Photo by Telkom Indonesia

JAKARTA (TheInsiderStories) – ​Indonesia telecommunication service company PT Telekomunikasi Indonesia Tbk (IDX:TLKM) posted a 21.6 percent jump in net profit for the first nine months of this year, despite the spectacular and well-publicized lost satellite incident in August.

Net profit came in at Rp17.92 trillion (US$1.32 billion) for the January-September period, compared with Rp14.73 trillion a year earlier, the company said in a press statement Thursday. ​

Finance Director of Telkom Harry M. Zen said its digital business has enabled the company to achieve strong performance through September.

“Telkom will continue to increase the growth of its Data, Internet & IT Service segment, in line with the Government’s determination to make Indonesia the largest digital economy player in Southeast Asia,” He stated.

Data Segment, Internet & IT Service became the largest revenue contributor, amounting to Rp42.45 trillion. Meanwhile, Cellular Voice and Short Message Service revenues amounted to Rp38.68 trillion and Fixed Line Voice segment totaled Rp5.42 trillion.

Data by Telkom Indonesia

Through September Telkom has doled out Rp20.3 trillion in capital expenditures to build Base Transceiver Stations to support its mobile business and to complete the construction of backbone access and infrastructure, including satellite launches and the development of an international access Cable Communication System.

During October 2017, Telkom shares were under pressure due to various issues, among which were the impact of heavy net selling by foreign investors and rumors about company performance in third quarter.

Its subsidiary, PT Telekomunikasi Seluler (Telkomsel), recently won a government auction for the 2.3GHz spectrum, beating the competition from Excelindo and Indosat.

The Ministry will allow other bidders to submit their revised bids before officially announcing Telkomsel as the winner of the auction.

The availability of a new spectrum could help telco operators accelerate expansion and boost capital spending in Indonesia’s telecommunications sector, Fitch Ratings said.​

Writing by Elisa Valenta, Email: