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Telecommunications reform in Indonesia: Achievements and challenges

Author

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  • Roy Chun Lee
  • Christopher Findlay

Abstract

Telecommunications reform in Indonesia has occurred in two phases. In the first, from 1989, private participation was permitted in the fixed-line sector through public-private partnership (PPP) arrangements. In the current reform phase, which began in 1999, a duopoly structure was created in fixed-line sector operations, accompanied by a pro-competitive regulatory regime. The first reform phase was not successful. This paper explains that contract-based PPP programs provided only short-term solutions to the problem of lack of capacity. The more wide-ranging 1999 reforms acknowledge the importance of competition and a sound regulatory regime in telecommunications reform, but there are still limits on market entry, and the problems of lack of interconnection and network development disparities remain.

Suggested Citation

  • Roy Chun Lee & Christopher Findlay, 2005. "Telecommunications reform in Indonesia: Achievements and challenges," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(3), pages 341-365.
    • Handle: RePEc:taf:bindes:v:41:y:2005:i:3:p:341-365
    DOI: 10.1080/00074910500306601
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    References listed on IDEAS

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    Cited by:

    1. Rezki, Jahen F., 2023. "Does the mobile phone affect social development? Evidence from Indonesian villages," Telecommunications Policy, Elsevier, vol. 47(3).
    2. Rohman, Ibrahim Kholilul & Bohlin, Erik, 2014. "Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on?," Telecommunications Policy, Elsevier, vol. 38(3), pages 248-263.
    3. repec:osf:socarx:3s784_v1 is not listed on IDEAS
    4. 'Ofa, Siope Vakataki, 2009. "The WTO's telecommunications commitments and the credibility of telecommunications regulatory reforms in small island developing states," MPRA Paper 66184, University Library of Munich, Germany.
    5. repec:ilo:ilowps:471767 is not listed on IDEAS
    6. Tomokazu Arita & Chie Iguchi & Philip McCann, 2011. "Foreign Direct Investment, Knowledge Assets and the Economic Geography of Growth in the Asian BRIICS Countries," Chapters, in: Robert Stimson & Roger R. Stough & Peter Nijkamp (ed.), Endogenous Regional Development, chapter 9, Edward Elgar Publishing.
    7. Rezki, Jahen Fachrul, 2018. "Call Your Leader: Does the Mobile Phone Affect Policymaking?," SocArXiv 3s784, Center for Open Science.
    8. Quamrul Alam & Mohammad Abu Yusuf & Ken Coghill, 2010. "Unilateral liberalisation and WTO GATS commitments: the telecommunications sector in selected countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(1), pages 43-64, May.

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