Telco operator, PT Telkom Indonesia Tbk (IDX: TLKM) plans to spend around Rp35.9 trillion (US$2.49 billion) in this year to strengthen the network and infrastructure and digital segment - Photo by the Company

JAKARTA (TheInsiderStories) – Digital business and a payTV provider IndiHome become a locomotive driver of of PT Telkom Indonesia Tbk‘ (IDX: TLKM) revenues in the midst of disruptive and intense competition, said the operator on Tuesday (05/27). In 2019, the company posted a consolidated revenues of Rp135.57 trillion (US$9.04 billion), grow 3.7 percent compared to 2018 and the net profit rose 9.5 percent to Rp18.66 trillion. 

In the Mobile segment, through its subsidiary PT Telekomunikasi Selular (Telkomsel), the company grabbed 171.1 million customers with 110.3 million mobile data users. It said, the growing need for data services amid the massive digital lifestyle has pushed data traffic to grow by 53.6 percent to 6,558 petabytes.

As a result, Telkomsel‘ digital business revenues grew quite significantly by 23.1 percent to Rp58.24 trillion compared to previous year. The revenues contribution from digital business increased to 64 percent of the cellular provider’ total revenue, from 53 percent in 2018.

In 2019, the operator has built a new 23,162 4G LTE Base Tranceiver Station (BTS) would reach more than 90 percent of the population. At the same year, its unit had a total of 212,235 BTS with 161,938 units including 3G/4G BTS.

In the consumer segment, IndiHome‘ revenue rose 28.1 percent to Rp 18.3 trillion. The number of customers grew by 37.2 percent to 7 million customers by the end of 2019.

The enterprise segment also improved with revenue of Rp18.7 trillion and contributed 14 percent to consolidated revenue. While, the wholesale and international business segment’ revenue jumped 5.2 percent to Rp10.61 trillion, which contributed 8 percent to the consolidated income.

Last year, Telkom has spent Rp36.59 trillion or 27.0 percent of total revenue for business expansion. Beside buidl new BTS, the company joined with private tower operator, PT Protelindo have acquired 3.100 towers of PT Indosat Ooredoo Tbk (IDX: ISAT) for Rp6.39 trillion. 

The publicly listed firm also injected more capital to its venture capital armed, PT MDI Ventures of $500 million to widens the digital business. State own enterprises minister, Erick Thohir had a concept to shift Telkom become a data business provider.

“Mr. CEO has a concept of how Telkom starts moving to cloud and big data. Its smaller in business now, when there is Google, Amazon, Alibaba,” he said on Feb. 22.

Last year, finance director of Telkom, Harry M. Zen has said, the operator prepared funds around Rp1 trillion to build new data centers. The company has acquired lands across the country for the planned.

The telecommunication and network provider currently owns and operates 11 data centers in Indonesia under its subsidiary PT Sigma Cipta Caraka, also known as Telkomsigma. In Singapore and Hong Kong, the operator owns four data centers under Telekomunikasi Indonesia International Pte. Ltd. (Telin Singapore).

He reported, the construction of the new data center its expecting starting this year and will be operated by Telkomsigma.  On Feb. 26, Chinese Huawei Technologies Co., Ltd., and Telkomsel have signed a memorandum of understanding to accelerate development of Digital Indonesia in Barcelona, Spain.

It said, both parties will cooperate to accelerate ecosystem and infrastructure development of fully connected digital in Indonesia. Through this agreement, both parties will develop Joint Innovation Center 5.0, digital services exploration and talent development to support the building of Digital Indonesia.

Telkom as a group managed six businesses portfolios such as mobile, fixed line, wholeshale & international, network infrastructure, enterprise digital, and consumer digital. The Government of Indonesia owned 52.09 percent of the company shares while the remaining 47.91 percent shares belong to public.

Telkom’ shares are traded on the Indonesian Stock Exchange and on the New York Stock Exchange, which lists it as TLM.

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