Telkom officials say the company is close to wrapping up an acquisitions deal with AP Teleguam. (Photo courtesy of Telkom Indonesia)

Telkomtelstra: Slowing Growth Is a Market Opportunity


SEPTEMBER 18, 2015

Jakarta. Telkomtelstra, a joint venture between state-owned telco Telekomunikasi Indonesia and Australia's leading telecommunication company Telstra, remains bullish on its business prospects in Indonesia despite sluggish economic growth.

According to Phill Sporton, Telkomtelstra's president director, the company is ready to make the most of the tendency among Indonesian companies to quickly start reducing costs when the economy slows.

"There are many layoffs in IT and operational departments. Here's where we enter," Sporton said. "Telkomtelstra aims to tackle the business challenges faced by enterprises by helping them to optimize, develop and transform their business."

Telkomtelstra uses cloud-based technology, which it calls Managed Solutions services, to streamline a company's technological environment with an integrated package of network, cloud and other services.

The company opened both its office and a customer experience center in Jakarta on Thursday to introduce its technology to future clients. It has set a target of 50 corporate clients by the end of 2016.

So far, it has only signed one contract, with Schneider Electric Indonesia, a subsidiary of the French-based electricity distribution and automation management specialist.

Despite a slow start, Sporton and other top executives at the company remained upbeat on their long-term prospects.

"Our aspiration is obviously to grow the business to support Indonesian customers. We're putting whatever resources we need to put in [the joint venture] whether it's capital or people or intellectual property to make it successful," Telstra CEO Andrew Penn said on the sidelines of the launching event.

"We're very excited, very happy to be launching today. [...] It's all looking very promising and we're very pleased to be partnering with Telkom as our partner. I'm sure we'll meet our target," he said.