At VIVA, we are excited about the future for Indonesia’s broadcast and internet/online sectors. The rapid growth and commercial success of our media subsidiaries reflect the changing landscape of the industry and the economy, and the convergence trends in the market. We also recognize the changing demographics and consumers’ rapid adoption of online and social media channels in Indonesia that underscore our investment to create convergence of our contents and platforms. The changing demographics in Indonesia where more than 66% of the country’s more than 237 million people are between 15 and 66 years old (Population Census, 2010) will also contribute to sustain economic momentum of the country, which in turn will have positive impact on the broadcast and online media industries.
As the 15th largest economy in the world (IMF, 2010), Indonesia is seen to have a greater role in the global economy. Indonesia – along with five other emerging economies – will account for over half of the world’s growth in 2025 (World Bank, 2011).
The changing demographic in Indonesia is also contributing to the continuing growth of a creative, vibrant and dynamic society that demands easy and affordable access to information and interactive platforms for engagement. Social media has played a crucial role in connecting consumers in Indonesia. Take for example, Facebook in Indonesia. There were more than 36 million Facebook users from Indonesia as of May 2011 (Socialbaker, 2011), or the second largest user in the world after the United States. Indonesia’s total number of Facebook users already accounts for more than Singapore and Malaysia’s combined populations of 33 million people in 2011. Mobile communication plays an important part to accelerate the rapid adoption of social media channels in Indonesia. Higher mobile penetration rate (67% or more than 156 million real subscribers as of end of 2010 according to Roy Morgan), the changing consumers’ online behavior and the government of Indonesia’s commitment to improve connectivity across the country present opportunity for convergence in content and platforms.
Indonesia’s internet penetration rate is set to increase in line with the government’s commitment to improve domestic connectivity. Strong domestic consumption, increased opportunity for trade and investment activities in the country and favorable demographic will contribute to sustain Indonesia’s economic momentum.
