakarta Post, January 2013 24

LOCATION 29% WHILE WATCHING TV
69% LYING IN BED 35% WAITING FOR SOMETHING 14% WHILE COMMUTING 6% WHILE IN A MEETING OR CLASS 17% SPENDING TIME WITH FAMILY 6%WHILE IN THE BATHROOM 5% SOCIAL EVENT 5% SHOPPING INDONESIAN PEOPLE MORE LIKELY TO USE THEIR MOBILE PHONES WHEN THEY WERE ALONE IT’S CANNIBALIZING PRINT MEDIA Source: InMobi, Mobile Media Consumption-Indonesia 25

MOBILE PHONE USAGE 24% SOCIAL
MEDIA ENTERTAINMENT GENERAL INFO E-MAIL GAMES SHOPPING LOCAL SEARCH 8% 6% 20% 16% 14% 12% GROWTH IN INDONESIAN MOBILE USAGE IN THE COMING YEARS IS LIKELY TO COME FROM SOCIAL MEDIA & ENTERTAINMENT Source: InMobi, Mobile Media Consumption-Indonesia 26

04
SOCIAL NETWORK
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SOCIAL NETWORK USERS 79.2 67.1
52.1 34.4 92.3% 87.5% 80% in millions SOCIAL NETWORK USERS % OF INTERNET USERS 94.8% SOCIAL NETWORKS ARE AN INDELIBLE ELEMENT OF THE ONLINE WORLD IN INDONESIA AND A REFLECTION OF THE SOCIAL NATURE OF THE COUNTRY’S CULTURE Source: eMarketer, August 2012 28

SOCIAL NETWORK USED 95.7% 47.6%
37.6% 29.4% % of respondents, Social Networks Used by Social Network Users in Indonesia in the past week Source: BBG and Gallup, October 2012 FACEBOOK YOUTUBE GOOGLE+ TWITTER ALTHOUGH FACEBOOK IS STILL VERY POPULAR, IT’S POPULARITY MAY BE DECLINING, AMONG THE DIGITALLY SAVVY USER’S IN LARGER CITIES WHO ARE TURNING TO PATH 29

FACEBOOK 1 2 3 4
USA INDIA BRAZIL INDONESIA 180,000,000 90,000,000 86,000,000 64,000,000 MONTHLY ACTIVE USERS INDONESIA IS THE FOURTH BIGGEST FACEBOOK COUNTRY Source: Social Bakers, 2013 30

YOUTUBE 1 BILLION UNIQUE USERS
PER MONTH 6 BILLION VIEWS PER MONTH 18 MINUTES 900,000 22% TIME ON SITE PER SESSION HOURS OF VIDEO VIEWED PER DAY OF VIEWS COME FROM MOBILE Source: YouTube, 2013 31

TWITTER 1 2 3 4
INDONESIA SAUDI ARABIA SINGAPORE UNITED STATES 44.2% 41.7% 34.7% 34.5% ACCOUNT GROWTH INDONESIA IS THE COUNTRY WITH THE BIGGEST GROWTH OF TWITTER ACCOUNTS IT HAS CLOSE TO 30 MILLION TWITTER ACCOUNTS Source: GlobalWebIndex, April 2013 32

GOOGLE+ 1 2 3 4
5 USA INDIA BRAZIL UNITED KINGDOM INDONESIA 5,767,480 2,302,520 1,660,390 GOOGLE+ USERS INDONESIA IS THE FIFTH BIGGEST GOOGLE+ COUNTRY 627,449 612,318 Source: GPlusData, September 2013 33

05
E-COMMERCE
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DIGITAL BUYERS 7.4 DIGITAL BUYERS
IN INDONESIA 5.9 % OF INTERNET USERS in millions 4.6 3.1 6.7% 8% 9% 10% BY THE END OF 2015 THERE WILL BE 7.4 MILLION DIGITAL BUYERS, OR EQUAL TO ONLY 10% OF INTERNET USERS Source: eMarketer, January 2013 35

B2C SALES $3.56 B2C E-COMMERCE
SALES % OF CHANGE $2.60 13.3% E-COMMERCE HAS NOT TAKEN ROOT IN INDONESIA YET, BECAUSE OF: $1.79 $1.04 in billions 9.8% 7.1% Lack of delivery infrastructure • Unfamiliarity with online payment • 6.7% • Worries about security Source: eMarketer, January 2013 36

REASONS NOT TO BUY ONLINE
34.6% 21.5% 13.8% 12.7% 9,3% 6.0% 5.2% 4.7% 4.1% 4.0% 2.4% FEAR OF FRAUD ITEMS CAN’T BE SEEN DIRECTLY HIGH PRICES NOT INTERESTED/NOT NEEDED QUALITY OF ITEMS NOT GUARANTEED DO NOT KNOW HOW NOT PRACTICAL ITEMS DO NOT MATCH THE OFFER ITEMS ARE NOT IN ACCORDANCE TO ANYONE’S LIKING ITEMS DO NOT MATCH THE PICTURE PROCESS IS LONG Source: APJII, Profil Internet Indonesia, December 2012 37

MOST BOUGHT PRODUCTS female 77.1%
male 39.1% CLOTHING 2.1% 8.7% 3.8% 11.1% 5.2% 2.2% 5.0% 0.3% 0.8% 4.8% HANDPHONE TICKET FOR TRIP/SHOW NOTEBOOK/ ACCESSORIES BAGS BOOKS ELECTRONIC GADGETS SHOES COSMETIC BOOKING/ HOTEL RESERV. TOYS FOR CHILDREN 17.8% 16.9% 16.1% 1.4% 11.0% 9.0% 8.8% 0.3% 4.7% 4.6% Source: APJII, Profil Internet Indonesia, December 2012 38

MOST USED E-COMMERCE SITES SITES
USED TO MAKE ONLINE PURCHASE FACEBOOK KASKUS DISDUS TOKO BAGUS DEAL KEREN AMAZON E-BAY BHINNEKA MULTIPLY BLIBLI TOKOPEDIA OTHER 19.5% 13.6% 11.9% 8.9% 8.5% 5.5% 4.7% 4.7% 3.8% 22.5% 50% 49.2% MAJORITY OF DIGITAL BUYERS STILL PREFER PEER-TO-PEER MARKETPLACE, SELLER AND BUYER NEGOTIATE THROUGH ANY NUMBER OF NETWORKS, INCLUDING REGULAR PHONE CALL OR SMS, FACEBOOK, BBM, WHATSAPP AND TWITTER Source: Veritrans and DailySocial, eCommerce in Indonesia, August 2012 39

PAYMENT METHOD 70% 41% 30%
24% 15% BANK TRANSFER KLIK BCA CREDIT CARD CASH ON DELIVERY MANDIRI INTERNET THE MOST POPULAR PAYMENT SYSTEM FOR ONLINE PURCHASES IS BANK TRANSFER Source: Veritrans and DailySocial, eCommerce in Indonesia, August 2012 40

THANK
YOU
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