M0214
ADVANCED TOPICS OF INFORMATION SYSTEMS
ICT IN INDONESIA
By
Yesika Kristina
1501146792
Dea Pradana Darmawan
1501155014
Sukianti
1501169991
Merianti
1501171320
Meshiya Caterlee
1501171485
Class / Group : 06 PLM / 06
Bina Nusantara University
Jakarta
2014
Abstract
The purpose of this research is to know how the growth of ICT affects careers in
Indonesia. This research also leads us to know the capabilities of Indonesian IT professionals
compared to IT professionals in Asia regions, the way Indonesian people accept new
technologies with obstacles from their surroundings. Lastly, this research gives us
understanding about roles of ICT in banking sector in Indonesia. The research methodology
used in this research is library and internet research. It is conducted by looking for references
from textbooks, journals, articles, and Internet. There are two steps in doing the library
research. The first step is determining keywords related to our research topic. These keywords
help us to find any textbooks or scientific journals we need easier. The second step is to select
the information based on our research objectives. The information should also be analysed
since it is taken from various sources. The Expected Outcome is to have a good
comprehension about ICT, especially its roles that create new career opportunities in today’s
every aspect of human life. Thee conclusion of this research is IT careers in Indonesia keep
growing and needed by a lot of kinds of industries. However, ICT growth in Indonesia is still
considered left behind. Getting aware by this condition, the society finds their own ways to
update themselves with latest technology information. ICT growth can be seen in any sectors,
such as banking sector. In Indonesia, e-banking is the most common ICT provided by banks
to satisfy their customers for doing transactions conveniently.
Keywords
ICT, Career, Technologies, Banking, Human Life, E-banking
CHAPTER 1
INTRODUCTION
1.1. Background
The field of Information and Communication Technology (ICT) combines science
and technology. It includes the full range of hardware and software, telecommunication
and cell phones, the Internet and Web, wired and wireless networks, digital still and
video cameras, robotics, and so on. It includes the field of Information Computer and
Information Science and a huge and rapidly growing knowledge base that is being
developed by practitioners and researches (Moursund, 2005). ICT has been contributing
the greatest benefits as a problem solver in business, industry, government, education,
and many other human endeavours.
Humans nowadays have become dependent on ICT since it has been proven that it
is able to solve problems and accomplish tasks. ICT has become the foundation of every
aspect of human life. Kramer, Jenkins, and Katz (2007) stated that ICT has six typical
roles which are reducing transaction costs and thereby improves productivity; offering
immediate connectivity- voice, data, visual- improving efficiency, transparency, and
accuracy; substituting for other, more expensive means of communicating and
transacting; increasing choice in the marketplace and providing access to otherwise
unavailable goods and services; widening the geographic scope of potential markets; and
channelling knowledge and information of all kinds.
The growth of ICT offers a lot of career opportunities for young people nowadays.
As types of ICT jobs are getting more specific, there are more requirements they have to
fulfil to get the job. In other words, they are required to specialise in at least one
computer skill. Examples of jobs included in ICT are network security specialist,
computer services technician, IT consultant, applications trainer, web application
developer, and so on (Department of Education, Culture, and Employment, 2006).
In this paper, we will be discussing about ICT, especially its offered career
opportunities in Indonesia, the way people accept the new technologies, and its growth in
banking sector.
1.2. Scope
The first aim of this paper is to know how largely IT growth influences careers in
today’s world, especially Indonesia. The increase of IT needs offers big opportunities for
today’s young adults to grow their careers in IT. After knowing what IT careers are
present in Indonesia, we will analyse how competent IT Indonesian professionals are
compared to IT professionals in Asia regions.
The second aim of this paper are to identify how ITs are absorbed by Indonesian
people and what obstacles some of them have been facing in absorbing the new
technologies.
The last aim of this paper is to discuss about roles of IT in banking sector. The
discussion will also cover the opportunities, threats, and strategies that IT may contribute
in this sector
1.3. Objectives and Benefits
The objectives of this paper are:
a. To identify IT careers in Indonesia
b. To analyse whether IT professionals in Indonesia are able to compete with IT
professionals in Asia regions
c. To identify how Indonesian people can quickly absorb new technologies
d. To identify what can be the obstacles for Indonesian people to absorb new
technologies
e. To comprehend IT in banking sector
The benefits of this paper are:
a. To recognize IT careers in Indonesia
b. To know Indonesian IT professionals’ capabilities among IT professionals in Asia
regions
c. To know how Indonesian people can quickly absorb new technologies and
difficulties that they face in absorbing new technologies
d. To broaden knowledge about IT in banking sector
1.4. Research Methodology
The methodology used in this paper is library research. It is done by looking for
references from textbooks, journals, articles, and the Internet. The steps in doing the
library research are:
1. Determining keywords related to our research topic. The keywords help us easier to
find any textbooks or scientific journals we need.
2. Selecting the information based on our research objectives. The information should
also be analysed since it is from various sources.
CHAPTER 2
THEORETICAL FRAMEWORK
2.1. Information and communications technology (ICT)
Information and communications technology (ICT) is often used as an extended
synonym for information technology (IT), but is a more specific term that stresses the
role of unified communications and the integration of telecommunications (telephone
lines and wireless signals), computers as well as necessary enterprise software,
middleware, storage, and audio-visual systems, which enable users to access, store,
transmit, and manipulate information.
2.2. Information Technology
Information technology (IT) is the application of computers and telecommunications
equipment to store, retrieve, transmit and manipulate data, often in the context of a
business or other enterprise.
2.3. Information
Information is that which informs, i.e. that from which data can be derived. Information
is conveyed either as the content of a message or through direct or indirect observation
of something.
2.4. Communication
Communication is the activity of conveying information through the exchange of ideas,
feelings, intentions, attitudes, expectations, perceptions or commands, as by speech,
gestures, writings, behaviour and possibly by other means such as electromagnetic,
chemical or physical phenomena.
2.5. System
A system is a set of interacting or interdependent components forming an integrated
whole or a set of elements (often called 'components' ) and relationships which are
different from relationships of the set or its elements to other elements or sets.
2.6. Software
Software is the non-tangible component of computers. Computer software contrasts with
computer hardware, which is the physical component of computers. Computer hardware
and software require each other and neither can be realistically used without the other.
2.7. Bank
A bank is a financial intermediary that accepts deposits and channels those deposits into
lending activities, either directly by loaning or indirectly through capital markets. A
bank links together customers that have capital deficits and customers with capital
surpluses.
2.8. Risk
Risk is the potential of losing something of value, weighed against the potential to gain
something of value. Values (such as physical health, social status, emotional well being
or financial wealth) can be gained or lost when taking risk resulting from a given action,
activity and/or inaction, foreseen or unforeseen.
2.9. Online Banking
Online banking (or Internet banking or E-banking) allows customers of a financial
institution to conduct financial transactions on a secured website operated by the
institution, which can be a retail bank, virtual bank, credit union or building society.
2.10. Career
Career describes an individuals' journey through learning, work and other aspects of life.
There are a number of ways to define a career and the term is used in a variety of ways.
2.11. Employee
An employee is anyone who has agreed to be employed, under a contract of service, to
work for some form of payment. This can include wages, salary, commission and piece
rates.
2.12. Market
A market is one of the many varieties of systems, institutions, procedures, social
relations and infrastructures whereby parties engage in exchange.
2.13. Demand
Demand is the utility for a good or service of an economic agent, relative to a budget
constraint.
2.14. Supply
Supply is the amount of a product or service which is available to customers.
2.15. Application Software
Application software is all the computer software that causes a computer to perform
useful tasks beyond the running of the computer itself. A specific instance of such
software is called a software application, application program, application or app.
2.16. ICT Infrastructure Management
Information and Communication Technology (ICT) management processes recommend
best practice for requirements analysis, planning, design, deployment and ongoing
operations management and technical support of an ICT infrastructure.
2.17. ICT Design and Planning
ICT design and planning provides a framework and approach for the strategic and
technical design and planning of ICT infrastructures. It includes the necessary
combination of business (and overall IS) strategy, with technical design and architecture.
2.18. ICT Operations Management
ICT operations management provides the day-to-day technical supervision of the ICT
infrastructure. Often confused with the role of incident management from service
support, operations has a more technical bias and is concerned not solely with incidents
reported by users, but with events generated by or recorded by the infrastructure.
2.19. ICT Technical Support
ICT technical support is the specialist technical function for infrastructure within ICT.
Primarily as a support to other processes, both in infrastructure management and service
management, technical support provides a number of specialist functions: research and
evaluation, market intelligence, creation of documentation (perhaps for the operational
documentation library or known error database).
2.20. ICT Deployment Management
ICT deployment provides a framework for the successful management of design, build,
test and roll-out (deploy) projects within an overall ICT program. It includes many
project management disciplines in common with PRINCE2, but has a broader focus to
include the necessary integration of release management and both functional and non
functional testing.
CHAPTER 3
DISCUSSION
3.1. IT Career in Indonesia
From the research conducted by Economist Intelligence Unit for the demand skill in
South-east Asia, it shows Indonesia high skilled demand sectors are coal and other
mining, oil and gas, steel, transportation
equipment, tourism, food and beverage,
shipping, textiles, information technology, and defence.
From the data, we can make conclusion that Information technology skill is quite high
for the job demand. Indonesian government also concern about the development in
Information and communication technology (ICT). As we can see that nowadays, many
sectors in the industry have implemented the information technology to support the
business process.
So that, the IT career opportunity in Indonesia is high. Based on the research,
Indonesia ICT work force is keeping growing, we may see through the table below:
Table 3.1 Top 6 Countries with the Largest Estimated ICT Workforce
Mostly skills that are needed for the ICT in Indonesia are IT applications, IT
infrastructural, IT security, and IT Usage.
Table 3.2 ICT Skills for Domestic Market at Various Phase of ICT Diffusion
Those skills can be changed as long as the time pass by with the Information
Communication and Technology development. Every country may have different
requirements for the skills.
Here is the segmentation of the IT market in Indonesia
Figure 3.1 Indonesian IT Market Segments
Based on the survey conducted in 2003, it shows that the IT market segmentation,
it show that Indonesia focused on the hardware segment, because of at that time
Indonesia started to implement the ICT. But, nowadays the IT career opportunity is wide,
because the globalization that requires the technology support. This globalization may
also provides the working opportunity for Indonesians, by allow the multinational
companies operate in Indonesia.
3.2. The Indonesian IT Professionals In ICT Compared With Other Countries
IT Professional is spread worldwide including Indonesia, however the growth of
IT Professional in each country is different. In Indonesia, since it has 250 million citizens
we can confirm that the growth of the IT Professional needs to be taken down more
seriously compared with smaller countries.
Besides, from the obvious fact we can see that the spread of IT Professional in
Indonesia is uneven which makes citizens’ experiences in IT Professional in some parts of
Indonesia are far behind in some urban cities in Indonesia. This, however has caused
several problems with generalizing the IT Professionalism level in Indonesia. This one
problem has obviously become our main problem to grow fast and overcome other first
world countries in Asia region, such as South Korea, Japan or Singapore.
Based on the Economist Intelligence Unit survey is still low.
Figure 3.2. Skill Shortages in Indonesia
As it has been stated above the ICT in Indonesia can be considered left behind.
The main cause is about the concern in investing the ICT infrastructure to support the
learning process. The cost may also to be the consideration for an institution to introduce
and implement the ICT especially in the education institution, so that’s why people will
reject to learn the ICT.
3.3. How People in Indonesia can Quickly Absorb New Technology and What are the
Obstacles for Them to Absorb the New Technology
People who are born in technology era like nowadays are introduced to technology
much faster than people in the previous generation, therefore the absorption of
technologies in their life is actually very easy. It happens everywhere including Indonesia.
Indonesians can be concluded as one of the citizens of a country who are adopting
growing technologies fastly and can accept them in their life.
Generalising, Indonesians are very open with new technologies and are making
use of them to the best. Though however, in some rural parts of Indonesia it is still
unreachable but our government is trying to spread the technologies to the whole country
evenly. We understand that it is a hard work but we believe by everyone helping to spread
new technologies to all parts of the country, it will help the country to grow advance
toward first world countries.
However, we seriously need to filter what new technologies we need to accept and
implement. Some people who are not highly educated may just think that by accepting
and using any of new technologies they will somewhat gain a further step for
globalisation era. This may be correct in some parts, but also may be dangerous in some
ways.
By keeping up-to-date, not only we can adapt to the current world’s situation but
we can also make the best of technologies and reduce waste that are done by nontechnology tools beforehand. But to be seriously considered, this may also be dangerous
in some ways.
We put in an example: an E-Reader. E-Books have been very popular among
students and employees nowadays because they can purchase it (or even download it for
free) and they can bring lots of “books” inside an E-Reader anywhere and anytime,
without extra weight and space.
But E-Books might not be as green as you think.
An E-Reader device has a carbon footprint of around 50kg. Furthermore, we need
electricity to charge the E-Reader every now and then. Especially if you use it often, you
may need to charge it more often right? The average paperback book, meanwhile, has a
carbon footprint of 1kg, no matter how many times you read it. This has clearly shown us
that not every technology would bring us more good than harm.
A book called : “How Bad Are Bananas – The Carbon Footprint Of Everything”
by Mike-Berners Lee clearly stated about how much carbon footprint that we produce by
using the latest technologies released around us and we really need to readvise everyone
to be careful in adopting new technologies.
As for the obstacles of Indonesians to absorb new technologies, our first opinion is
about the budget. As more than 50% Indonesians are living in middle level to low
economy, technologies become expensive things for them and some of them considering
their economical status, may hinder themselves to absorb technologies.
Another opinion is that some people may still have conservational mindset that the
traditional ways of living life is better than technologies. We can honestly see in rural
areas that there are actually many people there prefer living a modest life than absorbing
the unknown technologies.
Which people cannot force them to begin with, because it’s the human right to live
the way they want to. People have rights on how they want to live their life, this may be
another obstacle of absorbing technologies for Indonesian, especially those who are living
in rurals and feeling better with living with natures which we cannot blame on.
But seeing the higher demands, and it keeps growing, that slowly but sure
everyone needs to accept technology as their staple needs of life in the future. We also
seriously advise engineers and inventors to consider their technology inventions to be
more eco-friendly and consider how will it impact our beloved Earth.
3.4. IT in Banking Sector
The development of information technology allows banks to offer services to
customers at lower cost. However, the application of sophisticated information technology
may create operational risk related to fraud, the unreliability of information systems and
discontinuity of operation. Therefore, rules of conduct in the application of information
technology are necessary for banks.
Compared with the development of IT in other countries, the application of IT in
Indonesian banks is still relatively low. Based on the survey conducted by the Committee
on Payment and Settlement Systems (2000), there is no bank in Indonesia offering
services or products related to electronic money (e-money). E-money is defined as stored
value or prepaid products in which a record of the funds or value available to the
consumer is stored on a device in the consumer’s possession.
One of the implementation of IT in banking is the use of e-banking. At first stage,
e-banking only provide communication and information rather than transaction facilities
but now not only communication and information but also the use of transaction is also
available. Many banks implements e-banking in Indonesia to helps their customer in
making transaction and manage their account. Below is the list of e-banking in Indonesia
from wikibooks.org:
 1998 Sep, Bank Internasional Indonesia
 2000, Bank Niaga
 2001, Bank Bukopin
 2001, Bank Sentral Asia (BCA)
 2003, Bank Mandiri
 2005, Bank PermataNet
 2006, Bank Permata e-Business
 2007, Bank Negara Indonesia
 Bank Lippo
 2008, Bank Danamon Indonesia
 2009, Bank Rakyat
 2010, Bank Mega
Advantages of Internet banking :
 Convenience – Banks that offer internet banking are open for business transactions
anywhere a client might be as long as there is internet connection. Apart from periods
of website maintenance, services are available 24 hours a day and 365 days round the
year.
 At the touch of a button, actual time account balances and information are availed. This
hastens the banking processes hence increasing their efficiency and effectiveness.
 Online banking allows for easier updating and maintaining of direct accounts.
 Friendlier rates – Lack of substantial support and overhead costs results to direct banks
offering higher interest rates on savings and charge lower rates on mortgages and
loans.
 Some banks offer high yield certificate of deposits and don’t penalize withdrawals on
certificate of deposits, opening of accounts without minimum deposits and no
minimum balance.
 Transfer services – Online banking allows automatic funding of accounts from long
established bank accounts via electronic funds transfers.
 Ease of monitoring – A client can monitor his/her spending via a virtual wallet through
certain banks and applications and enable payments.
 Ease of transaction – the speed of transaction is faster relative to use of ATM’s or
customary banking.
Disadvantages of Internet banking
 Banking relationship – Customary banking allows creation of a personal touch
between a bank and its clients. A personal touch with a bank manager for example can
enable the manager to change terms in your account since he/she has some discretion
in case of any personal circumstantial change. It can include reversal of an undeserved
service charge.
 Security matters – Direct banks are governed by laws and regulations similar to those
of customary banks. Accounts are protected by Federal Deposit Insurance Corporation
(FDIC).
 Complex encryption software is used to protect account information. However, there
are no perfect systems. Accounts are prone to hacking attacks, phishing, malware and
illegal activities.
 Learning – Banks with complicated sites can be cumbersome to navigate and may
require one to read through tutorials to navigate them.
 Transaction problems – face to face meeting is better in handling complex transactions
and problems. Customary banks may call for meetings and seek expert advice to solve
issues.
With the development of technology, internet banking is also improving and really
helps customer in effective and efficiency of banking transaction. Although they have
advantages and disadvantages they bound to improve the economic lifestyle in Indonesia.
CHAPTER 4
CONCLUSIONS AND SUGGESTIONS
4.1. Conclusions
The ICT Career in Indonesia is keep growing. The high demand the ICT employee
is because of many companies realize the importance of Information Communication and
Technology supports in running the business to compete with the competitor. Nowadays,
schools also introduce the ICT to the students and also government that supports the
development of ICT in Indonesia. Skills that are demanded for ICT employee in Indonesia
are IT applications, IT infrastructural, IT security, and IT Usage
Comparing Indonesians ICT skill with South-east Asia countries, we may
conclude that Indonesia is still low and left behind. The main cause of this is the rejection
from Indonesians to learn ICT. This rejection is caused by the cost and the lack of
investment for the learning facilities. But now government highly concerns about the
investment in ICT, because it may influence the national economic growth.
Nowadays, Indonesian people are aware of the ICT and start keeping update with
the trends of ICT. Generalizing, Indonesians are very open with new technologies and are
making use of them to the best. By keeping up-to-date, not only we can adapt to the
current world’s situation but we can also make the best of technologies and reduce waste
that are done by non-technology tools beforehand. However, we seriously need to filter
what new technologies we need to accept and implement. But to be seriously considered,
this may also be dangerous in some ways. As for the obstacles of Indonesians to absorb
new technologies, our first opinion is about the high budget. Another opinion is that some
people may still have conservational mindset that the traditional ways of living life is
better than technologies.
The development of the ICT will trigger the interest in learning ICT in every
sector, one of these sectors is Banking. E-Banking is common service that is provided by
Bank to make the customers do transaction easier. E-Banking technology in Indonesia is
considered as low quality especially related with the security system. But, by using the EBanking services may give the customer some advantages, such as convenience, ease of
transfer service, ease of monitoring, and doing other transaction. The disadvantages of the
E-Banking are the bank relationship, security that need complete data encryption and
sometimes there is a condition where conducting face to face meeting is better.
4.2. Suggestions
 Keep updating with the development of technology is important in order or to survive
in the globalization era.
 As a learner we may not stop learning new things, in order to improve the knowledge
and skill.
 Government should support the activities that will give advantages to country, such as
IT infrastructure.
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