Free-to-Air (FTA) television has had a substantial impact in Indonesia, with almost two out of every three households having access to television. The advertising market suffered a major setback as a result of the Asian economic crisis, but has been recovering strongly and sector revenues are on the increase. The pay TV market has not been so fortunate and has generally struggled to build its customer base. This has been partly due to the fact that pay TV is too expensive for the average Indonesian household at a subscription of around US$22 per month. The sector also suffers problems relating to infrastructure. This report covers Indonesia’s TV broadcasting sector and notes the move to digital; there is also some information on the early development of IPTV in the country.