This report describes the booming Indonesian mobile telephone market. Indonesia’s mobile market has grown rapidly in recent years, with the number of subscribers passing 130 million in early 2009, up from 90 million in early 2008; this followed on from market growth of nearly 40% in 2007. There is still considerable opportunity for market expansion in Indonesia when compared with some of its Asian neighbours. With much happening that is positive, a range of structural and economic issues must also be confronted if the local telecom industry is to cope with the expanding market. For strong growth to continue, the sector must take advantage of the government’s regulatory changes and find ways of attracting more foreign capital into the market place. Value-added services have become important and 3G, having arrived in 2006, is steadily establishing a market presence.
