Telkom Indonesia Eyes Various Companies to Strengthening the Business

PT Telkom Indonesia Tbk (IDX: TLKM) admitted has joined other cellular provider PT Indosat Ooredoo Tbk (IDX: ISAT) bidding - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian telecommunication provider, PT Telkom Indonesia Tbk (IDX: TLKM) admitted has joined other cellular provider PT Indosat Ooredoo Tbk (IDX: ISAT) bidding to acquire part of its towers. Beside Telkom, publicly listed tower operator PT Menara Sarana Tower (IDX: TOWR) also joined the bidding process.

“Yes we are joined the bidding. If we win we will put the new tower under PT Mitratel management,” said Finance director Telkom Harry Zein today (08/19) in Jakarta.

Recently, Indosat announced to release as much as 3,000 unit towers to other parties. Its hope the transaction will have values over than US$300 million.

Beside Indosat, Zein stated, Telkom also in talks with PT Bank Rakyat Indonesia Tbk (IDX: BBRI) to launch the state-owned lender’ second satellite in 2023. He added, “Not much information right now cause still in the process. But we assured it will be win-win solution for both parties.”

Furthermore, he continued, Telkom and power producer, PT Perusahaan Listrik Negara have a discussion to partnering in access service. No further details on the plan.

On the e-commerce platform Bhinneka.com deal, Zein explained, Telkom Indonesia still calculating the acquisition planned but admitted his party open to collaborating with several leading e-commerce companies in developing its digital businesses.

Some local media reported, Telkom wants to acquire 51 percent of Bhinneka’ shares. However, both companies did not confirm the size and the value of the acquisition.

The company itself has an e-commerce subsidiary with brand Blanja.com collaboration with United Staes’ e-commerce player eBay. While, Bhinneka was founded by Hendrik Thio, Nicholas, Johannes, Darsono, and Tommy in 1993 focus on the distribution and sale of IT products.

The 1997-1998 economic crisis made Bhinneka change its business model into an online shop. Currently, Bhinneka applies an online to offline (O2O) business model by having several physical outlets.

This year the operator targeting to spend Rp35.31 trillion of capital expenditure, or 27 percent of last year total reveneus Rp130.78 trillion. The funds not including for acquisition planned.

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 Telkom 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.

US$1: Rp14,200

by Linda Silaen, Email: linda.silaen@theinsiderstories.com