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NATIONAL CONTRIBUTION REPORT
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Axiata Group Berhad | Sustainability & National Contribution Report 2016
In Support of the National Agenda
E-commerce and SMEs, identified
as priorities under the Indonesian
Government’s National Agenda, are areas
that stand to benefit significantly from
the growth of mobile connectivity and
the use of digital technology. These areas
represent opportunities for XL to play a
role in advancing Indonesia’s national goals
and to contribute to society. The following
section provides an overview of these
national priorities and XL’s contribution
towards them.
E-commerce
ICT is an essential support to the
development of e-commerce, as the
development of ICT infrastructure creates
channels for retailers to do business
online. Growing use of the internet and
smartphones also creates demand for ICT
services. Indonesia is expected to be the
largest e-commerce market in Southeast
Asia.
E-commerce drives economic growth
Indonesia was the largest e-commerce
market in ASEAN in 2014. E-commerce is
expected to grow at an accelerated rate
given the country’s demographics that
have made Indonesia the world’s fourth
largest country by population.
To support Indonesia’s goal of becoming
the biggest digital economy in Southeast
Asia by 2020, the Indonesian Government
released the E-commerce Roadmap
in 2016 which forecasts the value of
e-commerce transactions to reach USD130
billion by 2020.
ICT supports the expansion of e-commerce
The Government of Indonesia launched
the Indonesia Broadband Plan in 2014. A
key priority under the Broadband Plan is
delivering improved logistics infrastructure,
to enhance e-commerce efficiency
and competitiveness. The improved
infrastructure would be necessary to
support growing demand for e-commerce
services which is correlated to the rapid
growth of the internet and social media
users in Indonesia.
The number of internet users in Indonesia
is expected to increase from 72.8 million in
2013 to 123 million in 2018, at a CAGR of
11.1% whereas the number of smartphone
users is expected to reach 100 million
by 2018. There are approximately 333.6
million active mobile numbers in Indonesia,
translating to a mobile penetration rate of
130%. Meanwhile, there are more than 69
million active Facebook users in Indonesia,
which is the fourth largest Facebook user
base in the world. Exposure to social
media drives demand for e-commerce,
as this provides convenient channels to
connect with the global market.
XL Axiata is involved in the e-commerce
marketplace through PT XL Planet, a joint
venture company.
SMEs
Indonesia’s SME sector plays an important
role in the Indonesian economy. Digitisation
helps to lower costs and enhance efficiency
of the SME supply chain. Indonesia’s annual
GDP growth rate could increase by 2% by
improving SMEs’ digital engagement. XL
has invested more than IDR500 billion
to set up DigiBiz, a service to help SMEs
strengthen their marketing initiatives and
grow their businesses.
SMEs as drivers of growth
In 2014, 57.9 million SMEs contributed to
58.9% of total GDP and employed 97.3%
of the country’s workforce. Recognising
the importance of SMEs in Indonesia, the
Government of Indonesia has introduced
various initiatives such as tax incentives,
lower lending rates, reduced restrictions
on foreign investments, and support for
market expansion opportunities to boost
the sector’s growth.
Nurturing Young Talent
XL is committed to nurturing young talent
in Indonesia through its XL Future Leaders
(XLFL) programme. XLFL replicates the
aims and objectives of AYTP in Indonesia
to provide unique learning and training
opportunities to Indonesian students. From
the programme’s implementation in 2011
to end 2016, some 20,690 Indonesian
students have benefitted from the
programme, which also offers scholarships
on top of training workshops and online
learning courses.
NATIONAL CONTRIBUTION
REPORT