Indonesia's programs to expand and modernize its telecommunication network and services offer big opportunities for telecommunications equipment and service providers to participate in its telecommunications development.  During the years 1989 - 1994, telecommunications have become the most rapidly growing sector in Indonesia.  Telephone lines installed have increased from one million to three million during these years.  For REPELITA VI (1994-1999), The Ministry of Tourism, Post and Telecommunications (MTPT) plans to develop 5,000,000 lines, plus 600,000 cellular telephone lines. 

Network availability now exceeds 99 ppercent-high by Asia-Pacific standards.  There are now two international gateways instead of one, and three new subsea cables terminating in Indonesia, so traffic can be automatically routed via another path in case of an outage.  ISDN backup is
also available in only major cities.  The government recently allowed two international frame relay carriers- Concert Communications Co. (Reston VA) and Equant Network Service Ltd (London) to extend their networks into the country.  The government is loosening its grip and considering new teleom investments, but plans to hold off long-distance and international service
competition service until 2005, and local services until 2010. 
Source: http://web6.infotrac.galegroup.com

Basically, domestic telecommunications services, including telphone(local and long distance dials), facsimile, computer data communication via modems, and telegraph services, are provided by a state-owned enterprise, PT. Telekomunasi Indonesia (PT.Telkom).  PT.Telkom provides for more than 150 towns in the country that have been directly connected to 196 countries via international direct dials(IDD).  Local telphone lines are connected by local dial(LD) and long-distance dial(LDD).  PT. Telkom has exclusive rights to providing domestic telecommunications services in Indonesia until 2010, and control over long distance services until 2005.

International telecommunication services are provided by two national communication satellite operators, PT.Indosat, which uses a 001 prefix, and PT.Satelindo, which uses a 008 prefix.  PT.Indosat is a state-owned enterprise, while PT.Satelindo is a fully private enterprise.  Application for telphone line connection can be done at the nearest counter of PT.Telkom.  One who has a telephone line installed may also install a standard facsimile machine for LD,LDD and IDD or a FastFax interface connected to the Internet for all dials with LD rate, or install a modem for computer data interchange, or connect to the Internet global information network via an Internet Service Provider(ISP).  Besides stationary telephone systems, there are cellular telephone service players, such as TelkomSel, Satelindo GSM, XL GSM, Komselindo AMPS, etc; some equipped with roaming system for the nationwide and global dials. 
Source: http://members.tripod.com/indoexpo/Infrastructure/telephone.htm

Indonesia planned to introduce ISDN in 1989 as part of a $4.5 billion project to expand and improve its infrastructure in data communications and increase availability in phone lines.  A $8.6 million fiber optic system was already completed in 1989 that links the main airport in Jakarta with many exchanges in the city. 
Source: http://web6.infotrac.galegroup.com

Telephone Mainlines: 
    per 1000 people 1997 = 25 
    in largest city per 1000 people 1997 = 105 
    per employee 1997 = 131 
    revenue per line $ 1997 = 508 
    cost of local call $ per 3 minutes 1997 = .04 

International Telecommunications: 
    outgoing traffic minutes per subscriber 1997 = 71 
    cost of call to U.S. $ per 3 minutes 1997 = 4.69 
Source: http://www.worldbank.org/data/

Telephone System: 

Domestic Service (Fair) - inter-island microwave system and HF radios police net; domestic satellite communication system 

International Service (Good) - satellite earth stations; 2 Intelsat (1 Indian Ocean and 1 Pacific Ocean) 
Source: http://www.odci.gov/cia/publications/factbook/id.html

V-Sat: 

V-Sat service is presently a popular modern means of networking and online telecommunication system.  There are several V-Sat service companies in Indonesia, sharing transponder with Palapa series domestic satellites of PT.Indosat or PT.Satelindo 

Satelindo: PT Satellite Palapa Indonesia: Satellite Telecommunication services, cellular digital mobile phone, global telecommunication services through IDD code "008" 
Source: http://members.tripod.com/indoexpo/Infrastructure/V-Sathtm