Local broadband initiative and shared duct policy in Indonesia

The role of government in telecommunication infrastructure provision is important in developing countries as weak demand and high deployment cost exists, limit private initiative. As ICT infrastructure is substantial, some local government implemented a local broadband initiative to provide access both to internal demand as well as public services. The local autonomy Act also grants local government broad authority on regulating the broadband development. The initiative mostly has a positive impact even though some practice hinders broadband expansion, considering the variance of regulation increased administrative cost as well as mandated monopoly in some area. Bandung municipality exercise shared duct policy to accelerating its broadband development and meet city planning as well as gaining direct revenue from broadband business and investment. Despite optimism from the local government, the policy has failed to reach its goal due to the absence of anchor legal framework, diminishing the opportunity for resource allocation and sounded local policy. Moreover, lack of human resources effected on shared duct business sustainability, and discouraged operator in utilising shared duct and questioning the sustainability. The government need to overhaul law on telecommunication, to meet broadband era and provide an opportunity for local authorities in broadband development as well as sounded foundation policy.