Telkom Responds GoTo's Falling Shares: Common, May Be Unrealized Gain May Be Unrealized Loss

GOTO share listing. (Photo: Doc. GoTo)

JAKARTA - The dynamics of stock prices are common, responding to the stock price of PT GoTo Gojek Tokopedia Tbk, which has been corrected quite a bit recently.

Telkom Senior Vice President, Corporate Communication & Investor Relations Ahmad Reza said, stock prices could fall deeper but could also rise quite high, in accordance with market conditions, both global and regional.

"The dynamics of stock prices are a common occurrence. For example, last year, we recorded an unrealized gain on GoTo's investment of IDR 2.5 trillion. But now there can be an unrealized loss," Reza said in a statement in Jakarta, Monday, May 16, quoted from Antara.

When Telkom Group makes a decision to invest in a company, it does not only consider the profit and loss aspect.

But it is also believed to consider broader aspects, such as synergy in efforts to build a larger national digital ecosystem, one of which is through the Telkom Group's investment in GoTo.

With Telkom Group's investment in GoTo, it is believed that it will create excellent collaboration and synergies such as presenting special programs for Gojek Partners and easy onboarding of Gojek Partner merchants to become Telkomsel resellers, easy access for resellers through GoShop, and security features such as number masking.

The Gojek-Tokopedia merger is expected to further strengthen Telkomsel's investment in Gojek to become a complete digital solution with a high enough value synergy value.

"Telkomsel also provides solutions for Gojek drivers and merchants to increase engagement through the use of digital connectivity services and Telkomsel's advertising platform. So with this synergy program, we hope to create sustainable value-added for both Telkom, GoTo, and Indonesia in future," said Reza.

The policy of the United States Central Bank (US) The Federal Reserve (The Fed) raised its benchmark interest rate by 50 basis points (bps) or 0.50 percent, causing all global stock indexes to experience selling pressure.

Investors, both in Indonesia and globally, flocked to release their shares and switch to converting their money into US dollars. The shares that are released by many investors today are issuers in technology companies.

Even Softbank through its investment Vision Fund recorded a record loss of 27 billion US dollars or IDR 395 trillion due to the decline in stock prices due to the Fed's policy of raising its benchmark interest rate last week. Its shares closed down 11 percent when compared to last month's stock price.

Shares of technology companies in Indonesia have also suffered a similar fate to the investments made by Softbank. Digital bank issuers such as Bank Jago (ARTO) and market places such as BukaLapak (BUKA) and Gojek Tokopedia (GOTO) experienced quite deep corrections.

Despite the correction, Reza believes that the prospect of the digital industry in Indonesia is still quite promising. With the low public penetration of digital services, the potential for the digital industry in Indonesia has the potential to continue to increase.