Economic Value of Equalization of Access and ICT Infrastructure for Rural Communities

Abstract

The government has initiated access and telecommunication infrastructure equalization program in Indonesia by deploying BTS to provide signals in the frontier, outermost, and least developed (3T) regions and providing rural internet access services. Government investment through the provision of telecommunications and internet access in rural areas is expected to be able to provide economic benefits for improving the people’s welfare. This study aims to identify the economic benefits of equitable access and infrastructure in rural areas (mainly 3T villages) with the Ranti Generic IS/IT Business Value Table. Based on the study results, it can be concluded that in ideal conditions, equitable access to the internet and telecommunications infrastructure can contribute directly to cost efficiency for rural communities by reducing distribution costs and telecommunications costs. Also, the use of telecommunications and internet access can improve the people’s welfare by increasing business capacity and expanding market segmentation.