Reaching IDR 20.59 Trillion Revenue, Indosat Still Loses IDR 457.5 Billion Due To Employee Expenses

Indosat building in Jakarta. (Photo: Indosat)

JAKARTA - The telecommunication provider company PT Indosat Tbk generated revenue of IDR 20.59 trillion during the first nine months or the third quarter of 2020. The revenue of the issuer coded for ISAT shares grew 3.1 percent compared to the revenue obtained in the same period the previous year, which was IDR 18 , 89 trillion.

Quoted from Indosat's disclosure of information on the Indonesia Stock Exchange (IDX) website, Tuesday, November 3, the largest contributor to Indosat's revenue still came from the cellular business line, amounting to IDR 17.03 trillion. Revenue for this line increased 12.9 percent year on year (yoy) due to an increase in data revenue.

This was followed by the multimedia, internet & data (MIDI) business line of Rp3.16 trillion, down 2.5 percent yoy due to lower revenues from internet services and IT services. Then the telecommunications line remained at Rp395.5 billion, in which that figure fell 24 percent due to a decrease in incoming traffic.

On the other hand, Indosat's expense items also increased by 7.2 percent, from the original IDR 17.33 trillion to IDR 18.83 trillion. One of the biggest was the increase in employee expenses, which rose 52.9 percent yoy due to the impact of organizational adjustments.

As is known, some time ago Indosat allocated IDR 663 billion as a compensation package, plus a bonus of IDR 18.3 billion to 667 employees affected by the company's business reorganization and termination of employment (PHK).

Therefore, Indosat has not succeeded in reversing the losses suffered. Throughout these nine months, Indosat has still recorded a loss for the period attributable to the owner of the parent company amounting to IDR 457.5 billion, higher than last year's loss of IDR 284.6 billion.

President Director & CEO of Indosat Ooredoo, Ahmad Abdulaziz AA Al-Neama, said that in the midst of fierce competition and the challenges of the COVID-19 pandemic, his party wants to continue to maintain the growth momentum and continue to be on the right path to realizing the turnaround strategy.

"We continue to be committed to providing the best telecommunication services for the people of Indonesia. At this time, we still place the health and safety of our employees as top priority and carry out the necessary policies to support them," said Ahmad Abdulaziz in a written statement received by VOI.

For information, Indosat's cellular subscribers have reached 60.4 million at the end of September 2020. This figure is an increase of 2.8 percent compared to the previous year, with an average monthly income per subscriber (ARPU) of IDR 31.7 thousand from the previous IDR 27.8 thousand. , as well as data traffic that grew by 54.7 percent over the previous year.