Telkom Indonesia

Increasingly Strong in High-End Market Segment, Telkom Ready to Accelerate Growth in Indonesia’s Digital Industry

BY :JG

MARCH 18, 2016

Jakarta, March 16, 2016  -  PT Telekomunikasi Indonesia, Tbk (Telkom) was able to yield Rp 23 trillion revenues from its ICT business in high-end market segment (enterprise, government, small-medium enterprise or SME) in 2015. It was a double-digit growth by 30% compared to 2014. The growth rate is far above the average growth of the ICT industry in the country’s high-end market segment, which was only at 12%. According to Awaluddin, such achievement has further strengthened Telkom’s position as a market leader amongst ICT providers in the high-end segment.

"This achievement is a manifestation of commitment shown by everyone in Telkom to continuously improve services and provide added value for customers, community and all stakeholders, by providing and developing world class information and communication businesses and services,” Awaluddin said.

Telkom’s Director of Enterprise & Business Service Muhammad Awaluddin said that the revenue performance exceeded the target. The enterprise segment contributed the most by 69% with 27% growth to the revenue performance. The small medium enterprise (SME) contributed 20% with 70% growth and government contributed 11% with 20% compared to last year.

The 2015 performance was marked by a shift in product portfolio and ICT businesses that were previously dominated by legacy voice and broadband connectivity portfolio. It is now shifted to digital solution and IT services portfolio. It is as a result of Telkom's response to rapid changes in regulations, ICT business opportunities ICT and digital technology. The change was characterized by a decrease in the market growth of traditional telecommunications service such as voice services, which impacted on the decline on Telkom’s business portfolio in legacy voice, including in the high-end market segment. In anticipation to the rapid dynamic changes, Telkom has prepared a business strategy to restrain the decline in legacy voice business, which currently contributes 15% to the revenues of high-end market.

"The results are quite satisfactory, Telkom was able to restrain decline in voice revenues, which were estimated to fall by 4% in 2015 to only 2%,” Awaluddin said.

The broadband connectivity portfolio in 2015 still showed a positive growth by 10% compared to 2014. The business portfolio contributed 29% revenues in the high-end market segment. Products such as data communication and internet connectivity became a mainstay in the group's portfolio, each contributing 20% ​​and 9% revenues in the high-end market segment.

Digital solutions and IT services portfolio in 2015 contributed 56% revenue in the high-end market segment.

Telkom’s digital business in 2015 experienced a significant growth. Telkom is massively working on ecosystem-based digital ICT industry.

"In this segment, Telkom concentrates on these product portfolios: data center, cloud, network managed services, enterprise mobility, smart building and big data," Muhammad Awaluddin said.

"Telkom’s digital solutions and IT services portfolio in the high-end market segment grew significantly by 77% in 2015. Therefore, the portfolio is expected to be the driving engine for Telkom’s revenue growth in the high-end market segment," he added.

The rapid growth in digital business in 2015 further strengthened Telkom’s corporate vision to be a "the King of Digital in the Region". In the future, Telkom will continue to work on the digital business, which is predicted to be the future of ICT industry in Indonesia.

According to AT Kearney, growth rate of ICT industry in the high-end market segment this year is projected to reach 15%. Equipped with its success and lessons learned in 2015, Telkom is optimistic that it can grow in 2016 with fairly aggressive growth plan.

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