JAKARTA (TheInsiderStories) – The country’s telecommunication provider PT Telkom Indonesia Tbk (IDX: TLKM) sharpened its nails in the financial technology (FinTech) business by acquiring a mobile payment company from Hungarian.
PT Metranet, the digital service provider arm of Telkom and Hungarian mobile payment company Cellum Global Zrt. have signed a memorandum for a strategic cooperation in Budapest on Tuesday (30/1) to acquire a 30.4 per cent stake in Cellum in two steps.
Cellum has been expanding in Asia since 2014. The cooperation with Metranet is the next step in the company’s quest to become a key player in the region.
Cellum Global Chairman-CEO János Kóka did not disclose the scale of Telkomʼs injection in Cellum but claimed it is the biggest investment on the Hungarian FinTech marketKóka was quoted as saying by online news portal napi.hu.
“The partnership enables us to raise our business activities to a higher level in Indonesia and the region. According to leading analysts, Indonesia is currently one of the world’s hottest FinTech markets,” said Kóka.
Joddy Hernady, vice president for media and digital services at Telkom added: “Telkom plays a leading role in the digital transformation of Indonesia, of which financial technology is an indispensable element.”
Kóka shouting Cellumʼs FinTech platform is already used by Indonesiaʼs state motorway management agencyʼs digital toll payment system in test operation.
According to him, Cellum will spend the invested capital on product development and innovation, including development of banking and telecommunication services, developing blockchain technologies and market development in Indonesia.
Last year, Telkom has announced will acquire three foreign firms as part of an effort to expand its businesses. Telkom it said dealt with FinTech and satellites, and had a total worth of Rp 10 trillion (US$746.27 million) investment to reach it.
Furthermore it said, the move is part of Telkom Indonesia’s merger and acquisition initiative, adding that it would also expand its tower business through its subsidiary, PT Dayamitra Telekomunikasi (Mitratel).
David Sutyanto, an analyst of First Asia Capital, said that Telkom had the financial capability to carry out an expansion without disrupting its finances. Last year, the company has allocated up to Rp 29 trillion of capital expenditure.
Indonesia, as the largest economy in Southeast Asia, has maintained close to 5 per cent annual GDP growth in the past five years. It added that the Telkom group has more than 130 million customers in the country of 261 million people, half of whom are aged under 30.
Telkom is partly state-owned, partly in private hands, and its shares are traded on the Indonesian Stock Exchange and on the New York Stock Exchange, which lists it as “TLK”. Government of Indonesia is the majority shareholder with 52.09 per cent shares while the remaining 47.91 per cent shares belong to public shareholders.
TelkomGroup currently manages six business portfolios that serve four customer segments, namely corporation, residential, individual and others.
In accordance to the development of digital technology and company transformation, Telkom introduced a new vision and mission in 2016, which are Be the King of Digital in the Region and Lead Indonesian Digital Innovation and Globalization.
TelkomGroup is focused on its TIMES (Telecommunication, Information, Media, Edutainment & Services) digiyal portfolio with a convergent and seamless services that provides high value for the customers.
Metranet which was formed since April 17th, 2009. In its development, various business initiatives have been carried out, such as: mobile content, commerce, online ticketing, and social network game publishers.
On November 17th, 2011, Metranet started a new round in conducting strategic cooperation with Microsoft, by presenting online media PlasaMSN (umsn.co.id). Entering 2012 Metranet initiated a cooperation with global partners in the field of e-commerce, eBay. As result, in September 17th,2012 cooperation with eBay is substantiated by forming a joint venture with a new name, PT Metra Plasa.
In line with business transformation of the company, Metranet is currently focusing on developing mobile and online media business by increasing online visits, enriching services, and optimizing the monetization process. This transformation accomplished in 2 (two) business portfolio of UAd and UPoint.
Contact me: firstname.lastname@example.org