PT Indosat Ooredoo Tbk (IDX: ISAT), a telco provider based in Indonesia, prepared a capital expenditure up to Rp8 trillion (US$571 million) in this year - Photo by the Company

JAKARTA (TheInsiderStories) – PT Indosat Ooredoo Tbk (IDX: ISAT), a telco provider based in Indonesia, prepared a capital expenditure around Rp8 trillion (US$571 million) in this year, said the CEO today. The jumbo funds will be used to upgrade and expand its networks with a focus on developing 4G LTE (long term evolution) and video grade networks.

President Director and CEO of the operator, Ahmad Al-Neama, commented, “We are sure that growth will continue into 2021 and will be better than 2020, with the consideration of economic improvements and developments in the COVID-19 case.”

He optimistic that the growth will be in line with the EBITDA margin targets around 45 percent. Director and CFO of Indosat, Eyas Naif Assaf, added that this year the company targeting revenues growth in line with the industry. In 2020, he reported, the provider posted a net loss of Rp716.72 billion from a year ago still booked a net profit of Rp1.56 trillion.

He also announced, the company revenues increased by 6.92 percent from Rp26.11 trillion in 2019 to Rp27.92 trillion. The biggest increase contribution came from cellular revenues Rp23.06 trillion. Number of subscribers grew 1.7 percent to 60.3 million users by the end of 2020. In the same year, the average revenue per user increased to Rp31,900 from Rp 27,900, driven by a significant increase in data traffic of 52.8 percent in annual basis.

Last month, the management of Indosat announced to leave the satellite businesses and focus on digital services. As an alternative, the company is exploring cooperation with global tech firm Google Inc., in providing internet access to remote areas. As known, the ministry of information and communication interested in using the Google internet balloon project or Goole Loon to distribute the fourth generation (4G) internet access to remote areas.

Google Loon has a wider range and can fly above an altitude of 20 kilometers from the earth’ surface. Indosat has released Nusantara Satellite 2 orbit slot at 113 east longitude. However, the satellite failed to launch due to technical problems with the launcher rocket.

Initially, the unit of Qatar’ Ooredoo Q.P.S.C, run the satellite business through PT Palapa Satelit Nusa Sejahtera. On Oct. 21, 2020, the company sold 43.48 percent shares of the subsidiary to PT Pintar Nusantara Sejahtera and PT Pasifik Satelit Nusantara, the other shareholders of the operator.

The company also in the process of the potential merger with other telco operator, PT Hutchison 3 Indonesia (Tri Indonesia), after the parent signed an exclusive and non-binding memorandum of understanding with Hong Kong’ CK Hutchison Holdings Ltd. The agreement period will end on April 30, 2021.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com