PT Telekomunikasi Indonesia Tbk - Company Strategy Report
PT Telekomunikasi Indonesia Tbk (Telekom) is one of the leading telecommunications providers in Indonesia, with a significant presence in both the mobile and fixed service segments. It also offers cloud-based and server-based managed services, e-Payment services and information technology (IT), e-Commerce and other portal services. Telekom plans to focus on disruptive competitive growth and enhancing its customers’ experience of its services through collaboration, acquisition and synergy.
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Telekom’s focus on investments to drive future growth
Telekom has been focusing on investments to drive growth and profitability. For instance, in August 2016, Telstra Ventures and PT Metra Digital Investama, Telkom Indonesia’s corporate venture arm, signed a memorandum of understanding to jointly explore investment opportunities in the growing technology start-up sector in South East Asia. It is expected to invest US$25 million in 10 start-ups. The investments will bring the company access to new revenue streams and cutting-edge technology, thereby paving the way for better services.
Initiatives to improve network quality have reduced annual churn
Telekom’s annual churn rate decreased from 138.6% in 2012 to 117.1% in 2016. The company has been continuously undertaking initiatives to improve network quality across the country. For instance, Telkom Group added 24,770 km of fiber network in 2016, meaning that the total fiber optic cable infrastructure reached a total of 106,000 km. This improvement has led to customer retention.
Telekom has been reporting growth in mobile subscriptions
Telkom Indonesia’s mobile subscriptions grew at a CAGR of 7.2%, from 125.1 million in 2012 to 165.2 million in 2016. It also witnessed a Y-o-Y growth of 8.2% in 2016. The growth is attributed to the growing postpaid and prepaid subscriptions and the company’s focus on the development of its “IndiHome Triple Pay” service.
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