Baidu IndonesiaBaidu Indonesia

ExploreThe Mobi le World

In Indonesia

Baidu Indonesia

• The purpose for this research is:

1. to unveil some practical insights on the current situation and the trend of the mobile market in Indonesia

2. to provide a deep description of the mobile users

• The findings are based on the deep analysis of the data collected from various channels, which include online questionnaire

survey, face to face interview and product data.

Online Survey:The questionnaire is posted on hao123.com,

liputan6.com, etc. in Sep 2014.

And totally 11458 valid sample is collected.1

Expert Interview:Expert list covers Indonesia top tech blogger,

media, developer to commercial company etc.3

Depth interview:Over 100 hours deep interview carried out

among mobile internet users in JKT and other

cities face-to-face or by telephone.2

Product Data:The log data from Baidu products are also

included in the final analysis.4

Overview

Baidu Indonesia

Exclusive Summary

Part A

Market

• Smartphone: most widely and most frequently used device• General usage: high frequency and long duration• Operator: price is no longer the only consideration• Device: shifting from low end to middle end android phones• Brands: local brand is chasing Samsung

Part B

User

• Demographics: young male, lower income and less internet experience• Scenario: home is the most important• Activities: social network, searching and media consumption• Apps: only a few will be frequently used, browser is the most versatile one• Peak time: lunch time and after work

Part C

Future

• Mobile internet will have a rapid growth in the future• Developers will have more support from the enterprises• Indonesia will become a internet player rather than a big internet market only

Baidu Indonesia

Detail Findings

Part A

Market

Part B

User

Part C

Future

Baidu Indonesia

59,9%

41,4%

33,5%

17,4%

11,0%

4,0%

48,0%

20,3%

15,5%

8,3%

3,9%

3,6%

Smartphone

Laptop PC

Desktop PC

Tablet/Pad

Netbook

Other

Smartphone: most widely and most frequently used deviceA

Device for Surfing Internet

I use it to surf the net most frequently

I use it to surf the net in the past 6 months

Baidu Indonesia

General usage: high frequency and long durationA

90.7% of the mobile internet users surf

more than once a day

90.7%

26,6%

14,0%

15,4%

22,7%

21,3%

over 5 hours

3-5 hours

2-3 hours

1-2 hours

less than 1 hour

Over 40% users spend 3 hours or more each

day to surf the internet with smartphone

Frequency for surfing mobile internet Hours for surfing mobile internet

Baidu Indonesia

Operator: price is no longer the only considerationA

39,6%

38,2%

34,9%

33,3%

31,9%

24,9%

Better data Package

Networs speed

Lower price

Network stability

Network coverage

Mobile standard

Other than price, internet experience such as speed, network stability are playing important role when user

choosing the operators

Top considerations when choosing the operators

Baidu Indonesia

Device: low-end device is currently the mainstreamA

20,6%

29,1%

33,5%

11,5%

4,1%

1,3%

Less than Rp. 1,000,000

Rp. 1,000,001-1,500,000

Rp. 1,500,001-3,000,000

Rp. 3,000,001-5,000,000

Rp. 5,000,001-8,000,000

More than Rp. 8,000,000

Purchase Price of the Current Smartphone

Currently, over 80% of the smartphone are below Rp. 3,000,000.

Rp.1,000=$0.08215

Baidu Indonesia

Device in future: A better Android phoneA

OS users going to choose

87.3%

87.3% of the mobile internet users expecting

the next smart phone to be Android

Rp. 2,148,000

Rp. 2,907,000

Price of the current smartphone

vs.

Budget for the next smartphone

The average price of the current smartphone is

Rp. 2,148,000, and the average budget for the

next smart phone grows to Rp. 2,907,000.

Rp.1,000=$0.08215

Baidu Indonesia

Brands: local brand is chasing Samsung A

Brands of the current smartphone

49,7%

16,2%

14,4%

9,2%

8,5%

8,0%

7,9%

7,1%

6,4%

3,9%

3,0%

2,7%

1,9%

1,0%

0,7%

Samsung

Blackberry

Smartfren

Nokia

Advan

Sony

Evercoss

Lenovo

oppo

Mito

Apple

LG

Hisense

Huawei

Himax

Baidu Indonesia

Detail Findings

Part A

Market

Part B

User

Part C

Future

Baidu Indonesia

Demographics: young male with lower incomeB

13,9%

40,1%

17,8%

14,0%

7,1%

3,7%

3,4%

younger than 18

18-25

26-30

31-35

36-40

41-45

older than 45

Male

74.7%

Female

25.3%

45,6%

28,7%

12,2%

5,7%

3,1%

4,6%

Lower than Rp.

1,500,000

Rp. 1,500,001 -

3,000,000

Rp. 3,000,001 -

4,500,000

Rp. 4,500,001 -

6,000,000

Rp. 6,000,001 -

8,000,000

Higher than Rp.

8,000,000

Baidu Indonesia

Users: less internet experienceB

6,2%

10,9%

21,1%

26,1%

25,6%

10,0%

11,2%

21,4%

34,3%

21,8%

9,4%

2,0%

less than 6 month

6 month -1 year

1-3year

3-5years

5-10 years

10 years or longer

44.8%

44.8% of the users started their internet

experience from smartphone

Comparison of the internet experience Device to start the internet experience

Smartphone

Computer

Mobile internet experiencePC internet experience

Baidu Indonesia

Scenario: home is the most importantB

95,2%

36,0%

26,8%

26,6%

20,2%

15,9%

12,3%

10,1%

3,3%

Home

Workplace

On-the-go

Restaurant

Café/coffee shop

School

Public transport

At a social gathering/function/event

Others

Mobile internet scenarios

Baidu Indonesia

Activities: social network, searching and media consumptionB

84,2%

65,7%

39,2%

38,9%

31,4%

30,7%

17,6%

16,4%

1,5%

Accessing a social nertwork

Searching

Reading news/books/magazines

Sending/Reading emails

Watching videos

Playing games

Listening music

Reviewing blogs or BBS

Others

Mobile internet activities

Baidu Indonesia

Apps: only a few apps are frequently used B

39,4%

34,4%

11,4%

13,5%

1-2 Apps

3-5 Apps

6-10 Apps

more than 10 Apps

Frequently used Apps

86,4%

79,5%

63,9%

61,0%

50,7%

48,2%

48,1%

36,0%

28,6%

28,4%

16,8%

0,9%

81,0%

64,5%

35,4%

32,2%

17,0%

25,3%

7,9%

7,0%

6,2%

8,6%

2,5%

0,1%

social network

browser

game

music

video

news

map&travel

tools

photography

shopping

books

others

Apps installed vs. Apps frequently used

Apps frequently used

Apps installed

Baidu Indonesia

Browser: a versatile tool B

Frequency of using mobile browser

78.3%

78.3% of the mobile internet users open browser

many times a day

79,1%

66,2%

65,3%

55,6%

34,3%

31,0%

19,0%

5,8%

0,9%

search

download things

social networks

read news

watch pictures

watch videos

shopping

read novels

others

Purpose for using mobile browser

Users are using browser for various purposes

Baidu Indonesia

Peak time: lunch time and after workB

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

13:0019:00

Baidu Indonesia

3 typical user personasB

Mobile is complementary Mobile is dominant Mobile is all

The Mobile "Player" The Mobile "Learner"The Mobile "User"

“Computer is the main tool for my

internet life”

“I usually use phone at fragmented

times”

“Computer is only my homework

machine”

“I really like Android, so many apps

and games, so many fun, and also

private”

“Anything I need from internet, I use

my phone”

Baidu Indonesia

He rents an apartment in Jakarta. Everyday,

he wakes up at 7:30 and goes to work at 9:00

by motorbike.

He works in a IT company. During work, he

mainly uses laptop to deal with documents,

search, sending emails, etc.

During 12:00-13:30, there is a midday rest.

Usually, he checks his FB during lunch.

Most of time, he will be home before 21:00.

Before sleep, he will read news on mobile to

follow up what happen the whole day.

Daily life

Occupation: Senior Marketing Executive

Mobile internet History: from 2011 with the first

mobile phone of Sony Xperia

PC internet History: from 2008 with first laptops in

college

Present internet devices:

Dell Samsung Galaxy s5

Basic information A typical day with internet

7:30

9:00

12:00

18:00

13:30

23:00

Get up, check emails and FB with the phone.

When arrive the office, opens the computer and read some news, then start the work.

Lunch time: Facebook, BBM, Twitter with the phone.

During a boring meeting, scan for funny things on the phone.

Reading some news and check FB in bed before go to sleep.

Go back to work, emailing, searching by computer.

• Most of them start using internet by PC, and still accustomed to use PC

• Mobile internet is mainly a supplement to fit in the fragmented time

• The mobile usage is comparatively stable: social network, searching, browsing

“I usually use phone at fragmented times,

less than 2 hours in one day”

“I only have a few favorite apps, because I

don’t have that much time”

Name: Rizki

Aged 28 and married

The Mobile

USER

Baidu Indonesia

Everyday in the morning, he prays at 5:00.

Then he will check BBM and reply if

necessary. After that, he goes back to sleep.

He will play some games or chat with friends

during the class. And new game or anything new

no mobile are good topic to talk about.

Lunch is always the happy time. Sharing

everything funny including mobile games or new

apps is his favorite.

Before goes to sleep, he checks again all social

medias in bed.

Daily life

Occupation: Student

Mobile internet History: from 2011 with the first

mobile phone of Smartfren

PC internet History: from 2011 with the first laptop

bought by his father

Present internet devices:

Basic information A typical day with internet

23:00 FB before go to bed.

• Start using internet by PC and mobile almost the same time

• Mobile is so attractive in many ways that PC is now only used for few target

• Very eager to do more with the mobile phone. Mobile phone is the best toy or play-

mate

Name: David

Age: 18

The Mobile

PLAYER

AcerSmartfren

Play games: the Titans War,

racing games.8:00

12:00 Chat with friends on line, Facebook,

Path.

14:00 A friend introduced a new app.

Download it and have a try.

Do homework: FB, search.19:00

Watch videos:movies, sports

videos, funny videos

Play games.

21:00

“I really like Android, so many apps and

games, so many fun, and also private”

“Computer is only my homework machine”

Baidu Indonesia

After getting up at 8:00, she will have

breakfast and reads some gossip news of

celebrities on Kompas.com.

Work starts at 9:00. After the cleaning work, she

may have a short break if the supervisor doesn't

show up. She likes to chat with colleagues then.

Her colleague always know the new apps and

games. She likes to learn from them.

After a long exhausting day, she likes to watch

some videos on the phone. Or play some games.

Daily life

Occupation: cashier at a supermarket

Mobile internet History: from 2011 with the first

mobile phone of Evercross A11

PC internet History: no

Present internet devices:

Basic information A typical day with internet

• Mobile brings internet into life and now everything on mobile is being learned

• Not quite familiar with technology both internet and mobile phone are new to them

• Usage is limited with in a few apps

“Anything I need from internet, I use my

phone”

Name: Arni

Age: 19

The Mobile

NOVICE

Read some gossip news and chat

with friend on the way work via

FB.

8:00

12:00 Check the FB during the lunchtime.

Talk with a friend on “Line”.19:00

A friend helped to installed a

new game. Try the new game

and then watch some videos

on Youtube before go to bed.

21:00Evercoss A11

Baidu Indonesia

Detail Findings

Part A

Market

Part B

User

Part C

Future

Baidu Indonesia

Future of the mobile internet in Indonesia C

The population is huge, and the mobile penetration is

expected to grow in the future.

Quite a lot of the mobile users are pretty fresh to

mobile internet. They are learning fast, they are

growing needs and knowledge means a great

opportunity. Especially in E-commerce and social

games.

Operators such as Smartfren are investing on

internet infrastructures such as LTE. A better

infrastructure is the basis of growth.

A rapid growth

There are more communications between government

and entrepreneurs. Both developer and the

entrepreneur will benefit from a healthier environment.

Operator’s investment on the new technology and the

infrastructure will help developers.

More and more enterprises are seeking cooperation

with the developers.

Better for developer

The prosperity of the internet industry has a strong

relationship to GDP growth, the government is

paying more attention to the internet industry.

Indonesia is already a big market. The cooperation

with foreign companies also helps local industry to

grow.

Market becomes player

Baidu Indonesia

ExpertsC

Andry Huzain HermansyahManuel Irwanputera Enda Nasution Denny Abe Rama Mamuaya

Baidu Indonesia

About Baidu

• Baidu is the 5th largest internet giant all over the world, and starts business in Indonesia since July 2013

• Currently Baidu has 4 mobile products in Indonesia: Baidu Browser, MoboMarket, Du Battery Saver and Du Speed Booster

• These 4 products are already covering 2/3 of the Indonesian Android users

Baidu Indonesia

The End

Baidu Indonesia