Telkom Budgets IDR 40 Trillion For Capital Expenditure This Year

The board of directors of PT Telkom Indonesia Tbk. (Photo: Doc. Telkom)

JAKARTA - PT Telkom Indonesia (Telkom) has provided a capital expenditure (capex) budget of IDR 40 trillion for 2022. Until the first quarter of 2022, Telkom's capital expenditure realization has only reached IDR 6 trillion or around 16 percent of the total budget capex as a whole.

Telkom's Director of Finance and Risk Management Heri Supriadi said the capital expenditure was equivalent to 25 percent of Telkom's revenue. This budget will be used by the TLKM-coded issuer to carry out several company development activities, especially in the digital field.

"Especially we will spend (shopping) on digital connectivity both at the parent company and at Telkomsel, digital platforms, digital services, data centers, strengthening cloud capabilities," he said at a virtual press conference, Friday, May 27.

Furthermore, Heri said that until the first quarter of 2022, the realization of Telkom's capital expenditure only reached Rp. 6 trillion, or about 16 percent of the total capex budget as a whole. Heri admits that this achievement is still quite small.

"We hope there will be acceleration starting in Q2, until we finally finish everything in Q4," said Heri.

As previously reported, Telkom has decided to distribute dividends of Rp. 14.86 trillion or Rp. 149.97 per share to shareholders. This figure represents 60 percent of the company's net profit obtained in 2021.

The decision was taken through the Annual General Meeting of Shareholders (AGM) which was held on Friday, 27 May.

"Earlier, it was very clear that a total dividend of IDR 14.86 trillion or 60 percent of the net profit from 2021 of IDR 149.97 per share would be distributed," said Telkom President Director Ririek Adriansyah.

On that occasion, Ririek also said that 40 percent of the company's net profit for 2021 or Rp. 9.90 trillion will be retained for the company's business development in 2022 in the fields of digital connectivity, digital platforms and digital services.

"Including data center development and strengthening cloud capabilities, which are expected to be the engine of future revenue growth," he said.

Ririek said the dividend of Rp149.97 per share will be paid to Telkom's shareholders on July 1.

Furthermore, Ririek also explained that the shareholders who are entitled to receive dividends are those whose names are recorded in the company's shareholders at the close of trading as of June 9, 2022.

"In the future, there are still many Telkom programs that will be carried out in the future as part of the transformation of the Telkom Group to become the people's choice," said Ririek.