Advantages of Digital Business at PT Telkom Indonesia

Rancakmedia.com - PT Telkom Indonesia (Persero) Tbk (Telkom) managed to record the company's consolidated revenue during the first half of 2021 of IDR 69.5 trillion. This revenue achievement grew by 3.9 percent year on year (YoY).

Meanwhile, Telkom's earnings before interest, taxes, depreciation and amortization (EBITDA) reached IDR 37.8 trillion or grew 4.7 percent YoY. Meanwhile, consolidated net profit reached IDR 12.5 trillion or grew 13.3% YoY.

With this performance, Telkom's EBITDA margin, which was originally 54 percent in the first half of 2020, will become 54.4 percent in the first half of 2021.

Meanwhile, the net profit margin, which was originally 16.4 percent in the first half of 2020, has now increased significantly to 17.9 percent in the first half of 2021.

Director of Finance and Risk Management of Telkom, Heri Supriadi, believes that this growth has occurred because Telkom always maintains a focus on work and is consistent in implementing business strategies.

"Telkom will continue to implement business strategies and focus on work in three main areas, in order to maintain company profitability while ensuring that Indonesia's digitalization transformation can take place," he said at the Public Expose Live 2021 event which will be held online, Monday (6/9/2021).

Telkom's main strategy

Main Strategy of PT Telkom Indonesia

Telkom has three main strategies in developing digital business, namely build, borrow, and buy.

Through the build strategy, Telkom builds digital infrastructure capabilities and increases the competence of digital talent within the company. Thus, Telkom is able to provide optimal service to the community.

Furthermore, through the borrow strategy, Telkom partners with various large technology companies or tech giants on a domestic and global scale. For example, Telkom's cooperation with Microsoft Indonesia which was inaugurated in August 2021.

Finally, through the buy strategy, Telkom invests by prioritizing synergy values that can enhance TelkomGroup's digital capabilities.

Also read: First Semester 2021, Telkom Records a Net Profit of IDR 12.5 Trillion

For example, currently Telkom has made investments for large-scale digital companies as well as startups, originating from Indonesia and abroad.

Through Telkomsel, Telkom has added investment value for technology company GoJek in May 2021.

Then, through the company MDI Ventures or MDI Ventura, Telkom has also invested in more than 50 start-ups spread across 12 countries.

PT Telkom Indonesia's Digital Transformation

The digital transformation carried out by Telkom to become a digital telco has begun to have a positive impact on the company's performance.

The focus of Telkom's work in the realm of digital business is carried out through the company's three main domains, namely digital connectivity, digital platforms, and digital services.

In the realm of digital connectivity, Telkom has developed capacity and improved services by adding a fiber optic communication network of up to 1,898 kilometers (km) as of January-June 2021.

Meanwhile, the length of Telkom's fiber backbone network at the end of June 2021 has reached 169,833 kilometers (km), or the equivalent of four times the circumference of the earth.

Furthermore, in the fixed broadband business, through IndiHome, Telkom now serves more than 8,300,000 customers spread across 496 cities and regencies in Indonesia.

As of the first half of 2021, the number of IndiHome subscribers increased by 11.4% YoY.

The average value of revenue per user (Arpu) has also increased, from IDR 266,000 per first quarter of 2021, now to IDR 270,000 in the second quarter of 2021.

Meanwhile, in the mobile connectivity segment, the number of Telkomsel subscribers as of the first half of 2021 reached 169,200,000 million people, with active mobile data service users of 117.7 million subscribers.

The increase in the number of Telkomsel mobile data service users can be seen from the 54.5 percent YoY growth in mobile data traffic to 6,573,499 terabytes.

Telkomsel continues to add base transceiver stations (BTS) in various regions. Currently, Telkomsel has 237,300 BTS. A total of 187,048 units of which are based on 3G and 4G.

Telkomsel claims that BTS will continue to grow in line with the increasing need for mobile internet access.

Furthermore, in the TelkomGroup telecommunication tower business, Telkom has transferred ownership of 4,000 telecommunication tower units owned by Telkomsel to Mitratel by the end of August 2021.

With the transfer of ownership, Mitratel already has more than 28,000 telecommunication towers spread throughout Indonesia, both in urban, sub-urban and rural areas.

As for the digital platform, Telkom is actively developing data centers, along with increasing cloud computing service solutions, big data, internet of things (IoT), cyber security and various products that facilitate financial transactions.

Currently, Telkom has 26 integrated data centers. A total of 21 data centers are located domestically, and five others are located overseas, including tier 3 and 4 data centers located in Jurong, Singapore.

Telkom is also building a large-scale data center or hyperscale data center (HDC) with a total capacity of 75 megawatts (MW).

The construction of the first phase of HDC with a capacity of 25 MW is expected to be completed by the end of 2021.

Meanwhile, in the digital services domain, Telkom has provided services for digitizing various sectors, such as education, health, agriculture, logistics, micro, small and medium enterprises (MSMEs), and tourism.

For the needs of the community, Telkom has also provided financial technology (fintech), video streaming and gaming services.

"The positive impact of digital transformation that Telkom is carrying out will not make us complacent. We are committed to continuing to maintain and improve the quality of services and digital products for all levels of society," said Telkom Director of Finance and Risk Management Heri Supriadi, in a written statement received by Kompas.com, Tuesday (7/9/2021).

Conclusion:

PT Telkom Indonesia (Persero) Tbk (Telkom) managed to record the company's consolidated revenue during the first semester of 2021 of IDR 69.5 trillion. This revenue achievement grew 3.9% year on year (YoY), while earnings before interest, taxes, depreciation and amortization (EBITDA) reached IDR 37.8 trillion or grew 4.7% YoY.

The net profit margin, which was originally 16.4% in the first quarter of 2020, has now increased significantly to 17.9% in the same period. Director of Finance and Risk Management Heri Supriadi believes this is due to consistent work focus and consistency in implementing business strategy.

Until the end of June 2021, Telkom's fiber backbone network has reached 169,833 kilometers (km), or the equivalent of four times the circumference of the earth. In the fixed broadband business, through IndiHome, Telkom now serves more than 8,300,000 customers spread across 496 cities and regencies in Indonesia.

The number of active cellular data service users is 117.7 million subscribers. Telkom has 26 data centers that are integrated with each other, 21 of which are located within the country, and the other five are located abroad. Also building a large-scale data center or hyperscale data center (HDC) with a total capacity of 75 megawatts (MW).

The first phase of HDC development with a capacity of 25 MW is expected to be completed by the end of 2021. In the domain of digital services, it has provided services for digitizing various sectors, such as education, health, agriculture, logistics, micro, small and medium enterprises (MSMEs), and tourism.

Back to top button