Evaluation of the implementation of fixed broadband access provision policy in Indonesia

The Indonesian Government established a facilitation policy in order to increase fixed broadband penetration in Java region until it reaches 12,52% in the end of 2019. Fixed broadband penetration for urban areas has only reached 9,38% from the target of 30% of the total population and the service prices are still at 5,5% to 13% from the target of less than 5% compared to GDP per month per capita. This research focuses on the evaluation of the implementation of fixed broadband services provision facilitation policy in terms of policy, industry and business models development as well as the incentive schemes. The research was conducted through Regulatory Impact Analysis (RIA) as an effort to accelerate fixed broadband penetration in Indonesia. The results of the study are expected to provide recommendations that can encourage the growth of fixed broadband penetration in Indonesia for supporting national development growth and competitiveness at the global level, as well as improving quality of life Indonesian society. Based on the analysis, there are two options to provide the best provision policy. According to the final results, it shows that scenario option 2 (use the new recommendation or alternatives regulation that appropriate with the provision mechanism in Indonesia). It implies that there are two major issues which must be solved immediately by the government. First, there is a need to establish a derivative regulation from the RPI as a strong legal basis in carrying out these policies that can eliminate regulation gaps. Second, there is a need to evaluate the business model or financing scheme in this program so it can be more in line with the conditions of the community, legal regulations and the main purpose to create a multiplier effect that can increase fixed broadband penetration in Indonesia.