Building a digital economy is where the future lies, especially in a place like Bali, which is so dependent on tourism and its associated businesses. Although not the only driver, Bali's tourism industry is the most obvious beneficiary of a more digital playing field, especially as so many people now offer alternative accommodations such as homestays in areas further away from the main tourist hubs of Badung in the south; and marketing and managing these options effectively, will be likely be key.

The free WiFi programme for Bali is meant to look at the needs of local people who would benefit most from easy Internet access and help drive rural economies in this fast paced era of globilization, commented Ketut Kariyasa Adnyana, Secretary of the Bali DPRD Commission III. 

Kariyasa went on to explain this initiative is not just for ease of information but for community development because "in rural areas there are now also many local products, MSMEs and agricultural products that need price information, marketing and better knowledge distribution. This includes accessing regulations related to rules, how to compile the rules and transparency."

How will this impact Bali's property industry?

Speaking from a real estate perspective, Terje Nilsen, Principal of Harcourts Seven Stones thinks better, more comprehensive Internet access "will help to further increase transparency on land and property prices as well as rentals all over Bali. The bottom line here means there will be better tax transparency, which is becoming an issue right now.  We always advise our clients to follow rules and regulations; especially regarding taxes, but when the taxable value of property in areas like Canggu is as high as it is, it simply doesn't make sense and buyers look elsewhere. Hopefully transparency will help to increase market confidence."

eCommerce Cooperation

On a regional level, the Minister of Trade also recently announced ASEAN members had signed the world's first eCommerce cooperation agreement designed to support the digital economy in the region at the 17th ASEAN Economic Community Council in Singapore.

The significance of these moves to provide greater Internet access and to jump start new economies should not be underestimated. According to Antara News, following the recent World Conference on the Creative Economy in Bali, Sri Mulyani, Indonesia's Minister of Finance, has voiced her support for the creative and digital industries to be the driving force behind the national economy.

In line with these plans and commitments to regional partners, Bali looks set to increase the number of WiFi access points on the island from the current 300 to just over 4,000 next year.

Bali Smart Island Initiative

Ida Bagus Ketut Agung Ludra, Head of Diskominfos in Bali (the Public Communication Resources Section, Information and Statistics Communication Agency) told Berita Bali the installation of free internet to the village level was part of the 'Bali Smart Island' programme and had a budget of almost IDR 10 billion to achieve it.

All parties concerned are aware of the number of "bureauctratic hoops" to jump through, including effective and efficient coordination between departments, districts and cities.

Nobody seems to be under the illusion that the initiative will be an easy roll out and those in charge are aware there will be challenges. Kariyasa was first to admit communities need to be careful of online fraud, the spread of pornographic content and hoaxes, especially as Indonesia moves into its general election period in 2019. "This is indeed a challenge, not just a challenge at the village level, but also a national challenge." he said.

Opening the Information Highway

Lecturer at the Faculty of Social and Political Sciences, at Udayana University, Ni Made Ras Amanda Gelgel, agreed with this assesment saying free WiFi would open an extraordinary information tap but care would need to be taken as not all information is good or suitable.

Amanda told local press that "Wifi is only a tool," and as with any tool there needs to guidance and instruction. "The substance is Internet literacy or social impact rather than using the gadget itself," she said, adding that she hoped the government would not only provide free WiFi but also record and evaluate its usage to support and protect Internet users and be diligent over the hidden costs associated with running and maintaining the system.

Chairperson of the Bali Sruti Foundation, (The Voice of Women in Bali), Dr. Luh Riniti Rahayu also said free Internet access to the village level was a good step forward. With villages connected centrally, solutions to problems would also be expedited. But according to Riniti one of the most important aspects to consider at this time is the readiness and ability for pre-Millenials to accept radical digital change.

Who's clicking what?

Figures released by the Indonesian Internet Service Providers Association (APJII) indicate that almost 55% of Indonesia's population of 262 plus million people use the Internet, an increase of more than 7% on 2016.

Regional numbers are revealing. In Java, Internet penetration is just over 58% but in Bali that figure is as low as 5.6% according to Berita Bali's reporting of the APJII report.

When age is the benchmark, the majority of Internet users are between 13-18 years old, followed by the 19-34 age range. And of these the majority (more than 51%) are male. According to Amanda Gelgel, Facebook is accessed by 17.5% of the Internet community in Bali every day.

Sources: Antara News, Berita Bali, Channel News Asia

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