Biznet to spend $20m on network expansion

Saturday, July 14, 2007
The Jakarta Post, Jakarta

Internet service and network provider Biznet is spending up to US$20 million on an ongoing project to expand its fiber-optic network to reach more commercial buildings in Jakarta's central business district.

"With our fiber-optic network, we are not only an Internet service provider, but also a network provider in Jakarta," Edward Kusma, Biznet's product manager, told reporters Friday.

The company has so far expanded its network to 110 buildings in the Sudirman, Kuningan, Thamrin, Gatot Subroto, Slipi, Simatupang and Pondok Indah areas, including 94 office buildings, seven apartment complexes, five shopping malls, and four hotels.

With the completion of the fiber-optic network, the company's services will extend to more business districts in Greater Jakarta, including Cikarang in Bekasi, Serpong in Tangerang, Kelapa Gading in East Jakarta and Bintaro in South Jakarta, he said.

Biznet, which recorded 50 percent business growth last year, is focusing on Jakarta as between 70 and 80 percent of demand in Indonesia is concentrated here.

The company is also focusing on corporate customers as it is simpler to connect such customers than individual households, he explained.

"It is easier to set up the infrastructure in a building with a lot of tenants than to set it up for individual households in a residential complex," said Edward, adding that about 80 percent of the company's customers were corporations.

Figures from Internet World Stats, an international Internet organization, reveals that Internet market penetration in Indonesia currently stands at only eight percent, compared to 69.9 percent in the United States, and 17.5 percent in Vietnam.

However, with 18 million Internet users this year, Indonesia is ranked 15th in the world in terms of numbers of users, accounting for 1.6 percent of the world total.(02)