Economic Observer From UGM: Telkomsel's Investment In GoTo Should Not Be Linked To Politics

JAKARTA - Gadjah Mada University (UGM) Economic Observer, Eddy Junarsin, suggested that PT Telkomsel's investment in the Gojek-Tokopedia or GoTo business combination should not enter the political sphere because it would hinder the investment plan of SOEs.

"If politicians come to the technical level, they are worried that SOEs will become stagnant and there is no desire to invest. There is a possibility that SOE companies are reluctant to invest. So there is underinvestment. The effect will certainly not be good", said Eddy Junarsin in a press release, quoted from Antara, Sunday, June 19.

Eddy explained that actually, those who have the right to question the investments of state-owned subsidiaries such as Telkomsel in GoTo are the majority share owners and commissioners. Moreover, this investment is part of the company's business development plan.

"If the investment is not by the core business but there are benefits, you can ask the board of directors for an explanation. Then if this investment is deemed not by the procedure or this investment is not in line with expectations, shareholders can replace the President Director through the mechanism of the Extraordinary General Meeting of Shareholders (EGMS-LB)", he explained.

Furthermore, Eddy added, the steps taken by Commission VI of the House of Representatives to form a Working Committee could hinder the President Director of Telkom and Telkomsel from modernizing the company, including optimizing new market potential due to the growth of digitalization. Moreover, if you look at Telkomsel's investment in GoTo, everything has gone through the applicable procedures.

In Telkomsel's investment in GoTo, all corporate governance has been fulfilled. It even got the blessing of Telkom and Singtel as owners of 35 percent of Telkomsel's shares.

The House of Representatives Commission VI Working Committee held a closed meeting with PT Telkom President Director Ririek Adriansyah and PT Telkomsel President Director Hendri Mulyana Syam, Tuesday, June 14.

After the meeting, Telkom's President Director, Ririek Adriansyah explained that Telkomsel's investment in GoTo was by the principles of Good Corporate Governance (GCG). According to him, the investment has gone through a process and initiation carried out by the team. Although the investment initiative was carried out by Telkomsel, the idea was later approved by Singtel.

"Investment in digital telecommunications is in line with the strategy of strengthening the three pillars, namely digital connectivity, digital platforms, and services", said Ririek.

Eddy Junarsin saw that Telkomsel's investment prospects in GoTo were very good. As the largest digital ecosystem in Indonesia, GoTo is considered to have a very large business growth opportunity. According to him, the stronger synergy of the three pillars of GoTo, namely on-demand, e-commerce, and fintech, will make this ecosystem grow faster.