Telkom Optimistic Performance 2023 Maintained, Ensures 5BM Transformation Runs Smoothly

JAKARTA - PT Telkom Indonesia (Telkom) continues to carry out the transformation that has been launched by the company since the last two years. Director of Strategic Portfolio Telkom, Budi Setyawan Wijaya said that through the main strategy of Five Bold Moves (5BM), this strategic step began to show a positive signal and is expected to be a potential for the sustainability of the company in the future.

This year's Telkom continues to transform through the Five Bold Moves strategy as an effort to increase value for the sustainability of competitive and profitable companies. After the implementation of the FMC which was carried out last July, this time we are accelerating the TelkomGroup data center business to be stronger, both in terms of capacity and capability," Budi said during the Public Expose Live 2023, Thursday, November 30.

The Fixed Mobile Convergence (FMC) initiative is aimed at serving high-speed and reliable broadband demand. Since July 2023, TelkomGroup through Telkomsel which focuses on running a Business-to-Consumer (B2C) business has prioritized cost optimization, customer convergence, and cellular channel maximization. FMC is projected to show good efficiency results as planned by the company.

Currently, Telkom through its subsidiary Telkom Data Ecosystem is managing the operation of the Hyperscale Data Center Cikarang and building the Hyperscale Data Center Batam. In the future, in addition to focusing on the expansion and development of data centers, Telkom is also open to strategic cooperation with global partners to improve value as the center of the digital ecosystem.

Meanwhile, Telkom's Director of Finance and Risk Management, Heri Supriadi explained the company's performance. As of September 2023, Telkom posted positive growth of 2.2 percent YoY to IDR 111.2 trillion, driven by data service growth, Internet & IT of 4.8 percent YoY to IDR 63.4 trillion.

"This achievement is in line with the increasing income of IndiHome and the continued transition from the legacy business to data," said Heri.

The company also recorded EBITDA of IDR 59.1 trillion with an EBITDA of 53.1 percent margin, an increase from 52.2 percent in the first half of 2023. Meanwhile, net profit grew 17.6 percent YoY to IDR 19.5 trillion during that period. In terms of the company's expenses, there was a decrease in the cost of depreciation and amortization by 3.7 percent YoY to IDR 24.1 trillion and a decrease in marketing costs by 6.9 percent YoY to IDR 2.6 trillion.

As of September 2023, Telkom has used the company's capital expenditure to reach IDR 22.1 trillion or 19.9 percent of total revenue. This capital expenditure is focused on developing telecommunications network infrastructure for a better digital experience for customers.

"With the performance that has been maintained until the third quarter, we are optimistic that Telkom can record positive and profitable performance for the 2023 financial year, as well as the progress of the company's main strategy realization which is expected to be a breath of fresh air to provide optimal value for stakeholders and investors later," explained Heri.