The National Development Planning Agency (Bappenas) predicted a bold 10,6 percent growth for the information and communication technology (ICT) sector in 2017. The positive outlook on the ICT market stems from the fact that broadband internet connection – the $G long-term evolution (LTE) and fiber optics – now extend into more cities, supported by an increasing number of affordable handsets for end-users.
Bambang Prodjonegoro, Indonesia’s National Development Planning Minister, said in Jakarta on Thursday (August 18, 2016) that the Palapa Ring project will be the focus in 2017. According to the plan, 440 cities in 34 provinces will be connected by fiber optics. Additionally the government will develop internet access in 800 industrial zones and special economic zones.
The transportation and warehousing sector is predicted to grow 7,1 percent in the coming year as it benefits from the ICT development in the wake of a boom in e-commerce. Bambang commented that infrastructure such as roads, airports and seaports will support this sector. The government will also directly invest into labor-intensive products to boost employment. For 2017 state budget the government set economic growth at 5,3 percent amidst a constantly slow global economy.