Slow internet speeds, high latency and network costs are common problems in Indonesia, hindering the growth potential of the country’s digital economy. Efficient Internet exchange is a solution that can significantly improve internet performance in Indonesia.

In this article, we’ll explore the internet exchange in Indonesia and its benefits. Discover how internet exchange can unlock the full potential of Indonesia’s digital economy with faster and more reliable internet connections.

Definition of Internet Exchange 

Before we learn more about internet exchange in Indonesia, let’s find out first about what internet exchange is.

In simple terms, an Internet Exchange (IX) is a physical infrastructure that allows internet service providers (ISPs) and content providers to directly exchange internet traffic. Instead of routing traffic through third-party providers, ISPs can connect to an internet exchange point and exchange traffic with other ISPs on the same network.

It’s like a big meeting point for ISPs where they can interconnect and exchange traffic without having to go through a middleman. This can help to improve internet speeds, reduce latency, and lower costs.

Read more: What is an Internet Exchange Point? What are the Advantages?

History of Internet Exchange in Indonesia

The Indonesia Internet Exchange (IIX) was established in 1997 by the Indonesian Association of Organizing Internet Service (APJII) to improve the quality of internet service in the country. The primary aim of IIX was to facilitate the traffic between internet service providers (ISPs) and reduce the need for expensive international transit. With several offices throughout Indonesia, the IIX enables ISPs to directly exchange traffic with each other at a reasonable price, eliminating the need to pay for bandwidth.

The IIX has been successful in improving the quality and reliability of internet services in Indonesia as proven by the growing internet traffic since their establishment. As a certified interconnection network for ISPs to operate legally in Indonesia, the IIX began accepting peering from other companies in 2011. This move proved beneficial to registered ISPs, as they no longer needed to pay for bandwidth. Instead, the only cost incurred was for the physical link, such as optical fiber, which varied for every ISP.

In response to the growing need for a more open and accessible internet exchange, the Open Internet Exchange Point (OIXP) was established in 2005 by PT Internetindo Data Centra, also known as IDC. Unlike the IIX, the OIXP provided an independent, community-driven platform that allowed organizations, such as banks and universities, to connect without any fees. This approach quickly made the OIXP Indonesia’s largest internet exchange point.

The OIXP operates independently, relying on a community of experienced network admins to resolve any issues. This unique structure not only fosters collaboration but also ensures that the exchange remains neutral and accessible to all users. Today, there are over 400 direct peering partners that connect to the Open IXP for free, and efforts are being made to connect it to other regional IXPs to further improve Indonesian internet access and growth.

As a result, both the IIX and OIXP have played significant roles in the development and growth of internet infrastructure in Indonesia. While the IIX provides a certified interconnection network for ISPs, the OIXP offers an open and accessible platform for a broader range of users. Together, these two exchanges continue to contribute to the improvement of internet services in the country.

Benefits of Internet Exchange in Indonesia 

Internet exchange has several benefits that have contributed to the growth of Indonesia’s digital economy, for example:

1. Faster internet speeds

With internet exchange, ISPs can directly exchange traffic with each other, reducing the need for expensive international transit while also significantly improving internet speed. This results in faster and more reliable internet connections for Indonesians, enabling them to access online services and information with ease.

2. Lower latency

Latency is the time delay that occurs when data is transmitted over the internet. With internet exchange, ISPs can connect to each other directly, reducing the number of hops that data must make, resulting in lower latency. This can be beneficial for online activities that require low latency, such as online gaming, video conferencing, and real-time data transmission.

3. Cost-effectiveness

By exchanging traffic directly with each other, ISPs can reduce the need for expensive international transit, which can be costly. This can result in cost savings for ISPs, which can be passed on to consumers in the form of lower prices. As a result, more Indonesians can access the internet and enjoy the benefits of the digital economy without incurring high costs.

Conclusions

Slow internet speeds and high latency in Indonesia have been significant challenges for the country’s digital economy in the past. However, the presence of local Internet Exchange (IX) has been a game-changer to Indonesia’s internet ecosystem. IX in Indonesia, such as the IIX and OIXP, enable ISPs to directly exchange traffic with each other. This direct exchange leads to faster internet speeds, lower latency, and cost savings for ISP. As a result, these benefits can be passed on to consumers, contributing to a more efficient and cost-effective internet experience in the country.

Internet Exchange in EDGE DC

As a Cloud, Carrier and IX neutral facility, EDGE DC prioritizes connectivity by offering a diverse Internet Exchange (IX), including IIX, CLOUDXCHANGE, and Digital Edge EPIX. This enhances performance and reliability for colocation customers while enabling direct traffic exchange with various ISPs and networks, resulting in lower latency, reduced transit costs, and improved network performance.

We provide tailored interconnection services, such as cross-connects, private network connections, and peering services, allowing clients to build flexible and scalable network architectures. Our experienced team ensures top-notch service quality and customer satisfaction. To learn more about our interconnection services and how they can benefit your business, please feel free to contact us.