Jakarta, 6 September 2021 – The digital transformation that PT Telkom Indonesia (Persero) Tbk (Telkom) has been conducting to become a digital telco began to yield positively on the company's performance. Telkom's work focus in digital business is carried out through three domains; digital connectivity, digital platforms , and digital services . The company continues to develop various products and services, along with simultaneous quality improvements to ensure that the community needs are met.

Throughout the first half of 2021, Telkom has developed capacity and improved service quality in digital connectivity. From January to June 2021, Telkom extended the length of its fiber optic-based communication network to 1,898 km that until the end of June, the length of its fiber backbone network has reached 169,833 km or the equivalent of four times circumventing the earth.

In fixed broadband business, Telkom through IndiHome now serves more than 8.3 million customers in 496 cities and regencies in Indonesia. IndiHome subscribers per semester I/2021 grew 11.4% year-on-year (YoY), and was followed by an increase in the average revenue per user (ARPU) from Rp266 thousand in the first quarter of 2021 to Rp270 thousand in the second quarter of this year. The increase in IndiHome ARPU shows there was an increasing customer need for quality of access speed and diversity of content through IndiHome add-ons services.

Telkom also provided excellent service in the mobile connectivity segment through Telkomsel. As of semester I/2021, Telkomsel subscribers reached 169.2 million, out of which 117.7 million are active users of mobile data services. Telkomsel users' high activity in accessing the internet was evident from the growth of data traffic in the mobile segment by 54.5% YoY to 6,573,499 Terabytes.

Telkomsel continues to increase the number of Base Transceiver Stations (BTS) in various regions. There are now 237,300 BTS that Telkomsel owns, most of which are 3G/4G-based. The number of 3G/4G-based BTS has reached 187,048 units, and will continue to grow along with the increasing public demand for mobile internet access .

In the telecommunication tower business, at the end of last August, Telkomsel transferred ownership of additional 4,000 telecommunication tower units to Mitratel. With the transfer of ownership, Mitratel owns more than 28,000 telecommunication towers throughout Indonesia in urban, suburban and rural areas. This step further strengthens TelkomGroup telecommunication tower portfolio and strengthens Mitratel's steps as the largest tower provider in Indonesia, which supports TelkomGroup's and other tenants' various needs. Mitratel is prepared to optimize the next value creation through even bigger corporate actions.

In digital platforms, Telkom is actively developing data centers, along with increasing cloud computing service solutions, big data, IoT, cyber security and various products that facilitate financial transactions (payments). The data center is one of the platforms with a significantly growing demand in line with the increase in digital business activities. Telkom has 26 integrated data centers, of which 21 are located at home and five others abroad, including tier 3 and 4 data centers located in Jurong, Singapore. Telkom is also building a large-scale data center (Hyperscale Data Center/HDC) with a total capacity of 75MW, which is projected to complete the first phase of construction with a capacity of 25MW by the end of 2021.

In digital services, Telkom comes with various digital services and products aimed at the ecosystem and society. Telkom provides services for digitizing various ecosystems such as micro, small, medium enterprises, education, health, agriculture, logistics, and tourism. Meanwhile, for community needs, Telkom provides fintech services, video streaming, and gaming .

"We will not be complacent with the positive impact of Telkom's ongoing digital transformation. We are committed to continuing to maintain and improve the quality of services and digital products for all levels of society. This process will continue until Indonesia's digital sovereignty is formed, which can be realized if we have an equitable digital environment, the realization of a digital society, and the development of the digital economy. Telkom always strives to support the realization of Indonesia's digital sovereignty by focusing on digital connectivity, digital platforms, and digital services. We must undertake fulfilling this digital need to make the vision of an Advanced Indonesia 2045 a reality," Telkom Finance and Risk Management Director Heri Supriadi said at the online Public Expose Live 2021 (6/9).

Telkom's digital business development runs smoothly thanks to the execution of three strategies; build, borrow, and buy. Through 'build', Telkom has been building its digital infrastructure capabilities and increasing its digital talent competence within the company, to provide excellent services to the community.

Telkom executes its 'borrow' strategy by forging continuous strategic partnerships with various domestic and global tech giants, such as forging an agreement for cooperation with Microsoft Indonesia in August. 

The 'buy' strategy execution is evident in a number of investments with priorities in synergy value that can boost TelkomGroup's digital capabilities. For example, Telkom has disbursed investments for large-scale digital companies and startups from Indonesia and abroad. Through Telkomsel, Telkom has added value to its investment in technology company GoJek in May 2021. Through the MDI venture company, Telkom has also invested in more than 50 startups in 12 countries. Through this investment, the company is aiming at increasing capital gains and focusing on generating synergies in TelkomGroup's digital business.

A well-maintained work focus, accompanied by consistency in executing its business strategies, has made Telkom successful in recording the company's consolidated revenue growth of 3.9% YoY to Rp69.5 trillion. Telkom's profit before interest, taxes, depreciation and amortization (EBITDA) was Rp37.8 trillion or grew 4.7% on an annual basis. The company's EBITDA margin also rose from 54.0% last year to 54.4% in the first semester of 2021. Meanwhile, Consolidated Net Profit reached Rp12.5 trillion or grew by 13.3% YoY in the first half of 2021. With this performance, net profit margin reached 17.9%, increased significantly from 16.4% in semester I/2020.

“Telkom will continue to implement its business strategy and work focus in three main areas, to maintain the company's profitability while ensuring that Indonesia's digitalization transformation can take place. For the rest of the year, we believe that digitization efforts and national economic recovery will accelerate thanks to the government's ongoing vaccination drive and plan to alleviate the Covid-19 pandemic. We will move forward together with various elements of the industry, global tech giants, local champions, and startups, offering the best digital solutions for the community, in order to realize Indonesia's digital sovereignty to become the host in its own country, be able to compete on the international and international scene, and become a regional champion. Telkom believes that through digital technology, Indonesia can grow into a better nation and country in the future," Heri said.

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