CHAPTER I INTRODUCTION

A. Latar Belakang
The development of information technology around the world has been accelerating,
because it cannot be denied that now has entered the era of the industrial revolution 4.o or
even there are already some countries that will surpass it. In this case, Indonesia still needs
attention, because Indonesia's current status is still in the stage of adjustment to the
industrial revolution 4.0. Utilization of technology to obtain this information will be
crucial for the country because its adjustment will facilitate access to information between
regions or between regions or even between countries so that it will facilitate the process
of accessing information, with time and cost efficient, in economic, educational, social and
economic activities. etc. Of course this will also support the progress of a nation.
Therefore, every country always tries to increase the availability of telecommunications
infrastructure in its region.
According to data from the Central Statistics Agency in 2018 there was a slowdown
in the growth rate for the communication and information sector in Indonesia. Can be seen
from the following graph:
Picture 1.1 The Growth rate of the Information and Communication Sector in
Indonesia in 2018

The growth rate of the information and

communication sector (%)
12.00
9.70 9.63
10.00 8.88
7.02
8.00
6.00
4.00
2.00
0.00
2015 2016 2017 2018

Source:BPS,processed

The graph can show that in 2018 the information and communication sector slowed down
by 2.61%. This turned out to be in line with the slowing growth rate of the number of
internet user households. As presented in the following graph:
Picture 1.2 The Growth Rate Number of Household Internet Users in Indonesia in 2018

Growth Rate Number of Household

Internet Users (%)
22.85
25.00
19.27
20.00 16.83
13.85
15.00
10.00
5.00
0.00
2015 2016 2017 2018

Source:BPS,processed
 It can be seen if the growth rate of internet users also slowed by around 6.02%, and
the fluctuation is also almost the same between the growth of the Information
Communication sector and the growth of internet users households in 2015-2018. It cannot
be denied if the current communication information technology that has high potential is
the internet, because its use has become a major component of communication information
in economic and social activities. Therefore, the demand for the internet can support the
growth of the Information and Communication sector.
These problems are the background of this research. The researcher wants to identify
the factors that influence internet demand in Indonesia. This research is entitled "The
Factor That Effects on Internet Demand in Indonesia 2018".

B. Objective
1. Knowing what factors have a significant influence on internet demand in Indonesia in
terms of information and communication infrastructure, employment, and distribution
in Indonesia in 2018.
2. Knowing how the influence of the percentage of households of Mobile Phone users,
the percentage of household users of computers, the percentage of villages that have
strong signals in each province, the proportion of working population, and dummy
areas for internet demand in Indonesia in 2018.

C. Formulation of The Problem

1. What are the factors that influence internet demand in Indonesia in 2018.
2. What is the effect of the percentage of households of Mobile Phone users, the
percentage of households of computer users, the percentage of villages that have
strong signals in each province, the proportion of working population, and dummy
areas for internet demand in Indonesia in 2018.

D. Benefit
1. The results of the study are expected to be used as a basis for consideration for the
Government in planning the development and distribution of information and
communication sector infrastructure in Indonesia in the future.
2. The results of this study can be used as study material in conducting further research
that is constructive
 CHAPTER II LITERATURE REVIEW

A. Theoritical Review
Demand Theory
According to T. Gilarso Demand is the willingness or ability of buyers to buy a
certain number of goods at a certain price level. While the offer is the amount of a
particular item that wants to be sold at various possible prices during a certain period,
ceteris paribus. The desired condition of supply and demand conditions is the equilibrium
condition.
This research will discuss the demand for internet from Indonesian people with a
household approach to accessing the internet in the last 3 months. Supply conditions can
be demonstrated from the development of information and communication infrastructure
in Indonesia. Then the expected condition is the creation of a balance between demand and
supply.
Internet
According to Ahmadi and Hermawan (2013: 68), the Internet is a global
communication network that connects all computers in the world despite different
operating systems and machines. So the internet is a strategic information system to use,
because of its easy and efficient use. With the internet communication can be done using
email, social media, and others. Therefore, its use can also increase productivity at work,
because communication is important at work.
Media and Telecommunications Infrastructure supporting internet access
There are various media that can be used to access the internet, such as computers and
mobile phones. For infrastructure supporting internet access, such as the construction of
the Base Transceiver Station tower that functions as a messenger and receiver of signals
from the user's mobile phone (Mobile Station). So that its presence can affect the strength
of the signal network in the area.
Proportion of people employed
This proportion explains the proportion between the number of people working with
the total workforce. With the data on the proportion of the number of people working in
each province, it can be seen how the absorption of labor in the province.
B. Framework of Thinking
In using the internet, the first thing that is needed is the communication media. If
someone has a communication media that can be connected to the internet such as a
cellphone or computer, then there will be a desire to access the internet through that
media. That way the ownership of mobile phones and computers can support the demand
for the internet. Besides, that territorial factors can also affect demand for the internet. the
uneven development of telecommunications infrastructure in all regions of Indonesia and
even so far is still concentrated in the Java-Bali region with eastern regions that are still
lagging behind can also be a factor for internet demand where in the Java-Bali area it is
easier to access the internet.
In addition to the imbalance in infrastructure development, it can also be seen from
the imbalance of the economy, which causes differences in the purchasing power of the
internet and its communication media by the people. In addition, the signal strength factor
also determines internet demand in an area. If there is no signal in an area then internet
users will have difficulty in accessing the internet, so the demand will be small. So that the
number of villages that have strong signals in an area will affect internet demand. This
strong signal strength is certainly supported by adequate telecommunications
infrastructure for example such as the construction of the Base Transceiver Station (BTS)
tower.
Another factor that can also affect internet demand in Indonesia is the large number of
people working. Because it is undeniable, in this day and age, the use of the internet is
needed to increase productivity in his work. Because at work it usually takes a means for
communication where the use of the internet can facilitate. In addition, there are now more
and more digitized jobs. Related research conducted by Kalmus, et al (2011) whose
research results show that the internet use of Estonian residents aged 15-74 years is
influenced by social demographic factors, one of which is the use of the internet at work.
Picture 1.3 Framework Of Thinking

Percentage of
Households with + Household
Mobile Phones demand for
+ internet
Percentage of
Households with
Computer +

+
Proportion of the
Population
Employed +

Percentage of
village with Strong Region
Signal

C. Penelitian Terkait
According to related research conducted by Rafly, M et al (2016) that technological
infrastructure factors such as household ownership of communication media such as
mobile phones have a significant positive effect on internet use. In addition, in his research
also mentioned if regional factors also have a significant effect on internet usage in
Indonesia.
Further related research was carried out by Kalmus, et al (2011) whose research
results showed that the internet use of Estonian residents aged 15-74 years was influenced
by social demographic factors, one of which was the use of the internet at work.