Telecommunications Reform in Indonesia: Achievements and Challenges

Richard Lee, Christopher Findlay

    Research output: Contribution to journalArticle

    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.
    Original languageEnglish
    Pages (from-to)341-365
    JournalBulletin of Indonesian Economic Studies
    Volume41
    Issue number3
    DOIs
    Publication statusPublished - 2005

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